The crisis of neoliberalism and the future of international institutions: A comparison of the IMF and the WTO

The current crisis of neoliberalism is calling into question the relevance of key international institutions. We analyze the origins, nature, and possible impacts of the crisis through comparing two such institutions: the International Monetary Fund (IMF) and the World Trade Organization (WTO). Both originated in the post-World War II U.S.-led hegemonic order and were transformed as part of the transition to global neoliberalism. We show that while the IMF and the WTO have been part of the same hegemonic project, their distinct institutional features have put them on significantly different trajectories. Historical differences in the two institutions’ systems of rules have placed the IMF in a more vulnerable position than the WTO, which provides clues to the future contours of global economic governance.

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Why Social Capital Subverts Institution Building in Risky Settings

This article considers the problem of fostering confidence in institutions in a post-war context. Situated in post-war Bosnia, this article examines interactions between citizens and representatives of municipal governments on newly established local planning committees to demonstrate that an individual's confidence in an institution and his/her trust in a social intimate who works in that institution are sociologically different phenomena with correspondingly different outcomes for institution building. Contrary to the assumption that increased social capital and interpersonal trust positively affect democratic institutions, this article shows that interpersonal trust may actually undermine the development of institutional confidence.

The scoring rules in an endogenous election

Plurality rule is mostly criticized from being capable of choosing an alternative considered as worst by a strict majority. This paper considers elections in which the agenda consists of potential candidates strategically choosing whether or not to enter the election. In this context, we examine the ability of scoring rules to fulfil the Condorcet criterion. We show for the case of three potential candidates that Plurality rule is the only scoring rule that satisfies a version of the Condorcet criterion in two cases: 1) when preferences are single-peaked and, 2) when preferences are single-dipped.

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The inverse plurality rule—an axiomatization

Under the ‘inverse plurality rule’, voters specify only their least preferred alternative. Our first result establishes that this rule is the only scoring rule that satisfies the minimal veto condition (MV). We then prove that the inverse plurality rule is characterized by MV and the four well known conditions that characterize scoring rules; namely, Anonymity (A), Neutrality (N), Reinforcement (RE) and Continuity (CO). Our new characterization result is related to the characterizations of approval voting and of the widely used plurality rule. We finally show how the axiomatization of the inverse plurality rule can be extended to the axiomatization of elementary scoring rules (vote for t-alternatives scoring rules). We are indebted to two anonymous referees for their most useful comments.

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Constructing Gay and Lesbian Parent Families “Beyond the Closet”

This paper provides a multilayered analysis of how lesbian mothers and gay fathers construct their families in a social context that has been described by Steven Seidman (2004) as “beyond the closet.” We stress how our participants’ family-building experiences are comparable to other non-biologically related families, but distinct due to heterosexual dominance. Using in-depth qualitative interviews with 18 lesbian birth mothers and 22 gay fathers, the authors discuss how participants navigate heterosexual dominance in institutions and in personal interactions.

Paying for the Dream of Public Ownership: Case Studies on Corruption and Privatization in China

The proceeding of privatization is a tradeoff between short-term equality and long-term efficiency. Under the existing structures of enterprise management and government powers, enterprise managers are likely to conspire with government officials to decide the way of ownership transformation and share the benefits from there. The transformation of ownership will enhance the efficiency of the company. Corruption indeed presses ahead the transformation of company ownership, whereas inequality is also aggravated during the process. Case studies are provided to demonstrate the relationship between corruption and privatization in China. Corruption and inequality are what the country pays for their dream of public ownership in 1950s. Equality, efficiency and maintaining current social and political structure cannot be achieved simultaneously during enterprise restructuring.

The response of household parental investment to child endowments

The theoretical and empirical literature on parental investment focuses on whether child-specific parental investments reinforce or compensate for a child’s initial endowments. However, many parental investments, such as neighborhood quality and family size and structure, are shared wholly or in part among all children in a household. The empirical results of this paper imply that such household parental investments compensate for low endowments, as proxied by low birth weight.

Reduced prizes and increased effort in contests

We study the general class of two-player public-policy contests and specify the asymmetry condition under which a more restrained government intervention that reduces the contestants’ prizes has the “perverse” effect of increasing their aggregate lobbying efforts.

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Is the Current Account Deficit a Problem for Romania?

The current account deficit of Romania, both significant in size and persistent, has been a worrying issue affecting the country’s economic and financial macro-stability also in the medium and long term. This paper sets out to review the causes of that phenomenon and its coverage resources during the last 2 years, 2006 and 2007, while the final part deals with the potential developments of said parameters during the post European Union accession period, as well as of their respective influential factors.

Alienation in the United States: Uniform or Group-Specific Change?

“Alienation,” in the sense of disenchantment with core institutions of society, increased after the mid-1960s. Most accounts hold that the rise in alienation was uniform across all groups. This paper evaluates the hypothesis of uniform change using data from the Harris Polls. We find evidence of both short-term and long-term shifts in patterns of alienation. Blacks and low-income people are less alienated under Democratic than under Republican administrations. Over the long term, increases in alienation have been larger among women and people without a college degree.

Effects of International Volunteering and Service: Individual and Institutional Predictors

Despite unprecedented recent expansion of international volunteering and service (IVS), there has been relatively little research on impacts. This paper proposes a conceptual model for impact research based on existing research evidence published in English. The model suggests that outcomes for host communities, volunteers, and sending communities vary depending on individual and institutional attributes and capacity. How institutions structure and leverage individual capacity influences who participates and how they serve, and shapes the impact of volunteer action. The conceptual model provides directions for future research.

Engaging Absent Fathers in the Treatment of Children

Absent fathers are often excluded from the treatment of their children for various reasons. They are often marginalized by mothers, and unintentionally excluded by clinicians. Absent fathers are also excluded from treatment in fear that their presence might undermine the competencies of single mothers, which social service agencies serve to empower. This article will discuss the potential benefits of including absent fathers in family therapy, and how to work with them once engaged in treatment.

On the influence of extreme parties in electoral competition with policy-motivated candidates

We study and compare equilibrium platforms in models of unidimensional electoral competition with two and four policy motivated parties. We first analyze the plurality game, where the party getting the most votes is elected and implements its proposed platform. Restrictions on the set of credible announcements are needed to get existence of equilibria. Comparing equilibria with two and four parties, we obtain that moderate parties react to the introduction of extreme parties by proposing the same or more extreme equilibrium platforms. We then study the proportional system, where the policy implemented is a weighted sum of the proposals, with the voting shares as weights. Here, the existence of extreme parties leads moderate ones to choose more centrist platforms. We finally test the robustness of our results with respect to, first, the enlargement of the strategy space to entry decisions and, second, to asymmetric distributions of voters' blisspoints.

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Efficient nonanthropocentric nature protection

This paper analyzes nature protection by a social planner under different ‘utilitarian’ social welfare functions. For that purpose we construct an integrated model of the economy and the ecosystem with explicit consideration of nonhuman species and with competition between human and nonhuman species for land and prey biomass. We characterize and compare the efficient allocations when social welfare is anthropocentric (only consumers have positive welfare weights), when social welfare is biocentric (only nonhuman species have positive welfare weights) and when social welfare is nonanthropocentric (all species have positive welfare weights). Not surprisingly, biocentric social welfare calls for suspending all economic activities. It is more important, however, that both anthropocentrism and nonanthropocentrism make the case for nature protection through different channels, though. Our analysis suggests that one may dispense with the concept of nonanthropocentric social welfare provided that in the anthropocentric framework the consumers' intrinsic valuation of nature is properly accounted for.

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EU Accession and Income Growth: An Empirical Approach

The dynamic effects from EU membership are crucial for the new member states to catch up with the average income level in the old member states. To gauge the dynamic effects we follow a two-step procedure in which a gravity equation for bilateral trade shows the trade effect of EU membership and a growth regression yields the income effect of trade. Shared EU membership is found to increase trade between two of its member states with about 27%. EU membership may contribute to trade by inducing countries to improve the quality of their institutions. Trade increases by another 23% if institutions improve, yielding a total trade increase of 50%. Improved openness increases income by 38% according to our estimates. Adding a small direct effect of improved institutions on income, the total income effect of EU membership is 40% for the 12 new members and Turkey. This implies that EU membership, or its effect on trade and institutions, could lead to large economic gains for the new member states, but does not bring them economically on par with the old member states.

Do Reservation Wages Really Decline? Some International Evidence on the Determinants of Reservation Wages

Using cross-country data, we investigate the determinants of reservation wages and their course over the jobless spell. Higher unemployment benefits lead to higher reservation wages. Further, again consistent with the basic search model, repeated observations on the same individual provide scant evidence of declining reservation wages.

The Decline of the US and the Flatenization of International Order

Based on the current global financial crisis, the article introduces two recent typical perspectives on international order from the angle of discussion on the decline of the US, pointing out that the real trend of the development of international political economic order is flatenization. International power will be distributed in a flat model. In this kind of order big powers, main regional nation groups and important international organizations and institutions will share power in an increasingly equal way. The demands for reform of the international financial system against this financial crisis also reflect the trend of flatenization of the international political economic order.

The optimal design of fallible organizations: invariance of optimal decision criterion and uniqueness of hierarchy and polyarchy structures

We present a general framework to study the project selection problem in an organization of fallible decision-makers. We show that when the organizational size and the majority rule for project acceptance are optimized simultaneously, the optimal quality of decision-making, as determined by the decision criterion, is invariant, and depends only on the expertise of decision-makers. This result clarifies that the circumstances under which the decision-making quality varies with the organizational structure are situations where the organizational size or majority rule is restricted from reaching the optimal level. Moreover, in contrast to earlier findings in the literature that the hierarchy and the polyarchy are generally sub-optimal structures, we show that when the size, structure and decision criterion are simultaneously optimized, the hierarchy and the polyarchy are in fact the only possible optimal organizational structures when decision-making costs are present.

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The Anticipated Effects of EU Enlargement: Exchange Rate Volatility,Institutions and Conditional Convergence

Improvement of economic policies and institutions and reduced exchange rate volatility are two expected effects arising when candidates develop prerequisites needed to qualify for EU membership. In this paper, we evaluate whether these two effects occurred in the Eastern European accession countries by inspecting exchange rate volatility and the evolution of different indicators of the quality of institutions before and after the start of the negotiation period. We then evaluate the impact of both effects on growth of real per capita GDP. By comparing the effects on accession countries to a group of control countries, including transition non candidates, we find that the prospect of accession has a significant effect on output growth, which starts materializing much before accession and even before the beginning of the negotiations with the EU.

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Electronic supplementary material  The online version of this article (doi:) contains supplementary material, which is available to authorized users.

Robustness of optimal decision rules where one of the team members is exceptionally qualified

This work investigates the robustness of optimal decision rules under a changing size of a decision group where the competence of one member is outstanding while the others possess an identical competence. More specifically, we focus on the expert rule, the almost expert rule and the tie-breaking chairperson rule. We first establish criteria for the optimality of each of these rules and then use it to investigate their robustness. Robustness is an important property of decision rules, especially when cost of adjustment to a new rule is high. Our findings are that the expert rule and the chairperson rule are robust while the almost expert rule is not.

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