A VERY BRITISH PHENOMENON? INDUSTRIAL POLITICS AND THE DECLINE OF THE JAPANESE COAL MINING INDUSTRY SINCE THE 1950S

This paper describes how the Japanese government gradually abandoned its support for coal mining after 1945. Drawing parallels with the British experience during the 1930s, this article shows how coal miners and owners in Japan were able to slow the pace of economic adjustment from the 1950s. The government's initial reluctance to act reflected its willingness to put industrial politics to the fore, preferring to avoid alienating political support and aggravating a vocal unionised sector of the labour force. It eventually accepted and acted upon the need for draconian retrenchment.     

The standard of living in Latin America during the twentieth century1

New and consistent series for Latin American real incomes, life expectancy and adult literacy over the twentieth century reveal that living standards rose most rapidly between the 1930s and 1970s, a period characterised by increased state intervention and reduced trade openness. Within the region, Brazil and Mexico advanced most over the century as a whole despite the early start made by Argentina and Chile, although convergence between larger countries was accompanied by divergence from smaller ones. There was no sustained narrowing of the income gap with the US at all between 1900 and 2000 but some convergence in living standards due to improved life expectancy. Our new estimates of regional per capita income also permit a clearer comparison with both Europe and Asia. The major advances in living standards achieved in the middle decades of the century were closely related to early industrialization, rapid urbanization, and the extension of primary health and education. Subsequent economic volatility and fiscal fragility limited further increases in living standards, undermining social consensus on development strategy.     

Aid Quality and Donor Rankings

This paper offers new measures of aid quality covering 38 bilateral and multilateral donors, as well as new insights about the robustness and usefulness of such measures. The 2005 Paris Declaration on Aid Effectiveness and the follow-up 2008 Accra Agenda for Action have focused attention on common donor practices that reduce the development impact of aid. Using 18 underlying indicators that capture these practices—derived from the OECD-DAC’s Survey for Monitoring the Paris Declaration, the new AidData database, and the DAC aid tables—the authors construct an overall aid quality index and four coherently defined sub-indexes on aid selectivity, alignment, harmonization, and specialization. Compared with earlier indicators used in donor rankings, this indicator set is more comprehensive and representative of the range of donor practices addressed in the Paris Declaration, improving the validity, reliability, and robustness of rankings. One of the innovations is to increase the validity of the aid quality indicators by adjusting for recipient characteristics, donor aid volumes, and other factors. Despite these improvements in data and methodology, the authors caution against overinterpretation of overall indexes such as these. Alternative plausible assumptions regarding weights or the inclusion of additional indicators can still produce marked shifts in the ranking of some donors, so that small differences in overall rankings are not meaningful. Moreover, because the performance of some donors varies considerably across the four sub-indexes, these sub-indexes may be more useful than the overall index in identifying donors’ relative strengths and weaknesses.     

Book Reviews

Idris F. Sulaiman, G. Hanafi Sofyan and Shannon Luke Smith (eds) (1998), Bridging the Arafura Sea: Australia-Indonesia Relations in Prosperity and Adversity, Asia Pacific Press, Asia Pacific School of Economics and Management, The Australian National University, pp. xxi + 325.

David C. Cole and Betty F. Slade (1996), Building a Modern Financial System: The Indonesian Experience, Cambridge University Press, Cambridge, pp. xxvii + 379. Cloth: US$59.95; paper, US$25.

Chris Manning (1998), Indonesian Labour in Transition: An Indonesian Success Story?, Cambridge University Press, Cambridge, pp. xxii + 323.

Hal Hill and Thee Kian Wie (eds) (1998), Indonesia's Technological Challenge, Research School of Pacific and Asian Studies, Australian National University, Canberra, and Institute of Southeast Asian Studies, Singapore, paper, pp. xxv + 414.

Steven J. Keuning (1996), Accounting for Economic Development and Social Change, IOS Press, Amsterdam, Oxford, Tokyo, Washington DC, pp. x + 233. NLG100; £39; DM90;US$58.

Thomas Brandt (1996; English trans. 1997), Kunci Budaya. Business in Indonesia: The Cultural Key to Success, goasia Verlag, Bad Oldesloe, Germany.