Government inspectors and ‘ethical’ buyers: regulating labour in Moradabad's metalware industry

This paper is based on fieldwork for a doctoral thesis on the metalware cluster of Moradabad, Uttar Pradesh. I present two different ways by which labour standards are regulated in the city: first by the state labour administration and second, by the market of global buyers implementing codes of conduct. In the context of debate over state versus market-based and voluntary regulation, I discuss the text of each regulatory regime and how this is interpreted, used, subverted and applied in the city's export firms. I show how enforcement of laws and corporate ‘ethical’ codes is undermined not only by limited capacity to survey units deep inside the city, but also by the incentives of enforcement agents. The regulatory regime of the state is revealed to be morally ambivalent, where justice for workers depends on patronage inside the labour department, and on an opaque and complex legal code which keeps employers vulnerable to inspector harassment. By contrast, the regulatory regime of the market is shown to be morally incoherent, where code compliance officers are sidelined by their commercial colleagues and efforts to establish ‘ethical’ purchasing practices are routinely undermined by the imperative to fast-feed goods onto the shelves of retail giants.     

“That's How We Do Things Here: Local Culture and the Construction of Sweatshops and Anti‐Sweatshop Activism in Two Campus Communities”*

This paper uses data from campus newspapers at two large Midwestern universities to examine local claimsmaking about the problem of sweatshops and anti‐sweatshop activism on each campus. Although student activists at both schools sought to solve the same problem (i.e., the manufacture of university‐licensed apparel by sweatshop labor) with the same solution (i.e., convincing their university administrations to join the Workers’ Rights Consortium, a sweatshop monitoring organization), what was ostensibly the same issue was constructed in very different ways in the claims found in the two newspapers. Drawing on the concept of “local culture,” our analysis illustrates how claimsmakers at each campus used locally and situationally embedded interpretive resources both to establish the problem of sweatshops and to present solutions to this problem. We use these findings to draw implications for both social problems theory and the study of social movements.     

Evaluating state regulation of private forest practices: What accomplishments at what costs

This paper summarizes research evaluating the cost and effectiveness of comprehensive state forest practice laws. These laws regulate forest management on private lands in seven of the United States with the goal of protecting a wide range of forest resources. Forest practice laws impose significant administrative costs on states and significant compliance costs on landowners and timber operators. Total state administration costs for 1984 are estimated at $10.1 million and total private sector compliance costs are estimated at $120.5 million, for a total regulation cost of $130.6 million. The resource protection effectiveness of state forest practice regulation is more difficult to quantify. However, a variety of indicators strongly suggest that regulation has led to significant improvements in forest resource conditions and has increased reforestation levels.     

Effective tax rates and firm size in Ethiopia

The literature on Effective Tax Rates (ETRs) focuses on high‐ and middle‐income countries, but there is very little evidence on low‐income countries. This article addresses this gap with new evidence from Ethiopia. We investigate corporate ETRs in Ethiopia and whether the distributional effects they have in practice are in line with the corporate tax policy design. We calculate ETRs in line with the literature in this field, using profit tax at the numerator and gross profit at the denominator. We then analyse ETRs not only using panel data, focusing particularly on their relation to firm size, but also including other explanatory variables. Our main result is that, despite a proportional tax rate, small firms face a higher effective tax burden than larger firms, while middle‐sized firms face the lowest burden of all. We highlight that tax systems can have practical implications that differ largely from their policy design, due to compliance costs and imperfect enforcement. Measures to reduce compliance costs for small firms are particularly recommended.     

Negotiating Compliance: The Case of Autonomous Hospitals in Vietnam

Maternal death is one of the highest causes of global mortality. Governments have long used regulation to improve maternal health but concurrent fiscal‐decentralisation reforms can undermine clinical performance. This article focuses on public Vietnamese hospitals to explore how regulatory compliance is pursued in decentralised health facilities, since Vietnam has seen increasing autonomisation of public hospitals in the last decade while simultaneously experiencing marked reductions in the maternal mortality ratio. Our analysis suggests that autonomisation has allowed regional regulatory regimes to emerge and that regulatory compliance must compete with other priorities. Compliance can therefore be rethought as a negotiation having implications for how government and maternal health advocates persuade self‐sufficient hospitals to take on wider health‐system goals.     

Parent‐Child Value Similarity: The Role of Zeitgeist

Reporting a study of German 2‐child families, the article focuses on a neglected issue in value transmission studies: contemporaneous societal context. Parent‐child value similarity depends not only on family characteristics but also on zeitgeist, the modal value climate of a society. To evaluate the role of zeitgeist in value transmission, differences in parent‐child value similarity between families agreeing and disagreeing with the zeitgeist are studied, focusing on a core value of modern societies: hierarchic self‐interest. Results show a weak general zeitgeist effect. A family’s relative position vis‐à‐vis the societal value climate, however, is shown to strongly influence intergenerational similarity in hierarchic self‐interest, families distant from the zeitgeist showing a much higher intergenerational value similarity than families close to the zeitgeist.     

DO STATES FREE RIDE IN ANTITRUST ENFORCEMENT?

Recent research has documented a substantial role in antitrust enforcement by U.S. states. While many of the cases litigated involve small local firms, a nontrivial portion encompasses multiple‐state issues. Some previous literature has investigated whether states engage in free‐riding behavior in environmental regulation, and whether governments free ride on private decisions in provision of public goods. In this paper, we analyze a sample of antitrust cases involving cross‐state impacts (from the Multi‐State Antitrust Database, provided by the National Association of Attorneys General) and explain the determinants of free riding (which we define as participating in a case, but not as a lead plaintiff). (JEL L40, H41, H77)     

Public and private agri-environmental regulation in post-socialist economies: Evidence from the Serbian Fresh Fruit and Vegetable Sector

Using primary survey data and interview evidence this paper analyses the implementation and enforcement of public and private environmental regulation in the Serbian Fresh Fruit and Vegetable (FFV) sector. This provides a basis for engaging in a wider debate on the nature of agri-food regulation in post-socialist economies. Depictions of the restructuring of agri-food supply chains as a shift from public to private regulation are rejected. Rather two distinct supply chains co-exist: a small number of export oriented producers operate subject to extensive private regulation while the majority of FFV farmers occupy regulatory voids, immune to both private and private control. Those farmers operating under extensive private regulation are more likely to obey appropriate public regulation. Findings highlight the differentiated nature of regulatory regimes that can co-exist within a national production sector.     

The Immigration Industrial Complex: Why We Enforce Immigration Policies Destined to Fail

This article provides a genealogy of the idea of an immigration industrial complex. The immigration industrial complex is the confluence of public and private sector interests in the criminalization of undocumented migration, immigration law enforcement, and the promotion of ‘anti‐illegal’ rhetoric. This concept is based on ideas developed with regard to the prison and military industrial complexes. These three complexes share three major features: (a) a rhetoric of fear; (b) the convergence of powerful interests; and (c) a discourse of other‐ization. This article explores why Congress has not passed viable legislation to deal with undocumented migration, and instead has passed laws destined to fail, and has appropriated billions of dollars to the Department of Homeland Security to implement these laws. This has been exacerbated in the context of the War on Terror, now that national security has been conflated with immigration law enforcement. This is the first in a two‐part series on the immigration industrial complex.     

Making international aid effective: An agenda for aligning aid to social business

In the context of heightened interest in social business and a renewed focus on the performance of international aid, this article explores the role and place of aid in addressing poverty in relation to the rapidly growing social business regime. Research on the subject is surprisingly limited. The article begins by operationalizing the key concepts, and developing a conceptual framework by exploring the possible nexus points between aid alignment and social business. It then addresses a number of key dimensions of aid; notably, a comparative account of possible aid investment in social business vis‐à‐vis conventional projects and private sector enterprises; an examination of the realities on the ground of the social business projects; and policy implications of the study together with some recommendations.     

Grandparents,kinship ties,and belonging after migration: the perspective of second‐generation grandchildren

In this article, I investigate the roles of grandparents for second‐generation immigrants who live with their parents in a different country from their grandparents. I draw on in‐depth interviews with second‐generation Vietnamese immigrants living in the Czech Republic, where they are very often raised by Czech caregivers. The carers and the children are joined through the process of caregiving and become grandmothers and grandchildren to each other. The analysis focuses on how the interviewees make sense of, interpret, and understand their roles as grandchildren vis‐à‐vis their Czech and Vietnamese grandmothers. It shows how, after migration, the kinship ties are performed, negotiated, and reproduced on a micro level of everyday life, with tasks of caring, homeland visits, and a transnational/face‐to‐face maintenance of intimacy. The article concludes that grandparents play an important role in the grandchildren's sense of belonging both to their family kin and to the homeland.     

Olfactive frames of remembering: theorizing self,senses and society

By analysing sensorial aspects of social memory and emotions, this paper theorizes the social significance of olfaction and other senses towards reconfigurations of self and social interactions through embodied identity work. The research question that this paper addresses is: how is the self perceived through memories that are mediated by smells? Olfactive frames of remembering are employed in order to explicate sensory meta‐narratives including sensory relations (pertaining to familial and other ties), sensory memory, time and space, and sensoryscapes. This article also elucidates upon the various moral, cultural and aesthetic codes that may be discerned in biographical narrations of social actors drawn from narrative interviews. Furthermore, it highlights a need to consider sensorial‐bodily experiences in qualitative inquiry and thereby conceptualize how actors articulate their sense of self, and how they reformulate their experiences and relationships with others vis‐à‐vis emotional discourses of happiness, sadness and nostalgia in the maintenance and continuity of selfhood. The paper therefore contributes to sensuous scholarship by explicating how smells and memories operate in conjunction toward shaping self‐identity and social relations.     

Enforcement matters: The effective regulation of labour

The distinction between de jure and de facto regulation is well understood in theory, but has rarely been applied to cross‐country empirical work on the impact of labour regulation on labour market outcomes for lack of data. Policy debate has been based on measures of stringency of law, suggesting a negative correlation between labour regulation and labour market outcomes. This article provides new cross‐country measures of labour law enforcement and evidence of a negative correlation between stringency and intensity of enforcement. Previous results concerning the consequences of labour regulation and the legal origins theory no longer hold when a measure of effective labour regulation is used.     

The Migration Industry and the H‐2 Visa in the United States: Employers,Labour Intermediaries,and the State

Research on the migration industry has demonstrated the wide variety of roles played by private actors in international migration. However, so far little of this work has attempted to quantitatively measure the size and composition of these industries within particular migration schemes. Using the case of the H‐2 temporary working visa in the US, this article looks to better understand the prevalence, impact, and dynamics of the private labour intermediaries that offer services to US employers looking to hire workers from abroad. Using data from applications to hire foreign workers made to the US Department of Labor, this article finds that private intermediaries are extensively involved. Their broad inclusion raises questions of public and private authority in the visa programme, as the use of private intermediaries becomes necessary for employers to access and navigate the state institutions that oversee the programme.     

Regulation and the management of risk in commercial gambling in Great Britain

The regulation of commercial gambling in Great Britain is the responsibility of the Gambling Commission, the regulatory agency created by the Gambling Act 2005. This article examines the risk model that it has developed in order to assess operator risks to the Act's licensing objectives. These are to prevent gambling from becoming a source of crime, to ensure that gambling is fair and open, and to protect children and other vulnerable people from being harmed or exploited by gambling. The article discusses four factors that affect the implementation of this model: operator compliance, the regulatory environment, the regulatory toolkit and the Commission's approach to its regulatory responsibilities. Its regulatory ideology sits squarely within the neo-liberal mode of regulation that has been pursued in Great Britain since the 1980s. By reference to political and public disquiet concerning gaming machines, the article analyses the tensions between the state, the regulator, the gambling industry and its consumers to which this mode of regulation gives rise. The article examines the challenges that the Commission faces in seeking to adopt a regulatory stance that is defensible both in terms of the protection of the public and the demands of a liberal market economy.     

The rise of regulation of the public sector in the United Kingdom

Governments not only regulate business and society but also themselves in the form of regulation of publicly owned and/or funded bodies. Regulation of the public sector involves regulators operating at arms-length from those they regulate using systems of standard setting, monitoring and enforcement. In the past three decades in the UK, regulation has become increasingly important both in terms of absolute resources devoted to the activity and relative to other forms of control (particularly self-control by public sector professionals and control within large integrated bureaucratic structures). These trends have, in part, been fuelled by executive politicians' attempts to control public services and demands from citizens and users for better quality and efficiency. In the past decade, more explicit and extensive review of regulation of the public sector has been undertaken. Whilst not as developed as private sector Regulatory Impact Analyses these reviews have promoted the use of techniques including regulatory enforcement pyramids and risk based regulatory approaches. — Special issue: New patterns of institutions.     

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.     

TECHNOLOGICAL ASYMMETRY AMONG FOREIGN INVESTORS AND MODE OF ENTRY

How does the preferred entry mode of foreign investors depend on their technological capability relative to that of their rivals? This article develops a simple model of entry mode choice and evaluates its main testable implication using data on foreign investors in Eastern European countries and the successor states of the Soviet Union. The model considers competition between two asymmetric foreign investors and captures the following trade‐off: while a joint venture (JV) helps a foreign investor secure a better position in the product market vis‐à‐vis its rival, it also requires that profits be shared with the local partner. The model predicts that the efficient foreign investor is less likely to choose a JV and more likely to enter directly relative to the inefficient investor. Our empirical analysis supports this prediction: foreign investors with more sophisticated technologies and marketing skills (relative to other firms in their industry) tend to prefer direct entry to JVs. This empirical finding is robust to controlling for host country–specific effects and other commonly cited determinants of entry mode. (JEL F13, F23, O32)     

DIVIDEND POLICY IN REGULATED NETWORK INDUSTRIES: EVIDENCE FROM THE EU

We study the dividend policy of firms in regulated network industries, focusing on the impact of different regulatory regimes and government control. We link payout and smoothing decisions to different regulatory mechanisms (cost‐based vs. incentive regulation) and state versus private ownership. We test our predictions on a panel of listed European electric utilities, accounting for potential endogeneity of the choice of regulatory and ownership patterns. We find that incentive‐regulated firms smooth their dividends less than cost‐based regulated firms and that they report higher target payout ratios. Consistent with the interest group theory of regulation, we find that incentive regulation schemes are less likely when the state is still an important shareholder in the sector. Additionally, our results show that government control undermines the efficiency‐enhancing effects of incentive regulation on dividend policy, for example, lower smoothing is only due to private firms. (JEL G35, L51, L32, L9)     

State-Corporate Relationships in an Era of Shifting Regime: The Case of Corporate Law Reform in Israel

Different aspects of the relationship between state and economy have traditionally been examined, yet corporate governance and specifically corporate law have received less attention. This article focuses on the legislation of the new corporate law in Israel at the end of the 1990s, which took place during regime transformation from an interventionist state to a regulatory state. The article makes specific reference to three disputes: the lifting of the corporate veil, the separation of the positions of chairman of the board and chief executive officer, and the obligation of private firms to disclose financial reports. This article suggests that despite the transformation of the regime, state actors have continuously been involved via corporate law in the governance of corporations and their relationship with the environment. However, corporate law enables corporations to constrain state power and the state's influence on property rights.