Research Library

2004
Ferguson, Niall. 2004. “Siegmund Warburg, the City and the Financial Roots of European Integration”.Abstract

The economic integration of Western Europe after the Second World War proceeded by a circuitous route. It began with the creation of a "Community" to regulate the production and pricing of coal and steel in six European states: West Germany, France, Italy, Belgium, the Netherlands and Luxembourg. The Treaty of Rome then created a"Common Market", formally prohibiting barriers on trade between these countries. Trade between them had been growing rapidly before the formation of this European Economic Community; it continued to grow thereafter—as did world trade generally. However, in other respects economic integration proceeded slowly. In agriculture the development of an integrated market was positively hindered by the persistence of national subsidies until a Common Agricultural Policy superseded these. In manufacturing, too, national governments continued to resist pan-European competition by subsidizing politically sensitive sectors or by imposing non-tariff barriers. Such practices were less frequently adopted in the case of services, but only because services were less easily traded across national boundaries even under conditions of perfect free trade. In short, national markets were not being integrated because they were not really being liberalized. The exception to this rule was financial services, one of which—the sale of long-term corporate and public sector bonds to relatively wealthy investors—became integrated in a quite novel way in the course of the 1960s.

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Theidon, Kimberly S. 2004. Entre prójimos: el conflicto armado interno y la política de la reconciliación en el Perú. Instituto de Estudios Peruanos. Publisher's VersionAbstract

El libro intenta rastrear una genealogía de la violencia en siete comunidades ayacuchanas con trayectorias distintas durante el conflicto armado interno. Propone una psicología social de la violencia política y la reconciliación, a partir de un acercamiento etnográfico y hermenéutico. Intenta ir más allá de la filosofía trascendente de la verdad, la justicia y la reconciliación, para examinar la vida social de estos conceptos tal y como son puestos en práctica en las comunidades campesinas ayacuchanas, cuyas prácticas culturales e iniciativas locales ofrecen un ejemplo de reconstrucción de la sociedad y de la sociabilidad, familia por familia y comunidad por comunidad.

Aubrey, Stefan M. 2004. The New Dimension of International Terrorism. vdf Hochschulverlag AG. Publisher's VersionAbstract

The events of September 11, 2001, confronted the United States and the rest of the World with the reality of a new dimension of international terrorism. This new dimension did not start nor end with the attacks against the World Trade Center or the Pentagon, but began in the 1990s. This study examines the new dimension of international terrorism, contrasting it with the classical terrorism, the predominantly left-wing terrorist movements of the 1960s-1980s in Europe, which were a subset of the bipolar geo-political arena. The author establishes the relationship of radical Islamist movements to the terrorist groups of the new dimension (principally focusing on Al-Qaeda) in providing the motivation for committing catastrophic terrorist acts, looks at the shadowy world of terrorist financing and makes suggestions regarding international counter-terrorist strategies.

Limbert, John. 2004. Shiraz in the Age of Hafez: The Glory of a Medieval Persian City. University of Washington Press. Publisher's VersionAbstract

In the fourteenth-century Persian city of Shiraz, poets composed, scholars studied, mystics sought hidden truths, ascetics prayed and fasted, drunkards brawled, and princes and their courtiers played deadly games of power. This was the world of Shams al-Din Mohammad Hafez Shirazi, a classical poet who remains broadly popular today in his native Shiraz and in modern Iran as a whole, and among all lovers of great verse traditions.

As John Limbert notes, Hafez's poetry is inseparable from the Iranian spirit—a reflection of Iranians' intellectual and emotional responses to events. But if Hafez's endurance derives from the considerable charm of his work, it also arises from his sure grounding in the life of his day, from a setting so deftly explored by his verse that his depictions of it retain a timeless relevance.

To fully comprehend and enjoy Hafez, and thus to understand a root force in modern Iranian consciousness, we must know something of the city in which he lived and wrote. In this book, Limbert provides not only a rich context for Hafez's poetry but also a comprehensive perspective on a fascinating place in a dynamic time. His portrait of this elegant, witty poet and his marvelous city will be as valuable to medievalists, students of the Middle East, and specialists in urban studies as it will be to connoisseurs of world literature.

Martin, Lenore G, and Dimitris Keridis. 2004. The Future of Turkish Foreign Policy. The MIT Press. Publisher's VersionAbstract

Since the end of the Cold War, Turkey has moved from the periphery to occupy the very center of Eurasian security. It is a critical participant in NATO and aspires to become a member of the European Union. The pivotal role that Turkey plays in Southeastern Europe, the Middle East, and the Caucasus has profound implications for the international arena and spawns vital debates over the directions of Turkish foreign policy.

The Future of Turkish Foreign Policy explores these debates and the interactions between Turkey's domestic and foreign policies at the beginning of the twenty-first century. Contributors to the book include some of the foremost scholars and exponents of Turkish foreign policy. Their analysis reveal the complexity of the challenges that confront Turkey's foreign policy and suggest creative and resourceful strategies for resolving its policy dilemmas.

Domínguez, Jorge I. 2004. Mexico's Pivotal Democratic Election Candidates, Voters, and the Presidential Campaign of 2000. Stanford University Press. Publisher's VersionAbstract

The 2000 Mexican presidential race culminated in the election of opposition candidate Vicente Fox and the end of seven decades of one-party rule. This book, which traces changes in public opinion and voter preferences over the course of the race, represents the most comprehensive treatment of campaigning and voting behavior in an emerging democracy. It challenges the "modest effects" paradigm of national election campaigns that has dominated scholarly research in the field.

Chapters cover authoritarian mobilization of voters, turnout patterns, electoral cleavages, party strategies, television news coverage, candidate debates, negative campaigning, strategic voting, issue-based voting, and the role of the 2000 election in Mexico's political transition. Theoretically-oriented introductory and concluding chapters situate Mexico's 2000 election in the larger context of Mexican politics and of cross-national research on campaigns. Collectively, these contributions provide crucial insights into Mexico's new politics, with important implications for elections in other countries.

Kelman, Herbert C. 2004. “Continuity and Change: My Life as a Social Psychologist.” American Psychological Association. Publisher's VersionAbstract

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.

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Desai, Mihir A. 2004. “Market Reactions to Export Subsidies”.Abstract

This paper analyzes the economic impact of export subsidies by investigating stock price reactions to a critical event in 1997. On November 18, 1997, the European Union announced its intention to file a complaint before the World Trade Organization (WTO), arguing that the United States provided American exporters illegal subsidies by permitting them to use Foreign Sales Corporations to exempt a fraction of export profits from taxation. Share prices of American exporters fell sharply on this news, and its implication that the WTO might force the United States to eliminate the subsidy. The share price declines were largest for exporters whose tax situations made the threatened export subsidy particularly valuable. Share prices of exporters with high profit margins also declined markedly on November 18, 1997, suggesting that the export subsidies were most valuable to firms earning market rents. This last evidence is consistent with strategic trade models in which export subsidies improve the competitive positions of firms in imperfectly competitive markets.

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Kelly, Paul. 2004. “Shipwrecked in Arcadia: The Australian Experiment”.Abstract

The Australian story is best understood as a series of experiments. The first was highly problematic: the creation of a society from a collection of convicts and military officers. The second was uplifting: the formation of a new world democracy upon the oldest continent. And the third is audacious: a national reinvention of how Australia interprets itself and relates to the world. Of course, there are many other Australian experiments, so this list is not exhaustive. These experiments, however, have their origin in a fundamental question: What is Australia?s purpose? Is Australia to be defined forever as a museum to a bizarre historical accident–a bunch of Europeans, shipwrecked on the wrong side of the earth–or as a nation that renews itself to offer its own people and the world a more successful and enduring creation? This is the question I want to address in these lectures.

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Miguel, Edward, and Michael Kremer. 2004. “Worms: Identifying Impacts on Health and Education in the Presence of Treatment Externalities”.Abstract

Intestinal helminths – including hookworm, roundworm, whipworm, and schistosomiasis – infect more than one–quarter of the world's population. Studies in which medical treatment is randomized at the individual level potentially doubly underestimate the benefits of treatment, missing externality benefits to the comparison group from reduced disease transmission, and therefore also underestimating benefits for the treatment group. We evaluate a Kenyan project in which school–based mass treatment with deworming drugs was randomly phased into schools, rather than to individuals, allowing estimation of overall program effects. The program reduced school absenteeism in treatment schools by one–quarter, and was cheaper than alternative ways of boosting school participation. Deworming substantially improved health and school participation among untreated children in both treatment schools and neighboring schools, and these externalities are large enough to justify fully subsidizing treatment. Yet we do not find evidence that deworming improved academic test scores.

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Jasanoff, Sheila. 2004. States of Knowledge: The Co-Production of Science and Social Order. Routledge Taylor & Francis Group. Publisher's VersionAbstract

In the past twenty years, the field of science and technology studies (S&TS) has made considerable progress toward illuminating the relationship between scientific knowledge and political power. These insights have not yet been synthesized or presented in a form that systematically highlights the connections between S&TS and other social sciences. This timely collection of essays by some of the leading scholars in the field attempts to fill that gap. The book develops the theme of "co-production", showing how scientific knowledge both embeds and is embedded in social identities, institutions, representations and discourses. Accordingly, the authors argue, ways of knowing the world are inseparably linked to the ways in which people seek to organize and control it. Through studies of emerging knowledges, research practices and political institutions, the authors demonstrate that the idiom of co-production importantly extends the vocabulary of the traditional social sciences, offering fresh analytic perspectives on the nexus of science, power and culture.

Norris, Pippa. 2004. “Gender Equality and Democracy”.Abstract

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.

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Frankel, Jeffrey. 2004. “How the US Government Flubbed Its Opportunity to Exercise Global Economic Leadership”.PDF icon Download PDF

Simmons, Beth A. 2004. “The Globalization of Liberalization: Policy Diffusion in the International Political Economy”.Abstract

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, and 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 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 policymaking are insufficient. The evidence shows that policy transitions are influenced by international economic competition as well as the policies of a country?s socio–cultural peers. We interpret this latter influence as a form of channeled learning reflecting governments? search for appropriate models for economic policy.

Desai, Mihir A. 2004. “Capital Controls, Liberalizations, and Foreign Direct Investment”.Abstract

Affiliate–level evidence indicates that American multinational firms circumvent capital controls by adjusting their reported intrafirm trade, affiliate profitability, and dividend repatriations. As a result, the reported profit impact of local capital controls is comparable to the effect of 24 percent higher corporate tax rates, and affiliates located in countries imposing capital controls are 9.8 percent more likely than other affiliates to remit dividends to parent companies. Multinational affiliates located in countries with capital controls face 5.4 percent higher interest rates on local borrowing than do affiliates of the same parent borrowing locally in countries without capital controls. Together, the costliness of avoidance and higher interest rates raise the cost of capital, significantly reducing the level of foreign direct investment. American affiliates are 13–16 percent smaller in countries with capital controls than they are in comparable countries without capital controls. These effects are reversed when countries liberalize their capital account restrictions.

Working Paper 10337, National Bureau of Economic Research, March 2004.

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Simmons, Beth A. 2004. “The Globalization of Liberalization: Policy Diffusion in the International Political Economy”.Abstract

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.

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Kelman, Herbert C. 2004. “Reconciliation as Identity Change: A Social-Psychological Perspective.” Oxford University Press. Publisher's VersionAbstract

This chapter focuses on reconciliation in the context of and in relation to an emerging or recently completed process of conflict resolution. The cases that particularly inform my analysis are the Israeli–Palestinian conflict and other protracted conflicts between identity groups – such as those in Bosnia or Northern Ireland – that re characterized by the existence of incomplete, fragile peace agreements (cf. Rothstein, 1999a). I hope, however, that the analysis also has some relevance to reconciliation in postconflict situations – both those of recent origin, such as South Africa or Guatemala, and those of long standing, such as the German–Jewish or the Franco–German relationship in the wake of World War II. Clearly, there are differences in the nature of reconciliation processes as a function of the stage of the conflict and the time that has elapsed since the end of active hostilities, but such differences need to be accounted for in a comprehensive theory of reconciliation.

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Frankel, Jeffrey. 2004. “The UK Decision re EMU: Implications of Currency Blocs for Trade and Business Cycle Correlations”.Abstract

Recent econometric estimates suggest that currency unions have far greater effects on trade patterns than previously believed. Since currency unions are good for trade, and trade is good for growth, that is one major argument in favor of EMU. If there were evidence that the boost to trade within EMU was likely to come in part at the expense of trade with outsiders, that would imply something stronger, for a neighbor such as the United Kingdom: that life outside EMU would get progressively less attractive in the future. But there is no such evidence, either for currency unions in general (according to Frankel–Rose) or for the first three years of EMU in particular (according to Micco, Stein, and Ordoñez). Furthermore, there are the usual countervailing arguments for retaining monetary independence, particularly the famous asymmetric shocks. One possible argument for waiting is that UK trade with euroland is still increasing, probably due to lagged effects of joining the EU and the Single Market initiative. Estimates suggest that the growing trade links in turn lead to growing cyclical correlation. The implication is that the UK may better qualify for the optimum currency area criteria in the future than in the past. On the other hand, if, as a result of waiting to enter, London loses to Frankfurt its position as the leading financial center in the European time zone, that loss may not be readily recoverable in the future.

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Working Paper 04–01, Weatherhead Center for International Affairs, Harvard University, February 2004. 

Robinson, James A. 2004. “White Elephants”.Abstract

Underdevelopment is thought to be about lack of investment, and many political economy theories can account for this. Yet, there has been much investment in developing countries. The problem has been that investment growth has not led to output growth. We therefore need to explain not simply underinvestment, but also the missallocation of investment. The canonical example of this is the construction of white elephants–investment projects with negative social surplus. In this paper we propose a theory of white elephants. We argue that they are a particular type of inefficient redistribution, which are politically attractive when politicians find it difficult to make credible promises to supporters. We show that it is the very inefficiency of such projects that makes them politically appealing. This is so because it allows only some politicians to credibly promise to build them and thus enter into credible redistribution. The fact that not all politicians can credibly undertake such projects gives those who can a strategic advantage. Socially efficient projects do not have this feature since all politicians can commit to build them and they thus have a symmetric effect on political outcomes. We show that white elephants may be preferred to socially efficient projects if the political benefits are large compared to the surplus generated by efficient projects.

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Williamson, Jeffery G. 2004. “De-Industrialization and Underdevelopment: A Comparative Assessment Around the Periphery 1750-1939”.Abstract
The idea that the periphery suffered de-industrialization during the first global century before 1914 has a long pedigree, and every country writes its own independent history of that shared event. While that literature is immense, it has three shortcomings that are serious enough to invite this new attack on an old question. The first shortcoming is that the de-industrialization literature rarely makes a comparative statement. The second shortcoming of the de-industrialization literature is that when it is quantitative, it relies almost entirely on output and employment evidence, while it rarely exploits price and wage data. The third shortcoming of the de-industrialization literature is that it assumes that deindustrialization causes underdevelopment while industrialization causes development, rather than offering any evidence confirming the connection. What follows here is only a report on work in progress. There is much more left to be done.

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