PROBLEMS OF CHANGE IN AUSTRALIAN AGRICULTURAL ECONOMICS

There has been a low level of methodological controversy within the Australian agricultural economics profession. Johnson's 1963 paper is the most significant and in it he passed criticisms on agricultural production economists not unlike those currently being made by political economists of economics in general. These past criticisms have in the main been ignored by the Australian profession but it is suggested that they are now being pushed with renewed vigour and they can no longer be ignored. It is argued that our policy work has by and large been successful and effective except for significant areas where our methodology was of restricted usefulness. In farm management the Johnsonian strictures would seem to apply but a more charitable interpretation is provided which should meet the approval of the political economists. Our almost complete neglect of development economics must soon draw to an end and we will find that the methodologies which we have relied on heavily and fairly successfully must be augmented as we become more involved in this field. The political economics challenge should be recognized and accepted with relish because the nature of our work is changing and will continue to change in the future. We have adapted fairly well as adjustment and equity have become major policy concerns. Meeting the political economics challenge will help this process of adaptation.     

Economic policy and population change in Thailand

This paper argues that in Thailand a link can be demonstrated between the recent fertility decline and an economic policy variable, the rice premium. The rice export tax introduced a check to profitability in rice agriculture, leading capital and also entrepreneurial talent out of agriculture into the urban industrial sector; keeping the structure of agriculture small-scale peasant holdings; and permitting labour costs to remain low in the urban industrial sector. Other government policies plus foreign investment and US aid led to rapid industrial growth, which coupled with consolidation of the transportation and communication systems triggered massive rural to urban migration. As Bangkok became a modern industrial metropolis, complete with urban sprawl, traffic congestion, and smog, the micro-economic cost—benefit equation turned against large families for many urban couples. Fertility fell rapidly in the urban areas, and this decline has spread into the countryside. The rice export tax thus has had profound demographic as well as economic effects.     

Crucibles of leadership

What makes a great leader? Why do some people appear to know instinctively how to inspire employees--bringing out their confidence, loyalty, and dedication--while others flounder again and again? No simple formula can explain how great leaders come to be, but Bennis and Thomas believe it has something to do with the ways people handle adversity. The authors' recent research suggests that one of the most reliable indicators and predictors of true leadership is the ability to learn from even the most negative experiences. An extraordinary leader is a kind of phoenix rising from the ashes of adversity stronger and more committed than ever. In interviewing more than 40 leaders in business and the public sector over the past three years, the authors discovered that all of them--young and old alike--had endured intense, often traumatic, experiences that transformed them and became the source of their distinctive leadership abilities. Bennis and Thomas call these shaping experiences "crucibles," after the vessels medieval alchemists used in their attempts to turn base metals into gold. For the interviewees, their crucibles were the points at which they were forced to question who they were and what was important to them. These experiences made them stronger and more confident and changed their sense of purpose in some fundamental way. Through a variety of examples, the authors explore the idea of the crucible in detail. They also reveal that great leaders possess four essential skills, the most critical of which is "adaptive capacity"--an almost magical ability to transcend adversity and emerge stronger than before.     

Economics of Food Labeling

Federal intervention in food labeling is often proposed with the aim of achieving a social goal such as improving human health and safety, mitigating environmental hazards, averting international trade disputes, or supporting domestic agricultural and food manufacturing industries. Economic theory suggests, however, that mandatory food-labeling requirements are best suited to alleviating problems of asymmetric information and are rarely effective in redressing environmental or other spillovers associated with food production and consumption. Theory also suggests that the appropriate role for government in labeling depends on the type of information involved and the level and distribution of the costs and benefits of providing that information. This report traces the economic theory behind food labeling and presents three case studies in which the government has intervened in labeling and two examples in which government intervention has been proposed.     

Is Guanxi Ethical? A Normative Analysis of Doing Business in China

This paper extends the discussion of guanxi beyond instrumental evaluations and advances a normative assessment of guanxi. Our discussion departs from previous analyses by not merely asking, “Does guanxi work?” but rather “Should corporations use guanxi?” The analysis begins with a review of traditional guanxi definitions and the changing economic and legal environment in China, both necessary precursors to understanding the role of guanxi in Chinese business transactions. This review leads us to suggest that there are distinct types of, and uses for guanxi. We identify the potentially problematic aspects of certain forms of guanxi from a normative perspective, noting among other things, the close association of particular types of guanxi with corruption and bribery. We conclude that there are many different forms of guanxi that may have distinct impacts on economic efficiency and the well-being of ordinary Chinese citizens. Consistent with Donaldson and Dunfee (1999), we advocate a particularistic analysis of the different forms of guanxi.