Implications of the lome convention for African trade and development

Conclusion The analysis presented here does not support the contention that the Lomé Convention is a turning point in the history of relations between rich and poor nations, and the herald of a new economic order, more just and equitable. While Lomé does not represent radical departures from the present system, it reflects the realization by the vulnerable, resource-poor EEC that some concessions had to be made in the fields of trade and aid. The reforms include: greater trade preferences; STABEX; some participation in the decision-making process of the EDF; financing of economic integration among the ACPs. These modifications, however, do not repudiate the present system, but rather make it more viable. The power of the multinationals is in no way affected, and the pattern of unequal development is left intact. Lomé-type relationships between the poor and rich countries will at best provide the elites with increased resources which might lead to national capitalist development, strengthening of the elites’ material base, and reproduction of the structure of dependence and inequality.     

A Sticky Information Phillips Curve for South Africa

Mankiw and Reis propose the Sticky Information Phillips Curve (SIPC) as an alternative to the standard New Keynesian Phillips Curve to address empirical shortcomings in the latter. A SIPC for South Africa is estimated, and we find estimates of information updating probability between 0.69 and 0.81, somewhat higher than suggested by methods using micro‐evidence. Because the estimation requires data on expectations of current period inflation and output gap conditional on sequences of earlier period information sets, we provide a detailed analysis of the impact on our estimates of alternative proxies available in South Africa.     

Moving on from Joint Management Policy Regimes in Australian National Parks

Joint management regimes in Australia are seeing an increasing focus on cross-cultural approaches to management of national parks. This has brought under scrutiny the eurocentric approaches to park management that exclude the rights and perspectives of indigenous Australians. The history of our parks appears to have been built on policy that is not only exclusionary but stems from a hegemonic approach to management. With an increasing focus on natural resource and cultural tourism (often referred to as ecotourism) within Australia, it is time to address the issues that are fundamental to the provision of policy for this area of park management. Pressure from tourism can have significant impacts upon the natural and cultural resources of national parks, and thus on the local aboriginal community itself. Policies formulated within the framework of ecotourism principles, supported with social science research in the community studies area, are ideally suited to application within the joint management framework. These policies facilitate a cross-cultural flow of information and thus promote a development of the cross-cultural understanding that is vital to the resolution and progress of joint management. It would seem that policy directions founded on the principles of ecotourism and the facilitation of community ownership and control of tourism and the associated resource are being overlooked or treated in politically expedient ways as a means of appeasing legal requirements at both a management and political level.     

Optimal investment decisions when time-horizon is uncertain

Many investors do not know with certainty when their portfolio will be liquidated. Should their portfolio selection be influenced by the uncertainty of exit time? In order to answer this question, we consider a suitable extension of the familiar optimal investment problem of Merton [Merton, R.C., 1971. Optimal consumption and portfolio rules in a continuous-time model. Journal of Economic Theory 3, 373–413], where we allow the conditional distribution function of an agent’s time-horizon to be stochastic and correlated to returns on risky securities. In contrast to existing literature, which has focused on an independent time-horizon, we show that the portfolio decision is affected.     

Old wine in new bottles? Revisiting employee participation in Industry 4.0

This paper aims to critically examine employee participation in Industry 4.0, with a systematic literature review. A total of 58 studies were reviewed, resulting in a categorisation of the literature into three perspectives. The ‘techno‐optimist’ and the ‘socio‐technical’ perspective dominate in the reviewed papers. They both confirm a trend that frames employee participation in a unitarist tradition, which emphasises synergies between managerial efficiency and (mostly individual) participation, leading to high innovation potential. The third perspective is rooted in critical studies. Authors writing on the latter subject predict more standardisation and centralisation, and the continued demise of collective and representative forms of participation. To better understand the role of employees in Industry 4.0, we suggest confronting the current discourse with robust empirical research. On that basis, we reject both technological and social determinism, and we acknowledge the structural ambiguities and multidimensionality of employee participation in technological transformations.     

When innovation in education works: stimulating teachers' innovative work behaviour

The twenty‐first century labour market requires employees that proactively shape innovations and solve complex problems. Professionals in the education sector are expected to perform innovative behaviour that not only entails the generation, but also the realization and sustainable implementation of new ideas. In a sample of 458 employees in Dutch secondary and higher vocational education (abbreviated in Dutch to MBO and HBO, respectively), this study investigated the relation between environmental factors (namely task variety, management support and exposure to innovation) and Innovative Work Behaviour (IWB) across the different phases of the innovation process, including a sustainability phase. Results of hierarchical regression analyses showed that management support and exposure to innovations served as a predictor for all phases of IWB. Teachers with supportive managers and a high degree of exposure to innovations showed higher scores on innovative behaviour across all phases. Linear regressions revealed a significant relationship between task variety and IWB. In the hierarchical model, only management suport and exposure to innovations showed significant relations. Background characteristics, such as gender, age, tenure, number of working hours and type of education, for which we controlled during the analyses, played a role in how much IWB is displayed. It can be concluded that a work environment, in which employees are exposed to innovation and are supported is crucial. Additionally, in view of the role background characteristics play, it is recommended to select teachers with specific profiles for the different phases of the innovation process.     

Valuation of default-sensitive claims under imperfect information

We propose a valuation method for financial assets subject to default risk, where investors cannot observe the state variable triggering the default but observe a correlated price process. The model is sufficiently general to encompass a large class of structural models and can be seen as a generalization of the model of Duffie and Lando (Econometrica 69:633–664, [2001]). In this setting we prove that the default time is totally inaccessible in the market’s filtration and derive the conditional default probabilities and the intensity process. Finally, we provide pricing formulas for default-sensitive claims and illustrate in particular examples the shapes of the credit spreads.      

Private Wealth in a Developing Country:Evidence from South Africa

The point of departure of Piketty's influential Capital in the Twenty‐First Century (2014) was the dramatic growth of private wealth‐income ratios in advanced economies between 1970 and 2010. Using official balance sheet data for South Africa—the first country to publish such data in the developing world—, this paper examines to what extent this re‐emergence of private wealth was also experienced in the developing‐country context. First, we find that the South African current wealth‐income ratio is very close to its 1975 level, and much lower than those of Piketty's sample of advanced economies. Second, we show that the discrepancy is explained not only by South Africa's relatively low savings rates, but also by the reduction of wealth before and during the transition to democracy in the 1990s. Since then, private wealth recovered significantly, but the U‐shaped relationship does not support the argument that there is a clear correlation between the capital‐income ratio and capital share.