Continuity and Change in Public Policy: Redistribution,Exclusion and State Rescaling in Turkey

This article discusses potential reasons for the continuities in the broader policy agendas of capitalist states, despite radical shifts in economic policies, by employing the state‐rescaling framework. Its main thrust is that, even though centrally designed policy programs mainly aim to give direction to the dynamics of the market economy, the institutional (re)structuring needed to operationalize such policy measures has been shaped around a politics of redistribution, a product both of the exclusionary results of past policies and the negative results of the newly introduced policy programs. This dialectical tension turns state rescaling into a political exercise in solving, and reproducing, ‘systemic crises’. The article examines the history of state rescaling in Turkey to develop these arguments.     

Racialization and Rescaling: Post‐Katrina Rebuilding and the Louisiana Road Home Program

This article examines the interlocking nature of racialization and rescaling in post‐Katrina New Orleans, focusing specifically on the implementation of the Louisiana Road Home program, the largest housing recovery program in US history. Based on interviews and long‐term ethnographic fieldwork, I conceptualize the Road Home program as a racialized spatial strategy to revalorize disaster‐devastated spaces and enhance the exchangeability of damaged property. I trace the logic of rescaling in post‐Katrina New Orleans and reveal the ways in which state policies to accelerate the turnover time of flood‐damaged housing reflect and reinforce the racialization of space. New Orleans stands as a valuable laboratory for the study of government intervention under conditions of widespread upscaling, downscaling and outscaling processes, pushing trends found elsewhere to their limits while revealing the negative consequences of rescaling for local institutions and residents. The article illustrates the localized dynamics of rescaling in times of crisis and offers a novel processual account of the drivers and consequences of rescaling processes in a disaster‐impacted territory.     

Urban Fortunes and Skeleton Cityscapes: Real Estate and Late Urbanization in Kigali and Addis Ababa

In many parts of Africa, societies that remain primarily rural are experiencing accelerated urban growth and highly visible booms in property development. In the absence of significant industrialization, investment is pouring directly into what Lefebvre and Harvey characterized as the ‘secondary circuit’ of capital. Debates about the drivers of investment in real estate are longstanding in relation to the global North, but have given little consideration to low‐income and late‐urbanizing countries in Africa. Yet such contexts offer important opportunities to reflect on existing theory. Focusing on Kigali and Addis Ababa (both transformed virtually beyond recognition over the past two decades), this article explores the drivers and consequences of investment in urban real estate in countries striving to structurally transform their economies. It argues that a range of formal and informal incentives and constraints have led to high‐end real estate being viewed as the ‘safest bet’ for those with resources to invest, even where demand is limited and governments are promoting other kinds of investment. While some people are reaping urban fortunes in largely untaxed rents, much of the construction is purely speculative, creating landscapes of unused and underused high‐end properties in contexts where investment is desperately needed elsewhere.     

Fracturing Hegemony: Regionalism and State Rescaling in South Korea, 1961–71

This study is informed by the theorizing prompted by recent work on state rescaling. I aim to examine the interaction between the top‐down and bottom‐up rescaling processes that took place in the South Korean developmental state during the late 1960s and early 1970s. I focus on a regionalism that both built a regional scale and influenced the hegemonic crisis of the ruling regime. Specifically, the study illustrates the features of state space that were shaped during the developmental era and the factors that allow state space to be stable and coherent. By dealing with these questions, I provide a possible interpretation of why and how regionalism was a crucial factor in the hegemonic crisis of the 1960s and generated a rescaling of state space. What makes this study significant is not merely the fact that this space is located in East Asia. It could also, more generally, open up an alternative perspective on state rescaling during the early stages of state‐led industrialization.     

No Mangoes in the Tundra: Spatial Heterogeneity in Agricultural Productivity Analysis*

In line with the wider macro productivity literature existing studies of agricultural production largely neglect technology heterogeneity, variable time‐series properties and the potential for heterogeneous but correlated total factor productivity (TFP) across countries. Our empirical approach accommodates these difficulties and seeks to model the nature of the cross‐section dependence in a sample of 128 countries (1961–2002). Our results suggest that agro‐climatic environment drives similarity in TFP evolution across countries with heterogeneous production technology. This provides a possible explanation for the failure of technology transfer from advanced countries of the temperate ‘North’ to arid and/or equatorial developing countries of the ‘South’.     

Focus and Standardization of Sustainability Reporting – A Comparative Study of the United Kingdom and Finland

Sustainability reporting has attracted significant attention from the business as well as the academic community in recent years. Not only has the latter frequently made recommendations on reporting, it has also extensively examined factors that have an influence on reporting. Several studies have noted differences in the extent and style of reporting across countries, but the influence of specific cultural and socio‐economic environments on reporting has only been given limited consideration so far. It is the goal of this paper to help fill this gap. For this purpose, we examine the sustainability reporting of the 100 largest companies in the United Kingdom and Finland, as both are highly developed countries in North‐Western Europe, but with significantly different cultural and socio‐economic systems. Aside from the extent of reporting and media used, we examine the reporting standards and guidelines applied. Moreover, the focus of disclosure (economic, social or environmental) was investigated, which also brings a new perspective to the academic literature. Our results suggest that the cultural and socio‐economic environment has an impact on the extent of reporting, but with regard to the focus of reporting and the application of standards the results are mixed. A stronger shareholder oriented culture does not lead to a more extensive inclusion of economic issues in sustainability reporting, while the extent of environmental reporting depends on the strength of environmentalism. The impact of cultural and socio‐economic factors on the application of standards, such as the Global Reporting Initiative, appears to be limited. Copyright © 2012 John Wiley & Sons, Ltd and ERP Environment.     

Expressive Shareholder Democracy: A Multilevel Study of Shareholder Dissent in 15 Western European Countries

This study develops an expressive understanding of shareholder dissent. In this view, shareholder dissent is not only about the voting outcomes of proposals put to the vote, but also expresses an evaluation of the firm's corporate governance set‐up. We hypothesize that shareholder dissent expresses an agency theoretical evaluation of corporate governance, but that the degree to which the capitalist system of a country is a coordinated market economy (CME) leads shareholders to evaluate corporate governance more in team production terms. We test our theoretical model using multilevel techniques on a sample of 12,513 proposals voted on in 717 firms listed in 15 Western European countries and find support for our predictions. Our study not only contributes to a better understanding of the corporate governance role of shareholder dissent, but also shows that what shareholders express through dissent differs across national contexts.     

‘Policies in Motion’, Urban Management and State Restructuring: The Trans‐Local Expansion of Business Improvement Districts

This article examines the ways in which business improvement districts are being introduced into UK cities. In advancing this analysis, the focus here is on the means through which one or two Manhattan business improvement districts have been constructed as ‘models’ of urban management, taken out of their particular local/regional and national contexts and introduced into a diverse set of local political economic contexts in UK cities and towns. Examining the way business improvement districts have become a policy in motion, the article sketches out the emergence of entrepreneurial urban governance arrangements in the UK as part of the state's changing spatiality in the industrialized economies of Western Europe and North America. I argue that these changes make UK cities and towns increasingly receptive to the business improvement district model of downtown management. Seeking to move beyond the sometimes rather one‐sided representations of policies that find themselves on the move, the article seeks to connect the ‘exporting’ and ‘importing’ zones of policy transfer, arguing for an open and permeable conceptualization of these places. It draws on work in Manhattan, New York to unpack the nature of the political–economic relations that business improvement districts were part of, before moving on to examine the dynamics of policy transfer and the early days of the introduction of this downtown ‘model’ into UK cities.     

‘Post‐Third‐World City' or Neoliberal ‘City of Exception'? Rio de Janeiro in the Olympic Era

This article considers processes of urban development within the context of mega‐event preparations in Rio de Janeiro. We begin with a brief overview of these development processes, highlighting their connections to political and economic change in recent years. Proponents of these mega‐event‐led initiatives argue that Rio is undergoing a period of inclusive growth and integration: a perspective we call here a ‘post‐Third‐World city' narrative of urban renewal. Critics, however, contend that urban officials are harnessing mega‐events (e.g. the 2014 World Cup and the 2016 Olympic Games) to push forward a neoliberal agenda of socially unjust policies benefiting the interests of capital and marginalizing the city's poor and especially its favelas (i.e. the ‘city‐of‐exception' thesis). In this article we explore the insights of these two perspectives and consider why they have grown popular in recent years. Though we side generally with the city‐of‐exception thesis, we argue that important geographic and historical particularities must also be accounted for. Without carefully situating analytical perspectives empirically—in particular, cases in which theoretical models are drawn from European and North American contexts—urban researchers risk concealing more than they reveal in analyses of rapidly developing countries like Brazil.     

The impact of cultural dimensions on Chinese expatriates' career capital

The existing expatriation literature confirms that international assignments (IAs) are an essential tool for developing international talent and global managers. However, the majority of relevant studies are conducted in Western developed contexts and neglect the effects on individuals from emerging countries such as China. In the Chinese multinational companies context, this paper explores the concept of career capital comprising knowing-how, knowing-whom and knowing-why. Using Hofstede's cultural dimensions, it investigates the impact of IAs on an individual's career capital. Twenty-eight semi-structured interviews with Chinese expatriates were conducted. Results suggest that the Chinese expatriates develop limited career capital from IAs. The research shows that the Chinese culture plays an important role in shaping organisational practices and individual behaviours and, consequently, the development of expatriates' career capital. It goes beyond the current individual and organisational focuses on IAs to include a cultural perspective on the development of career capital. Implications are rehearsed, exposing areas for further research.     

The New Political Role of Business in a Globalized World: A Review of a New Perspective on CSR and its Implications for the Firm,Governance, and Democracy

Scholars in management and economics widely share the assumption that business firms focus on profits only, while it is the task of the state system to provide public goods. In this view business firms are conceived of as economic actors, and governments and their state agencies are considered the only political actors. We suggest that, under the conditions of globalization, the strict division of labour between private business and nation‐state governance does not hold any more. Many business firms have started to assume social and political responsibilities that go beyond legal requirements and fill the regulatory vacuum in global governance. Our review of the literature shows that there are a growing number of publications from various disciplines that propose a politicized concept of corporate social responsibility. We consider the implications of this new perspective for theorizing about the business firm, governance, and democracy.     

Cacao Capitalism and Extended Urbanization: On the Contradictory Origins of Bounded Urbanism in Nineteenth‐century Coastal Ecuador

This article challenges both contemporary and classic urban theory by analyzing the historical case of coastal Ecuador. Working from primary and secondary sources, I track the urbanization of coastal Ecuador during the long nineteenth century, when cacao exports determined not only the economic wellbeing of the city of Guayaquil, but of the entire tropical lowland region. I argue that this extended urban geography was both experienced and practiced as an unbounded economic and cultural region. As the value of cacao exports skyrocketed, capitalists in the city invested in infrastructural projects and financial instruments, divorcing money‐making from cacao production. After the Gran Incendio (great fire) of 1896, the city was rebuilt according to the ideals of modern liberal planning that further separated the city from the country symbolically, despite their continued material interconnection. This work suggests that long histories of capitalist urbanization provide material and theoretical support for critiquing bounded urban theory both past and present, by moving beyond the city and highlighting the processes undergirding spatial production under capitalist social relations. Likewise, this historical case study argues that city‐centrism, rather than being constituted epistemologically, was tied to liberal notions of the urban based on nineteenth‐century ideologies of modernization and progress.     

Understanding variation in the relationship between environmental management practices and firm performance across studies: A meta‐analytic review

The relationship between environmental management practices and firm performance has continuously received much attention in academic research. As existing literature on the link of the two constructs is characterized by heterogeneous research characteristics and mixed empirical evidence, one interesting question arises: Do research characteristics affect the magnitude and direction of the relationship between environmental management practices and firm performance? Amassing a database of 92 studies, 199 effect sizes, and 72,258 firms, we examine this question by conducting a meta‐analysis. The characteristics investigated in this study include item number of performance measures, year of data collection, industry type, economic development, and Hofstede's five cultural dimensions. A meta‐regression reveals that environmental management practices are positively associated with firm performance and that the degree of this association depends on these contexts. Specifically, the environmental management practices–performance relationship increases with year of data collection, is stronger with multiple item measures, and is higher for firms in developed countries and in cultures characterized by high power distance, low individualism, low uncertainty avoidance, and low long‐term orientation.     

Why ‘Good Governance’ Fails: Lessons from Regional Economic Development in Colombia

By critically reviewing different strands of literature on institutional change and development, this essay argues that, in order to fully understand subnational economic development, we need to move away from ‘good governance' explanations in which geography‐specific analyses of power structures and elite interests are largely absent. Using findings for Colombia and insights from economic geography and heterodox political economy theories, this essay gives theoretical and conceptual guidelines and approximations for future studies on regional economic development. The contribution provides a place‐based discussion of how the historically evolved distribution of power balances, context‐specific elite interests, and the interaction between place‐bound actors and place‐less dynamics affect subnational institutional arrangements shaping policies and development outcomes. The conclusions drawn are not limited to Colombia and will prove beneficial to researchers studying regional economic development in subnational contexts elsewhere in the world.     

CORPORATE CAPITAL STRUCTURE AND HOW SOFT BUDGET CONSTRAINTS MAY AFFECT IT

Abstract.  This survey paper examines existing theories of capital structure and related empirical tests with the aim to derive theoretical as well empirically testable predictions about the implications of the soft budget constraint for corporate capital structure. We show that the soft budget constraint syndrome is relevant for a variety of institutional environments, from central planning to capitalist economic systems, and consider features of company financing patterns in various institutional contexts. Special attention is paid to emerging and transition economies where, with the development of financial markets, companies reduce their financial dependence on the state and begin to borrow from a variety of sources. However, due to the persistence of soft budget constraints, corporate capital structure in transition and emerging economies may still deviate significantly from the capital structure of companies operating under hard budget constraints.     

Development by Decree: The Limits of ‘Authoritarian Modernization’ in the Russian Federation

The apparent success of state‐managed market economies has challenged the conventional wisdom that liberal democracy is the norm around which all capitalist countries tend to converge. If the link between democracy and development is more tenuous than we often think, the authoritarian variety of capitalism is not without its own problems, especially with respect to political legitimacy, innovation and regional development. This article explores these issues through the prism of ‘authoritarian modernization’ in Russia. We argue that this strategy is unlikely to succeed, even in its own terms, because (1) the political system fails to create favourable institutional conditions for modernization; (2) the economic system is beset by deeply embedded structural problems; and (3) the regional policy apparatus is torn between the goals of spatial equalization and spatial agglomeration. The article focuses on the Skolkovo Innovation Centre, the main symbol of Russian modernization, to demonstrate the territorial repertoire of the mega‐project, a state‐sponsored development strategy to create innovation clusters from above because they cannot emerge from below.     

INCENTIVES AND SOCIAL NORMS: A MOTIVATION‐BASED ECONOMIC ANALYSIS OF SOCIAL NORMS

Abstract It is now commonplace to regard social norms as a subject of growing interest in the economic literature (e.g. game theoretical approaches based on ‘other‐regarding’ individual preferences, the analysis of the impact of rewards or punishment on individuals’ behaviour through experimental economics as well as field experiments, the revival of the institutionalist tradition spurred on by the influential work of Douglas North and followed by many others and the growing influence of neuroeconomics). In this paper, we focus on the relationship between incentives and social norms and survey the literature that could constitute the foundations of a motivation‐based economic analysis of social norms. Our main findings are that (1) the interaction between incentives and social norms is far from obvious since taking social norms into account involves the introduction of supplementary motives, in addition to self‐interest, into the economic analytical framework; (2) the analysis of the interaction between incentives and social norms resists an approach exclusively in terms of crowding‐in and ‐out effects because it is sensitive to whether it concerns behaviours driven by honour or by social stigma; (3) as a result, it is difficult to precisely evaluate the policy implication of the interactions between incentives and social norms.     

Introduction: Towards a Political Understanding of New Ruins

This debate section gathers together contributions from cultural historians, political geographers, urban sociologists and architectural writers on new forms of ruination in contemporary landscapes. Their case studies span examples of ruins in China, North America, Ireland and Ukraine, as well as reviewing cultural representations of ruined, remote and peripheral spaces in England and Greece. Many wider cultural representations of ruined landscapes are primarily visual; whilst these have great value in alerting wider publics to the debris of global capitalism, neoliberalism and state‐sanctioned processes of cultural imperialism, what is needed within academic contributions to the ruinology literature is a deeper understanding and articulation of the wider contexts within which ruination occurs. Therefore, several contributions supplement visual representations of ruination with ethnographic and first‐person accounts of places on the ground, whereas other contributions offer readings of ruined landscapes that are rich in political histories and policy details. Connections are made to wider contemporary debates around ‘forensic architecture’ and critical archaeologies of the present and recent past. What connects these contributions is a commitment to situating ruins within their historical, policy and social contexts, and working through ruination to open out political readings of landscape.     

Cooperative Islands in Capitalist Waters: Limited‐equity Housing Cooperatives,Urban Renewal and Gentrification

Improving the habitat of residents in central‐city neighbourhoods without simultaneously gentrifying these is becoming a pressing dilemma in right‐to‐housing and right‐to‐the‐city agendas, both in the global North and the global South. This article explores what possibilities limited‐equity housing cooperativism can bring to the table. Insights are drawn from two urban ‘renewal’ processes in which limited‐equity housing cooperatives have played an important role: in Vesterbro (Copenhagen) and Ciudad Vieja (Montevideo). The article analyses the everyday politics within and around these cooperatives through a broader institutional and political‐economy lens. This approach sheds light on mechanisms of inclusion and exclusion that operate within these cooperatives, as well as on the processes through which they have been directly and indirectly implicated in the displacement of low‐income neighbours. Despite providing a grassroots housing alternative for local ‘non‐owners’, individual cooperatives participate in, and are vulnerable to, urban transformations that traverse multiple scales. They are inserted, moreover, within wide‐ranging unequal social structures that the cooperative's formal equality has limited tools to offset. The ways in which cooperatives interlink as a sector and how this sector relates to the state are two key dimensions to be considered in challenging capitalist‐space economies.     

INSTITUTIONS AND (SHORT-RUN) MACROECONOMIC PERFORMANCE

Abstract. This paper reviews the growing interest in institutions. It argues that the explanation for this interest is a fresh awareness of how institutions affect economic performance. This connection arises because many economic interaction take the form of one or other of three 'classic' games (prisoners' dilemma, coordination and chicken) and the outcome in these games (and hence performance of the economy) is influenced by the institutional context of these interactions. The paper provides a detailed illustration of this argument with a survey of the literature which relates unemployment performances to the institutions of wage setting in OECD countries.