A THEORETICAL FRAMEWORK FOR SMALL BUSINESS POLICY

A number of public policy issues have been discussed in this article, the most important of which are: 1. Small business would not need special consideration if our economy were basically a competitive one. 2. A large and growing segment of our economy has sufficient market and political power to make our economy basically non-competitive. 3. Small firms tend to provide price competition, to lead in the development of new products and processes, and to generate new innovations and new employment. 4. Government policy tends to create artificial economies of scale, giving an unwarranted advantage to the very large firm. As a first approximation, a policy of government neutrality on firms of varying size is needed. But, because of discriminations which already exist which favor large firms over small firms, special small business programs may be necessary to provide an equitable policy base. Unfortunately, programs designed to benefit all business, like the investment tax credit, tend to primarily benefit larger firms (Berney, 1979). This is the case for two reasons. First, there is a basic difference in production relationships: large firms tend to be more capital intensive and small firms more labor intensive. Second, the more complex a rule or regulation, the more costly it is for small business to use it. Consequently, even the employment tax credit, which should benefit the small firm is not used by them. Instead, it tends more to benefit the larger firm. Neutrality, as a governmental policy, would appear to demand different treatment for firms of varying size. As an example, the “regulatory flexibility” concept applies different standards to different sized firms so that the burden of regulation is more equitably distributed. The concept of encouraging or requiring financial institutions and other lenders to establish “dual prime rates” is a further example. Since small firms appear to have much higher debt to equity ratios and rely more heavily on shorter-term bank credit, they are more heavily burdened by a tight money policy which forces increases of interest rates. Thus, dual prime rates help to spread the burden of rising interest costs more equally. As many people prefer to work for themselves, equalizing the burden of government policy could only serve to increase the basic growth rate for small business, thus providing an easier start for entrepreneurs and would encourage a more rapid rate of economic growth. None of these discussions, however, argues that small business should be protected from failure. The more efficient firms will succeed and prosper, and the least efficient will not. Many currently successful entrepreneurs learn how to improve their production processes or managerial skills from their failures. What is being recommended as a first step is that government should concentrate on equalizing burdens and benefits in order to achieve true neutrality. If private economies of scale do indeed exist, new firms must grow to survive; what the government should not create are artificial economies of scale with public policy. A strong argument for further action can also be made: it appears that significant external benefits are produced by an economic system with a dynamic small business sector. Since these benefits go to society as a whole rather than entrepreneurs alone in the form of increased profits, a freely operating market without government assistance does not generate as many new small businesses as would be optimal for our society. To internalize the benefits that come from small business, governmental programs need to be devised to increase the rate of return on new, innovative small businesses. Should this happen, we could then anticipate increased rapid rates of innovation and technological change, more rapid rates of employment growth, expanded price competition in all sectors of the economy, and improved export capabilities, in short, true flexibility in our capitalistic system.     

Exploratory Models in a time of Big Data

This paper aims to trigger discourse about the emergence of a new type of social scientific model — Exploratory Models — which draw on Big Data, computer modeling and interdisciplinary research to tackle complex social scientific processes. First, we define Exploratory Models referring to Batty and Morgan and Morrison. We then present changes to the traditional modeling paradigm. We show how Exploratory Models circumvent challenges related to the idiosyncracy, self-reflexivity and acceleration of social phenomena, which limit predictive effectiveness of traditional models. We show that Exploratory Models are better equipped to tackle complex problems due to their capacity to process heterogeneous datasets. Having established that Exploratory Models are predominantly problem- and data-driven, we emphasize that scientific theory is indispensable to their progress. Finally, the development of an integrative platform is suggested as a way of maximizing the benefits of this approach. Discussion concludes by flagging areas for further research.     

Neoliberal Reform, Governance and Corruption in the South: Assessing the International Anti‐Corruption Crusade

This paper presents a critique of current thinking on the causes and impacts of corruption and the measures designed to combat it. It begins by exploring the evolution of the current preoccupation with corruption and traces the growth in international initiatives designed to tackle the issue. It then moves on to consider the assumptions underlying the dominant schools of thought on corruption and alternative definitions of the phenomenon. The limitations of the dominant neoliberal perspective are explored in detail, focusing particularly on its blindness to the complex interplay between economic liberalisation, political power and institutional reform. An alternative framework that locates corruption at the systemic level is proposed. The paper concludes with some thoughts on potential directions for future geographical research on the topic.     

Bosnia: The Crime of Appeasement

Few international journalists have been as intimately involved in the conflict in former Yugoslavia as Ed Vulliamy. In this vivid personal account of the war years he argues that the international community's response to Serbian claims amounted to nothing less than appeasement.     

GREEN GROWTH OR ECOLOGICAL COMMODIFICATION: DEBATING THE GREEN ECONOMY IN THE GLOBAL SOUTH

This article examines recent institutional thinking on the green economy and the implications of official understandings and structuration of a green economy for the global South. Assertions about the transformative potential of a green economy by many international actors conceals a complexity of problems, including the degree to which the green economy is still based on old fossil economies and technical fixes, and the processes through which the green economy ideation remains subject to Northern economic and technical dominance. The article places the intellectual roots of the green economy within a broader historical context and suggests some ways the strategic economic and ideological interests of the global North remain key drivers of green‐economy thinking. The analysis is substantiated through two illustrative Latin American examples: the Mesoamerican Biological Corridor and green economy initiatives in Brazil. These suggest that, if the green economy is to address global challenges effectively, it must be conceptualized as more than a bolt‐on to existing globalizing capitalism and encompass more critical understandings of the complex socio‐economic processes through which poverty is produced and reproduced and through which the global environment is being transformed, a critique which also applies to mainstream discourses of sustainable development.