Competing forms of cooperation? Land League, land war and cooperation in Ireland, 1879-1914

The author acknowledges the Leverhulme Trust for funding this research under the project ‘A messy divorce? Irish debt and default, 1891–1938’Two distinct forms of cooperation emerged in response to structural changes in the agricultural sector of the Irish economy in the late nineteenth century: the Land League and the Irish Agricultural Organisation Society. This article argue that the Land League fostered cooperation among tenants and agitated for government intervention to reduce rents and transfer land ownership from landlords to tenants, whereas the IAOS encouraged the imitation of continental European forms of cooperative agricultural enterprise. This article analyses the relationship between both forms of cooperation and finds that the Land League and subsequent Land War did not hinder the adoption of cooperation enterprise and was instead complementary to cooperative organisation. However, the article argues that the IAOS cooperatives were ideologically motivated and misguided and that cooperative enterprises introduced offered no institutional advantages compared to incumbent institutions.Publisher PDFPeer reviewe

Capitalising on the Irish land question : land reform and state banking in Ireland, 1891–1938

This research is part of a wider project, ‘A messy divorce? Irish debt and default, 1891–1938’, conducted by McLaughlin as a Leverhulme Early Career Fellow.Land reform and its financial arrangements are central elements of modern Irish history. Yet to date, the financial mechanisms underpinning Irish land reform have been overlooked. The article outlines the mechanisms of land reform in Ireland and the importance of land bonds to the process. Advances worth over £127 million were made to tenant farmers to purchase their holdings. These schemes enabled the transfer of over three-quarters of land on the island of Ireland. The article introduces a new database on Irish land bonds listed on the Dublin Stock Exchange from 1891 to 1938. It illustrates the nature of these bonds and presents data on their size, liquidity and market returns. The article finds a high level of state banking in Ireland: large issues of land bonds were held by state-owned savings banks.PostprintPeer reviewe

State dissolution, sovereign debt and default: Lessons from the UK and Ireland, 1920-1938

We study Ireland´s inheritance of debt following its secession from the United Kingdom at the beginning of the twentieth century. Exploiting structural differences in bonds guaranteed by the UK and Irish governments, we can identify perceived uncertainty about fiscal responsibility in the aftermath of the sovereign breakup. We document that Ireland´s default on intergovernmental payments was an important event. Although payments from the Irish government ceased, the UK government instructed its Treasury to continue making interest and principal repayments. As a result, the risk premium on the bonds the UK government had guaranteed fell to about zero. Our findings are consistent with persistent ambiguity about fiscal responsibility far-beyond sovereign breakup. We discuss the political and economic forces behind the Irish and UK governments´ decisions, and suggest lessons for modern-day states that are eyeing dissolution. "Further, in view of all the historical circumstances, it is not equitable that the Irish people should be obliged to pay away these moneys" - Eamon De Valera, 12 October 193

Sovereign debt guarantees and default: Lessons from the UK and Ireland, 1920-1938

This research is part of a wider project,“A messy divorce? Irish debt and default, 1891-1938”, conducted by McLaughlin as a Leverhulme Early Career Fellow.We study the daily yields on Irish land bonds listed on the Dublin Stock Exchange during the years 1920–1938. We exploit Irish events during the period and structural differences in land bonds to tease out a measure of investors' credibility in a UK sovereign guarantee. Using Ireland's default on intergovernmental payments in 1932, we find a premium of about 43 basis points associated with uncertainty about the UK government guarantee. We discuss the economic and political forces behind the Irish and UK governments' decisions pertaining to the default. Our finding has implications for modern-day proposals to issue jointly-guaranteed sovereign debt. ‘Further, in view of all the historical circumstances, it is not equitable that the Irish people should be obliged to pay away these moneys’ - Eamon De Valera, 12 October 1932PostprintPeer reviewe

Contracts and cooperation : the relative failure of the Irish dairy industry in the late nineteenth century reconsidered

Ingrid Henriksen gratefully acknowledges the financial support from the Carlsberg Foundation and Eoin McLaughlin graciously acknowledges support from the Leverhulme Foundation.Why did the establishment of cooperative creameries in late nineteenth century Ireland fail to halt the relative decline of her dairy industry compared to other emerging producers? This paper compares the Irish experience with that of the market leader, Denmark, and shows how each adopted the cooperative organizational form, but highlights that an important difference was institutional: specifically regarding the enforcement of vertically binding contracts. We argue that this failure, combined with a strong proprietary sector which was opposed to cooperation, reinforced the already difficult conditions for dairying in Ireland due to poor social capital.PostprintPeer reviewe

The Circular Economy: Swings and Roundabouts?

In the last few decades the Circular Economy has increasingly been advertised as an economic model that can replace the current “linear” economy whilst addressing the issues of environmental deterioration, social equity and long-term economic growth with the explicit suggestion that it can serve as a tool for Sustainable Development. However, despite the individual prominence of the Circular Economy and Sustainable Development in the academic and wider literature, the exact relationship between the two concepts has neither been thoroughly defined nor explored. The consequent result is various inconsistencies occurring across the literature regarding how the Circular Economy can serve as a tool for Sustainable Development and an incomplete understanding of how its long-term effects differ from those of the “linear” economy. A literature review was conducted to interpret the current conceptual relationship between the Circular Economy and Sustainable Development. The review highlights numerous challenges concerning conceptual definition, economic growth and implementation that inhibit the use of the Circular Economy as a tool for Sustainable Development in its current form. The review concludes by providing suggestions for how research concerning the Circular Economy should proceed if it is to provide a potential approach for achieving Sustainable Development

Genuine savings and future well-being in Germany, 1850-2000

Genuine Savings (GS), also known as ‘net adjusted savings', is a composite indicator of the sustainability of economic development. Genuine Savings reflects year-on-year changes in the total wealth or capital of a country, including net investment in produced capita, investment in human capital, depletion of natural resources, and damage caused by pollution. A negative Genuine Savings rate suggests that the stock of national wealth is declining and that future utility must be less than current utility, indicating that economic development is non-sustainable (Hamilton and Clemens, 1999). We make use of data over a 150 year period to examine the relationship between Genuine Savings and a number of indicators of well-being over time, and compare the relative changes in human, produced, and components of natural capital over the period. Overall, we find that the magnitude of genuine savings is positively related to changes in future consumption, with some evidence of a cointegrating relationship. However, the relationships between genuine savings and infant mortality or average heights are less clear

Scarring and selection in the Great Irish Famine

What impact do famines have on survivors? We use individual-level data on a population exposed to severe famine conditions during infancy to document two opposing effects. The first: exposure to insufficient food and a worsened disease environment is associated with poor health into adulthood - a scarring effect. The second: famine survivors do not themselves suffer any health impact - a selection effect. Anthropometric evidence from records pertaining to over 21,000 subjects born before, during and after the Great Irish Famine (1845-52), one of modern history's most severe famine episodes, suggests that selection is strongest where famine mortality is highest. Individuals born in heavily-affected areas experienced no measurable stunted growth, while significant scarring was found only among those born in regions where the same famine did not result in any excess mortality

Genuine savings and sustainability

Genuine Savings has emerged as the leading economic indicator of sustainable economic development at the country level. It derives from the literatures on weak sustainability, wealth accounting and national income accounting. We discuss the theoretical underpinnings of GS, focusing on the relationship between changes in a nation's extended capital stock and the future path of consumption. The indicator has entered widespread use propelled by the World Bank's publications, despite its varying performance as a predictor for future consumption. Notwithstanding the extensive body of literature reviewed, promising future research avenues are identified.PostprintPeer reviewe

The Emperor Has New Clothes: Empirical Tests of Mainstream Theories of Economic Growth

Modern macroeconomic theory utilises optimal control techniques to model the maximisation of individual well-being using a lifetime utility function. Agents face choices over current and future consumption (with resultant implied savings decisions) seeking to maximise the present value of current plus future well-being. However, such inter-temporal welfare-maximising assumptions remain empirically untested. In the work presented here we test whether welfare was in (historical) fact maximised in the US between 1870-2000 and find empirical support for the optimising basis of growth theory, but only once a comprehensive view of what constitutes a country's wealth or capital is taken into account