Book Reviews

Richard Higgott and Richard Robison (eds), Southeast Asia: Essays in the Political Economy of Structural Change, London: Routledge & Kegan Paul, 1985. £18.00 (cloth)

John Wong, The Political Economy of China's Changing Relations with Southeast Asia, London: Macmillan Press, 1984, pp. xvi + 246.

Sumitro Djojohadikusumo, Perdagangan dan Industri dalam Pembangunan [Trade and Industry in Development], Jakarta: LP3ES, 1985, pp. 133.Thee Kian Wie

Masyarakat Indonesia, 12(3), Jakarta: LIPI, December, 1985. Special issue edited by Thee Kian Wie, entitled 'Kaitan-Kaitan Vertikal Antar-perusahaan dan Pengembangan Sistem Subkontraktor di Indonesia: Beberapa Studi Kasus' [Vertical Linkages between Firms and the Development of the Subcontracting System in Indonesia: Several Case Studies].

D. B. G. Denoon, Devaluation under Pressure: India, Indonesia and Ghana, Cambridge, Mass: MIT Press, 1986, pp. xi + 260. US$28.75

John W. Mellor and Gunvant M. Desai (eds). Agricultural Change and Rural Poverty, Baltimore: The Johns Hopkins University Press, 1985, pp. xix + 233. US$27.45.

'Indonesia's Transmigration Programme: A Special Report', The Ecologist, Vol. 16, No. 2/3, 1986. £4.00     

Marcus Aurelius, the Stoic Ethic, and Adam Smith

In The Theory of Moral Sentiments (TMS) Adam Smith draws on the Stoic idea of a Providence that uses everything for the good of the whole. The process is often painful, so the Stoic ethic insisted on conscious cooperation. Stoic ideas contributed to the rise of science and enjoyed wide popularity in Smith’s England. Smith was more influenced by the Stoicism of his professors than by the Epicureanism of Hume. In TMS, Marcus Aurelius’s “helmsman” becomes the “impartial spectator,” who judges actions in terms of the way they are seen by others. This is the key to justice, without which society collapses. Business school students should be taught that Smith’s “invisible hand” is best understood as a universal rationality that uses just actions for the benefit of the whole.     

Using participatory rural appraisal and participatory research and extension in a post-independence environment: a case from East Timor

A participatory rural appraisal (PRA) conducted in East Timor in 2004 as part of an agricultural development project provided the basis for a number of community-based participatory extension initiatives. The PRA involved several communities throughout a watershed and also served as a training exercise for local agriculture ministry staff. Despite the poverty of many of the communities involved, and in contrast to published literature on the local agricultural situation, farmers clearly expressed their need for more marketable crops and alternative sources of livelihoods. Their desires contrasted with the project's initial assumption that the major need was for increased production of staple crops to alleviate food scarcity. The project consequently branched out from concentrating on basic agronomy of staple crops into developing marketable crops, improving livestock production and facilitating development of a local business. Farmers' groups were set up to allow farmers to develop their own agricultural enterprises. Some ministry staff who participated in the project welcomed the opportunity to move from the traditional authoritarian extension system set up under Indonesian colonial rule to a more collegial and educational system. The breakdown of institutions and lines of authority following independence may create new opportunities for participatory development in newly independent states.     

Influences on Tourism Development Decision Making: Coastal Local Government Areas in Eastern Australia

With sustainable development and specifically sustainable tourism, decision making is perhaps the area where the impact on the future of communities is most crucial. Understanding better the decision-making process, provides possibly the most important potential tool in the sustainable management of tourism development. This paper examines the influence factors on tourism decision making and sheds some light on how important various influences are in the tourism development decision process. A typology of community decision-making influence factors was examined through research on local government councillors in Australian coastal regions. Three major categories of this typology were identified in the literature and further explored in this study: inter-personal, intra-personal and circumstantial influence. Results from this study show that a number of influence factors which relate to sustainable tourism are considered by councillors to have a more profound effect on their decision making than only the components of social influence theory which has been discussed in much of the literature. Utilising this typology of community decision-making influence factors may form the foundation for further studies of decision making. The results suggest that influence factors on decision makers need to be both understood and taken into consideration for sustainable tourism approaches to be effectively implemented.     

Technological innovation and the long wave theory revisited

The pattern of basic innovation clustering associated with Kondratieff long wave downswings raises questions when we consider the 4th downswing. There is increasing concern expressed that we may be facing “innovation starvation” or “innovation stagnation”. Among the questions: Is the internet a cluster of one? Or should the smartphone, ipad, Facebook, icloud, etc. be considered basic rather than improvement innovations as well because of their huge societal impact? Is the long wave pattern exhibited for the past two hundred years continuing or is it breaking down?     

Measuring Deal Premiums in Takeovers

We investigate whether the merger announcement dates provided in the Securities Data Corporation (SDC) database are handled correctly by researchers performing event studies. We find that in 24.1% of deals, the popular choice of using the SDC's “Date Announced” field as the event date leads to biased estimates of target firm abnormal returns because of earlier abnormal price movements due to merger‐related events such as merger rumors or search‐for‐buyer types of announcements. We hand collect the merger‐related events from news sources and make the complete data set publicly available at the Financial Management website.     

Agriculture as Van and Rear in Institutional Change

The formation of interest groups is path-dependent. The ideology and thus behavior of interest groups cannot be isolated from history, customs, economic conditions and changing alternatives open to individuals. In Australia, there were historical and traditional divisions concerning farmers producing for international markets that depend on flexible world prices and those producing for the domestic market with stabilized and subsidized prices. The National Farmers Federation (NFF) (1979) is the result of a historical-evolutionary-developmental process of preceding agricultural interest groups. Hence, an understanding of the NFF ideology that promotes free competition and the elimination of agricultural subsidies worldwide, in contrast to the agricultural interest groups in the United States and UK, requires an examination, using an institutional and economic complexity approach, of the evolution of agricultural interest groups in Australia.