Fishing for excuses and performance evaluation

We study a principal–agent model in which the agent can provide ex post additional relevant information regarding his performance. In particular, he can provide a legitimate excuse, that is, evidence that a poor result is only due to factors outside his control. However, building a convincing case requires time, time that is not spent on exerting productive effort and thus generating information represents an opportunity cost. We obtain necessary and sufficient conditions for the principal to prefer a policy of adjusting ex post the performance measure for the information provided by the agent to a policy of conforming to a result-based system with no adjustments. The risk aversion and a possible limited liability of the agent play an important role in the analysis. This paper clarifies the issues associated with the so-called “excuse culture” prevailing in some organizations.     

Producer Services, Manufacturing Linkages, and Trade

Working with a mix of panel data on goods and services trade for the OECD for 1994–2004, combined with social accounts data (i.e. data on intermediate linkages) for 78 countries benchmarked to the panel midpoint, we examine the role of services as inputs in manufacturing, with a particular focus on indirect exports of services through merchandise exports, and also on the related interaction between service sector openness and the overall pattern of manufacturing exports. From the cross-section, we also develop a set of stylized facts linking services to the level of development and the density of intermediate linkages. We find significant and strong positive effects from increased business service openness (i.e. greater levels of imports) on industries like machinery, motor vehicles, chemicals and electric equipment, supporting the notion that off-shoring of business services may promote the competitiveness of the most skill and technology intensive industries in the OECD. Conversely, we find evidence of negative general equilibrium effects for sectors that are less service intensive.     

Coordination, Challenges, and Innovations in 19 National Sustainable Development Strategies

In this article, we study 19 developing and developed countries to identify key challenges, approaches, and innovations in strategic and coordinated action for sustainable development at the national level. We are interested in the institutional fabric of implementing sustainable development. What are governments actually doing to organize the processes required for this? What are the institutional innovations in this regard and what kind of typologies can be identified?Despite some true progress made, our findings indicate that countries are still at the early stages of learning toward effective action for sustainable development. This applies both to developing and developed countries. Key unsolved challenges include (a) coordination with the national budget, (b) coordination with sub-national level sustainable development strategies, and (c) coordination with other national-level strategy processes.     

THE LEVEL OF WORLD INEQUALITY: HOW MUCH CAN ONE SAY?

This paper constructs estimates of income and consumption inequality for the world (124 countries), using various measures of inequality. It then goes on to examine the possible effects of various sources of error in the estimates, and attempts to set rough limits to the size of such effects. Among the sources of error examined are purchasing power parities used for currency conversion, systematic errors in estimates of per capita incomes, differences in age structure, government tax and expenditure policy, and lifetime income effects. The paper concludes that, although the level of uncertainty in the estimates is too great to permit conclusions about, for instance, trends over time, it is clear that the level of world inequality is extreme, and that it is primarily due to differences in average incomes across countries rather than to intra-country inequality.     

White collar unions in Switzerland

Swiss trade unionism differs from that of other countries: lower strike incidence, lower trade union density and organisational segregation of blue and white collar employees. The author reviews and explains these differences and reports on the attitudes towards trade unionism of the German-speaking members of Switzerland's biggest white collar trade union organisation.     

Investment coordination and demand complementarities

Summary. This paper establishes necessary conditions for demand complementarity to imply investment coordination failure and explores the welfare implications of coordinated investment. Our main results caution against demand complementarities as a motive for investment coordination. We find that: 1) generally, a strict notion of complementarity (Hicks) is necessary for the existence of an investment coordination problem and 2) that when the problem does exist, coordination lowers social welfare without countervailing sectoral asymmetries. Received: June 19, 1996; revised version: December 5, 1997     

Community development and research: Participatory learning and action ‐a development strategy in itself

For any development facilitator or change agent, a potential paradox can arise when, assisting with self‐reliant participatory development. This paradox occurs when the change agent tries to help and encourage people to develop themselves and, in so doing, undermines their self‐reliance and sustainability, the very aim of development. The theoretical basis for the meaning of development is often at the root of such a paradox: it is argued that theory and the concept of development are in actual fact incompatible within the realm of social reality. It is further argued that Participatory Learning and Action (PLA), which rejects theory as the foundation for development and embraces human consciousness, can offer an appropriate strategy that can avoid such a paradox. This article is inspired by the tenacious efforts of resource‐poor people. It is largely based on PLA initiatives undertaken in the Little Karoo, South Africa and Odibo, Namibia, as well as in various communities in Zambia, and on numerous RDP capacity‐building training initiatives in the Northern Cape Province. South Africa.     

Communities of practice as a tool for continuing professional development of technology teachers’ professional knowledge

With the introduction of a new school curriculum in South Africa in 1998, Technology as a school subject was introduced for the first time. Implementation by the National Department of Education took place over a very short time frame allowing very little time for adequate training of technology teachers by the provincial departments of education. Teachers were expected to implement technology in schools without being adequately trained. They needed to develop their professional knowledge which comprises school knowledge, subject knowledge and pedagogical knowledge. This could mainly be done through continuing professional teacher development (CPTD). To address the lack of CPTD opportunities and to develop these teachers’ professional knowledge, the Unit for Technology Education at a university in South Africa established a Community of Practice (CoP) as a strategy to develop teachers’ professional knowledge in Civil Technology. However, after a number of CoP workshops, and although these CoPs have been designed to serve as a tool for CPTD, we do not know to what extent it succeeds in developing teachers’ professional knowledge. The purpose of this article is to determine to what extent the CoP succeeded in developing teachers’ professional knowledge. A qualitative study was conducted. Data were collected through the observation of the teachers during the CoPs, open-ended questionnaires and field notes taken during workshop discussions. The main findings were that the teachers gained discipline knowledge and acquired instructional methodology (pedagogy) from which learners may benefit. The presentation and organisation of the CoP influenced the learning of the teachers.     

Contracting Productivity Growth

This paper analyses the interactions between growth and the contracting environment in production. With incompleteness in contracting, viable production relationships between firms and workers, and therefore the profitability of industries, depend on the rates of innovation and growth. The speed at which new innovations arrive in turn depends on the profitability of production, for the usual reasons examined in the endogenous growth literature. We show that these interactions can have important implications which are consistent with observed phenomena in both the micro and macro environments. In particular, we demonstrate that a technological shock (increasing productivity of research) can, through this interaction, lead to a productivity slowdown and a shift in labour market contracts away from firms providing implicit guarantees of lifetime employment and towards shorter-term "contractor" type arrangements. We show the consistency of an increase in the proportion of the labour force under short-term employment, increased relative returns of workers in high-productivity sectors, and increased income inequality, with a productivity slowdown of finite duration.