Together forever? Explaining exclusivity in party-firm relations

Parties and firms are the key actors of representative democracy and capitalism respectively and the dynamic of attachment between them is a central feature of any political economy. This is the first article to systematically analyse the exclusivity of party-firm relations. We consider exclusivity at a point in time and exclusivity over time. Does a firm have a relationship with only one party at a given point in time, or is it close to more than one party? Does a firm maintain a relationship with only one party over time, or does it switch between parties? Most important, how do patterns of exclusivity impact on a firm’s ability to lobby successfully? We propose a general theory, which explains patterns of party-firm relations by reference to the division of institutions and the type of party competition in a political system. A preliminary test of our theory with Polish survey data confirms our predictions, establishing a promising hypothesis for future research

Donors, Aid and Taxation in Developing Countries: An Overview

Recent years have witnessed rapidly growing donor interest in tax issues in the developing world. This reflects a concern with revenue collection to finance public spending, but also recognition of the centrality of taxation to growth, redistribution and broader state-building and governance goals. Against this backdrop, this paper identifies a series of key issues that demand attention if donors are to improve the quality of their support for tax reform. The focus is not, primarily, on the technical design of tax interventions, but, instead, on seven ‘big picture’ considerations for the design of donor programmes: (a) supporting local leadership of reform efforts; (b) incorporating more systematic political economy analysis into the design and implementation of reform programmes; (c) designing tax reform programmes that seek to foster broader linkages between taxation, state-building and governance; (d) paying careful attention to the complexity of the relationship between aid and tax effort; (e) better designing tax-related conditionality, particularly by developing a more nuanced set of performance indicators; (f) ensuring the effective coordination of donor interventions; and (g) paying greater attention to the international policy context, and particularly the role of tax exemptions for donor projects, tax havens and tax evasion by multinational corporations (MNCs) in undermining developing country tax systems.DfI

Do Governance Indicators Explain Development Performance? A Cross-Country Analysis

The central question addressed by this study is whether countries with above-average governance grew faster than countries with below-average governance. Using the World Bank's worldwide governance indicators to measure governance performance, it examines whether a country with governance "surplus" in a given base year (1998) grew faster on average in a subsequent period (1998- 2011) than a country with governance "deficit." Governance is defined in several dimensions, including government effectiveness, political stability, control of corruption and regulatory quality, voice and accountability, and rule of law. The study finds that government effectiveness, political stability, control of corruption and regulatory quality all have a more significant positive impact on country growth performance than voice and accountability and rule of law. Developing Asian countries with a surplus in government effectiveness, regulatory quality and corruption control are observed to grow faster than those with a deficit in these indicators - up to 2 percentage points annually, while Middle East and North African countries with a surplus in political stability, government effectiveness, and corruption control are observed to grow faster than those with a deficit in these indicators by as much as 2.5 percentage points annually. Good governance is associated with both a higher level of per capita GDP as well as higher rates of GDP growth over time. This suggests that good governance, while important in and of itself, can also help in improving a country's economic prospects

On Compulsory Voting and Income Inequality in a Cross-Section of Countries

This paper explores the link between compulsory voting and income distribution using a cross-section of countries around the world. Our empirical cross-country analysis for 91 countries during the period 1960-2000 shows that compulsory voting, when enforced strictly, improves income distribution, as measured by the Gini coefficient and the bottom income quintiles of the population. Our findings are robust to changes and additions to our benchmark specification. Since poorer countries suffer from relatively greater income inequality, it might make sense to promote such voting schemes in developing regions such as Latin America. This proposal assumes that bureaucratic costs related with design and implementation are not excessive

Perceived corruption and individuals’ life satisfaction: The mediating role of Institutional Trust Marco

Corruption degrades the quality of institutions, increases economic inequality and limits growth. Recent studies indicate that corruption is also associated with lower satisfaction with life. This research examines a potential explanation for this association and investigates the role of institutional trust in mediating the linkage between perceived corruption and satisfaction with life. Specifically, in two studies, we tested the novel hypothesises that perceived corruption affects life satisfaction indirectly by undermining individuals’ confidence in institutions. Study 1 (N = 251) involved an opportunity sample from the US. Study 2 (N = 9508) analysed data from the World Value Survey and involved a larger, representative sample of individuals from the MENA region. Across studies, mediation analyses provided evidence for the hypothesized indirect effect of perceived corruption on life satisfaction through institutional trust. Implications of the findings, limitations of the studies and directions for future research are discussed

Evaluation of livelihood assets in community-based on-farm demonstration of IMTA in milkfish mariculture in Guimaras, Philippines

This study showed the need to develop the livelihood assets of rural communities to enable them to engage in aquaculture-based income generating activities. The SLA evaluation showed that the benefits in terms of its contribution to livelihood asset build-up is generally positive. While human, social and environmental capacities were improved, the financial and physical assets were dissipated and insufficient for many stakeholders with keen interest to participate in the communal project. Therefore, the recommendation is to organize more and bigger collaborative projects, such as this IMTA of milkfish, with emphasis on sustainable livelihood asset development to create significant economic impact to target beneficiaries