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Lefsrud: Framing Fairness – The Case of Alberta’s Oil Sands

TS-Open_pit_Suncor-600

ABSTRACT: Despite the proliferation of research on legitimacy and justice, there is a paucity of knowledge of how fairness is socially constructed in and through field-configuring events. That is, we know little of how legitimacy is established in relation to and between stakeholders – both evaluators

Humphrey & Prizzon: Guarantees for development – A review of multilateral development bank operations

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Key Messages:  Guarantees have several characteristics that bring advantages over the more traditional lending operations of multilateral development banks (MDBs), such as targeting certain specific classes of risk and helping ‘crowd in’ other funding sources.  Guarantees for development have grown in relevance, as many emerging economies are more

Allahar: The Search for a Venture Capital Model Appropriate to Small Emerging Countries

Currency-Revaluation

ABSTRACT: The purpose of this paper is threefold covering a review of enterprise financing mechanisms, examination of the concept of Venture Capital (VC) and its operations in developed and emerging countries, and proposing a community-based VC model as appropriate to small emerging markets. The research

Kaplan & Lerner: Venture Capital Data – Opportunities and Challenges

ABSTRACT (setting a new record in brevity!): This paper describes the available data and research on venture capital investments and performance. We comment on the challenges inherent in those data and research as well as possible opportunities to do better.   Available for download here.

Kohler: Redistributive Policies for Sustainable Development – Looking at the Role of Assets and Equity

seed

ABSTRACT: Analyses of redistributive policies often focus on income flows to examine the nexus between redistribution and economic growth. With strengthening signs of growing economic inequality in many countries, an increasing number of economists investigated the existence and nature of a hypothetical trade-off between economic growth and equity.

Lefsrud: Framing Fairness – The Case of Alberta’s Oil Sands

TS-Open_pit_Suncor-600

ABSTRACT:

Despite the proliferation of research on legitimacy and justice, there is a paucity of knowledge of how fairness is socially constructed in and through field-configuring events. That is, we know little of how legitimacy is established in relation to and between stakeholders – both evaluators and those evaluated, human or non-human, in time and space. To understand the ways in which fairness is socially constructed over time, we examine the historical case of Alberta oil sands. Our longitudinal study is based on a comprehensive analysis of the ways in which fairness has been framed and argued in field-configuring hearings and the media coverage around these hearings. We show how the frames of fairness are constructed and reconstructed in and through these field-configuring discussions and how actors use a variety of frames and rhetorical strategies to argue for their views and interests. In particular, our analysis reveals a dynamic of issue or frame containment and expansion where the incumbents tend to contain the frames of fairness to minimize challenges and define status quo as preferred and challengers expand the bases of comparisons to define the need for change.

 

Available for download here.

Humphrey & Prizzon: Guarantees for development – A review of multilateral development bank operations

images (2)

Key Messages:

 Guarantees have several characteristics that bring advantages over the more traditional lending operations of multilateral development banks (MDBs), such as targeting certain specific classes of risk and helping ‘crowd in’ other funding sources.

 Guarantees for development have grown in relevance, as many emerging economies are more focused on accessing private sources of finance than traditional development loans, and instruments like guarantees can leverage external resources beyond the lending capacity of MDBs.

 MDBs face a number of major impediments to using guarantees more extensively, linked to their capital structure, financial and operational policies and staff skill sets. A number of options exist to promote greater guarantee usage by MDBs, but all come with trade-offs.

 Measuring guarantees as developmental aid will require a different approach because guarantees are not a flow, unless they are called. Instead, measurement should take into account the opportunity cost for the bilateral agency and development finance institution to issue guarantees.

 

Available for download here.

Allahar: The Search for a Venture Capital Model Appropriate to Small Emerging Countries

Currency-Revaluation

ABSTRACT:

The purpose of this paper is threefold covering a review of enterprise financing mechanisms, examination of the concept of Venture Capital (VC) and its operations in developed and emerging countries, and proposing a community-based VC model as appropriate to small emerging markets. The research methodology involves primarily, reviews of published data on the VC industry and analysis of raw statistical data on the performance of VC in major developed and emerging countries, US, Europe, China, and India. The main finding of the paper is that VC, as a business financing tool, has a significant role to play in expanding the menu of financing options and facilitating business development in emerging countries and small and medium sized businesses. The overall conclusion is that the models of VC financing available are more suited to developed country markets and there is no model appropriate to smaller markets for which a community-based VC model is fit for the purpose.

 

Available for download here.

Kaplan & Lerner: Venture Capital Data – Opportunities and Challenges

ABSTRACT (setting a new record in brevity!):

This paper describes the available data and research on venture capital investments and
performance. We comment on the challenges inherent in those data and research as well as possible opportunities to do better.

 

Available for download here.

Kohler: Redistributive Policies for Sustainable Development – Looking at the Role of Assets and Equity

seed

ABSTRACT:

Analyses of redistributive policies often focus on income flows to examine the nexus between redistribution and economic growth. With strengthening signs of growing economic inequality in many countries, an increasing number of economists investigated the existence and nature of a hypothetical trade-off between economic growth and equity. As signs of unsustainable development are strengthening more generally, this paper proposes to look at the broader nexus between redistribution, equity and sustainable development, emphasizing its social and environmental dimensions. It does so by first proposing an analytical framework defining the role of redistributive policies in shaping the private income cycle as well as the public revenue-expenditure cycle. This framework distinguishes between the stock of income-generating assets (such as human capital and wealth, including land and industrial and financial capital) and deriving income flows in order to clarify the difference between the two sides of in-equity (i.e. in-equality of opportunity and in-equality of outcome), which remain intertwined in the growth-equity trade-off debate. This stock-flow approach is then used to outline key linkages between redistributive policies, in-equity and un-sustainable development. Contrasting the potential scope of redistributive policies with the more narrow set of policies that have been implemented in most countries/regions over the last 30 years, the paper discusses 14 avenues for redistributive policies to promote greater equity, economic empowerment and sustainable development.

 

Available for download here.

Shima (OECD): The Policy Landscape for International Investment by Government-controlled Investors

Enterprise-BJTU1

ABSTRACT:

Government-controlled investors, including state-owned enterprises and sovereign wealth funds, have greatly expanded their international activities in recent years. This paper describes the existing policy landscape of international investments by government-controlled investors under both national and international frameworks. The paper first examines host countries’ regulatory provisions dealing with inward investments by foreign government-controlled investors. The paper then documents international investment treaty practice in relation to government-controlled investors by examining, in particular, whether they are explicitly dealt with in investment treaties and, if so, how they are handled in the treaties. Finally, the paper presents other international agreements including the OECD instruments in relation to state ownership.

 

Available for download here.

Silva: The Changing Role of the State

Etat

Introduction:

How is the role of the state viewed within economic theory at the start of the 21st century? Whilst economics has been developed as a science of the market, it is irrefutable that the state has never been completely out of the picture. We recall that in Adam Smith’s Wealth of Nations, the key role of the “invisible hand” was complemented by numerous interventions (Rothbard, 1995: 463-9). This became possible in the light of what was later considered “market failures”. Of course, some currents (anarchists, radical Austrians) may have conceived of the functioning of the economy without the state, emphasizing cooperation or competition between individual agents, and mainstream economists assume the conditions of their models, particularly those of general equilibrium, in a similar way.

In spite of all this, there has always been a critical interaction between the market and the state in the economic process. However, there is a difference: if the market is clearly privileged in the theoretical analysis, the state’s role is far from negligible in practical terms. Moreover, this asymmetry and the evolving views on the state’s role make the construction of a common framework very difficult and problematic. In the present paper we trace this intertwined and complex relationship since the 18th century which is necessarily outlined in broad terms. Starting from the fact that economics deals with the free market, we will focus in particular on how the state should behave in the light of this basic parameter, and the different perceptions stemming from such an approach. Our main objective is to examine in more detail the changing views on the state’s role

Available for download here.

Chandrasekhar: Potential and Prospects for Private Sector Contribution to Post-2015 Development Goals – How can Development Cooperation Strengthen Engagement and Results?

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ABSTRACT:

Though the importance of its role in realizing a development agenda has been often emphasized, the private sector has not emerged as a full-fledged development partner. The transformation to fullfledged partnership is an imperative as the world prepares to launch on an ambitious new development thrust appropriate to the post-2015 period. Recognizing that, this paper discusses the ways in which the private sector can function as a development partner, the obstacles to its emerging as one, and the interventions needed on the part of different actors at the national and international level to catalyze and ensure this transformation. A first and inevitable step in the transition must be the willingness of the private sector to become part of a global compact to promote employment, ensure minimum labor and environmental standards, and respect human rights. But far more is required of the private sector.

Private agents, especially the corporate sector, must serve to be recognized as full-fledged development partners. This paper examines the way that they can do so, in particular the role that they can play in financing the post-2015 development agenda. Besides contributing by way of taxes that help finance the government’s development effort (and abjuring tax evasion and avoidance), the private sector is seen as an agency that can not only leverage its technical and managerial expertise to bring real resources into play when helping implement the agenda, but also mobilize resources and directly finance its costs in multiple ways. Such financing efforts would require institutional and financial innovations, the advantages and shortcomings of which are explored.

 

Available for download here.

Joffe: Why does capital flow from poor to rich countries?

Currency-Revaluation

ABSTRACT:

Lucas’ classic paper (1990) highlighted the paucity of capital flows from rich to poor countries, in contrast with predictions of standard theory. He suggested four explanations – but they cannot explain the copious capital flows from certain emerging relatively low-income countries, notably China, to the USA. Empirical studies confirm Lucas’ observation. Additionally, Prasad et al (2007) showed that developing countries with less reliance on foreign capital grow faster. Gourinchas & Jeanne (2009)

added a second puzzle, the “allocation puzzle”: flows are not only too low, they are directed toward countries with lower productivity growth and lower investment, i.e. the “wrong” ones; they attribute this to a distortion in savings, e.g. financial repression.

This paper traces the causal processes in post-reform China. Starting around 1978, reforms allowed rural households to keep their own surpluses, facilitated “township-village enterprises”, established enterprise areas open to FDI (e.g. Shenzhen), and began making state-owned enterprises (SOEs) more efficient. High productivity at comparatively very low cost was gradually achieved, and openness to trade allowed Chinese goods to conquer the world.

Statistical analysis shows that the generated profits led to high levels of capital accumulation, both corporate and public sector. Together with high household savings, channelled by state banks into (primarily) SOEs, this provided ample capital for reinvestment, as well as a large surplus. No capital inflows were required, except for FDI which had a vital technology-importation role. In particular, the massive export success generated hard currency, allowing large-scale purchase of overseas assets, e.g. US Treasury Bonds.

China is not unique: previous East Asian economies had parallel experiences on a smaller scale (cf. also Buera & Shin (2011)).

Thus, a relatively simple explanation of both puzzles is possible. More sophisticated interpretations, e.g. Kalemli-Ozcan et al (2010), Sandri (2010), Reinhardt et al (2013), are discussed from a methodological viewpoint.

 

Available for download here.

 

Munnell, Aubry & Sanzenbacher: Recruiting and Retaining and High Quality State and Local Workers – Do Pensions Matter?

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ABSTRACT:

Many state and local governments have responded to challenges facing their pension plans by cutting benefits. Will these cuts make it harder for state and local governments to recruit and retain high-quality workers? To date, the answer has been difficult to obtain; most micro-level datasets contain information on the existence of pensions but not on pension generosity. To get around this constraint, this study uses a unique source, the Public Plans Database, to obtain data on the pension generosity of state and local workers’ pensions. These data are merged with the Current Population Survey to investigate how pension generosity affects the gap between the private sector wage of workers that states and localities recruit from the private sector relative to the workers that they lose to it. The findings suggest relatively generous pensions help reduce this “quality gap,” making it easier for state and local employers to recruit high-earning workers from the private sector and retain those workers. The effect is similar regardless of whether employer or employee contributions finance the benefits. The study suggests states should be cautious as they cut their pension benefits and that a strategy to maintain benefits by shifting some costs onto employees may help maintain states’ ability to recruit and retain high-quality workers.

 

Available for download here.

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