Competition and UK Defence Policy

Defence is a 'public good' that economists (until recently) have regarded as necessarily supplied by government. But it can use the market to maximise efficiency and minimise costs. Dr Hartley shows how, and with what results.     

All benchmarkers now? Benchmarking and the ‘Europeanisation’ of industrial relations

Rather than legal enactment and collective bargaining being the main engines of the ‘Europeanisation’ of industrial relations, benchmarking and ‘soft’ forms of regulation are increasingly to the fore. This article traces the origins of benchmarking from management tool to regulatory instrument, in particular analysing its functioning at the levels of the Euro–company, Euro–sector and the Community itself. Without better processes, better data and better implementation, the paper concludes, benchmarking is likely to prove no more effective a means of co–ordination than the traditional Community method.     

RELATIVE COST-EFFECTIVENESS OF INPUT AND OUTPUT SUBSIDIES*

A subsidy on a single input is compared with an output subsidy as a means of stimulating output, and the conditions under which the single input subsidy is (a) more treasury cost-effective and (b) overall the more socially efficient measure, are explored. Rationalisations for input subsidies, particularly fertiliser subsidies, are examined in the light of the results.     

Productivity growth in Indonesian agriculture, 1961–2000

This paper uses an index number approach to measure total factor productivity (TFP) growth in Indonesian crop and livestock agriculture from 1961 to 2000. Tornqvist-Theil chain-weighted indices of output, input and TFP are developed to minimise biases that may result from relative changes in input and output price aggregation weights. The results indicate that agricultural TFP growth accelerated in the 1970s and 1980s but stagnated in the 1990s. Without new efforts to increase productivity in agriculture, Indonesia's goal of using agricultural growth to generate broad-based rural development and further reduce poverty may be undermined.     

INDUSTRIAL RELATIONS AND THE BRITISH ECONOMY IN THE 1990s: MRS THATCHER'S LEGACY

The authors challenge the view that the UK Conservative governments during the 1980s achieved important advances in industrial performance through the abandonment of corporatist policies that allowed management to regain the initiative and push through changes in work organization. The article takes issue with the idea that collective labour institutions necessarily impair economic efficiency, and it points up important connections between Thatcher's offensive against organized labour and the enduring weaknesses in human capital and technology. The article has three sections: the first examines labour markets and industrial relations; the second analyses government regulation; and the third assesses trends and prospects for the future, with emphasis on employment flexibility and labour productivity. The authors conclude with some comments on future prospects in the context of Britain's fuller integration in Europe.     

Achieving Managerial Synergism: Balancing Strategic Business Units and Profit Centers

Much of the marketing and management literature emphasizes the importance of Strategic Business Units (SBUs) as an organizational unit in developing market power or competitive advantage. On the other hand, the accounting literature puts special emphasis on Profit Centers (PCs) as an organizational unit. Are these two organizational units related? If so, how? This article makes a critical distinction between the two concepts. In this analysis, SBUs are based on a long-term, outward-looking market orientation for achieving profitability, whereas PCs focus on a short-term, inward-looking cost reduction approach to achieve profits. It is posited that distinguishing between the two and managing SBUs and PC strategically is likely to generate a synergistic impact for the firm. This impact will both enhance its competitive position in the market and its profit picture.