CUBA'S SOCIAL POLICY AFTER THE DISINTEGRATION OF THE SOVIET UNION: SOCIAL DEVELOPMENT AS LEGITIMACY OF THE REGIME AND ITS ECONOMIC EFFECTIVENESS

Since the disintegration of the Soviet Union, Cuba has experienced a severe economic crisis, and the country's social policy has played an important role in showing the people a raison‐d'ětre for the revolution. This role has become even stronger in recent years, as internal and external actors demand political reforms and economic liberalization. This article first examines the Cuban government's use of social development to counter the demands for changes. It then looks at the extent that government social policy contributes economically to improving the Cuban living standard. The article demonstrates empirically how the leadership emphasizes their social accomplishments whenever demands for change come, and then shows that after the suspension of Soviet aid, Cuban social policy has been able to provide services mainly by relying on human capital and reducing quality materially because of the shortage of foreign reserves. This has limited the economic effectiveness of the services.     

Public spending and economic growth: evidence from Ghana (1970–2004)

Governments undertake expenditures to pursue a variety of objectives, one of which is economic growth. This paper examines aggregated and disaggregated expenditure on economic growth in Ghana over the period 1970–2004. Expenditure on education and health represents human capital development, while expenditure on roads and waterways captures infrastructure development. The study reveals that the aggregated government expenditure retarded economic growth. The study's findings show that expenditures on health and infrastructure promote economic growth, while those on education had no significant impact in the short run. In addition, the political economy variables?namely the nature of governance (democracy) and political instability (years of changes in government and military dictatorship)?proved significant in explaining Ghana's economic growth over the study period.     

REARGUARD POLITICS: HONG KONG'S MIDDLE CLASS

This paper reports on the emergence of the middle class in contemporary Hong Kong First, it gives the historical background of the rise of the middle class in the 1970s. This historical background is important to our understanding of Hong Kong's middle class because it highlights its symbolic significance—the realization of the so‐called Hong Kong dream—in the context of the local society. It is also relevant to our understanding of the shaping of its political outlook. The second section explores why the middle class stayed away from politics when the future of Hong Kong and democratization were the main topics in the political agenda of the 1980s and 1990s. Finally, the paper rounds up its discussion by reporting on the new grievances of the middle class amid the economic downturn after the Asian Financial Crisis.     

THE GROWTH OF THE KOREAN MIDDLE CLASS AND ITS SOCIAL CONSCIOUSNESS

The middle class in the Republic of Korea grew quickly in the course of the country's rapid economic growth. This paper analyzes the characteristics of Korea's new and old middle classes by examining the socioeconomic conditions, experience of mobility, and social consciousness of the people in these classes Analysis shows that many people presently in these well‐off classes have experienced intra‐ and intergenerational mobility. While the old middle class is greatly open to both inter‐ and intragenerational inflow, the new middle class is close to intragenerational inflow. The probability of reaching the new middle class is greatly affected by one's level of education, however, education level largely depends on one's class origin. It is also shown that the Korean new middle class has a comparatively progressive social consciousness. However, people's political attitudes are determined not by one's position in the class structure but by nonclass factors, such as one's age, education level, and native region.     

Power and developmental regimes in Singapore,China and Malaysia

This paper examines three developmental regimes in Singapore, China and Malaysia. In these three cases, heavy state intervention was necessary because their economies required significant economic restructuring. For Singapore, state intervention was necessary for the process of industrial transformation. For Malaysia, state intervention was necessary because the government wanted to reallocate economic resources as a means to deal with ethnic conflict. For China, state intervention was necessary in order to gradually “marketize” the socialist economy. The paper also briefly discusses the impact of the Asian Financial Crisis (1997–1999) on these developmental regimes. It finds that for all three cases, economic restructuring was successful because of long-term and heavy state intervention. It explains that, unlike the other developmental states of Asia, these developmental regimes were able to undertake such significant restructuring because of the state's power base, which even managed to survive the Asian Financial Crisis. It concludes with some comments about the future of state intervention in a rapidly globalizing world.     

THE EMERGENCE OF THE ASIAN MIDDLE CLASSES AND THEIR CHARACTERISTICS

The middle classes in Asian countries, which emerged rapidly in environments that were significantly different from those in the West, share some common features, but differ from one another on a number of other counts. Important among the similarities is that their nation‐building efforts after independence were perforce ambivalent in that, while pursuing economic growth in condensed ways, they tried to maintain the integrity of the state by emphasizing traditional values. On the other hand, they differ from one another in terms of the peculiarities of the preconditions they faced when launching development, the social structure specific to each, and the time at which and the strategy under which they began to pursue economic growth. These factors have brought diversity into the Asian middle classes' development processes and characteristics This paper examines the diversity of the middle classes that are now in a process of emergence in Asia.     

THE EMERGENCE OF THE MIDDLE CLASSES AND POLITICAL CHANGE IN THE PHILIPPINES

This article provides a study of the middle classes in the Philippines. First, the process of their emergence was examined in relation to that of Philippine industrialization, which started in the 1930s but from the 1960s progressed slowly and was accompanied by the expansion of the tertiary industries and informal sector. Then, the composition and characteristics of the middle classes, including their relatively small population size, distinctness from the lower classes, and internal diversity were analyzed. Finally, based on the data of the middle‐class‐centered organizations formed during the anti‐Marcos struggle, their political aspects were discussed, with emphasis placed on the new pattern of political participation which appeared after the Aquino assassination.     

OPPORTUNITY OR CHALLENGE? AUSTRALIA AND EUROPEAN INTEGRATION, 1950–57

This paper examines Australia's approach to Western European integration in the 1950s. While superficially supportive of steps towards greater Western European cooperation, the Menzies government had an ambivalent attitude towards the integration process. Ministers and officials in Canberra recognised the importance of a strong and prosperous Western Europe, but the formation of a tightly knit Continental grouping also posed a number of major challenges to the makers of post‐war Australian foreign policy. The Menzies government soon began to wonder whether attempts to create supranational bodies in Continental Europe accorded with Australian political, economic, and security interests.     

政绩压力与利益谋取 ——对农地征用中地方政府行为的理论分析

政府应该在经济发展中扮演怎样的角色是发展中国家普遍面临的问题。当前中国出现的农地征用中地方政府的积极介入行为为我们分析这个问题提供了具体的事实案例。在农地征用过程中,由于地方政府掌握着土地征用权,所以它们构成农业用地向城市用地（包括公共用地和商业用地）流转的唯一中介,从而积极地介入到土地流转的过程中。地方政府在农地征用中的权力运行有着内在的政治逻辑,这是与当前中国的政治经济体制所分不开的。地方政府积极主动介入农地征用的行为是当前压力型政治经济体制下应对自上而下的政绩压力的产物,也是地方政府谋取自身利益的必然结果。地方政府的这种行为在一定程度上为促进地方经济发展作出了贡献,但是也带来了一系列的社会问题。要促进中国经济的健康发展,就必须对这种体制进行及时主动的变革。     

Political institutions,entrenchments, and the sustainability of economic development – A lesson from rural finance

This paper provides insights on the sustainability of economic development from a historical and political economy perspective. We demonstrate that China's rural financial policy in the 1980s was quite liberal in employing market mechanisms, supporting entrepreneurship, and encouraging competition. These policies were abandoned in the early 1990s and replaced by ubiquitous government interferences that shifted resource and policy priorities to benefit political incumbents. A large panel of survey data confirms that rural household access to finance decreased dramatically in the 1990s and that the statistical significance of economic entrepreneurial factors in determining credit allocation also fell. Further empirical analyses show that market economic conditions are not sufficient to explain these changes and the evidence is consistent with a political entrenchment motive during the political regime after the turmoil in the year 1989. Given the connection between entrenchment and underdevelopment, our findings raise the concern that China's political institutions' insufficient limits on the government could be a challenge for China to sustain its economic success.     

Uneven centuries: Turkey's experience with economic development since 1820

This article examines the economic development of Turkey from a comparative global perspective. With the help of GDP per capita and other series, it shows that Turkey's record in economic growth and human development since 1820 has been close to world averages and a little above developing country averages. The early focus of the article is on the proximate causes—average rates of investment, below‐average rates of schooling, low rates of total productivity growth, and low technology content of production—which provide important insights into why GDP per capita increases were not any higher. For the deeper causes, the article emphasizes the role of institutions and institutional change. Turkey's formal economic institutions had been influenced by international rules since the nineteenth century, and these rules did not always support economic development. Turkey's elites also made extensive changes in formal political and economic institutions. Formal institutions were only part of the story, however. The direction of institutional change also depended on the political order and the degree of understanding between different groups and their elites. When the political system could not manage the recurring tensions and cleavages between the different elites, economic outcomes suffered.     

Do political connections affect corporate poverty alleviation decisions? Evidence from China

Programs to alleviate poverty by corporations are increasingly popular as a new form of corporate social responsibility. This study examines how the political connections of a firm's chairperson are associated with decisions to alleviate poverty based on a sample of listed Chinese firms from 2016 to 2018. We find that the chairperson's political connections increase the probability of participation and the amount of investment in programs to alleviate poverty. This positive relationship is mainly manifested in firms with high agency costs and low regional economic conditions. In addition, the chairperson's political connections are not related to the efficiency of the poverty alleviation program. Politically connected firms receive less government recognition with an increase in investment in poverty alleviation. Our findings are consistent with the notion that firms participate in poverty alleviation programs for reciprocal favor exchanges, but they fail to manage these programs efficiently.     

Why is the Inter-firm Credit Market in Korea Special? An Agency View of Trade Credit Use by Chaebols

Abstract

China and India (Chindia) have begun in recent years to enjoy growing measures of economic success, reversing centuries of structural poverty and negligible rates of economic growth. This article examines the influence of varying cultural propensities—Hinduism in India and Confucianism in China—and their impact on each country's economic turnaround. It discusses the historical circumstances that shaped Chindia's perspectives on foreign direct investment and how external forces contributed to domestic policy-making. It also addresses three ways in which culture can affect economy and two major events that cemented the direction of Chindian economic growth. Finally, the paper presents a comparative analysis of China and India and their respective impact of culture on development. It asserts that the forces of culture and its historical development do matter, especially when it comes for a nation to reverse its deprived and stagnated situation and to achieve a status of economic powerhouse.     

Foreign Direct Investment and Services Trade: Evidence from Malaysia and Singapore

Abstract

Services trade is an important source of growth in Malaysia and Singapore. Both economies are export-oriented and actively court foreign direct investment (FDI) to advance their economic objectives of industrialization and economic development. This paper examines the causal linkages between inward FDI and the country's engagement in services trade in bi-variate and tri-variate VAR frameworks. The empirical findings for Singapore show evidence of bi-directional causality between inward FDI and the total trade volume in services (i.e. the absolute sum of payments and receipts) as well as between FDI and services imports (in the tri-variate specification). This may reflect her relative open foreign investment policy and free trade regime in services. For Malaysia, the evidence of causality is weaker and uni-directional, from inward FDI to services imports. These findings are consistent with the different stages of economic development and openness attained by the two sample countries, and they provide useful background for trade and foreign investment policies and development strategies.     

The economic causes and consequences of social instability in China

This paper provides a survey of the economic literature relevant to social instability in China and moulds it into an argument. The objective is to offer a fresh view of economic policy and performance through the lens of the threat posed by social instability. This is a concept that economists rarely analyse, and yet it can lurk behind much economic policy-making. China's leadership has often publicly expressed its concern to avoid ‘social instability’. It is viewed as a threat both to the political order and to the continued rapid growth of the economy. This threat to growth in turn endangers the maintenance of social stability. The paper examines the likely economic determinants of social instability, using both surveys and other evidence. After discussing the determinants of China's rapid growth, the paper goes on to examine the likely mechanisms by which social instability can affect the growth rate. There is a case for more research on the role of social instability in the economic development process.     

Chinese cross-border M&As in the “One Belt One Road” countries: The impact of Confucius Institutes

As the “One Belt One Road” (OBOR) initiative enters a new stage of substantive construction, Chinese cross-border mergers and acquisitions (M&As) are significantly increasing in the OBOR areas. Acknowledging this trend and drawing on institutional theory, this study investigates the impact of the Confucius Institute on China's cross-border M&As in the OBOR countries. It also examines how this impact is moderated by Bilateral Investment Treaties (BITs) and by comparable superior economic development and political-institution quality between home and host countries. The findings suggest that Confucius Institutes have a positive effect on the completion of M&As in OBOR countries. The effect is greater if a host country has BITs signed with China or if it has better economic development than China. This implies that, to facilitate Chinese firms' investments in OBOR areas, China should actively participate in cultural exchange activities and the establishment of Confucius Institutes should focus on those countries that have BITs with China, or which have better economic development.     

Political instability and economic development in Sub-Saharan Africa: Some recent evidence

Political instability has become endemic to Sub-Saharan Africa. Since the early 1960s, when most of the African countries began to achieve independence, more than fifty coups have taken place in the continent. This rise in political decay has significantly affected economic development. This study examines the relationship between elite political instability and economic development in Sub-Saharan Africa. It concludes that lack of political stability has contributed significantly to economic stagnation in the continent of Africa.     

Convergence or divergence?*: The South Korean state after the Asian financial crisis

This study suggests that the government's attempt to replace the developmental state by introducing neo‐liberal axioms is slim. The state that is to emerge in consequence of the economic and financial reforms carried out by the Kim government is distinct from the neo‐liberal regulatory state at the ideological level; moreover, the embedded characteristics of the developmental state hinder changes in the nature of the state. It is the paper's argument that the economic reform that has been implemented by the Kim Dae‐Jung government since its establishment (in 1998) is merely a form of “self‐help” to correct those mistakes committed by the developmental state. Despite the neo‐liberal reform attempted by the Kim government, the social, political and historical conditions in which a liberal regulatory state may be born are pre‐mature, and the embedded legacies of the developmental state are far from becoming a thing of the past.     

The Korean Economy in Transition: In Search for a New Model

Abstract

Prior to the 1997 financial crisis, the Korean economy had based its growth policies on East Asia's economic catch-up model which was based mainly on the Japanese development experience. However, the events that lead to the 1997 crisis and the changes instituted in the Korean economy after the crisis have put to question whether the traditional East Asian growth model will continue to be viable. This paper examines two alternative models of development, namely the “Anglo-Saxon” and the “Continental European” models, and evaluates their relevance for Korea's future development challenges. Despite many common features these models share, they are also quite distinctive with regard to their treatment of the labor market system and the role of government. By focusing on the model's capacity to expand employment and to provide sustainable growth as the most important criteria, it is suggested that Korea should follow the “Anglo-Saxon model”, at least in the short- to medium-term. In comparing Korea's economy with other advanced economies when they were at the similar stage of development, it is found that Korea's growth potential lags behind that of countries such as Japan, Germany, Finland, and Ireland. The efficiency of Korea's investment is found to be only slightly better than Japan while it is inferior to all other advanced economies. Despite these challenges, Korea is apparently moving toward the “Continental European model”, with the Korean government increasing its own size and plans for further expenditures on social security and welfare. However, in order to ensure sustainable development with significant job creation, this paper argues that Korea should switch its direction and adopt the “Anglo-Saxon model” as soon as possible.     

Democracy and growth: The Sub-Saharan African case, 1960–1992

This article conducts a cross-national analysis of forty sub-Saharan African countries during the years 1960–1992. It examines the longrun relationship between political democracy and economic growth, taking advantage of the availability of large economic and political data sets. The conclusion from this study is that the economy grows faster under a regime that enjoys a higher level of institutionalized democracy. It is also found that a positive feedback relationship exists between democracy and growth; while democracy promotes growth, growth leads to a higher level of democratization. In addition, it is found that the duration of authoritarian rule decreases economic growth, while growth shortens the tenure of an autocratic government. Other factors that account for growth in sub-Saharan African countries include the initial size of the economy, human capital stocks, domestic investment share, and international trade.