Contestability ‘theory’, its links with Australia’s competition policy,and recent international trade and investment agreements

This article examines how contestable market theory (contestability) has come to reconfigure the economic and regulatory concept of competition in order to enhance the compatibility of Australia’s economy with international trade and investment agreements. Australia has recently negotiated and signed a raft of bilateral, plurilateral and regional agreements, including the Trans-Pacific Partnership Agreement and the Australia–China Free Trade Agreement. In order to ensure that Australia meets its obligations and commitments to these agreements, two key advisory bodies—the Harper Panel on Competition Policy Review and the Financial System Inquiry—made recommendations, the majority of which were accepted by the government, to ready Australia’s competition governance and economic policy for greater global integration. Such impact is dependent on, among other things, how domestic competition policy meshes with the free market ideology underpinning such international agreements, which favours the breakdown of barriers to markets. Less well known is the role of contestability in radicalising ideology as it countenances monopolisation and privatisation in the guise of market access by justifying the substitution of actual competition with the mere threat of competition. The article concludes that the monopoly power of transnational corporations will be enhanced through the acquiescence of governments to the new governance regime of the Trans-Pacific Partnership Agreement, which, supported by domestic policy, is set to redraw competition policy in the light of contestability theory.     

Social Conflict and Competing State Projects in the Semi‐Periphery: A Strategic‐Relational Analysis of the Transformation of the Mexican State into an Internationalized Competition State

Abstract: This article draws on the strategic‐relational approach in state theory and examines the transformation of the Mexican state into internationalized competition state. It does so by analyzing the rise of the neoliberal forces and the neoliberal state project inside Mexico during the 1970s while taking into account the important modifications in the international division of labor and the evolving international regulation. These developments resulted in the transformation of the Mexican state into an internationalized competition state which adopts a Ricardian strategy of competition and is characterized by the tendencies towards the denationalization of statehood and the internationalization of policy regimes.     

The Changing Geographies of Power and Control in Rural Service Provision: Recent Restructuring Within the Australian Tractor Dealership System

Over the past few years a considerable body of research has illuminated the changing geographies of service provision in rural Australia. Mostly, this work has emphasised the quantitative aspects of restructuring, by way of documenting numerical reductions in service delivery points and their implications for local employment and service access. In this paper, an examination of recent restructuring within the dealership system for high‐horsepower tractors underlines that these quantitative changes also intersect with qualitative shifts to the character of service delivery. Interviews with 31 participants in the tractor dealership system of Central‐West New South Wales reveal the recent evolution of a producer‐driven supply chain in which two dominant, multinational, tractor‐machinery companies have sought to exercise tighter control over customer relations through the restructuring of franchise agreements with dealers. There has been a resultant demise of the independent dealership, and its replacement by a system of standardised, company‐affiliated outlets operated by franchise holders. Hence, the spatial restructuring of this industry represents the surface manifestations of corporate strategies in which large economic entities are re‐organising their interests in light of globalised theatres of competition and profit. In this sense, the tractor‐dealership system is emblematic of changes to power and control in rural service provision as the franchise models propagated by large corporate interests increasingly subsume the small‐business sector activities of Australia's rural towns.     

New Evidence of the Effect of Transaction Costs on Residential Mobility*

Abstract. Transaction costs have attracted considerable attention in the theoretical literature on residential mobility. Transaction costs are thought to cause suboptimal consumption of housing but may also negatively affect labor market outcomes. In the current paper, we demonstrate empirically for the Netherlands that transaction costs have a strong negative effect on the owners' probability of moving. Under a range of different specifications, it appears that a 1 percent‐point increase in the value of transaction costs—as a percentage of the value of the residence—decreases residential mobility rates by (at least) 8 percent. The estimates imply that ownership to ownership mobility rates would be substantially higher in the absence of the current 6 percent ad valorem buyer transaction tax. Our estimates are consistent with the observation that in the Netherlands ad valorem transaction costs mainly consist of buyer transaction costs.     

Can Voluntary Environmental Regulation Work in Developing Countries? Lessons from Case Studies

Hamstrung by weak institutions that undermine conventional environmental regulatory tools, policymakers in developing countries are increasingly turning to voluntary approaches. To date, however, there have appeared few evaluations of these policy experiments. To help fill this gap, we summarize arguments for and against the use of voluntary regulation in developing countries, review the nascent literature on the topic, and present case studies of agreements negotiated between regulators and leather tanners in an industrial city in Mexico, a national environmental audit program in Mexico, and a national public disclosure program in India. Admittedly few in number, these three case studies nevertheless suggest that although voluntary environmental regulation in developing countries is a risky endeavor, it is by no means doomed to failure. The risks can be minimized by emphasizing the dissemination of information about pollution and pollution abatement options and by avoiding voluntary approaches in certain situations—those where regulatory and nonregulatory pressures for improved environmental performance are weak and where polluters can block quantified targets, individual sanctions for noncompliance, and other widely accepted prerequisites of effective voluntary initiatives.     

基于生态位理论的城市竞争策略研究

将城市视为具有生态智慧的特殊生命体,认为城市之间存在着与生物界相似的"生态关系"。首先,在对物种生态位和城市生态位的概念进行解析的基础上提出城市竞争生态位的概念并阐述其内涵。进而,论述城市竞争生态位的多维性以及城市竞争生态位重叠和分离现象的发生机理。最后,将城市竞争生态位理论应用到城市竞争策略的研究中去,从生态智慧的角度对城市竞争策略进行重新解读,指出现代城市应当通过错位竞争策略、选择性变异策略和互惠共生策略来实现城市间的共存共荣。     

Voluntary Environmental Programs: A Canadian Perspective

In light of the increasing number of environmental problems necessitating government's attention and the limited scope and budget for addressing these issues, environmental protection has, and continues to evolve as more flexible approaches to regulation are being sought and embraced by governments throughout the world. Voluntary environmental programs (VEPs) are a pragmatic response by both governments and business to find a more flexible way to protect the environment. We discuss the theoretical motivations for firms to adopt VEPs in general and examine Canada's experience with three types of VEPs, public, negotiated, and unilateral agreements, to assess whether the motivating factors are present. We then argue that the institutional, political, and regulatory framework governing environmental policy in Canada does not provide the conditions necessary to effectively promote superior corporate environmental protection across jurisdictions. Despite the lack of government‐directed VEPs, there has been considerable interest by both the private sector and civil society who have taken the lead by developing unilateral agreements. Using existing literature and our current research, we examine the factors that motivate firms in Canada to participate in unilateral agreements and the characteristics of firms with the higher environmental performance and suggest some policy implications.     

Is there a relationship between wartime violence and postwar agricultural development outcomes? The case of concessions and community grants in Mozambique

This paper studies if intensity and recentness of wartime violence is related to the trajectory of post-conflict agricultural development. We consider the case of Mozambique, where the government has made agricultural concessions to corporations, as well as land grants to communities. These uses may stand in competition with one another, and we test if violence affects the awarding of concessions or land grants. We analyze district-level, GIS-generated data on concessions, grants, and civil war events. We find wartime violence intensity is associated with more concessions and fewer grants. We conversely find recentness of violence is associated with fewer concessions and more grants. Embedding our empirical analysis in a community resilience framework, we suggest the intensity of wartime violence may erode local institutions – be they traditional governance structures, or agricultural cooperatives seeking community lands – or limit their access to government bodies and local NGOs tasked with vetting, delimiting, and monitoring proposed concessions. Paradoxically, recentness violence may mobilize those same institutions.     

DEREGULATING THE DISTRIBUTION OF ELECTRICITY: PRICE AND WELFARE CONSEQUENCES OF SPATIAL OLIGOPOLY WITH UNIFORM DELIVERED PRICES*

ABSTRACT. Theoretical, spatial oligopoly models are developed and calibrated to simulate the price and welfare consequences of deregulating the retail price of electricity (the distribution function), assuming competing sources of generation supply are available. Two types of distribution competition are considered, retaining the currently used uniform delivered pricing structure: competition for customers at neighboring utilities’ borders and franchise competition. Because duplicate facilities are required for borderline competition, short-run price increases ranging between 14 and 37 percent over existing regulated prices are estimated for upstate New York, largely because deregulated prices reflect replacement, not historic, costs of facilities.     

Four ministries,four spatial planning perspectives? Dutch evidence on the persistent problem of horizontal coordination

The formulation of spatial policy at the national level is fraught with coordination problems, mainly owing to competition among ministries. This paper considers ways to improve horizontal coordination. It is based on a review of current Dutch policy documents and the political debate they have spawned in the Netherlands. To set the stage, the paper discusses the spatial policy now in force, which derives from the Fourth Report on Spatial Planning Extra (VINEX). After presenting the views espoused by the Ministry of Housing, Spatial Planning and the Environment, the paper highlights key spatial concepts proposed by three other ministries. The inherent contradictions come into play when allocating strategic spatial investments, which are drawn from the Economic Structure Enhancing Fund. The defensive position that government bodies take regarding their own spatial concepts may be understood in terms of the competition for billions of Euros in public money. In our opinion, the recipe for success is a blend of ingredients from each of the sectoral approaches, combined in an integrated spatial policy. We are pleased to say that since the time of writing, this approach has actually been adopted in the Netherlands. In January 1999, the government published what it calls a Starting Memorandum on Spatial Planning. That document seeks to realign national spatial policy by combining diverse sectoral views and introducing new spatial concepts such as ‘corridor’ and ‘network city’. The ideals of ‘spatial vision’ and ‘spatial quality’ are combined with criteria like ‘sustainability’ as well as with the flexibility and responsiveness that is needed in a market setting, whereby households and firms operate increasingly in a European context. The associated style of governance would be to alternate a loose rein—a strategy of divergence and competition—with a tight rein—the implementation of policy that is both horizontally coordinated and integrated. This approach is bound to fan the flames of public debate on national spatial planning. In this sense, other countries might do well to keep an eye on it.     

SQUATTING ON GOVERNMENT LAND

This paper presents an economic theory of squatter settlements in developing countries. It adds to the existing literature by explicitly modeling squatting on government‐owned land and presents a unified framework for analysis of issues related to squatting, urban planning and policy. In the model, a squatter‐organizer optimally controls squatting so as to forestall eviction. The model highlights how the existence of an eviction cost leads to formal residents tolerating squatting, trading‐off “open space” to avoid paying taxes toward evicting squatters. The paper derives comparative‐static results under some functional form assumptions. The analysis is extended to examine the comparative‐static effects for the case where squatters freely migrate into the city. The framework for exploring a combined model of squatting on government and private land is also laid out. Finally, some policy analysis of squatter formalization is carried out.     

Government institutions and the dynamics of urban growth in China

Economic growth in China in recent decades has largely rested on the dynamism of its cities. High economic growth has coincided with measures aimed at improving the efficiency of local governments and with a mounting political drive to curb corruption. Yet the connection between government institutions and urban growth in China remains poorly understood. This paper is the first to look into the link between government efficiency and corruption, on the one hand, and urban growth in China, on the other hand and to assess what is the role of institutions relative to more traditional factors for economic growth in Chinese cities. Using panel data for 283 cities over the period between 2003 and 2014, the results show that the urban growth in China is a consequence of a combination of favorable human capital, innovation, density, local conditions, foreign direct investment, and city‐level government institutions. Both government quality—especially for those cities with the best governments—and the fight against corruption at the city level have a direct effect on urban growth. Measures to tackle corruption at the provincial level matter in a more indirect way, by raising or lowering the returns of other growth‐inducing factors.     

Gramsci and the African Città Futura: Urban Subaltern Politics From the Margins of Nouakchott,Mauritania

This article offers reflection on how Gramscian theories can be useful for critically analyzing the political significance of the actions and resistances of urban subaltern Africans. It interrogates the potential of subaltern political forms to profoundly transform society and to thus prepare for the African “future city”. It merges a theoretical analysis of Gramsci's concepts relating to the città futura—and its relation to concepts of city, subalternity, political initiative and cittadinanza—with a comparative critique of urban theory applied to Africa and especially relating to the politicization of the city in Mauritania. Our reflections are based on Mauritania and the case of Nouakchott, its capital, where we have carried out our research for over a decade. We will interrogate the re‐appropriations or resistances, as well as the autonomous construction of modes of living and of city‐making, made by marginal inhabitants, in order to consider their political potentialities.     

Rising Sino-Japanese competition: perspectives from South-East Asian elites

One of the biggest challenges for the East Asian region today is the Sino-Japanese relationship. Starting with the fishing trawler incident in September 2010, followed by Japan's nationalisation of the Senkaku/Diaoyu Islands, this relationship is experiencing an escalation of tensions in most, if not all, areas of the bilateral relationship. In response to the intensifying competition, China and Japan have elevated the importance of South-East Asia and the Association of Southeast Asian Nations (ASEAN) in their foreign policy strategies. Focusing on how elites from five South-East Asian states—Indonesia, Malaysia, the Philippines, Singapore and Vietnam—perceive the engagement of China and Japan with the region, this article poses two questions: (1) How do South-East Asian elites view the Sino-Japanese competition? and (2) How do South-East Asian elites view the role of ASEAN in managing the competition? The analysis here concludes that while some South-East Asian elites see opportunities in the Sino-Japanese competition, they nevertheless do not perceive it as an issue of critical significance. Instead, the concern lies generally with major-power dynamics, and particularly with Sino-US relations. ASEAN is viewed to lack the ability to manage the negative consequences of the Sino-Japanese competition, although its external balancing function has perceptibly helped to restrain any escalation of major-power tensions.     

Twenty‐first Century Industrial Policy in a Small Developing Country: The Challenges of Reviving Manufacturing in Rwanda

The Rwandan government — widely lauded for its political commitment to development — has refocused its efforts on reviving growth in the manufacturing sector. This article examines how pressures from different levels — international, regional and domestic — have shaped the evolving political economy of two priority sectors (apparel and cement). To achieve its goals of manufacturing sector growth, the Rwandan government aims to access foreign markets (on preferential terms) and larger regional markets while developing effective state–business relationships with locally based firms. Despite the government's political commitment to reviving its manufacturing sector, its strategy has been both shaped and impeded by shifting pressures at the international level (through Rwanda's recent suspension from the African Growth and Opportunity Act), the regional level (through competition from regional firms) and the domestic level (through over‐reliance on single firms). Within the current industrial policy literature, there is limited reflection on how developing countries are dealing with the multi‐scalar challenges of enacting industrial policy in a much‐changed global trading environment. This article contributes to the industrial policy literature by addressing this lacuna.     

Specification of the World City Network

World cities are generally deemed to form an urban system or city network but these are never explicitly specified in the literature. In this paper the world city network is identified as an unusual form of network with three levels of structure: cities as the nodes, the world economy as the supranodal network level, and advanced producer service firms forming a critical subnodal level. The latter create an interlocking network through their global location strategies for placing offices. Hence, it is the advanced producer service firms operating through cities who are the prime actors in world city network formation. This process is formally specified in terms of four intercity relational matrices—elemental, proportional, distance, and asymmetric. Through this specification it becomes possible to apply standard techniques of network analysis to world cities for the first time. In a short conclusion the relevance of this world city network specification for both theory and policy‐practice is briefly discussed.     

Spatial restructuring of old industrial areas: Polish and former East German experiences

>This paper compares and contrasts the policy initiatives and the likely policy fortunes of two older, and heavily polluted, industrial regions — Upper Silesia in Poland and the Leipzig‐Halle district of the former East Germany. The involvement of local communities in the self‐regulation of structural planning is advocated in favour of state‐regulated planning, a version of which degraded these areas.     

An Informational Right to the City? Code,Content, Control,and the Urbanization of Information

Henri Lefebvre talked of the “right to the city” alongside a right to information. As the urban environment becomes increasingly layered by abstract digital representation, Lefebvre's broader theory warrants application to the digital age. Through considering what is entailed by the urbanization of information, this paper examines the problems and implications of any “informational right to the city”. In directing Tony Benn's five questions of power towards Google, arguably the world's most powerful mediator of information, this paper exposes processes that occur when geographic information is mediated by powerful digital monopolies. We argue that Google currently occupies a dominant share of any informational right to the city. In the spirit of Benn's final question—“How do we get rid of you?”—the paper seeks to apply post‐political theory in exploring a path to the possibility of more just information geographies.     

Financialisation as Monopoly Profit: The Case of US Banking

Different economic measures afford different ways of seeing processes of financialisation. In the prototypical case of the US economy, the most compelling evidence of post‐1970s financialisation is found in corporate profits measures. This much has been clear for at least a decade. What remains much less clear, however, is the explanation for the long‐term maintenance and amplification of extreme financial‐sector profitability that financialisation in the United States has and continues to entail. With a specific focus on banking, this article turns to post‐Marxian scholarship on profit rate trends to explain this phenomenon. It argues that limited and declining levels of competition within the US banking sector during recent decades—rooted in high levels of industry concentration, collusive behaviour, and substantial entry barriers—have contributed to sustaining and boosting abnormal sectoral profitability. In doing so, the article theorises financialisation in the United States explicitly in terms of monopoly profit.