Managing the world's forests

Forests play a vital role in balancing natural systems: the stabilization of global climate and the management of water and land. 30% of the earth's total land area is forested. 66% of the tropical moist forests are in Latin America and the remainder in Africa and Asia. 75% of tropical dry forests are in Africa. Temperate forests are primarily in developed countries. Deforestation and misuse of forests occurs primarily in developing countries at significant social, economic, and environmental costs. Losses have occurred in fuelwood, fodder, timber, forest products, biological diversity, habitats, genetic materials for food and medicine. The World Bank's evolving role in forestry is briefly described. Agreement has not been reached among people or nations about the most appropriate means to balance conservation and development goals. The challenge is to stabilize existing forests and increase forest planting. The causes of forest degradation must be understood. Direct causes include agricultural encroachment, cattle ranching, fuelwood gathering, commercial logging, and infrastructure development. These direct causes are driven by economic, social, and political forces: market and policy failures, population growth, and poverty. The market failures include: 1) the lack of clearly defined property rights on forest resources for now and the future, 2) the conflict between individual and societal needs, 3) the difficulty in placing a value on nonmarket environmental services and joint products, and 4) the separation between private and social costs. The solution is action at the local, national, and global levels. Countries must establish forest policy. The existing government incentives which promote deforestation must be changed. For example, concession policy and royalty systems must be corrected; explicit and implicit export subsidies on timber and forest products must be stopped. Private incentives must be established to promote planting of trees, practicing preservation, and setting up sustainable management systems. Property rights must be clearly defined and land use policies must spell out forest use patterns. A global strategy for forest management is needed for conservation, protection, reforestation, agricultural and rural development, sustainable use, and research with funding.     

The Impact of Deregulation on Efficiency: An Analysis of Life Insurance Industry in Taiwan From 1981 to 2004

We examine the impact of deregulation and liberalization (D&L) on the efficiency of the Taiwanese life insurance industry from 1981 to 2004. We utilize the data envelopment analysis (DEA) to measure the efficiency performances and the Malmquist index approach to measure changes in efficiency and productivity over time. Both the DEA and Malmquist results show that the old domestic firms have been slightly impacted by the new competitors around 1992–1994 (the end of foreign and new local entry period and the beginning of post-D&L period). More important, our results show that the D&L does not have major adverse impact on the technical, cost, and revenue efficiency performances of existing domestic firms in the long run. The dominance of existing domestic firms has declined but persists throughout the sample period. In addition, our results show that it is relatively easy for new firms to become technically efficient in just few years after entering the market, but it is more difficult for them to become efficient in cost and revenue efficiency. We, thus, suggest that a new market entrant should take advantage of the existing mechanisms by acquiring an old (existing) firm, rather than establish a new one, if a new entrant wants to become efficient in cost and revenue efficiency in a short time.     

The role of securitization in mortgage renegotiation

We study the effects of securitization on renegotiation of distressed residential mortgages over the current financial crisis. Unlike prior studies, we employ unique data that directly observe lender renegotiation actions and cover more than 60% of the U.S. mortgage market. Exploiting within-servicer variation in these data, we find that bank-held loans are 26–36% more likely to be renegotiated than comparable securitized mortgages (4.2–5.7% in absolute terms). Also, modifications of bank-held loans are more efficient: conditional on a modification, bank-held loans have 9% lower post-modification default rates (3.5% in absolute terms). Our findings support the view that frictions introduced by securitization create a significant challenge to effective renegotiation of residential loans. We also provide evidence supporting the affordability focus of recent policy actions, such as the Home Affordability Modification Program.     

The quality of food risk management in Europe: Perspectives and priorities

In this paper, we address the issue of food risk management as practised in Western Europe. We begin by considering how food risks are managed, and then go on to consider how well they are managed. There are multiple answers to the ‘how well’ question, which are related to the varied perspectives of the different key stakeholders – from the food risk managers and producers, to the general public and the media. Consequently, there is no clear answer to the question of quality. What our review does identify is two priorities relevant to our understanding of effective food risk management: first, a need for further research to determine the source and nature of the different evaluative perspectives, and second, a need for the key stakeholders to appreciate and understand the alternative perspectives in order to enhance the effectiveness of the food risk management process.     

Consumer perceptions of best practice in food risk communication and management: Implications for risk analysis policy

As a consequence of recent food safety incidents, consumer trust in European food safety management has diminished. A risk governance framework that formally institutes stakeholder (including consumer) consultation and dialogue through a transparent and accountable process has been proposed, with due emphasis on risk communication. This paper delivers actionable policy recommendations based on consumer preferences for different approaches to food risk management. These results suggest that risk communication should be informed by knowledge of consumer risk perceptions and information needs, including individual differences in consumer preferences and requirements, and differences in these relating to socio-historical context associated with regulation. In addition, information about what is being done to identify, prevent and manage food risks needs to be communicated to consumers, together with consistent messages regarding preventative programs, enforcement systems, and scientific uncertainty and variability associated with risk assessments. Cross-cultural differences in consumer perception and information preferences suggest a national or regional strategy for food risk communication may be more effective than one applied at a pan-European level.     

Customer satisfaction and corporate culture: A profile deviation analysis of a relationship marketing outcome

Customer satisfaction has been identified as an important relationship marketing outcome. As such, firms should continually track and assess customer satisfaction. The following study examines how four elements of corporate culture combine to form an optimal mix that encourages attention to and measurement of customer satisfaction. Culture is operationalized as a pattern of values and beliefs that aid individuals in understanding organizational functioning. A profile deviation analysis reveals that an optimal mix of the marketing corporate culture elements of adhocracy, clan, market, and hierarchy does exist and is positively related to customer satisfaction assessment activities. © 1997 John Wiley & Sons, Inc.     

Conversations Across Continents: Teaching Business Ethics Online

The paper focuses on an online business ethics course that three professors (Painter-Morland, Fontrodona and Hoffman) taught together, and in which the fourth author (Rowe) participated as a student, from their respective locations on three continents. The course was conducted using Centra software, which allowed for synchronous online interaction. The class included students from Europe, South Africa and the United States. In order to assess the value of synchronous online teaching for ethics training, the paper identifies certain knowledge, skills and capacities that are crucial to the moral development process within individuals. The paper argues that the online teaching method succeeds in creating an environment within which important ethical knowledge and skills might be developed. It provides an in-depth reflection on the advantages and dis-advantages of online teaching and proposes improvements on the way forward. One of the major advantages relates to its ability to facilitate cross-cultural discussion and debate on ethical issues and foster insight into contextual influences on ethics management within an international arena.     

Relationship Marketing and Sustained Competitive Advantage

This paper examines four perspectives of relationshipmarketing that have been discussed in the marketing literaturein recent years and which are being touted as sources of long-termprofitability for organizations. We examine each of the fourperspectives (locking in customers, customer retention, databasemarketing, and building strong, close, positive relationships)to assess their potential for achieving a sustained competitiveadvantage. Our analysis suggests that only those organizationsthat build strong, close, positive relationships with their customershave the potential to develop a sustained competitive advantagethat may lead to above normal performance.     

Managerial incentives and the international organization of production

We develop a model in which the heterogeneous firms in an industry choose their modes of organization and the location of their subsidiaries or suppliers. We assume that the principals of a firm are constrained in the nature of the contracts they can write with suppliers or employees. Our main result concerns the sorting of firms with different productivity levels into different organizational forms. We use the model to examine the implications of falling trade costs for the relevant prevalence of outsourcing and foreign direct investment (FDI).