This present chapter gives me another and very special opportunity to reflect on my work during the past 55 years. The focus of these reflections is my particular way of doing social psychology over these years – my way of expressing the core of my professional identity as a social psychologist. The background of these reflections, very appropriately, is the work of my students as exemplified in these chapters and comments in the preceding pages.
This paper examines the expropriation of a foreign investor by a local partner and the subsequent resolution of that case through international arbitration. Ronald Lauder, a U.S. investor, created a media holding company for investments in Eastern Europe that included a once–successful joint venture with Vladimir Zelezny in the Czech Republic. Despite Lauder's 99% interest in the underlying Czech entity, Zelezny managed to divert the value of the underlying entity for his personal benefit. Subsequent to the expropriation, Lauder employed international agreements and tribunals to recoup 354.9 million USD from the Czech Republic. This clinical examination of an expropriation and its aftermath illustrates how ownership shares can be of secondary importance in determining control, how corporate control is shaped by geography, and how differential access to investor protections in global capital markets can contribute to the persistence of differences, rather than convergence, in investor protections.
Openness to trade is one factor that has been identified as determining whether a country is prone to sudden stops in capital inflow, currency crashes, or severe recessions. Some believe that openness raises vulnerability to foreign shocks, while others believe that it makes adjustment to crises less painful. Several authors have offered empirical evidence that having a large tradable sector reduces the contraction necessary to adjust to a given cut-off in funding. This would help explain lower vulnerability to crises in Asia than in Latin America. Such studies may, however, be subject to the problem that trade is endogenous. We use the gravity instrument for trade openness, which is constructed from geographical determinants of bilateral trade. We find that openness indeed makes countries less vulnerable, both to severe sudden stops and currency crashes, and that the relationship is even stronger when correcting for the endogeneity of trade.
With the end of the Cold War, and until 9/11/01, many academic and journalistic pundits averred that military power was no longer of great importance, that the future lay with economic power. The claim was made that the United States was an "economic superpower," and therefore would continue to be the world's dominant power in any case. Does this term mean anything other than "biggest national economy?" If so, what exactly does it mean? This paper will discuss the concept of economic power, and then apply the concept to the proposal of John Mearsheimer, the R. Wendell Harrison Distinguished Service Professor of Political Science pat the University of Chicago, that on strategic (balance of power) grounds the United States should take steps to slow down the economic growth of China.
We analyze the interplay of policy reform and entrepreneurship in a model where investment decisions and policy outcomes are both subject to uncertainty. The production costs of non–traditional activities are unknown and can only be discovered by entrepreneurs who make sunk investments. The policy maker has access to two strategies: "policy tinkering," which corresponds to a new draw from a pre–existing policy regime, and "institutional reform," which corresponds to a draw from a different regime and imposes an adjustment cost on incumbent firms. Tinkering and institutional reform both have their respective advantages. Institutional reforms work best in settings where entrepreneurial activity is weak, while it is likely to produce disappointing outcomes where the cost discovery process is vibrant. We present cross–country evidence that strongly supports such a conditional relationship.
In 1982, Eric Wolf published Europe and the People Without History to identify and begin rectifying large gaps in anthropological knowledge. That project remains unfinished. In the past year, since September 11, 2001, the necessity of filling in some of these gaps has become urgent. The history of relations between Western powers and transnational Muslim societies in the Indian Ocean is one of them. An anthropologically nuanced understanding of such societies as diasporas, thought in tandem with their continued relations with Western empires over five hundred years, lends a useful perspective on a set of conflicts which is massively unfolding. Threatening to become a self-fulfilling prophecy of a clash of civilizations (Huntington 1993) in popular discourse and political decision-making, a phenomenon on this horrendous scale remains within the purview of anthropologists if one sees it as an instance of culture contact under conditions of global imperialism, unmitigated by colonial administration.
The distinction between imperialism and colonialism is critical. Talal Asad's Anthropology and the Colonial Encounter (1973) launched anthropology on an auto-critique by noting that its quiet field sites were fields of colonial power, and its practitioners members of colonizing societies. Colonialism refers to foreign presence in, possession of, and domination over bounded, local places. Today, the multi-sited ethnographies we increasingly pursue need to be analytically framed within a field of power which is transnational. The term imperialism refers to foreign domination, without the necessity of presence or possession, over expansive, transnational spaces—and many places. Within the purview of U.S. power, then, the appropriate term for this frame is not postcolonialism, but ongoing imperialism. The time may soon be upon us for a sequel to Asad's volume, now trained on American anthropology and the imperial encounter. While the terms globalization, neo-liberalism, and late-liberalism may have been productive in probing the complexities of consent to contemporary transnational hegemony, they have been less attentive to its classical twin, coercion. While colonialism may be the past of British and French anthropology, imperialism is the long present of the American one. Thus the sense of urgency, again (Hymes 1999).
In what follows, I look at a series of contacts between Western empires and Muslim societies through the eyes of a Muslim diaspora, as it were, a mobile people with a written history. The review suggests that what is new to this history is the unique nature of American power worldwide. In its global reach it is imperial, but in its disavowal of administration on the ground, it is anti-colonial. Decoupling the concept of colonialism from that of imperialism is a necessary step in thinking about this new mode of domination, and it is a task this essay sets for itself.
Citation: Ho, Engseng. “Empire through Diasporic Eyes: A View from the Other Boat” Society for Comparative Study of Society and History.(April 2004): 210-246.
Countries can still reap substantial economic benefits from external opening – an estimated 0.3 % increase in income over 20 years for each .01 increase in the ratio of trade to GDP. Non–economic effects of trade are more complicated. Taking the case of SO2 pollution, trade can be on net beneficial, while for CO2 the outlook is worse, absent effective global governance, due to the international free rider problem. The paper considers what should be priorities for the form and content of trade negotiations. The conclusion is to favor multilateral negotiations, as in the WTO. The author's back–of–the–envelope attempt to take into account dynamic gains says that the increase in welfare from a truly successful Doha Round might be 2% of global income. Environmental issues increasingly need to be addressed through multilateral institutions as well; they cannot be addressed through the assertion of national sovereignty.
This paper studies the effects of financial constraints on firm growth by investigating if large depreciations differentially impact multinational affiliates and local firms in emerging markets. U.S. multinational affiliates increase sales, assets and investment significantly more than local firms during, and subsequent to, currency crises. The enhanced relative performance of multinationals is traced to their ability to use internal capital markets to capitalize on the competitiveness benefits of large depreciations. Investment specifications indicate that increases in leverage resulting from sharp depreciations constrain local firms from capitalizing on these investment opportunities, but do not constrain multinational affiliates. Multinational parents also infuse new capital in their affiliates after currency crises. These results indicate another role for foreign direct investment in emerging markets–multinational affiliates expand economic activity during currency crises when local firms are most constrained.
Under communism, the Russian religious landscape consisted mainly of two competitors – a severely repressed Russian Orthodox Church and a heavily promoted atheist alternative to religion called "scientific atheism". Under these circumstances, one might expect the rapid spread of religious disbelief. But the intensity of the atheist campaign originated from official mandate and not popular appeal. In turn, scientific atheism never inspired the Russian population and grew increasingly uninspired as Soviet officials created a monopoly "church" of scientific atheism in hopes of replacing persistent religious beliefs and practices. This paper is dedicated to explaining why communists could not successfully convert the masses to atheism. The findings provide evidence that systems of belief require more than simply the power of promotion and coercion to become accepted.
Social scientists often explain religious effects in terms of religious group affiliations. Typically, researchers identify religious groups by denomination or some broader popular categorization, such as "fundamentalist," or "evangelical." To better capture religious differences, Steensland et al. (2000) propose an intricate classification of American denominations which takes into account the theology and historical development of various American religious traditions. In response, we propose to replace the reliance on indirect denominational and other group membership as inferential measures of religiousness with a more appropriate direct measure: conceptions of God. This simple measure predicts church attendance rates, belief in biblical literalism, party identification, abortion attitudes, and sexual morality attitudes. In addition, this indicator provides a means to understand variation within religious traditions. God?s character proves the most straightforward way to describe religious differences and the most efficient way to demonstrate how religion impacts the world.
Multiple factors have been found to determine the structure of opportunities for women?s representation in elected office, including the institutional context like the electoral system and the use of affirmative action strategies within party lists, and the resources that women and men bring to the pursuit of fulltime legislative careers, such as their social and occupational networks (Rule 1987; Norris 1997; Karam 1998; Kenworthy and Malami 1999; Caul 1999; Reynolds 1999). What this study seeks to demonstrate is that in addition to these factors, the trend toward gender equality is intimately linked with the broader process of cultural change and democratization.
To help get our bearings in a complex and ever-changing world, it is useful to ask what the world will look like in a decade or two. Forecasting the future accurately is of course impossible. And of course we cannot forecast surprises, by definition. But by projecting known trends and tendencies, it is possible to say a remarkable amount about the broad outlines of the world one to two decades from now. In particular, we can identify with high confidence four factors, which we hardly notice from year to year, but which accumulate relentlessly over time, such that by 2020 they will have profoundly transformed the world as we now know it. The four factors are population growth, growth in per capita income, increasing international mobility among national firms and individuals, made possible and driven by both technological changes in transportation and communication, and the aging of existing political leaders (as well as everyone else).
For concreteness, I will focus below on the year 2020. The year should not be taken literally, but as the rough mid–point of one to two decades from now. That looks beyond the immediate issues of today, and allows the cumulation of small annual changes in the trends mentioned above. But it is also a comprehensible distance into the future, the same distance as the year 1988, which many adults can remember, is into the past.
One of the most important developments over the past three decades has been the spread of liberal economic ideas and policies throughout the world. These policies have affected the lives of millions of people, yet our most sophisticated political economy models do not adequately capture influences on these policy choices. Evidence suggests that the adoption of liberal economic practices is highly clustered both temporally and spatially. We hypothesize that this clustering might be due to processes of policy diffusion. We think of diffusion as resulting from one of two broad sets of forces: one in which mounting adoptions of a policy alter the benefits of adopting for others and another in which adoptions provide policy relevant information about the benefits of adopting. We develop arguments within these broad classes of mechanisms, construct appropriate measures of the relevant concepts, and test their effects on liberalization and restriction of the current account, the capital account, and the exchange rate regime. Our findings suggest that domestic models of foreign economic policy making are insufficient. The evidence shows that policy transitions are influenced by international economic competition as well as the policies of a country's sociocultural peers. We interpret the latter influence as a form of channeled learning reflecting governments' search for appropriate models for economic policy.
Unlike most cross–country growth analyses, we focus on turning points in growth performance. We look for instances of rapid acceleration in economic growth that are sustained for at least eight years and identify more than 80 such episodes since the 1950s. Growth accelerations tend to be correlated with increases in investment and trade, and with real exchange rate depreciations. Political–regime changes are statistically significant predictors of growth accelerations. External shocks tend to produce growth accelerations that eventually fizzle out, while economic reform is a statistically significant predictor of growth accelerations that are sustained. However, growth accelerations tend to be highly upredictable: the vast majority of growth accelerations are unrelated to standard determinants and most instances of economic reform do not produce growth accelerations.
What's fair when it comes to setting the terms of market access? The rules of the World Trade Organization (WTO) were meant to answer this question, as well as settle disputes surrounding it. On these grounds, it was also sold as the best means to open markets, encourage economic development, and facilitate economic exchange between countries, large and small—in effect, lifting all boats. Yet now, some ten years later, the organization is facing a tidal wave of charges regarding the uneven power of its member countries and persistent barriers to exchange. Some of the most vocal critics hail from the developing world. Their frustration over unequal market access, agricultural subsidies, and the inability "to right the rules" of trade culminated in disruption of the 1999 WTO meetings in Seattle, the collapse of WTO talks at Cancun in 2003, and the cautious optimism over recent gains in Geneva. At issue is whether the rules of international trade are being used to hold up or push ahead prosperity in the developing world.
Mediation is one of the most widespread techniques for preventing con ict and pro–moting cooperation. Unfortunately, the literature on mediation has not yet reached consensus on what makes mediation work. For instance, some have argued that mediators should be unbiased, while others argue that biased mediators are effective. This paper examines the conditions under which mediators can facilitate cooperation by building trust between the two parties. Mediators can be credible trust builders in one round interactions only if they prefer mutual non–cooperation to either side exploiting the other. A biased mediator or one who is solely interested in promoting cooperation will be ineffective. If the mediator is involved in an ongoing relationship with the par–ties, biased mediators can function as trustbuilders, provided that the degree of bias is not too great.
Mainstream comparative research on political institutions focuses primarily on formal rules. Yet in many contexts, informal insti–tutions, ranging from bureaucratic and legislative norms to clientelism and patrimonialism, shape even more strongly political behavior and outcomes. Scholars who fail to consider these informal rules of the game risk missing many of the most important incentives and constraints that underlie political behavior. In this article we develop a framework for studying informal institutions and integrating them into comparative institutional analysis. The framework is based on a typology of four patterns of formal–informal institutional interaction: complementary, accommodating, competing, and substitutive. We then explore two issues largely ignored in the literature on this subject: the reasons and mechanisms behind the emergence of informal institutions, and the nature of their stability and change. Finally, we consider challenges in research on informal institutions, including issues of identification, measurement, and comparison.