THE CASE FOR PAY-AS-YOU-GO PENSIONS IN A SERVICE ECONOMY

The elderly consume more labour‐intensive services than young individuals. This makes them vulnerable to rising costs of services due to higher wages, which can be caused by increased capital accumulation. This paper shows that in a model with a service sector, the golden‐rule capital stock is lower and dynamic inefficiency is more likely to occur than in the conventional one‐sector model. This implies that in many cases, a positive Pay‐As‐You‐Go tax maximises long‐run welfare in a service economy. Calculations based on data from the United Kingdom and the Netherlands show that the long‐run optimal degree of funding coincides with the current situation in these countries.     

CONCEPTS OF FAIRNESS IN THE GLOBAL TRADING SYSTEM

Abstract.  We first discuss why fairness is a condition of the agreements among governments that form the global trading system. We then suggest that fairness can best be considered within the framework of two concepts: equality of opportunity and distributive equity. We thereafter discuss what these mean as applied to market access and its supporting rules as well as to dispute settlement and trade remedy measures. Finally, we make some comments about fairness in the Doha Development Round.     

Public Sector Transformation and Ethics: A View from South Africa

This article describes the change processes the Government of National Unity adopted after the 1994 elections in order to transform the South African public service. It shows that the Government is faced with a number of problems (reasons for change) some of which emanate from the legacy of the apartheid past and others from the current situation. Further, the article looks at the vision, mission and objectives set by the Government for the transformation process, while the current change policies and programmes are also highlighted. Finally, the article explores how the Government is dealing with the ethical issues arising from the transformation.