Price controls, trade protectionism and political business cycles in the U.S. steel industry

The U.S. steel industry is subject to a microeconomic political business cycle resulting from U.S. Presidents designing protectionist policies on behalf of the steel industry; experiencing complaints from consumers and foreign producers as a result of the policy; modifying the policy which results in complaints from the steel industry; and finally, maneuvering policy back in favor of the industry to achieve re-election. Using a cointegrating vector error correction framework, this paper tests the hypothesized political business cycle for its effect on steel prices. We find that trade protectionism does not seem to have succeeded in its primary objective of supporting prices. By expending so much political capital on ineffective trade protection, the steel industry may have lost the opportunity to focus on more substantive issues that might have restrained factor cost and enhanced its competitive ability. The devolution of the steel industry, ironically, may have resulted from it's persistent pleas for protection. Political business cycles in the steel industry, with all its attendant negative consequences, would not occur if the steel industry did not continually lobby for protection.     

Patenting Our Food Future: Intellectual Property Rights and the Global Food System

Intellectual Property Rights (IPRs) underpin the new knowledge economy and their ownership and control affects the distribution of wealth and power. This paper explores the changing international IPRs regime and its possible impact on the food system, in particular through their connection with biotechnology and marketing. It outlines how IPRs have been extended into agriculture globally through the Agreement on the Trade–Related Aspects of Intellectual Property Rights ( TRIPS) at the World Trade Organization ( WTO) and the other related international agreements. It identifies two problems. One is with the way the global rules are made—which is unbalanced with too few of the interested parties taking part in the process. The other is with whether the rules themselves are appropriate in food and agriculture. Their possible impact, especially patents, on increasingly proprietary, agricultural research and development is discussed as well as the possible effects on seed provision of the requirement for some form of IPRs protection to be available for plant varieties in all WTO members, sooner or later. Possible options for rethinking the rules to make them more appropriate for food and agriculture are discussed, as well as effects on market structure and the environment. Brief mention is made of other IPRs—trademarks, trade secrets and geographical indications—upon the way business in the food system is carried out. The paper concludes that this complex subject area is worthy of much more scrutiny because of the potential impact of these esoteric and complex rules.     

The dynamics of effective corrupt leadership: Lessons from Rafik Hariri's political career in Lebanon

This article introduces the notion of “effective corrupt leadership” to distinguish those in public office who engage in corrupt practice, who are more effective, and better for their people, than alternatives. The paper examines a case of such leadership by discussing the career of the late Rafik Hariri, the Lebanese Prime Minister who initiated and achieved the rebuilding of Beirut after the Lebanese civil war between 1975 and 1990. Using the historical case-study method, an examination of Hariri's activities allows us to appreciate the difficulties of achieving tangible welfare benefits in corrupt circumstances. Notably, the moralizing attacks by Hariri's rivals show that while achieving and sustaining political power may require corrupt practice, such practice can ultimately undermine the leader authority and power. This “blifil paradox” demonstrates how difficult it is to lead effectively in corrupt circumstances. Through a discussion of these difficulties and challenges, the article attempts to demonstrate the significance of “effective corrupt leadership”, both in terms of its impact upon people, and its importance for the refinement of our understanding of leadership.