Showing papers in "International Journal of Social Economics in 1996"
TL;DR: In this paper, the authors propose that, as a result of retrenchment and re-engineering, unemployment is escalating to catastrophic proportions, and that specific remedial actions need to be instituted to address this problem.
Abstract: Proposes that, as a result of retrenchment and re‐engineering, unemployment is escalating to catastrophic proportions, and that specific remedial actions need to be instituted to address this problem. Global unemployment of massive proportions has profound implications for the continued existence of capitalism as an ideology. Major alterations to the fabric of both international economies and socio‐political behaviour will take place if significant reverses to the trend of escalating unemployment do not occur. Proposes that, first, managers should become cognizant of the long‐term ramifications of this phenomenon, as only their interventions can affect this social/economic disaster. Interventions should be on three levels: short term, medium term and long term. Second, managers must develop an active interest in politics, as it is visualized that, in a geopolitical sense, business managers will replace politicians on all fronts. Politicians can simply not be entrusted with the survival of the human race on a global level. Third, recognition that there is a symbiotic relationship between company and customer will lead to the maintaining of surplus staff on company payrolls, in order to stimulate buying power. In order for this to be successful, inter‐company competition should be replaced by a co‐operative spirit internationally. It is believed that this fusion of two ideologies, capitalism and socialism (referred to as capisocism), is the only solution for the problems which are facing humanity and, in this sense, represents a radical departure from traditional capitalist thinking.
78 citations
TL;DR: For example, this paper found that men raised as Catholics or Jews have higher incomes than those raised as Protestants, other things being held equal, when the dependent variable used for the analysis is the logarithm of hourly wages.
Abstract: Does religious and denominational background still affect earnings and human capital investment? Several earlier studies suggest that they do, but all of these previous studies were conducted on data from the 1970s and early 1980s. Examines religious background and human capital formation for a sample of males from the National Longitudinal Survey Youth Cohort (1991). Provides survey information that makes it possible to control better the many components of family background in order to isolate the impact of religion and denomination. Uses the estimation of human capital earnings functions similar to Tomes’ (1984) method. Finds that men raised as Catholics or Jews have higher incomes than men raised as Protestants, other things being held equal. When the dependent variable used for the analysis is the logarithm of hourly wages, men raised either as Catholics or Jews were also found to have higher wages. Contains results from analyses of men within various Protestant denominations, as well as results for different racial and ethnic groups.
61 citations
TL;DR: In this article, a simple model of investment in exogenously formed two-person relationships is presented under different assumptions as to agents' homogeneity, pair formation and type observability.
Abstract: Discusses the concept of “relational goods”, defined as intangible capital assets that inhere in enduring interpersonal relationships and provide both intrinsic and instrumental benefits. They are local public goods that are formed or maintained through non‐contractible, co‐ordinated actions. Presents a simple model of investment in exogenously formed two‐person relationships and discusses the model under different assumptions as to agents’ homogeneity, pair formation and type observability. Discusses the possibility of endogenous type change and interprets it in terms of the evolution of cultural attitudes towards such a peculiar and fragile asset, as are relationships.
61 citations
TL;DR: In this paper, the authors define sustainable development as "development that secures increases in the welfare of the current generation provided that welfare in the future does not decrease" and consider four important sub-objectives of sustainable development, namely: equity and social justice issues, ecological issues, economic issues, and environmental issues.
Abstract: Raises the question, how can sustainable development be achieved and what are the limiting constraints in achieving it? Focuses on key conceptual issues of “sustainable development” with important operational implications for its attainment but is not designed to generate a general theory of sustainability. Uses the definition put forward by Peace and Warford, which defines sustainable development as “development that secures increases in the welfare of the current generation provided that welfare in the future does not decrease”. Using this definition, considers four important sub‐objectives of sustainable development, namely: equity and social justice issues, ecological issues, economic issues (maximizing service to a given stock of resources) and environmental issues (minimizing throughput to maintain a given level of stock). Using this framework, considers the conditions necessary for sustainable development, namely: maintaining a minimum population, reducing poverty, optimal depletion of non‐renewable resources, optimal depletion of renewable but exhaustible resources, preventing environmental degradation and improving energy efficiency. Also emphasizes the need to change the current measurement of growth which fails to account for sustainability principles.
49 citations
TL;DR: The authors discuss the differences between needs and wants, the reasons for these differences, and their scarcity and opportunity cost, and discuss the importance of the concept of scarcity as the cornerstone of economics.
Abstract: Starts from the premiss that the concept of scarcity is the cornerstone of economics. Discusses concepts of needs and wants. Reviews some views on the differences between needs and wants, the reasons for these differences and their scarcity and opportunity cost.
32 citations
TL;DR: In this article, a theory of globally interactive market processes is developed, in which markets are seen to be induced by and to regenerate circularly endogenous preferences and knowledge induction becomes epistemologically critical in such an evolutionary and interactive order.
Abstract: Examines critically traditional economic paradigms as well as those given by Hayek and Buchanan on markets with constitutional contracts in order to contrast them with yet another view of market ‐ that endogeneity of various political and economic processes creates a global system of interlinkages among and between policy variables and socio‐economic variables. By invoking the methodology and epistemology of such a system develops a theory of globally interactive market processes. In such a globally interactive system, markets are seen to be induced by and to regenerate circularly endogenous preferences. Knowledge induction becomes epistemologically critical in such an evolutionary and interactive order. Hence, these globally knowledge‐induced interlinkages generated by policy‐market interactions are made to establish and explain what is termed here as a system of social contracts.
24 citations
TL;DR: In this article, the authors argue that the serious environmental degradation occurring in two low island countries, Kiribati and Tuvalu, can be directly attributed to the lack of allocation of rights of access to, or exclusion of non rights holders from, common property resources.
Abstract: Argues that the serious environmental degradation occurring in two “low island” Pacific states, Kiribati and Tuvalu, can be directly attributed to the lack of allocation of rights of access to, or the lack of exclusion of non rights‐holders from, common property resources. A recommendation, resulting from research in the countries concerned, is that the governments must enforce their rights over lands and underground water, if these resources are to continue to provide benefits to the community and if disease incidence in the population (an outcome of open access to public resources) is to be reduced. For the management of inshore fisheries resources, it is suggested that rights of Island Councils are confirmed and reinforced by central government. In the case of the nations’ ocean resources, co‐operation between Pacific island states is required to manage access and exploitation by foreign vessels.
18 citations
TL;DR: In this article, the authors discuss the reform of the Russian economy, its severe economic decline, and how the transition to a market economy might be realized, and emphasize the institutions of the market economy and suggest that the current "shock therapy" reform programme of stabilization of the macro economy, liberalization of prices, and privatization of enterprises will not succeed in the absence of such institutions.
Abstract: Written in January 1994, discusses the reform of the Russian economy, its severe economic decline, and how the transition to a market economy might be realized. Emphasizes the institutions of a market economy and suggests that the current “shock therapy” reform programme of stabilization of the macro‐economy, liberalization of prices, and privatization of enterprises will not succeed in the absence of such institutions. These institutions include a system of property rights, a legal system, a sound currency, legal and regulatory agencies to prevent corruption and monopolization, a social safety net, and entities providing banking and credit, classified advertising, accounting, insurance and other services.
18 citations
TL;DR: In this article, a survey of traditional and non-traditional production activities of Aboriginal and Torres Strait Islander communities in Cape York Peninsula, North Queensland, Australia is presented, concluding that traditional methods of production practised by the indigenous societies are inherently sustainable but recognizing that population growth and poor economic prospects could exert pressure on the region's fragile ecosystem.
Abstract: Undertakes a survey of traditional and non‐traditional production activities of Aboriginal and Torres Strait Islander communities in Cape York Peninsula, North Queensland, Australia. Ecologically sustainable development issues in relation to indigenous people have not been paid much attention following the release of the Bruntland Report in 1987 and the Rio de Janeiro “earth summit” in 1992, which put forward a programme of action for achieving ESD by the year 2000 and beyond. Concludes that traditional methods of production practised by the indigenous societies are inherently sustainable but recognizes that population growth and poor economic prospects could exert pressure on the region’s fragile ecosystem. Efforts must be made to involve local people in resource management and planning, and social justice issues such as land and sea rights, unemployment, and the provision of basic infrastructure need to be resolved.
18 citations
TL;DR: In this article, the authors propose a new philosophy of organizational classification based on the UK's privatization experience, which offers a framework for identifying and delineating the boundaries of an emergent organizational type, the national enterprise.
Abstract: Argues that conceptually, privatization entails changing organizational status from public to private and from a monopoly to a competitive situation. In practice, the outcome may be different. Many privatized utilities conform to neither the traditional notion of the public nor the private enterprise. The broad dichotomy of the public‐private model of enterprise classification no longer provides an adequate insight to the workings of organizations in today’s environment. The new challenges emanating from the increasingly complex nature of modern environment require a new philosophy of organizational classification ‐ a reconceptualization of conventional paradigms. Based on the UK’s privatization experience, offers a framework for identifying and delineating the boundaries of an emergent organizational type ‐ the national enterprise. It is suggested that a clear articulation of the national enterprise concept might be useful to governmental strategists in planning the process of transforming state‐owned enterprises.
18 citations
TL;DR: The socio-economic psychology of Hong Kong favours market incentives rather than command-and-control policies as discussed by the authors, indicating that economic issues still dominate ecological concerns, support was found for a technology transfer theory of environmentalism.
Abstract: Proactive efforts are increasingly advocated to conserve scarce resources, prevent future deterioration of our natural environment and sustain economic development. The progress towards, and prospects for, such sustainable development in Hong Kong were recently investigated. The long‐standing role of the territory as an international gateway and a development model for the People’s Republic of China magnifies the significance of this research. Although business activities and consumer attitudes in Hong Kong indicate that economic issues still dominate ecological concerns, support was found for a technology transfer theory of environmentalism. The socio‐economic psychology of Hong Kong favours market incentives rather than command‐and‐ control policies. Entrepreneurial incentives, information to raise public awareness and effective environmental technology transfer can be the foundation of a strategic environmental management effort across Greater China.
TL;DR: In this paper, the relative weight of self-interest and sympathy in the theories of Hobbes, Hume and Adam Smith in an economic framework is analyzed in game-theoretic terms.
Abstract: Analyses self‐interest and sympathy in game‐theoretic terms. Evaluates the relative weight of self‐interest and sympathy in the theories of Hobbes, Hume and Adam Smith in an economic framework. Demonstrates through game‐theoretic tools that sympathy as an actuating motive in human nature gives rise to human interaction having other and, for organizations and societies, more beneficial characteristics than does merely self‐interested interaction. Uses the emphasis on the time factor and the importance of the future in Hume’s more than in Hobbes’ theory to show how co‐operation can emerge in large organizations. Introduces government or an organizational structure to further induce co‐operative behaviour.
TL;DR: In this article, a model giving an interpretation of the engine of economic development and growth, and business cycle is presented, based on a peculiar concept of dynamic competition, explaining innovation and uncertainty.
Abstract: Sets out a model giving an interpretation of the engine of economic development and growth, and business cycle. Based on a peculiar concept of dynamic competition, explains innovation and uncertainty and describes the way equilibrating and disequilibrating processes are intertwined and operate. Carries out concise application to successive stages of economic development, along with some econometric application, that demonstrates the degree of generality and flexibility of the theory proposed and provides a comprehensive interpretative tool and pictures of different growth processes and the crucial factors on which they depend.
TL;DR: The authors provides an historical overview of the country's economic performance and looks at past governmental policies, examining the impact of the return to power of the Labour Party in 1984 and providing a broad chronology of the reform measures as they have evolved.
Abstract: Assesses and appraises New Zealand’s economic restructuring between 1984 and 1994. Provides an historical overview of the country’s economic performance and looks at past governmental policies. Examines the impact of the return to power of the Labour Party in 1984 and provides a broad chronology of the reform measures as they have evolved. Examines the compatibility of micro‐ and macro‐economic policies and then looks at possible achievements.
TL;DR: In this article, the authors argue that it is impossible to carry out any analysis without making value judgements, and that the economist cannot escape this neither in theoretical analyses nor in applied studies.
Abstract: Shows the importance of heeding Clem Tisdell’s call to devote attention to values and to consider further the limitations of unbounded rationality models in economic research. Outlines the implications of a criticism of choice theory for environmental decision‐making. The critics of positivist philosophy of science show that it is impossible to carry out any analysis without making value judgements. The economist cannot escape this neither in theoretical analyses nor in applied studies. In relation to Clem Tisdell’s call to consider values without pontificating on them, it is important to make two points. First, the analysts should state as clearly as possible the values that guide their specific analyses. Second, they could provide the decision makers with a range of options that depend on different stakeholders’ ethical positions. Describes elements of the participatory decision‐making process. It is noted that this approach to evaluation may enhance the rationality of the choices; better represent the values of the various stakeholders; and allow an improved interaction between individuals and institutions.
TL;DR: The authors discusses the acceptance of garbage and waste by poorer nations as a public policy issue and balance the economic logic of the acceptance decision with various ethical considerations, concluding that waste should never be accepted but rather that the advisability of such a practice is destination-specific and must be assessed on a case-by-case basis.
Abstract: Recent years have seen the emergence of a new industry dealing in the international disposal of garbage and various forms of waste. Emerging nations have become disposal sites for materials emanating from the developed world. Attempts to explain the rationale behind the international waste trade. Discusses the acceptance of garbage and waste by poorer nations as a public policy issue. Attempts to balance the economic logic of the acceptance decision with various ethical considerations. Concludes that waste should never be accepted but rather that the advisability of such a practice is destination‐specific and must be assessed on a case by case basis.
TL;DR: In this article, the authors discuss the possibilities and limitations of external help to avoid a structural extension of the J-curve problem and the effects of anticipatory recessions, based on anticipated future expenditures of western countries for rebuilding eastern economies.
Abstract: Notes that most of the reforms in Eastern European countries have been piecemeal and have not constituted a comprehensive programme. Describes what a comprehensive programme consists of, why a J‐curve in output and employment arises and what consequences it has. Discusses the possibilities and limitations of external help to avoid a structural extension of this J‐curve problem. Notes that a comprehensive transformation programme includes institutional innovations as well as monetary disinflation policy, which produces recessionary J‐curve‐like output and employment costs. Also that effects of anticipatory recessions, based on anticipated future expenditures of western countries for rebuilding eastern economies (or for preventing economic decline and political disorder), may arise.
TL;DR: In Australia, the share in private income of the top quintile rose and that of every other quintile fell over the 1980s as discussed by the authors, and this increasing inequality seems to have been due to deregulation, not to the effects of technological change and increasing integration of the Australian economy into the world economy.
Abstract: Deregulation in Australia has had adverse effects on the income of those at the bottom end of the income distribution. Over the 1980s the share in private income of the top quintile rose and that of every other quintile fell. Except in the case of couples without children, the average real private income of the bottom quintile fell for every category of income unit. This increasing inequality seems to have been due to deregulation, not to the effects of technological change, and the increasing integration of the Australian economy into the world economy. One of the effects of deregulation has been an increase in unemployment. Policies to reverse this and to offset other adverse effects of deregulation are necessary. Increased levels of taxation will be required to finance them.
TL;DR: In this article, the authors propose a new understanding of economic value, which is the unity of economic utility and economic costs, and explain the law of increasing marginal costs as the opposite form of manifestation of diminishing marginal utility.
Abstract: Suggests a new understanding of the category of economic value. According to this understanding, economic value is the unity of economic utility and economic costs. Interprets these categories of utility and costs as relative, and imminently implying one another. There exists a specific attitude of man towards the limited goods which are involved in his teleological activity. On the basis of this new understanding of economic value, attempts to give a new explanation of the law of increasing marginal costs, as the opposite form of manifestation of the law of diminishing marginal utility. Suggests an original interpretation of global and local criteria for optimum, and of an economic mechanism for comparison of costs and utility. Proposes many ideas which proceed from the teleological understanding of man’s activity and which are in harmony with the ideas and principles of econometrics.
TL;DR: In this article, the authors argue that the association of Bulgaria, Hungary, Poland, Romania, Czech and Slovak Republics (CEECs) with the European Union (EU) under “Europe agreements” is unlikely to divert any significant amount of foreign direct investment (FDI) from developing countries because most of it in the latter is location specific.
Abstract: Argues that the association of Bulgaria, Hungary, Poland, Romania, Czech and Slovak Republics (CEECs) with the European Union (EU) under “Europe agreements” is unlikely to divert any significant amount of foreign direct investment (FDI) from developing countries because most of it in the latter is location specific. Notes that this applies to investments in natural resources, services and manufacturing industries targeting at domestic markets of the host developing countries. Only in the case of footloose labour and pollution intensive branches, developing countries may face additional locational competition from the associated CEECs. But such industries generally have very low shares in total FDI. Moreover, relative costs of production in CEECs are expected to rise in the course of their convergence towards EU standards.
TL;DR: In this paper, the authors present some of the economic forces which are shaping the transformation of management thought, and examine the views of Polanyi and Anderson, stating that the reciprocal aspects of community and social relationships are necessary if the benefits of exchange are to be realized.
Abstract: Presents some of the economic forces which are shaping the transformation of management thought. Examines the views of Polanyi and Anderson, stating that the reciprocal aspects of community and social relationships are necessary if the benefits of exchange are to be realized. Concludes that the idea that a simple, new concept will enable managers to control and optimize commercial endeavours is a myth.
TL;DR: This article found that mothers of young children in Northern Ireland may be more likely to be in employment because they can call on a network of family support to provide informal child care, despite living in a society seemingly more traditional than that in many other European Union countries.
Abstract: The accepted wisdom is that Northern Ireland is a traditional society within which women’s primary role is defined as homemaker and mother. Examines data on the labour market participation of women in Northern Ireland, drawing comparisons with the UK, the Republic of Ireland and the European Union. Examines four hypotheses as possible explanations for mothers continuing in paid employment. Concludes that, despite living in a society seemingly more traditional than that in many other European Union countries, mothers of young children in Northern Ireland may be more likely to be in employment because they can call on a network of family support to provide informal child care.
TL;DR: In this paper, the authors focus on the significance of the spatial dimension in economics and the principal questions and issues which accompany considerations of spatial dimension, and raise a number of issues in the trade-off between spatial efficiency and equity considerations.
Abstract: Provides a focus on the significance of the spatial dimension in economics and the principal questions and issues which accompany considerations of the spatial dimension. Indicates that regional/spatial disparities in economic growth and performance, in income per capita, in the access of citizens to government and private services, in standards of living, and indeed in most economic and social indicators, would be expected as a natural result of human activity. Poses questions regarding the acceptability of the market outcome in terms of the spatial distribution of economic activity and population, the criteria for intervention in this outcome, and raises a number of issues in the trade‐off between spatial efficiency and equity considerations. Provides a brief discussion of regional/spatial policy implications.
TL;DR: For example, the authors argues that the absence of clearly defined property rights, their capricious enforcement, widespread cronyism and criminal activity, in combination with a lack of resolution to terminate the quasi-property rights of the former ruling elite, and imperfect markets have created a situation where, in the final analysis, the original foundation of most rights to property and wealth would hardly survive the test of justice and be validated in any socially responsible society.
Abstract: Throughout history, social philosophers have justified titles of possession by the right of occupation, labour, and social contract, while the economic justification rests on efficiency grounds. Subscribing to the extremely contestable argument that there is a connection between private property rights and the performance and prosperity of capitalism, de‐socialization of ownership was to become the backbone for market oriented reforms in post‐communist society. The absence of clearly defined property rights, their capricious enforcement, widespread cronyism and criminal activity, in combination with a lack of resolution to terminate the quasi‐property rights of the former ruling elite, and imperfect markets have created a situation where, in the final analysis, the original foundation of most rights to property and wealth would hardly survive the test of justice and be validated in any socially responsible society. Moral precepts aside, given these circumstances, it would be hard for an economist to argue that the present process of re‐allocation of rights could be explained on efficiency grounds.
TL;DR: In this paper, the possibility of an international monetary system composed of the US dollar, the German deutschmark and the yen as an alternative to the system based solely on US dollar is discussed.
Abstract: Discusses the possibility of an international monetary system composed of the US dollar, the German deutschmark and the yen as an alternative to the system based solely on the US dollar. Points out that the yen is playing a limited role in the international economy. Discusses the factors which cause the restriction of the yen, with particular reference to other Asian countries and their shift of official reserves from the dollar towards the yen. Suggests that Japan must find new trade relations which are less dependent on the US market if the yen is to increase its share of international trade transactions.
TL;DR: In this paper, the authors analyze the relationship between private-sector share and economic performance in post-socialist countries of Eastern Europe and draw conclusions concerning implications for future economic policy, the main conclusion being that bottom-up transformation may be the only viable way for post-'socialist' countries to transform but this way requires thorough support by government policy.
Abstract: Looks at problems and experiences of the so‐called “bottom‐up” transformation of the post‐socialist countries of Eastern Europe. Bottom‐ up transformation stands for the change of economic structures by means of new enterprises and already existing private firms. Discusses the experiences with the performance of small and new firms in the countries of the West, the potential role of small firms in post‐socialist countries as well as the prerequisites and impediments to the establishment of an economically strong small‐firm sector. Based on information on the development of the small‐firm sector in post‐socialist countries during the past years, analyses the relationship between private‐sector share and economic performance. Draws conclusions concerning implications for the future economic policy, the main conclusion being that bottom‐up transformation may be the only viable way for post‐socialist countries of Eastern Europe to transform but this way requires thorough support by government policy.
TL;DR: In this paper, a framework for analysing ethics in organizations is presented, based on methodological individualism, and five building blocks for the framework: self-interest, individual rationality, sequential rationality, incentive compatibility, and reputation.
Abstract: Lays out a framework for analysing ethics in organizations. Relying on methodological individualism, introduces five building blocks for the framework: self‐interest, individual rationality, sequential rationality, incentive compatibility, and reputation. Uncritical use of the self‐interest model may induce framing effects, blinding less cautious users to important ethical dimensions. Illustrates the richness and “ethical flavour” of an appropriately considered self‐interest model through focusing one of the individual agent’s real interests in a broad sense, through the use of the time factor in the building blocks, and through suggesting how the individual agent can interpret the value systems in her surroundings.
TL;DR: In this paper, the role of the welfare system in improving the quality of life of black South Africans and examining whether the welfare state is a feasible option is discussed, emphasizing the importance of social welfare.
Abstract: Points out that it would be naive to believe that democracy in itself will solve all South Africa’s problems. Also that the legacy of apartheid lives on and will continue to do so for many generations to come. Examines the socio‐economic restructuring of South Africa, looking at whether it will be possible to make amends for past injustices while not harming future economic development. Emphasizes the role of the welfare system in improving the quality of life of black South Africans and examines whether the welfare state is a feasible option.
TL;DR: In this article, the meaning of the term new world order (NWO) and its economic dimensions are discussed and three common principles of any workable NWO: material, social and spiritual dimensions.
Abstract: Discusses the meaning of the term new world order (NWO) and defines its economic dimensions. Identifies three common principles of any workable NWO: material, social and spiritual dimensions. Links these dimensions in an analytical framework. Reviews the literature on the theories and concepts which further our understanding and identification of societal ideals. Describes ways to integrate the social and spiritual dimensions into production, consumption and exchange. Attempts to link the ideals of a NWO with the potential behaviour of corporations to create a smoother transition towards sustained global welfare.
TL;DR: In this paper, the impact of agrarian change on women in Bangladesh was investigated by investigating wage differentials between rural male and female workers by employing Oaxaca's wage equation.
Abstract: Investigates the impact of agrarian change on women in Bangladesh. In recent decades, especially since the introduction of seed‐fertilizer‐irrigation technology (Green Revolution), the agricultural and rural sectors of many LDCs, including Bangladesh, have undergone significant transformations and the distributional consequences remain largely a topic of acrimonious debate. Investigates wage differentials between rural male and female workers by employing Oaxaca’s wage equation. Explains women’s worsening position in terms of reduced access to, and control over, the means and rewards of productive activity. Feels that the bulk of empirical literature on distributional implications of agrarian change concentrates on share of grains between rich and poor farmers, the landowners and the landless, rural and urban consumers, but is limited in that very little attention is paid to the effects of technological change on male and female. Attempts to provide a comprehensive analysis of the relevant issues underlying male and female employment experiences and concludes that, despite significant changes, women may have lost out in the development process.