Why Does the Cook Islands Still Need Overseas Aid?

The Cook Islands Government spends more than 40 per cent of gross domestic product (GDP). Its tax revenue is capped at 25 per cent of GDP under a 1998 austerity package agreed with its creditors New Zealand, Nauru and the Asian Development Bank. Non-tax revenue is 5 per cent of GDP, and external aid fills the resulting gap. This recently renewed reliance on aid contrasts sharply with the strong performance of the economy’s private sector, driven by a booming tourism industry, which has pushed the balance of payments into a huge surplus and raises important questions about the allocation of the gains from growth.     

Information transparency,monitoring, and incentives under decentralization: Evidence from China's fiscal reform of “province managing county”

Monitoring is deemed crucial for the incentivization of a decentralized organization, but its function relies on information transparency between the central authority and the delegated individuals. We test this hypothesis by considering changes in the fiscal behavior of Chinese county governments following an exogenous fiscal reform in 2004/2005 that removed information obstacles between provinces and counties. Employing data on 590 Chinese counties from 2000 to 2009, we find that counties in the reform provinces adopt a more proactive fiscal policy after the reform, suggesting that they become more incentivized in the political competition for economic growth. Such effects are stronger in counties with fewer competing peers and counties with either high or low ranks in the records of economic growth among peers. The increase in counties' productive spending leads to higher economic growth in later years.     

Benevolent and Benign? Using Environmental Justice to Investigate Waste‐related Impacts of Ecotourism in Destination Communities

Abstract:  We contribute to the diversification of environmental justice (EJ) by using it to frame ecotourism-related solid waste management problems. Ecotourism is a service industry portrayed as benevolent (providing benefits), and benign (reducing negative impacts). We propose four characteristics shared by ecotourism-based communities in the Global South and communities struggling with more conventional EJ conflicts. We apply these characteristics to the solid waste crisis in Tortuguero, Costa Rica, a renowned ecotourism destination. First, we show that, despite their general absences from the EJ literature, service industries such as tourism and hospitality can create environmental injustices that disproportionately impact certain types of communities. Second, we highlight the roles of location and socio-economic marginality in siting ecotourism development, in complicating related environmental impact management, and in limiting local abilities to respond to environmental management shortcomings. Third, we provide an example of opportunities to introduce EJ concepts and theory into the study of tourism.     

A ‘Small Free Trade Oasis’?: agriculture,tariff policy,and the Danish example in Great Britain and Ireland,c. 1885–1911

During the late 19th and early 20th centuries, Denmark was an important overseas example in the United Kingdom's intertwined debates over free trade and agricultural modernization. Both countries remained open to foreign agricultural imports even as many other European states protected their farmers. But whilst British and Irish agriculture struggled, Denmark became a hugely successful exporter of dairy and pork. This achievement of rural prosperity under a liberal trade regime had obvious relevance to the future of agriculture in Britain, and particularly Ireland. Agricultural reformers in the two islands used the Danish example to show that technical education and co-operative production would allow farmers to profit even under free trade, whilst for British Liberals, ideologically committed to free trade, Denmark demonstrated that imported foodstuffs were actually a prerequisite for a flourishing rural economy. Several prominent Danish free traders personally intervened in the early 20th-century debate over tariff reform to affirm these very points. However, British and Irish protectionists contested the ‘free trade’ character of Denmark's fiscal policy. The article situates the Danish comparison within a broader Anglo-Scandinavian transnationalism, in which the themes of modernity and liberalism reside to the fore.     

Can Russia Break the "Resource Curse"?

A noted European economist argues that the Russian economy and its post-2000 growth have been heavily dependent on natural resources, especially hydrocarbons, and are bound to remain so for some time to come. Given that many economists have come to view rich natural resource endowments as a "curse" that undermines development, the question arises as to whether Russian economic development is doomed. The author argues that while the challenges posed by resource dependence are serious, they can be overcome, or at least substantially mitigated, if accompanied by the right economic policies as the examples of Australia, Canada, and the Scandinavian countries demonstrate. He analyzes what these economic policies are for Russia, and how to set up Russian economic and political conditions to facilitate their implementation. Journal of Economic Literature, Classification Numbers: E6, O1, O52, P2, Q43. 4 figures, 2 tables, 50 references.