ENVIRONMENTAL JUSTICE AND THE POLITICAL PROCESS: Movements, Corporations, and the State

I explore two questions in this article: (1) How has the role of the U.S. state in the political process changed vis‐à‐vis corporations? (2) What tactical repertoires have movements devised to confront this changing political process? Through the lens of the U.S. environmental movement, I find that (1) the state's policy‐making authority has weakened as corporations have become both policy makers and the new targets of challengers, (2) the environmental movement has devised organizing strategies–such as corporate‐community compacts or good neighbor agreements–to respond to and influence this new political process, and (3) those segments of the movement that ignore the political economic process are likely to meet with failure. These changes in the political economy constitute a challenge for the political process model. I therefore propose a “political economic process’ perspective to extend the political process model and more accurately capture these dynamics. The political economic process perspective evaluates four state‐centric assumptions of the political process model (the state as the primary movement target or vehicle of reform, the state policy‐making monopoly, capital as just another interest group, and the primacy of the nation‐state level of analysis) and demonstrates that the political economic process has changed in dramatic ways.     

Evidence of a transnational capitalist class‐for‐itself: the determinants of PAC activity among foreign firms in the Global Fortune 500, 2000–2006

Transnational capitalist class (TCC) theory is rooted in the claim that the globalization of the economy has led to a globalization of economic interests and of class formation. However, systematic evidence linking the indicators of transnational class formation with political behaviour is largely missing. In this article, I combine data on board of director interlocks among the 500 largest business firms in the world between 2000 and 2006 with data on the political donations to US elections of foreign corporations via the corporate political action committees (PACs) of their subsidiaries, divisions or affiliates. Controlling for the various interests of individual firms, I find that foreign firms that are highly central in the transnational intercorporate network contribute more money to US elections than do the less central foreign firms. Given prior research on board of director interlocks, this finding suggests that a segment of the transnational business community has emerged as a class‐for‐itself.     

Business Collaboration within the Nazi War Machine: Corporations and the State in the Austrian Semiperiphery

The military strength of German National Socialism was based on the collaboration of large corporations with the Nazi state. Business provided capital, loans, taxes, managerial expertise and production for war industries. I elaborate four ideal‐typical modes of business collaboration. Each mode is illustrated by a case study of a German corporation that acquires an Austrian firm: Krupp (traditional mode); the Reichswerke state conglomerate (coercive); Deutsche Bank (managerial nationalist); and IG Farben (competitive investment mode). The first and the last modes occurred when the state was highly dependent on large businesses for the economic requisites of war. The acquired firms in the Austrian semiperiphery contributed to Nazi war mobilization, as they exploited labor and resources from the peripheral regions of southeastern Europe. Patterns of the state's resource dependency on business led to bargaining interactions between state and business, over time shaping the mix between state and private ownership of war industry.     

Culture, state and varieties of capitalism: a comparative study of life insurance markets in Hong Kong and Taiwan

This article examines the interplay between local culture, the state, and economic actors' agency in producing variation across markets. I adopt a political-cultural approach to examining why life insurance has been far more popular in Taiwan than Hong Kong, despite the presence of a cultural taboo on the topic of premature death in both societies. Based on interview data and documentary references, the findings reveal that as an independent state, the Taiwanese government heavily protected domestic insurance firms during their emergence. These domestic firms adopted a market-share approach by re-defining the concept of life insurance to accommodate the local cultural taboo. The colonial Hong Kong government, on the other hand, adopted laissez-faire policies that essentially favoured foreign insurance firms. When faced with the tension between local adaptation and the profitability of the business, these foreign firms chose the latter. Their reluctance to accommodate local cultures, however, resulted in a smaller market. I argue that state actions mediate who the dominant economic players are and that the nature of the dominant players affects the extent of localization. Specifically, the presence of competitive domestic players alongside transnational corporations is more likely to produce varieties of capitalism.     

The Joiners: Active Voluntary Association Membership in Twenty African Countries

To what extent do sub-Saharan Africans actively participate in voluntary groups, and how does development aid influence this involvement? This paper presents a baseline assessment of membership predictors for secular and religious voluntary groups across 20 sub-Saharan African countries. Using Afrobarometer survey data, I adopt an asset-based resources approach in which development aid is seen to mobilize local resources and increase incentives to join voluntary groups. The theory is tested with multilevel, cross-national logistic regression models, including both individual-level and country-level variables to predict active membership. At the individual level, I find that membership in voluntary groups is most likely among those who are well educated, rural-dwelling, male, black, and middle aged—a reflection of social advantage. However, poorer Africans are also likely to join such groups, as are those with a strong religious affinity. At the national level, development aid is positively tied to voluntary group membership, but democratic and economic progresses have little to no consequence on this behavior.     

PERFECT COMPETITION, URBANIZATION, AND TAX INCIDENCE IN THE RETAIL GASOLINE MARKET

We use monthly gasoline price data for all 50 U.S. states over the period 1984–1999 to examine the incidence of state gasoline excise taxes. Our estimation results indicate full shifting of gasoline taxes to the final consumer. In addition, although we find that gasoline retail prices demonstrate asymmetric responses to changes in gasoline wholesale prices , we find only limited evidence of such behavior for retail prices with respect to gasoline excise taxes. Finally, we find that gasoline markets in urban states exhibit full shifting, but those in rural states (with less competition) demonstrate somewhat less than full shifting . ( JEL H22)     

UNEMPLOYMENT AND FINANCIAL CONSTRAINTS FACED BY SMALL FIRMS

A distinguishing feature of small firms is that most small business owners work for themselves and only employ relatives and friends. We examine conditions under which this labor market practice is an economic outcome and consider the link between this outcome and unemployment. The model is motivated by empirical evidence that suggests that small firms are subject to financial constraints that are supported by information asymmetries. I show that, in a constrained equilibrium, sole proprietorship and unemployment arise from an information imperfection in the credit market that makes infeasible the consummation of mutually beneficial contracts in the labor market.     

The Role of Local Development Organizations in Rural America*

Abstract Rural communities rely increasingly on local development organizations (LDOs) to promote economic development. The rise of LDOs has been the source of much debate. Using a national data set that links local governments with development organizations, we contrast the economic development activities, and their outcomes, of local governments and development organizations in rural America. We find that LDOs are involved in more economic development activities than are local governments. They are more successful at business recruitment and more effective at retention/expansion, both in number of firms and in jobs. The organizational networks of LDOs and local governments consistently influence their effectiveness. Finally, we examine the effects of an LDO's presence on the outcomes of business recruitment and of retention and expansion activities. The results suggest that the LDOs' success may be due in part to the networks in which they are embedded and to the amount of effort they make to promote growth.     

THE LAGGED IMPACT OF STATE AND LOCAL TAXES ON ECONOMIC ACTIVITY AND POLITICAL BEHAVIOR

Politicians are frequently characterized as making fiscal decisions based on a shorter time horizon than is required for full taxpayer adjustment, thus generating near term benefits and relatively high tax rates. This argument requires a negative impact of taxes on economic activity distributed over a relatively long time period. Considerable empirical evidence suggests that state and local taxes do not significantly impact the geographic distribution of economic activity; this analysis, however, finds a significant negative distributed lag impact of such taxes on capital formation. The approach emphasizes interstate tax competition in formulating the cross-section time-series estimating equation.     

CIGARETTE TAXES AND THE MASTER SETTLEMENT AGREEMENT

In 1998, 46 states and the four major tobacco companies entered into the Master Settlement Agreement (MSA), which stipulated that the tobacco companies pay the states $206 billion over the next several years. Mean cigarette excise taxes rose substantially, nearly 90%, between 1998 and 2002. The goal of our empirical analysis is to assess whether the changes in cigarette excise taxes can be attributed to litigation brought by the states and the resulting settlements. Using a panel data difference-in-difference approach, the evidence suggests that litigation increased excise taxes: state cigarette excise taxes were approximately $0.10 higher post-MSA. (JEL H2, I1 )     

Organizational Uncertainty and Labor Contracts in China's Economic Transition

Lifetime employment was a cornerstone of the Chinese socialist system constructed under Mao. In this system, organizations served the function of social security, and as a result, many organizations were overburdened with bloated work forces and retirees that drew from organizational coffers well into old age. Labor contracts fundamentally alter this system, as they allow firms to end the socialist institution of lifetime employment. Yet there is significant variation on the institutionalization of labor contracts in organizations. Based on a sample of 81 firms in industrial Shanghai, I show that organizations that are experiencing uncertainty in the economic transition are more likely to institutionalize labor contracts on an organizationwide basis. There are two types of organizational uncertainty in the economic transition: economic uncertainty and administrative uncertainty. In cases of economic uncertainty, firms that lost money in 1990 and firms that are burdened by large forces of retired workers are more likely to place their workers on labor contracts. In the case of administrative uncertainty, firms that are at the highest levels of the industrial hierarchy are also significantly more likely to place their workers on labor contracts. Although these upper level firms were the most protected under the command economy, they are being forced to handle the greatest among the responsibilities in the economic transition, and as a result, they experience the greatest sense of being set adrift by the state.     

Organizational theory in political sociology

Organizational theory and research has been enormously generative for political sociologists, if not always as fully centered as it might be, relative to broader notions of political power, economic resources, culture, and their interplay. This review both calls attention to the ways that organizational theory continues to inform political sociology and sets an agenda for how this interchange can be productively extended in various ways in scholarship on states, political parties, advocacy organizations, and business influences in politics. I highlight the genealogy of the new institutionalism and its variants (World Polity and institutional logics), population ecology (and the growing interest in both categories and audiences, alongside studies of the “ecology of ideology”), and research that follows in the broad tradition of resource dependence theory (and the link to more management-oriented approaches such as “non-market strategy” and stakeholder theories of organizational political activities). I also emphasize how novel theories of social movements and fields have offered innovative insights that incorporate organizational and political processes. I conclude by elaborating an agenda for how political sociologists can go further in maintaining and extending their highly productive and rewarding engagements with organizational theory.     

Jewish tradition faces the Soviet economy: moral dilemma of ‘shadow’ entrepreneurship in the former Pale of Settlement,Ukraine

Soviet life in the former Pale of Settlement appears in the memories of its residents as a world of living Jewish tradition existing within the professional and business activities of artisans and merchants at a time when the ideology and political structure of the Soviet Union prohibited private enterprise. That is why it occupied the shady parts of the socialist economy. Today, after collapse of the Soviet Union, it still poses moral dilemmas for those associated with its illegal activities. However, recollections about Soviet illegal enterprise also provide a space for critique of the Soviet system and a base for construction of contemporary local identity; in this way people reconcile the economic ethics of the recent Soviet past with modern capitalist reality. Narratives about illegal economic activities in the Soviet period are about the relationship between the people and the state. They are seen as a cosmological system; the Soviet state acted as an economically ineffective external force. Within its matrix was integrated a local world of human relationships with their customs and rules created the own local world of consumption and welfare. At the centre of this space is the socially and economically experienced Jewish entrepreneur whose competence is based on local Jewish tradition. Stories about illegal Soviet economic activity have become the heritage of local communities that approve of local business continuity.     

AFFIRMATIVE ACTION AND THE UTILIZATION OF MINORITY‐ AND WOMEN‐OWNED BUSINESSES IN HIGHWAY PROCUREMENT

The Federal Highway Administration (FHWA) mandates states' use of affirmative action when awarding federally funded road construction projects. Here I document the effectiveness of this program in increasing purchases from disadvantaged business enterprises (DBEs). Higher goals for the utilization of DBEs, both across states over time and across projects within California, is associated with a greater share of contract dollars awarded to DBEs. This effect is concentrated among minority‐owned firms and is stronger when goals are more likely to be binding and in states with an apparently stricter enforcement regime. (JEL J15, H57)     

Local Solutions to Inequality: Steps Toward Fostering a Progressive Social Movement

Over the past four decades, inequality of income, wealth, and power have become increasingly extreme in the United States. The triumph of a neoliberal agenda to reduce taxes, deregulate the economy, and promote international trade has undermined the economic status of the middle class, increased poverty, and led to a concentration of wealth. This nation has gone through such periods before, followed by progressive movements that have realigned economic and political forces. I argue that we may be at a point where a new progressive social movement is about to emerge and I point out several areas where rural sociologists are working, such as local food systems, that reflect a reorientation of social values supporting such a movement. Promoting local food systems and similar locality‐based enterprises can foster economic relationships embedded in multistranded social relationships and contribute to progressive change through reducing the central role of large corporations in our daily lives. Building on Busch's (1999) concept of Leviathan, I identify the roles of researchers and community activists in which rural sociologists can work to democratize social, economic, and political relationships in society.     

The contradictions of uneven development for states and firms: Capital and state rescaling in peripheral regions

Recent studies suggest that processes of capital and state rescaling are generating new socio-spatial inequalities within nation-states. I explore rescaling in the understudied context of a peripheral region through the case of a global apparel merchant, Lands’ End, and its decision to relocate its call and distribution centers to Dodgeville, Wisconsin. I argue that an empirical exploration of rescaling in peripheral regions demonstrates the need for two revisions to this literature: (1) an extension of the rescaling literature to capture the multi-scalar construction of socio-spatial inequalities and how the interactions between these different scales influence local outcomes; (2) an extension to firms the kind of analysis that scholars have applied to states—that is, we must consider both the rescaling strategies pursued by states and firms, as well as the contradictions both face as a result of new and existing socio-spatial inequalities.     

Shadow Welfare II

Abstract

Tax expenditures are any exemption, credit, deduction, or exclusion from the payment of taxes. At the state level, such expenditures often remain unaccounted for, create little economic development, and leave state and local governments with reduced resources for funding basic services such as fire, police, schools, and other general welfare spending. This paper illustrates methods state and local governments use to grant large tax breaks, the resulting financial problems legislators typically solve by raising individual taxes or cutting spending, and the implications for social welfare practitioners.     

Mapping Strategic Engagements: WOMEN'S MOVEMENTS AND THE STATE

Abstract

Given that all women's movements share a unique relationship to the State – their exclusion from political power, often legally and occasionally constitutionally underpinned, has this exclusion shaped women's movements' strategies, which have had as their general goal women's political inclusion? Some similarities are evident across types of women's movements and across nations. In this article, I discuss the ‘strategic dilemmas’ that women's movements are likely to face, and I attempt to identify the range of strategic responses employed by feminist movements. I begin with a definitional distinction between women's movements and feminist movements, followed by a discussion of women's relationship to the State. I identify similarities across feminist movements in four strategic dimensions: (1) movement autonomy vs state involvement; (2) insider vs outsider positioning; (3) separatist vs coalitional stances; and (4) discursive and influence-seeking politics. These strategic dimensions shape different opportunities for women's movements across different state configurations, offering openings for some types of women's movements that may be unrecognized or unexploited by others. The article concludes with speculations concerning women's movements' strategic action in the context of state reconfiguration.     

On the Determinants of Class Legislation: an Ecological Study of Political Struggles Between Workers and Management*

The state controls many matters of conflict between labor and management. This study attempts to identify the social conditions that lead to laws which favor either side in their ongoing struggle for influence. Using a cross-sectional ecological design I found that political systems with more blacks were least likely to have public policies in the interest of the working class. Other relevant factors which had less consistent effects were the type of enterprise and the level of resources in an area. Generally, the results are consistent with theories that racial antagonisms undermine the political efforts of workers.     

HAVE EFFORTS TO REDUCE SMOKING REALLY CONTRIBUTED TO THE OBESITY EPIDEMIC?

Two of the most notable trends in public health over the past 30 yr are the reductions in smoking rates and the rapid rise in obesity rates. Several studies have investigated the relationship between these trends but have drawn different conclusions. In this article, we revisit this issue, attempting to clarify the prior discrepant results. Overall, we find no support for the claim that rising cigarette taxes have significantly contributed to rising obesity rates. Instead, we find only a moderately sized effect among former smokers . ( JEL I12)