The role of corrosive internalisation and denial of responsibility in stabilising inequality in South Africa

ABSTRACT

This paper examines how capabilities inequality is stabilised through its consequences on those at both ends of the distribution. It outlines the development of the balance model, which is argued to help highlight these consequences. Specifically, how adverse environments associated with lack of access to resources and poor treatment can lead to internal consequences which further corrode capabilities. At the same time, denial of this corrosion or its importance is critical for those who benefit from the inequality. To avoid moral constraints being triggered it is important, necessary even, for them to see those who suffer as outside of their moral universe, or their suffering to be in no way associated with their advantage. Corrosion and denial work to stabilise the system. For those in the middle of the distribution, they may work to do so in combination. Appreciating these internalised consequences is key to addressing inequality in South Africa.     

A summons to the consuming animal

This paper considers Derrida's principal works on the animal as comprising a summons to the consuming animal, the human subject. It summarizes, firstly, Derrida's accusation that the entire Western philosophic tradition is guilty of a particularly pernicious disavowal of its repudiation of the animal. This disavowal underpins what he calls the ‘carnophallogocentric order’ that privileges the virile male adult as a transcendental subject. The paper shows how he calls this line of argument into question by challenging the purity of the predicates that are presumed to secure human self-presence, such as capacity of response. This questioning is extended to consider marketing discourse in relation to the animal. In the second part of the paper, Derrida's arguments from the points of view of ‘animalséance’ (which here is referred to as ‘animalmalaise’) and ‘limitography’ are compared and contrasted with those of animal ethicists, Peter Singer and Tom Regan, and with Emmanuel Levinas. Finally, some implications are discussed for what it might mean to eat well.     

The Investment Portfolio of the Life Insurance Industry in China: Peculiar Constraints and the Specialist Problem

This article describes the particular investment and legal constraints on the life insurance investment portfolio in China (the "Portfolio") and investigates the specialist problem. The "specialist problem" is here defined as an agency problem as in information economics. In September 2004, the China Insurance Regulatory Commission ("CIRC") announced that three of the four largest life insurance companies in China could not meet the mandatory capital adequacy requirement. The author found that although it is harder to manage the Portfolio because of the peculiar constraints, the main characteristic of the poor performance of the Portfolio—failing to meet the capital requirement—is due to the specialist problem, which is mainly due to the controlled economic system. In conclusion, the author suggests specialists and risk management strategies that can be implemented in China with immediate effect, taking into consideration data deficiency and the difficulty of contract enforcement in China.     

Elective Stock Dividends and REITs: Evidence from the Financial Crisis

In response to the recent financial crisis, the U.S. Government introduced new rules which allow Real Estate Investment Trusts (REITs) to issue elective stock dividends (ESDs), i.e., noncash dividends, to satisfy their distribution requirements. The purported goal of these rules was to provide temporary relief to REITs facing cash flow problems. We investigate how the introduction of these rules affects dividend policy of REITs. Surprisingly, we document that only 17 REITs chose to issue elective stock dividends. We examine the characteristics of these REITs and find that their cash flows are similar to REITs that do not select these dividends. This suggests that cash flow problems are unlikely to be the primary determinant of the ESD issuance decision. Instead, our findings indicate the decision to pay ESDs is related to the level of loans that are close to maturity, REIT size, growth prospects and poor performance during the financial crisis. Furthermore, we find that the same factors determine the ratio, amount and frequency of stock dividends issued by these REITs. We also examine the response of shareholders to ESDs announcements and find positive abnormal returns surrounding these dividend announcements.     

The Rural Environment Protection Scheme of the Republic of Ireland

Agricultural modernisation has had an impact on the Irish environment but official policy to address this developed only slowly. The reform of the EU CAP provided the incentive for the formulation of the Rural Environment Protection Scheme (REPS). This is a wide-ranging scheme to promote environmentally friendly farming through application of 11 measures and six supplementary measures. Significant characteristics of the REPS include its: universal availability, voluntary nature, comprehensiveness, payment limitation, tailoring to individual farms and inclusion of training. There has been a high level of adoption, with participation being greatest in the small-farm west with its cattle and sheep enterprises.     

Eight months later — Has the Eurozone been stabilised or will EMU fall apart?

Eight months ago, as the risk of sovereign default in Greece fi rst emerged, the Intereconomics Forum invited a number of contributors to examine the options available to EU policymakers. As the threats to European Monetary Union resurface now, six of the same authors return in this issue’s Forum to reassess the situation, in particular with regard to the EU’s recent policy responses to the ongoing crisis. Whereas both optimists and pessimists could support their views with strong arguments eight months ago, the EU’s current predicament has shifted the prevailing sentiment strongly toward the pessimistic view. From the Irish bailout to the precarious status of Portugal, not to mention the potentially disastrous situation looming in Spain, our contributors are uncertain whether EU policymakers are up to the challenge of defending the euro. As evidence of this, several point to the EU Council’s October decision to establish a permanent crisis resolution mechanism to ensure an orderly state insolvency procedure, which did little to calm markets. Nonetheless, most of these economists still see ways for the EU to escape the crisis without being forced to abandon the common currency.     

The effect of prior outcomes on gender risk-taking differences

This study proposed that men are more likely to take greater risk after a win (‘house money’ effect), while women are more likely to take greater risk after a loss (‘escalation of commitment’ effect). These effects are, however, moderated by prior experiences in risk-taking and role characteristics. Three distinct groups of 30 subjects (total?=?90) each were solicited to play an experimental betting game. The subjects were categorized into risk providers (RP), risk customers (RC), and non-risk customers (NRC). RP are represented by casino executives, RC by leisure life-time casino gamblers, and NRC by non-casino gamblers. On average, RC group was found to take most betting risk. Male RCs were more likely to bet more after a win, while female RCs were more likely to bet more after a loss. NRCs, irrespective of gender, were more likely to bet more after a loss. There were no gender risk-taking differences in prior outcomes in the RP group.