Global finance and the German model: German corporations, market incentives, and the management of employer-sponsored pension institutions

Where there was a settled political geography of state power and responsibilities, the remarkable growth of global finance has put enormous pressure on national economic, political and social institutions. Furthermore, the looming crisis facing many continental European social security systems has raised many doubts about the long-term viability of the German model compared to its Anglo-American rivals. In this context, large German corporations have sought ways of sustaining their global competitiveness by, in part, restructuring their national and regional commitments. To illustrate, in this paper we concentrate on the nature and organization of German employer-sponsored pension institutions in relation to Anglo-American management practice. Two issues drive the analysis. One has to do with an emerging coalition between corporate management and shareholders with respect to the market value of the firm. The second issue has to do with the allocation of risk and uncertainty between the social partners when negotiating the financing and final value of promised retirement income. The institutional framework of collective decision-making common to many of Germany's largest firms is under pressure; three models of investment decision making relevant to pension assets and liabilities are used to illustrate this point. In doing so, we suggest that the German model is more fragile than commonly realized. We also suggest that Anglo-American management practices have penetrated and affected German corporate (national and regional) institutions and regulations. The social market lauded by advocates of stakeholder capitalism is changing rapidly, at least in the sphere of large firms and global finance.     

How Was Edmond Halley’s Map of Magnetic Declination (1701) Constructed?

Edmond Halley made two scientific voyages in the Atlantic Ocean as captain of the HMS Paramore between 1698 and 1700. Following these voyages he published the first map showing lines of equal magnetic declination in 1701. Halley did not reveal how he constructed the map, however, and it remains unknown. In this study, a construction procedure is hypothesized that uses mathematical tools that were available in his day, namely arithmetical averages and Isaac Newton’s method of divided difference for fitting a polynomial curve to data. To enable his map construction, a method is suggested whereby Halley could have created new data to augment the situations where insufficient data were collected.     

Environmental Standards and Industrial Restructuring: the Case of the Australian Paper Industry

Environmental standards imposed on the Australian paper industry have emerged in response to public concern over the logging of native forests and the ‘greening’ of consumer demand. Such standards play an integral part in the paper industry's restructuring. Neo-classical theorists hypothesised environmental standards as encouraging the relocation of polluting industries to countries with lax regulations. An alternative hypothesis is that environmental standards encourage in-situ restructuring that can positively affect a company's competitiveness. In considering this alternative hypothesis the implications for state and federal policy are briefly considered.