New principles for technical assistance

In January 1974 the Federal Ministry for Economic Cooperation put new principles for technical assistance in force. These principles indicate the scope of the aims, tasks and methods of this not entirely undisputed instrument of German development aid.¹ They are based on the concept of development policy evolved in the Federal Republic of Germany and apply it in concrete terms to the sphere of technical assistance.²     

The decline and fall of US foreign aid

Foreign aid, once hailed as “the most unsordid act in history”, is in deep trouble. Despite the exhortations of the Pearson Report¹, the call for sweeping reform by various governmental commissions and the annual plea to Congress of the Agency for International Development (AID), economic assistance is rapidly declining, and the future looks even bleaker.     

The new frontier in state aid control

State aid is in principle prohibited in the European Union, with a few exceptions provided for in the Treaty. Recently, a judgement by the European Court of Justice has weakened that prohibition by narrowing the concept of state aid. Criticism of this judgement so far has been based solely on legal grounds. This paper carries out an economic assessment of the judgement and argues that it is based on faulty economic premises. The author proposes an alternative method for dealing with compensatory measures so as to close the loophole opened up by the judgement. The author is grateful to Jean-Paul Keppenne for comments on an earlier draft, to Kirtikumar Mehta for stimulating discussions on the issue of compensation and to Anne-Mieke den Teuling for research assistance. The author is solely responsible for the views expressed in this paper.     

The economics of welfare

We need to tone down the emotional content of the discussion of welfare and deal with facts. The author points out that public assistance takes two principal forms: crude and subtle. The former includes aid to the needy; subtle aid is given regardless of need. In the minds of many, crude programs are welfare, but the subtle programs are not. Statistics reveal that of the 14 million who receive direct aid, only 1 percent are unemployed males. Therefore, no significant group can be identified as undeserving. The system, as it now stands, humiliates the recipients, offers inadequate benefits, lacks fairness and uniformity and perpetuates poverty. The author offers six corrective measures that should be taken.     

Conditionality and Aid Effectiveness Re‐evaluated

This paper evaluates aid by considering how effective aid has been in exerting leverage on policy choices. It is rather easy to demonstrate that if a country is unwilling to implement policy reforms, attaching conditions to aid will not ensure sustained reform. In this sense conditionality does not work. This ignores the fact that donors, through aid and conditions, can influence recipient policies. The argument of this paper is that if the analysis focuses on channels of influence, one can better identify ways to enhance aid effectiveness. Reform is a slow and difficult process and donors would be more effective ‘development partners’ if they see their role as being to support rather than force this process. In simple terms, donors should provide the information and technical assistance to help governments to make policy choices, rather than dictating choices by imposing conditions.     

Fear Linkages Between the US and BRICS Stock Markets: A Frequency-Domain Causality

Abstract

We employ a spectral causality approach to uncover short-, medium-, and long-run causal relations between the US implied volatility index and the five individual implied volatility indexes of BRICS markets from 16^th March 2011 to 31^st January 2018. We show that the volatility causal relations differ between the short and long run in many cases. Although the results indicate the dominant role played by US uncertainty in shaping uncertainty in all BRICS markets, there is also evidence of a feedback effect from Brazil, Russia, and China to the US that differs across the spectrum. The implications for hedging and risk management practices are explored.     

Publishing in an Environment of Predation: The Many Things You Really Wanted to Know,but Did Not Know How to Ask

ABSTRACT

The purpose of this research note is to define and review the extent of “predatory¹1. Predatory an adjective of, relating to, or practicing plunder, pillage, or rapine; inclined or intended to injure or exploit others for personal gain or profit as in predatory pricing practices; living by predation, predaceous; adapted to predation. Source: (https://www.merriam-webster.com/dictionary/predatory#synonyms) To avoid connotative inaccuracies the authors intend to convey the construct predatory in its broader sense thereby striving toward denotative accuracy.” publishing process practices in academic journals in recent years. In addition, ascertaining what, if any, substantive damage can result from these practices. And to derive “warnings signs” for those embarking on the road to creating/distributing what they have learned. “Predatory publishing” is the charging of a fee or proving value in exchange for the publication of research material without providing the publication services an author would have reasonably expected such as peer review and editing to mention only a few. There is evidence that this “practice” has sadly grown in prevalence in recent years. Following a review of the literature and using case study methodology, it was found that damages in the case of one large publisher were estimated to be over $50 m, as per a court adjudication in the US. With open access publishing becoming more popular as a result of institutional, funder and national mandates, it is likely more authors could be tempted or even baited into making poor decisions and publishing their research articles in illegitimate journals, wasting funding resources and damaging their research reputations. These and other implications are considered, as well as enumeration of such behaviors with an eye toward fostering deterrence. Further research and actions that could mitigate the problems are outlined.     

Inside or outside? The role of the WTO in the settlement of the transatlantic trade dispute on GMOs

The looming transatlantic trade war over genetically modified organisms (GMOs) has revived the debate on the appropriateness of the WTO.¹ In this article, it is asserted that the present WTO remains the appropriate forum for addressing the GM dispute as its science-based approach harmonises members' food safety concerns with free trade interests. Calls for the recognition of consumer preferences by the WTO severely underestimate the dangers of disguised producer protectionism. This article is a revised version of a paper written during the author's sojourn at the Central European University, Budapest, Hungary. The author wishes to express his thanks to Professor László Csaba, Department of International Relations and European Studies, Central European University, for his assistance and helpful comments. See: Forum. New Transatlantic Trade War, in: INTERECONOMICS, Vol. 37, No. 3, 2002, pp. 124–137.     

Aid,Aid for Trade,and bilateral trade: An empirical study

In a gravity model for 184 countries between 1990 and 2005, we show that bilateral aid is not only positively correlated with donor exports, as suggested in earlier studies, but also positively associated with recipient exports to donors. Our interpretation is that an intensified aid relation reduces the effective cost of distance. We find a particularly strong effect of aid in the form of technical assistance. The effect of trade-related assistance (Aid for Trade) is small and fully accounted for by aid to investments in trade-related infrastructure. The aid-trade link is particularly strong for donor exports to Sub-Saharan African countries and for recipient exports of strategic materials.     

Parkinson’s Law and absorptive capacity

Parkinson’s Law, or the principle that work expands to fill the time available for its completion and that the number of subordinates multiply at a fixed rate regardless of the amount of work produced was postulated by Professor Parkinson as a satire as well as a serious social comment on the development and growth of bureaucracy. Over the years it has come to be used as a shorthand expression for the inefficiency and mindless expansion of officialdom.¹ Absorptive capacity, on the other hand, is defined as the amount of capital which a country can utilise productively in the short run. This article analyses the relationship of these two concepts in the context of development aid.     

American influences on European consumer Bankruptcy law

In this paper the author discusses some aspects of the problems and possibilities concerning the introduction in Europe of elements of the Fresh Start doctrine for consumers as embedded in the US Bankruptcy Code. He describes the USA as a society with a restricted social security system and a rather radical Fresh Start policy (discharge of debts, exemptions, etc.). By contrast the West European countries have a well developed system of social security and a lifelong liability for debts. Because many people in Europe are facing debt problems, several governments have been looking for American-like solutions to overindebtedness. After describing the political underpinning of this project, the author discusses some recent developments and perspectives.

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Amerikanische Einflüsse auf das europÄische ZahlungsunfÄhigkeits-Recht bei Privat-personen

Zusammenfassung Der Beitrag schildert die Doktrin des völligen Neuanfangs als typisches Element des amerikanischen Insolvenzrechts und diskutiert die Möglichkeit seiner Einführung auch in das europÄische Recht der Konsumentenüberschuldung. Die Doktrin des völligen Neubeginns ist gekennzeichnet durch (a) ein rechtliches Verfahren mit dem Ziel, dem Schuldner seine Schulden zu erlassen, (b) die UnpfÄndbarkeit einzelner Besitzgüter des Schuldners sowie (c) das Verbot der Diskriminierung von ehemals überschuldeten Personen.Der Autor kennzeichnet die USA als eine Gesellschaft mit einerseits einem lediglich eingeschrÄnkten System sozialer Sicherheit, andererseits aber mit der Möglichkeit eines gÄnzlichen Neubeginns nach einer überschuldung, wogegen die westeuropÄischen Staaten ein hohes Ma\ an sozialer Sicherheit haben, Schuldnern allerdings eine lebenslange Haftung für ihre Schulden aufbürden.Angesichts der wachsenden Schuldenproblematik in Europa erwÄgen die Regierungen eine teilweise übernahme des amerikanischen Ansatzes. Der Autor, seit 1988 selbst in einem niederlÄndischen Forschungsprojekt zu dieser Frage engagiert, diskutiert die politischen Argumente und die neueren Entwicklungen der Gesetzgebung nicht nur für sein eigenes Land, sondern auch für Deutschland, Frankreich und Gro\britannien.

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Earlier versions of this paper were presented in June 1991 at the Damwoude Conference on Critical Legal Thought and the International Conference of Law and Society in Amsterdam.

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The author wishes to thank Duncan Kennedy for his comment in Damwoude and Hanneke Ackermann for editorial assistance.     

Effects of German development aid on the internal economy

The importance of economic cooperation with the Third World for the internal economy is attracting increasing attention in the discussion of development aid topics in the Federal Republic of Germany¹. In this context it is of interest how the German development aid bears on the internal economy of the Federal Republic through feedbacks (in the form of contracts for German firms) from its bilateral and multilateral development aid payments. The following article presents the results of a relevant inquiry for the year 1976².     

Conspiracy in Industry or Conspiracy in Academe? A Review of Yoshiro Miwa and J. Mark Ramseyer,The Fable of the Keiretsu: Urban Legends of the Japanese Economy

During the 1980s, a widespread belief that the Japanese economy was outperforming that of the US led to a search for causes. Perhaps top on the list was a view that the Japanese had rejected the US model of private market competition, substituting for it the use of very large horizontal and vertical cooperatives, known as keiretsu. These keiretsu were thought to follow the instruction of main banks and the Japanese government rather than their own entrepreneurial insight. Miwa and Ramseyer's book (2006 Miwa, Y. and Ramseyer, J.M. 2006. The Fable of the Keiretsu: Urban Legends of the Japanese Economy, Chicago: University of Chicago Press. [Crossref] [Google Scholar]) sets out a detailed case against all of these claims. While the argument about the role of the keiretsu is significant, perhaps more important is the authors' explanation of why the ‘fable’ was thought real by academics as well as the policy and business community.     

中国参与WTO贸易援助所面临的问题评析

贸易援助是官方发展援助的重要形式,中国在WTO贸易援助倡议的启动、后续工作及实际参与中起到了积极作用。中国国际经济地位的转变让其他国家产生更高的援助期待。发达国家对发展中国家提供的贸易援助是其应当承担的国际义务。"南南合作"是发展中国家之间的互助合作形式,其本质是基于平等理念的合作,是贸易援助的补充形式。中国在力所能及的条件下应当尽量与发展中国家开展"南南合作"并在此过程中提供适当援助。完善对外援助法律制度是顺利开展贸易援助、实现援助目的的保障。     

State aid control in the European Union— Rationale, stylised facts and determining factors

The EC Treaty substantially reduces the freedom of EU Member States to provide direct economic assistance to enterprises. The main rationale for controlling the use of national state aid at the European level are the potentially negative repercussions of national subsidies on EU market integration. Expressed in per cent of GDP, overall state aid has indeed declined over the last 15 years and state aid to manufacturing, expressed as a percentage of value added, has also fallen. Furthermore, country-specific differences with regard to the use of state aid have been reduced. The econometric analysis conducted in this paper suggests that the increased need for fiscal discipline during most of the 1990s had a considerable impact on the reduction of manufacturing state aid. Were it not for this increased fiscal discipline, state aid to manufacturing might not have remained on a declining trend in the second half of the 1990s. The views expressed in this paper are those of the authors and do not necessarily reflect the position of the ECB. Helpful comments by A. van Riet, M. Bagella, M. Malgarini and G. Piga as well as secretarial assistance from S. Schleicher Baltrusch are gratefully acknowledged.     

The crisis of American business

This paper is a response to the preceding papers. It is maintained that American business is failing to live up to its obligations to society. One reason for this is acceptance of what De George calls the Myth of Amoral Business. Businessmen believe that morality is either not applicable to business or that business has a special morality of its own. Several arguments are advanced to show why this is not true. A second reason business is failing to fulfill its obligations is that egoism seems to be an essential feature of capitalism. Harrington believes that this should be changed, but that attempts to change it are bringing about a more collectivist society. Kirk sees no need for change because he believes capitalism the best possible economic system. It is argued in reply that they are both mistaken because their analyses are based on outmoded ideologies which impede rather than aid us in solving problems caused by the irresponsibility of business. Gene G. James is Professor of Philosophy at Memphis State University. He is Managing Editor of The Southern Journal of Philosophy. He is the author of a number of articles on ethics and political philosophy, and is co-author of a logic text.     

No solution for international monetary problems

At its 14th meeting (in Hamburg) the Interim Committee of the International Monetary Fund (IMF) held further discussions on the establishment of a substitution account through which the monetary authorities would voluntarily transfer a part of their dollar reserves¹ to the IMF in return for interest-bearing claims denominated in Special Drawing Rights (SDR)². The transferred dollars would be invested by the Fund long-term³ in US Government securities so that they would be withdrawn from international circulation. As was to be expected, the meeting did not yet bring an accord. Technical difficulties were stated to be the reason for this but at this juncture no state seems to be especially interested in setting up such an account.     

The Journal of Business-to-Business Marketing at 21 and My Perspective on the Field of B to B Marketing

ABSTRACT

Purpose: The author shares his thoughts on the progression of the Journal of Business-to-Business Marketing and the field of business-to-business (B to B) marketing over the last 21 years. The author discusses the field of B to B marketing research and examines the gaps that exist between theory and practice and in the quality of papers among the top-tier marketing journals and the three journals that are dedicated to B to B marketing research.

Methodology[#x0002F]approach: Because the article represents both the author[#x02019]s perspective on the current state of B to B research and his views on how well the Journal of Business-to-Business Marketing has contributed to and influenced the field, the approach taken is primarily conceptual. Also, the approach allowed the author to opine as to the future direction of the field.

Findings: Although much progress has been made in improving the quality and relevance of B to B research, there still exists a relative gap in the number of submitted papers, the quality of these papers, and the impact, with some exceptions, that B to B scholars have on marketing theory and practice. Much of the gap can be attributed to the lack of adequate doctoral training. The gap is more a relative comparison to those who would follow a business-to-consumer (B to C) research path.

Research implications: Doctoral training for those interested in B to B marketing need to explore other fields of study (e.g., political science, sociology) as well as to be better equipped in more rigorous methods by which to examine the phenomenon that they select to study. The quality of the research in the domain referred to as B to B marketing has improved over the years. The belief that it is more difficult to conduct B to B research than it might be in the B to C world is no longer an excuse for a poorly conceived and executed study. The journal gives a voice to those who wish to study and conduct research in B to B marketing.

Practical implications: The implications for practice are immediate and would result in an increase in the dialogue between academics and practicing managers. Given the importance of B to B marketing to the world[#x02019]s economy, B to B scholars ought to pursue problems that are relevant to the world of practice.

Originality[#x0002F]value[#x0002F]contribution: In light of the fact that this is the 21^st anniversary of the journal, I was asked by Editor-in-Chief David Lichtenthal to present my

opinions as to the state of both the journal and the state of the field. I believe that the article builds on the work of others and hopefully sets a direction for future B to B scholars.     

Dangerous Interactions: Problems in Interpreting Tests of Conditional Aid Effectiveness

There is now a substantial empirical literature examining the determinants of aid effectiveness. A large part of this makes inferences based on a regression incorporating aid (as a share of recipient GDP) interacted with some institutional or policy variable. Recently, some authors have questioned the statistical robustness of such regressions, pointing out that results vary according to the way aid is measured and the estimator applied to the data. Moreover, the regression equations used to test hypotheses about the determinants of aid effectiveness are often introduced without any corresponding formal theory. We explore aid‐policy interaction terms in the context of a simple theoretical model, showing how different nonlinearities may be conflated. The resulting difficulties in the interpretation of aid‐growth regressions are illustrated in the context of a seminal paper in the conditional aid effectiveness literature. One simple change in the way that aid is measured – in per capita terms rather than as a fraction of GDP – completely changes the regression results. This indicates that adding interaction terms to otherwise linear regression equations is an inadequate way of capturing the nonlinearities in the growth process. Our aim is to re‐emphasise the importance of grounding.     

Chinese dietary culture influences consumers' intention to use imported soy‐based dietary supplements: an application of the theory of planned behaviour

The over‐saturated dietary supplement (DS) market in developed countries such as the US spurs the need for foreign market expansion, and the Chinese market provides a great potential for the foreign soy‐based DS industry. This study examined Chinese consumers' intention to use imported (US‐made US‐brand) soy‐based DS based on the Theory of Planned Behavior (TPB). Two alternative models were also examined in which Chinese dietary culture variables, including soyfoods favourability and dining‐out sociability, as well as their interactions with attitudes, were integrated into the TPB model. A cross‐sectional, self‐administered survey was conducted with a sample of 215 subjects (137 females; 78 males) in Shanghai, China. The TPB variables attitude, subjective norm, perceived behaviour control and behavioural intention, as well as the Chinese dietary culture variables: soyfoods favourability and dine‐out sociability were measured. Multiple linear regressions were used to analyze the three models. The statistical results indicated that all three models were statistically significant to predict intention (Model 1: R² = 0.473, P < 0.001; Model 2: R² = 0.505, P < 0.001; Model 3: R² = 0.525, P < 0.001). The results also showed that attitude, perceived behavioural control, and dine‐out sociability were significant (positive) determinants of intention. Soyfoods favourability acted a significant (negative) moderator of the relationship between attitude and intention. Subjective norm had no significant impact on intention. In conclusion, the TPB model was useful to predict Chinese consumers' intention to use imported soy‐based DS, but not all the TPB components weighed significantly in exploring DS consumption in China. The selected Chinese dietary culture variables were much more important predictors than subjective norm. This study makes a significant contribution in the application of the TPB model and in market strategy development for imported dietary supplements in China.