Bankers, Industrialists, and their Cliques: Elite Networks in Mexico and Brazil during Early Industrialization

The historiographies of Mexico and Brazil have implicitly statedthat business networks were crucial for the initial industrializationof these two countries. Recently, differing visions on the importanceof business networks have arisen. In the case of Mexico, theliterature argues that entrepreneurs relied heavily on an informalinstitutional structure to obtain necessary resources and information.In contrast, the recent historiography of Brazil suggests thatafter 1890 the network of corporate relations became less importantfor entrepreneurs trying to obtain capital and concessions,once the institutions promoted financial markets and easy entryfor new businesses. Did entrepreneurs in Brazil and Mexico organizetheir networks differently to deal with the different institutionalsettings? We examine whether in Mexico businessmen relied moreon networks of interlocking boards of directors and other informalarrangements to do business than in Brazil. Our hypothesis isconfirmed by three related results: (1) the total number ofconnections (i.e., the density of the network) was higher inMexico than Brazil; (2) in Mexico, there was one dense corenetwork, while in Brazil we find fairly dispersed clusters ofcorporate board interlocks; and most importantly, (3) politiciansplayed a more important role in the Mexican network of corporatedirectors than their counterparts in Brazil. Interestingly,even though Brazil and Mexico relied on very different institutionalstructures, both countries had similar rates of growth between1890 and 1913. However, the dense and exclusive Mexican networkmight have ended up increasing the social and political tensionsthat led to the Mexican Revolution (1910–1920).     

Price-cap regulation and market definition

One of the merits claimed for certain types of price-cap regulation is the possible long-run convergence of the prices of multi-product firms to Ramsey prices. Typically such regulated firms define commodities by such devices as dividing the day into discrete periods, customers into age-groups, distances into ranges, and so on. Allowing that such division is endogenous throws doubt on the ability of Laspeyre quantity-based price-caps to encourage an efficient market definition and hence to generate an efficient price structure.     

RESOURCE DEGRADATION ON AGRICULTURAL LAND: INFORMATION PROBLEMS,MARKET FAILURES AND GOVERNMENT INTERVENTION*

Information problems impede private contracting for the supply of many natural resource services. They are also likely to prevent the government identifying and achieving optimum levels of natural resource degradation on agricultural land. In particular, the distributional impacts of government intervention create incentives for strategic distortions of information by interested parties. Resource conservation measures which impose costs on beneficiaries, and which provide positive incentives for farmers to monitor resource degradation, may be superior because they reduce information problems.     

GOVERNMENT VERSUS PRIVATE QUALITY ASSURANCE FOR AUSTRALIAN FOOD EXPORTS

Most foodstuffs have quality attributes that are difficult to determine prior to purchase. Thus quality assurance is an inherent problem in food exporting. Private quality assurance can succeed if exporters can credibly signal that they have much to lose from cessation of purchases. If exporters do not provide credible quality signals, and foreign importers judge food quality according to country of origin, honest exporters can suffer negative spillovers from others' cheating under either government or private quality assurance. For both economic and political reasons, the best choice between government and private quality assurance will differ between foods and importing countries.     

Private equity, ‘union recognition’ and value extraction at the Automobile Association: The GMB as an emergency service?

This article evaluates union recognition and ‘value extraction’ in a private equity buy‐out. The article reviews private equity, investor value and ownership interests, details union recognition at the Automobile Association (AA) before and after its acquisition by private equity, and reviews the GMB's wider campaign of opposition to private equity ownership.     

Creative marketing and the art organisation: what can the artist offer?

The poem ‘My Paintings’, written in a deliberate, uncorrected dyslexic style offers an insight into the mind of a present day avant garde bad boy of British art, Billy Childish. Constantly challenging the art establishment through public demonstrations of distaste against the annual Turner Prize,[Button, V. (1999) ‘The Turner Prize’, Tate Gallery Publishing, London.] Childish and his cohorts launched an alternative, Stuck‐ist, art manifesto,[Alberge, D. (1999) ‘Rebels Get Stuck into the Brit Artists’, The Times, Thursday 26th August, p. 7.] in the belief that it would assist in a shift in public perception of what good art is, as well as influence the creative practice of those artists concerned with more traditional, authentic forms of art. Childish's ex‐girlfriend Tracey Emin, however, has had other ideas. She has revelled in mass media exposure and now dismisses the concept of traditional painting as a valid art from.[Brown, N. (1998) ‘Tracey Emin’, Art Data, UK.] These are two examples of contrasting creative, artistic behaviour. Their creativity has resulted in varying levels of commercial success. By examining the role that creativity plays in determining how the idea for a creative product is first identified, through to its commercial exploitation, there are valuable lessons contained in such a process for both profit‐oriented and nonprofit art organisations alike. Instead of constantly fighting the conflicting philosophies of art for art's sake versus art for business sake, following the market and consumer demand, there is a much more effective method for establishing longer‐term success, which mirrors the creative practice of the artist. The existing literature on arts marketing is examined. A critique of the usefulness of current thinking is presented, with the recommendation that the formal models of marketing offered in arts marketing literatures can only ever hope to offer general advice on marketing. What is called for is a much more in‐depth analysis of how creative entrepreneurial marketers as artists can offer alternative visualisations of more appropriate models of marketing for the industry. This in turn should result in the stimulation of creative research methodologies that can inform both theory and practice within arts marketing in particular, and the wider remit of marketing in general. The use of the metaphor and the examination of published biographies of creative individuals are used to construct a manifesto of marketing artistry. Copyright © 2002 Henry Stewart Publications     

Farmers’ Preferences for New Environmental Policy Instruments: Determining the Acceptability of Cross Compliance for Biodiversity Benefits

This paper addresses the issue of farmers’ views concerning the perceived legitimacy of environmental cross compliance as a governance mechanism. Recent work on the theory of regulation emphasises the importance of the legitimacy ascribed to a regulation in determining the effectiveness with which it can be implemented. The current study outlines a rationale for why this motivational question should receive attention in economic studies of policy design and reports the results of a survey of 102 arable farmers in East Anglia, UK, which investigated the level of support for the principle of cross compliance for biodiversity objectives. It was found that two attitudinal factors, referred to as ‘Stewardship Orientation’ and ‘Technological Beliefs’, were by far the most significant in determining the acceptability of cross compliance in the sample, and that structural and socio‐demographic factors were considerably less important. The study also identified clusters of farmers according to their overall attitudinal orientation. Of the five groups thus categorised, four appeared on average likely to reject cross compliance as a general principle, leaving only the most ‘Environmental’ cluster in support. The policy implications are discussed and some conclusions drawn.     

CORRUPTION, THE GOVERNMENT AND THE PRIVATESECTOR : WHY IT MATTERS AND WHAT CAN BE DONE

The author proposes a definition of corruption which requires five conditions to be satisfied simultaneously. The definition is applicable to both the state and private sectors. Empirical work shows that corrupt countries receive less inward investment, pay higher interest on borrowings and achieve lower rates of investment overall. Ways of combating corruption are suggested.