The creation of the rule of law and the legitimacy of property rights : the political and economic consequences of a corrupt privatization

How does the lack of legitimacy of property rights affect the dynamics of the creation of the rule of law? The authors investigate the demand for the rule of law in post-communist economies after privatization under the assumption that theft is possible, that those who have"stolen"assets cannot be fully protected under a change in the legal regimetoward rule of law, and that the number of agents with control rights over assets is large. They show that a demand for broadly beneficial legal reform may not emerge because the expectation of weak legal institutions increases the expected relative return to stripping assets, and strippers may gain from a weak and corrupt state. The outcome can be inefficient even from the narrow perspective of the asset-strippers.Legal Products,Economic Theory&Research,Corruption&Anitcorruption Law,Public Sector Corruption&Anticorruption Measures,Governance Indicators

After the Big Bang? Obstacles to the emergence of the rule of law in post-communist societies

With the collapse of communism in Eastern Europe and the Soviet Union in 1989-91, many economic reformers supported"Big Bang"privatization-the rapid transfer of state-owned enterprises to private individuals. It was hoped that Big Bang privatization would create the conditions for a demand-led evolution of legal institutions. But there was no theory to explain how this process of institutional evolution, including a legal framework for the protection of investors, would occur and, in fact, it has not yet occurred in Russia, in other former Soviet Union countries, in the Czech Republic, and elsewhere. A central reason for that, according to many scholars, is the weakness of the political demand for the rule of law. To shed light on this puzzle, the authors consider a model where the conditions for the emergence of the rule of law might be interpreted as highly favorable. Individuals with control rights over privatized assets can collectively bring about the rule of law simply by voting for it. These individuals are concerned with the wealth they can obtain from the privatized assets, and have two alternative strategies: building value and stripping assets. Building value under the rule of law yields higher benefits to a majority than stripping assets under no rule of law. But uncertainty about when the rule of law will be established may lead some individuals to choose an economic strategy-stripping assets, including converting corporate assets to private use-that gives them an interest in postponing the establishment of the rule of law. And therefore in the succeeding period, the rule of law may again not be in place, and so again individuals may strip assets. If they do, some of them may again have an interest in postponing the establishment of the rule of law. And so a weak demand for the rule of law can persist. The contribution of the paper is to show that the view that once stripping has occurred, the strippers will say"enough"and by supporting the rule of law seek public protection of their gains, is flawed. By abstracting from the obvious problem that strippers who obtain great wealth can buy special favored treatment from the state, the model highlights two less obvious flaws in the optimistic view about the Big Bang: First, that the asset-strippers can remove the assets from exposure to further stealing, and in that case they do not care about public protection for their gains. And second, that the perceived justice of a system is important to gaining the cooperation of those involved in the process of producing the rule of law (judges, regulators, jurors, potential offenders). Accordingly, state protection of asset strippers may be infeasible, even under an ostensible rule of law. Knowing this, strippers will be less supportive of the rule of law. The model makes one further point: what is at issue is how fast the rule of law will emerge. The presumption of the Big Bang strategy was that the faster state property was turned over to private hands, the faster a true market economy, including the rule of law, would be established. The analysis shows that, even if eventually a rule of law is established, the Big Bang may put into play forces that delay the establishment of the rule of law. The tortoise once again may beat the hare! Finally, the authors analyze the impact of certain policies, such as the particular structure of privatization and monetary policy. Policies that enhance the returns to investment and wealth creation rather than assetstripping not only serve to strengthen the economy in the short run, but enhance political support for the rule of law and thus put it in a position for stronger long-term growth.Corruption&Anitcorruption Law,Environmental Economics&Policies,Economic Theory&Research,Legal Products,Labor Policies,Legal Products,Environmental Economics&Policies,Economic Theory&Research,Corruption&Anitcorruption Law,Judicial System Reform

Equilibrium fictions : a cognitive approach to societal rigidity

This paper assesses the role of ideas in economic change, combining economic and historical analysis with insights from psychology, sociology and anthropology. Belief systems shape the system of categories ("pre-confirmatory bias") and perceptions (confirmatory bias), and are themselves constrained by fundamental values. The authors illustrate the model using the historical construction of racial categories. Given the post-Reformation fundamental belief that all men had rights, colonial powers after the 15th century constructed ideologies that the colonized groups they exploited were naturally inferior, and gave these beliefs precedence over other aspects of belief systems. Historical work finds that doctrines of race came into their own in the colonies that became the United States after, not before, slavery; that out of the"scandal of empire"in India emerged a"race theory that cast Britons and Indians in a relationship of absolute difference"; and that arguments used by the settlers in Australia to justify their policies toward the Aborigines entailed in effect the expulsion of the Aborigines from the human race. Racial ideology shaped categories and perceptions in ways that the authors show can give rise to equilibrium fictions. In the framework of this paper, technology, contacts with the outside world, and changes in power and wealth matter not just directly but because they can lead to changes in ideology.Cultural Policy,Race in Society,Educational Sciences,Cultural Heritage&Preservation,Ethics&Belief Systems

Exiting a lawless state

An earlier paper showed that an economy could be trapped in an equilibrium state in which the absence of the rule of law led to asset-stripping, and the prevalence of asset-stripping led to the absence of a demand for the rule of law, highlighting a coordination failure. This paper looks more carefully at the dynamics of transition from a non-rule-of-law state. The paper identifies a commitment problem as the critical feature inhibiting the transition: the inability, under a rule of law, to forgive theft. This can lead to the perpetuation of the non-rule-of-law state, even when it might seem that the alternative is Pareto-improving.Public Sector Corruption&Anticorruption Measures,National Governance,Labor Policies,Gender and Law,Bankruptcy and Resolution of Financial Distress

Effective action for a quantum scalar field in warped spaces

We investigate the one-loop corrections at zero, as well as finite temperature, of a scalar field taking place in a braneworld motived warped background. After to reach a well defined problem, we calculate the effective action with the corresponding quantum corrections to each case.Comment: 10 pages, to appear in The European Physical Journal

Plant diversity to support humans in a CELSS ground based demonstrator

A controlled ecological life support system (CELSS) for human habitation in preparation for future long duration space flights is considered. The success of such a system depends upon the feasibility of revitalization of food resources and the human nutritional needs which are to be met by these food resources. Edible higher plants are prime candidates for the photoautotrophic components of this system if nutritionally adequate diets can be derived from these plant sources to support humans. Human nutritional requirements information based on current knowledge are developed for inhabitants envisioned in the CELSS ground based demonstrator. Groups of plant products that can provide the nutrients are identified

Mouths wide open: yawning as a communicative behavior in dogs

2001 Summer.Includes bibliographical references (pages 45-46).Yawning is an action humans are very familiar with, yet this behavior is not unique to our species. Most vertebrate animals demonstrate yawning behavior. The cause of yawning is still uncertain, but yawns across vertebrate species seem to be concentrated around transitions between sleep and activity. Our most popular companion animal, Canis familiaris, also has periods of yawning before and after sleep. Dogs are naturally social living creatures and rely extensively on body language as a form of communication between group members. Behaviorists have suggested that some dog yawns are part of this visual communication system. The object of this observational study was to confirm that dogs have two main yawn types: a "rest" yawn that occurs between sleep-activity transitions, and a "social" yawn occurring during social interactions. Social interactions in this study referred to both dog-dog and human-dog interactions. Communicative yawning is performed to displace anxiety in an individual dog or to pacify aggression or excitement in other individuals. The frequency of rest yawns was predicted to be higher than that of social yawns. Both yawn types were morphologically the same, so the context of a yawn was used to indicate whether the yawn occurred for rest or communication. Even when recording the context of a yawn, distinguishing between displacement and pacification intentions was very difficult. Therefore, yawns motivated by displacement or pacification were collectively considered social in function. Because social yawns only occur in the presence of other individuals, dogs were observed in the social settings of dog daycare and obedience classes. Individual dogs were observed for 15-20 minutes. Some observations were videotaped, but the majority were taken in real time. Behaviors immediately preceding and following a yawn were recorded using an ethogram tailored to rest, displacement, and pacification behaviors. This study indicated that the majority of dog yawns occur during social interactions and not during sleep transitions. Using the yawn as a gauge to indicate if a dog is anxious or relaxed is one step towards more effective communication between dogs and humans. A yawn can act as a behavioral cue for dog handlers, trainers, owners and anyone concerned with canine welfare

Nutritional and cultural aspects of plant species selection for a controlled ecological life support system

The feasibility of using higher plants in a controlled ecological life support system is discussed. Aspects of this system considered important in the use of higher plants include: limited energy, space, and mass, and problems relating to cultivation and management of plants, food processing, the psychological impact of vegetarian diets, and plant propagation. A total of 115 higher plant species are compared based on 21 selection criteria

Toxic Chocolate: An Investigation of Heavy Metal Concentrations in Chocolate Products

Many news organizations and scientific journals have recently reported high concentrations of lead and cadmium in chocolate products. The consumption of lead, cadmium, and other toxic metals can lead to numerous health impacts and impair development in children.1,2 Previous studies have specifically focused on the quantification of lead and cadmium in mainstream chocolate products, neglecting small businesses and the quantification of other heavy metals. This study addresses this disparity by analyzing the concentrations of lead, cadmium, barium, strontium, thallium, and mercury in lesser-known chocolate products from Castronovo Chocolate, Meridian Cacao Co., and Lidl. Two ICP-OES instruments and a direct mercury analyzer were used to quantify the heavy metals in the samples. Little to no lead was detected in the samples. Many samples contained mercury at ppb concentrations, which were not high enough to be immediate health risks. Cadmium was reliably detected in Castronovo’s The Lost City Honduras dark chocolate and Meridian’s Organic Cocoa Powder at average concentrations of 780 ppb and 364 ppb, respectively. Barium, strontium, and thallium were detected in many of the chocolate products, ranging from 1.97-7.71 ppm, 3.01-6.70 ppm, and 3.82-6.07 ppm, respectively. Consuming chocolate with these metal concentrations could result in psychological issues, paralysis, numbness, and other health impacts based on EPA recommendations.3-6 The high concentrations of the heavy metals in the chocolate products indicate that the metals are entering the cacao beans through polluted soil or that manufacturing processes are introducing the metals into the finished chocolate products