National and urban public policy agenda in tourism. Towards the emergence of a hyperneoliberal script?

Following the 2007–2009 Global Financial Crisis (GFC), some national governments have been pursuing a counter-reform of the public sector characterised by further policy centralisation and the ‘hollowing out’ of regional authorities. Public expenditure and sovereign public debt reductions have become the pretext for the implementation of hyperneoliberal development agendas aimed at the attraction of inward capitals and a further ‘competitive’ repositioning of major cities within a global market. Tourism and the visitor economy have been used as leverage for the attraction of capital and skilled people in the long-term development strategies of cities. This article illustrates how crises have led the way in the recent restructuring of the public sector and of destination management organisations (DMOs) in particular. Findings from national and urban development strategies recently implemented in New Zealand suggest a strong, market-driven agenda that follows a hyperneoliberal script

The Myth of the Rational Voter: Why Democracies Choose Bad Policies

In theory, democracy is a bulwark against socially harmful policies. In practice, however, democracies frequently adopt and maintain policies that are damaging. How can this paradox be explained? The influence of special interests and voter ignorance are two leading explanations. I offer an alternative story of how and why democracy fails. The central idea is that voters are worse than ignorant; they are, in a word, irrational -- and they vote accordingly. Despite their lack of knowledge, voters are not humble agnostics; instead, they confidently embrace a long list of misconceptions. Economic policy is the primary activity of the modern state. And if there is one thing that the public deeply misunderstands, it is economics. People do not grasp the "invisible hand" of the market, with its ability to harmonize private greed and the public interest. I call this anti-market bias. They underestimate the benefits of interaction with foreigners. I call this anti-foreign bias. They equate prosperity not with production, but with employment. I call this make-work bias. Finally, they are overly prone to think that economic conditions are bad and getting worse. I call this pessimistic bias. In the minds of many, Winston Churchill's famous aphorism cuts the conversation short: "Democracy is the worst form of government, except all those other forms that have been tried from time to time." But this saying overlooks the fact that governments vary in scope as well as form. In democracies the main alternative to majority rule is not dictatorship, but markets. A better understanding of voter irrationality advises us to rely less on democracy and more on the market

Welfare economics, political economy, and policy reform in Ghana

Welfare economics develops the logic of how the gains of the gainers and the losses of the losers should be weighed against each other, in a specific ethical framework. Political economy develops the logic of how they will be weighed against each other, in the context of sociopolitical institutions. The author applies the disciplines of both welfare economics and political economy in this evaluation of policy reform in Ghana. When considerations from both disciplines are aligned, he explains, policy reform not only should be enacted but is also likely to be enacted. Often, though, there is no such alignment, so reforms that might improve social welfare do not succeed. Analysts, says the author, should consider past reforms from both perspectives, and should learn from history, in evaluating proposed reform -- so they can assess both the desirability and the feasibility of reform. Policy makers, on the other hand, should work toward organizing and mobilizing the gainers from reform that would advance social welfare, so that resistance to such reform by the losers can be overcome. In an example from history, the author explains that Britain's debate over the Corn Laws -- basically a device for protecting domestic production of grain from cheap imports -- dominated for more than a decade in the nineteenth century. It eventually split the Tory party. Britain's transformation from an agrarian nation to a manufacturing one spelled the decline of the power of the landed aristocracy and the ascendance of manufacturing. In the end, the Corn Laws were repealed because of the growing power of the urban masses and their employers, and the debate soon turned to protection against imports from fast-industrializing France and Germany. Such episodes from history help us understand the protection of rice in Japan today, for example, and the focus of this paper -- the past decade of reform in Ghana, and the decade that awaits. The author argues that the political economy of policy reform in Ghana is likely to prove tougher in the second decade than in the first, for three reasons: 1) the economic situation in the second decade isno longer one of absolute disaster, with only one way to go; 2) in the second decade, policy reform will have to coincide with the transition from military to constitutional rule; and 3) the nature of the reforms to be undertaken in the second decade is different from that of those undertaken in the first.Economic Theory&Research,Environmental Economics&Policies,Achieving Shared Growth,Inequality,Economic Policy, Institutions and Governance

A rush of blood to the head: Temporal dimensions of retrenchment, environment and turnaround performance

In this work we test the general assumption in the turnaround literature that time is critical for firm survival, especially during the retrenchment stage.We study three time dimensions of change at this stage: timing, speed and rhythm. Drawing on the downward spiral and threat-rigidity perspectives, we posit that the positive impact these time dimensions have on turnaround performance is highly contingent on two types of environment. Our findings, based on a sample of 263 declining US firms over a 26-year period (1983e2009), demonstrate that an early timing of retrenchment has a positive impact on performance when the environment is munificent. On the contrary, an early timing has a negative impact when the environment is dynamic. We also note that a fast pace of retrenchment positively impacts firm performance in dynamic environments. Finally, we find that declining firms display better performances when following an irregular rhythm of retrenchment, both in highly munificent and highly dynamic environments. Our results indicate that, in general, declining firm performance improves with time-aggressive retrenchment actions in both types of environment. We discuss the contribution of our research to the turnaround literature, and the downward spiral and threat-rigidity perspective

Economic Development Assistance for Communities Affected by Employment Changes Due to Military Base Closures (BRAC)

[Excerpt] This report is intended to discuss the geographic impact of base closures and realignments; provide an analysis of federal economic assistance programs for communities and individuals affected by military base closures and realignments (BRAC); and analyze possible policy issues for Congress. Unlike previous rounds, the 2005 BRAC round is focused on creating the infrastructure needed to support a transformed, expeditionary armed force—concentrated more on shifting forces and installation assets to promote the centralization of units in places from which they can be deployed rapidly. Thus, the 2005 BRAC round is characterized much more by realignment than closure. In 20 communities, an estimated increase of 170,000 workers is expected. In addition, estimated construction costs are anticipated to increase by 80% from $17 billion to$32 billion. These communities identified transportation, schools and affordable housing as their top infrastructure challenges. Some communities, however, will be affected by job losses, and job creation and unemployment were cited as key concerns. Economic development programs for communities affected by BRAC include the Office of Economic Adjustment (OEA); the Economic Development Administration (EDA); the Community Development Block Grant (CDBG) program; Historically Underutilized Business Zones (HUBZones) under the Small Business Administration (SBA); and programs such as the Homeowner’s Assistance Program (HAP), the Defense Access Road (DAR) program, Recovery Zone Economic Development Bonds, and Economic Development Conveyances (EDCs). Understanding the process to access funding under these programs is important for communities impacted by job losses and those affected by growth. EDA, for example, allocates funding to groups of counties organized as Economic Development Districts (EDDs), based on a plan known as a Comprehensive Economic Development Strategy (CEDS) and communities affected by BRAC must contact an EDA regional office and EDD to understand if competitive grant funding may be available. In contrast, CDBG allocates funding to one of over 1,100 entitlement communities based on a formula and on a plan known as the Consolidated Plan; BRAC funding is available primarily to help the homeless population near a base. The local communities must establish a Local Redevelopment Authority (LRA) to access assistance. The LRA serves as the primary link between the Department of Defense, the current installation, the local community, and the Federal and State agencies responsible for all BRAC matters. In the 111th Congress, the American Recovery and Reinvestment Act of 2009 (ARRA, P.L. 111-5) provided $555 million for the Homeowner’s Assistance Fund under the Housing Improvement Program (HAP), for military personnel affected by the 2005 BRAC round. P.L. 111-117 provided an additional$323 million for the HAP program. ARRA also provided $10 billion for Recovery Zone Economic Development Bonds for areas designated as economically distressed under previous BRAC round closures. The 112th Congress may consider amendments to federal economic development programs to assist communities affected by the 2005 BRAC. This report will be updated as events warrant

Japan’s Sputtering Economic Recovery Amid Heightened Political Turmoil

The purpose of this paper is to provide an overview of the current state of the Japanese economy, and to consider some of the major challenges it faces during these tumultuous political times. It begins with an economic policy proposal focused on Japan’s muddling recovery amidst the difficult political climate presently inhibiting growth. I then discuss several domestic and global issues likely to impact recovery of the Japanese economy. Regarding macroeconomic policy, Japan should pursue growth—focusing on unemployment, overcoming a sluggish recovery, and generating revenues—until stable full employment is achieved, and then implement effective fiscal consolidation with a high priority on tax and other reforms, deregulation, and liberalization. This policy should be implemented by a strong but temporary macroeconomic package of further monetary easing and additional fiscal stimulus until deflation has ended and good growth achieved, then followed by gradual but significant tax increases as a share of GDP and an end to monetary easing. Japan currently faces several challenges to economic growth. Although government infrastructure investments in Tohoku and the quick repair of supply chain ruptures led to impressive 5.5 percent growth in the first quarter of 2012, that growth slowed sharply in the second quarter to an estimated 0.7 percent rate. Furthermore, within the Japanese government, petty political gamesmanship is peaking, economic policymaking is gridlocked, and the government faces numerous structural issues including inadequate domestic demand, fiscal consolidation, deflation, and weak labor markets. The DPJ will surely lose the upcoming election and control of the government after three years in office. In addition to Japan’s still-unresolved long-run structural issues, the new government will also have to address energy policy, the role of nuclear power, trade liberalization, and financial market reforms, along with growth and the ongoing recovery effort in Tohoku. The Fukushima Daiichi plant disaster has had significant economic, political, and societal effects. Energizing an increasingly large antinuclear movement, the disaster has forced the government to examine the fate of existing nuclear plants, decide how far and how quickly nuclear power downsizing should proceed, and aggressively promote conservation and the development of renewable resources. Japan must also now confront two models for Asia-Pacific trade liberalization: the comprehensive Trans-Pacific Partnership (TPP) of 11 nations, led by the United States; and an “Asian track,” exemplified by Japan’s trilateral trade negotiations with China and Korea. Though it is in Japan’s best interest to proceed vigorously on the TPP track, the Japanese government will not join negotiations until next spring at the earliest, and its inability to engage in major agricultural reform soon could risk its ability to shape the rules of the TPP. Finally, the Japanese government must also pursue financial reforms after high-profile scandals revealing widespread insider trading, and after several attempts by foreign banks to manipulate the Tokyo interbank offer rate (Tibor). I am not particularly optimistic about the Japanese economy for the next several years; I am concerned about continuing economic policy gridlock and inaction. Despite my best hopes, I anticipate that the new government will only muddle along. Regardless, because of its unique position in the global economy, I still believe that ignoring Japan is a big mistake. It will continue as one of the world’s five largest economies for the foreseeable future, a technological leader, and a major global economic partner and competitor. We can also learn from how Japan deals with a range of problems common to most advanced economies. In the long run, I continue tobe optimistic about Japan. As its history demonstrates, it has a record of being a strong, highly motivated, effective society, demonstrably capable of responding well to and overcoming adversity

“Under Fathoms of Salt Water:” Canada’s Ammunition Dumping Program, 1944-1947

This article examines Canada’s ammunition dumping program in the mid-1940s and pays special attention to the practical and technical dilemmas that influenced policy making and implementation. A pressing logistical crisis followed the end of the Second World War as crowded armaments depots ran out of storage space for leftover ordnance. In July 1945 a major explosion at the Bedford Magazine in Halifax Harbour heightened public safety concerns and influenced future disposal policies. From a range of imperfect destruction methods, dumping emerged as one of the most efficient alternatives; whenever possible conventional and chemical munitions were submerged. Although the quantities sunk by the Americans, British, and Russians dwarf the amount dumped by Canada, the Canadian dumping program was no less important to the nation’s postwar transition or without serious ramifications for Canadians and their coastal environments