Reorganizing Two-Tier Local Government for Regional Assemblies

The Government has decided that referenda will be held in three northern regions of England regarding the establishment of elected regional assemblies. If these are established, the areas with two-tier local government would be converted to unitary structures. The Government asserts that this would be necessary because the retention of the two tiers would be the retention of one tier too many, but offers no evidence to back up this assertion. This assertion has been tested by an analysis of the Audit Commission's Comprehensive Performance Assessment (CPA) ratings for the single tier and county councils, which shows that the counties have achieved better assessments than the other principal authorities. In addition, the Boundary Committee has been advised by the Government to use a costing model which is seriously inadequate: transition costs are ignored and the basis for assessing on-going costs is extremely narrow. Transition costs would be at least £110 per resident in the two-tier areas if there were to be three unitary councils for each county area, and there is no reasonable prospect that there would in fact be on-going savings except with unitary counties.     

Transaction costs and crop marketing in the communal areas of Impendle and Swayimana,KwaZulu-Natal

High transaction costs are detrimental to the efficient operation or existence of markets for inputs and outputs. The cost of information and the costs associated with the search for trade partners, the distance to formal markets and contract enforcement are likely to influence the marketing of food crops. This study hypothesises that the level of income generated from food-crop sales by small-scale farmers in the Impendle and Swayimana districts of KwaZuluNatal is influenced by transaction costs and certain household and farm characteristics. Regression analysis shows that the depth of marketing methods is significantly influenced by transaction cost proxies, such as cooperation with large commercial farmers and ownership of means of transport. Results from a block-recursive regression analysis show that the level of crop income generated is determined by the depth of marketing methods, the size of allocated arable land and off-farm income. Households with lower transaction costs, sizeable allocated land and off-farm income can be expected to generate higher income from food crops. Investment in public goods such as roads, telecommunications and an efficient legal system (to uphold commercial contracts), as well as farmer support services (input supply, extension, marketing information and research), would probably raise farm and non-farm income by reducing transaction costs. This would increase the effective demand for locally produced goods and services, thus contributing to rural employment and livelihoods within rural communal areas.     

Determinants of Geographic Differentials in the Voter Participation Rate

Voter participation rates vary widely across the 50 states. This empirical study seeks, within the context of a broadened version of the ‘rational voter model,’ to identify determinants of this interstate variation. Using the 2004 general election as the study period, it is found that the voter participation rate in a state is positively related to the percent of the state's adult population with at least a high school education, the state's unemployment rate, the percent of the state's population age 65 and older, and the female labor force participation rate in the state. In addition, it is found that voter turnout in a state is negatively related to the state's median family income and the percentage of its population that is Hispanic.     

An Econometric Analysis of U.S. Antidumping Sunset Review Decisions

This paper is the first comprehensive analysis of the U.S. antidumping sunset review process required under WTO commitments. The econometric models study determinants of decisions by three U.S. actors: the petitioning industry, the Department of Commerce (DOC), and the International Trade Commission (ITC). Domestic industries facing potential vigorous competition seem to use sunset reviews to maintain current high domestic profits. U.S. governmental institutions use criteria broadly consistent with their legal obligations. Exports involving Chinese firms may face negative bias in the ITC process. JEL no. F1, F13     

Overcoming underdevelopment in South Africa's second economy

This paper is a synthesis of the July 2005 Development Report published by the Development Bank of Southern Africa, Human Sciences Research Council and United Nations Development Programme (DBSA, HSRC and UNDP). The Report asks why, if the origins of economic dualism are rooted in the cheap, forced, migrant labour introduced by the mining industry and reinforced during apartheid, does dualism persist under democracy when all the relevant laws and many of the practices of the past have been abolished? The breakdown of apartheid did not immediately translate into improved material conditions for the majority of South Africans: 300 years of colonialism and 50 of internal colonialism had hard-wired a duality into the system. Two worlds, which may be conceptualised as the first and second economies, coexisted: a globally integrated world of production, exchange and consumption, and a constrained world of informality, poverty and marginalisation. This synthesis sheds light on the origin and nature of the ‘second economy’ metaphor, and suggests solutions.     

AIDS and agricultural production. Report of a land utilization survey,Masaka and Rakai districts of Uganda

Increased AIDS mortality and other preexisting conditions have contributed to agricultural productivity declines in the districts of Masaka and Rakai in Uganda. These two districts were the most fertile in Uganda and also had the highest HIV seroprevalence rates in Africa. 66% of study households experienced land use decline to some extent over the past 5 years. The 11% decline in poultry production and 32% decline in cattle production was reportedly due to poor management and loss of grazing land from overpopulation and larger scale farms. The most frequently reported reasons for crop reductions were death and sickness; these was estimated as affecting 8% of families with children under 5 years in the study area. Morbidity and mortality as a reason for the decline was reported two times as much as poverty and decline in international coffee prices. Other reasons for loss of productivity were food shortages and insecurity, loss of income, and reduced ability to respond to educational and medical needs. Cassava is replacing the culturally preferred matooke banana as a crop that is more disease-, pest-, and drought resistant. The banana weevil has been a recent problem. Marginal farming systems have been the most affected by declines in land use and livestock production, but fertile areas have not been spared the impact from AIDS and adult mortality. Poverty has decreased the use of pesticides, herbicides, and fertilizers in the districts. Policy has had an impact on agricultural practices: population growth and inheritance have added to loss of individual land holdings and contributed to fallow periods and infertility. Appropriate land management practices have not been adequately promoted in the agricultural extension service. Civil wars and the drop in coffee prices have reduced the number of farm laborers. Common grazing land has been turned over to large commercial ranches. Government should maintain research and monitoring of declines in food and cash crop production and manpower needs. Policy must be designed to respond to the complicated factors affecting productivity. High AIDS prevalence areas and marginal areas where reduced production effects would be the most severe must be given priority status. Development of cash crop alternatives must be examined and perhaps supported on an experimental basis by donor agencies. Maximum productivity should be encouraged by rural extension and education agencies. A number of other specific recommendations were made for individual survival strategies to maintain high agricultural productivity.     

Competitiveness of the Euro Zone Manufacturing: A Panel Data Analysis

The purpose of this paper is to assess the main aspects involved in the competitiveness of manufacturing industries in the Euro zone area (EZ-12). To this end, we apply the generalized method of moments to a panel data error correction model. Our sample spans the period from 1970 to 2007, and our findings provide insight into the impact of manufacturing on the international competitiveness of European firms and industries. From the estimated magnitude of the relevant coefficients, we conclude that in the long run, a change in labor and capital compensation is not fully passed on to manufacturing growth, while an increase in the market power of the manufacturing sector will negatively affect its competitiveness.     

The Resource Dependence, Service and Control Functions of Boards of Directors in Hong Kong and Taiwanese Firms

Since the Asian financial crisis of the late 1990's, there have been numerous calls for the reform of East Asian corporate governance. Without reform, fears abound that the crisis will return. However, a baseline understanding of corporate governance in East Asia needs to be established before reform efforts can begin. In the West, three major functions of boards are commonly recognized: resource dependence, service, and control. These functions have yet to be examined in the context of boards of directors of Overseas Chinese firms in East Asia. In this exploratory study, we examine the extent to which these functions are performed, primarily by outside board members, in Overseas Chinese firms in Hong Kong and Taiwan. We find that the service and control functions are less pronounced for East Asian boards than what would be expected in the West, while the resource dependence function is more pronounced. We also findthat the governance of the region is being moved closer to international practices by a new generation of leaders that have been exposed to Western influences and intense global competition. The implications of our findings for managers, educators, and researchers are discussed.