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51. Problem Discovery as a Collaborative, Creative, and Method-Guided Search for the "Real Problems" as Raw Diamonds of Innovation

Author:
Gerald Steiner
Publication Date:
08-2014
Content Type:
Working Paper
Institution:
Weatherhead Center for International Affairs, Harvard University
Abstract:
This paper poses that the creative search for frequently hidden “real” problems is critical if innovation aims at comprehensive system improvements and changes in thinking paradigms, rather than simple, incremental changes. These hidden real problems can perhaps best be symbolized by raw diamonds, which one strives to find in order to then grind them into sparkling diamonds, i.e. innovation. Currently, problem solving-related research focuses on the analysis and solution of predefined problems, with little emphasis on problem reframing and systemic discovery; moreover, inter- and transdisciplinary collaborations for problem finding and the application of convoluted methods receive little attention. To illustrate the search process for raw diamonds, i.e. the real problem, by way of example, a comprehensive “toolbox of convoluted methods” is applied as part of a comprehensive problem discovery process. The Planetary Model of Collaborative Creativity (PMCC) serves as the conceptual basis for this method-based search for the real problems. It shows that this toolbox requires 1) Collaborative effort; 2) Comprehensive competences (personal, professional domain, systemic, creativity, and sociocultural competences); and 3) A circular creative problem solving process, which is embedded within a sequential working process.
Topic:
Conflict Resolution, Political Theory, and Natural Resources

52. Varieties of Populism: Literature Review and Research Agenda

Author:
Bart Bonikowski and Noam Gidron
Publication Date:
02-2013
Content Type:
Working Paper
Institution:
Weatherhead Center for International Affairs, Harvard University
Abstract:
In recent years, populism has attracted considerable interest from social scientists and political commentators (Panizza 2005, Bale et al. 2011, Mudde 2004, Berezin 2013, Rovira Kaltwasser 2013), despite the fact that, “[t]he mercurial nature of populism has often exasperated those attempting to take it seriously” (Stanley 2008, 108). Indeed, the term 'populism' is both widely used and widely contested (Roberts 2006; Barr 2009). It has been defined based on political, economic, social, and discursive features (Weyland 2001, 1) and analyzed from myriad theoretical perspectives—including structuralism, post-structuralism, modernization theory, social movement theory, party politics, political psychology, political economy, and democratic theory—and a variety of methodological approaches, such as archival research, discourse analysis, and formal modeling (Acemoglu et al. 2011, Ionescu and Gellner 1969, Canovan 2002, Hawkins 2009, Goodliffe 2012, Postel 2007). As observed by Wiles, “to each his own definition of populism, according to the academic axe he grinds” (Wiles, in Iunescu and Gellner 1969, p. 166).
Topic:
Democratization, Political Economy, Political Theory, and Sociology

53. Political Budget Cycles and Intergovernmental Transfers in a Dominant Party Framework: Empirical Evidence from South Africa

Author:
Verena Kroth
Publication Date:
11-2012
Content Type:
Working Paper
Institution:
Weatherhead Center for International Affairs, Harvard University
Abstract:
This paper tests the theory of context-conditional political budget cycles in South Africa's dominant party framework and demonstrates that the central government has both an incentive and the ability to implement PBCs on the subnational level. Using a unique panel dataset comprising South Africa's nine provinces over the period 1995–2010 generates two main results: First, provinces where the national ruling party faces greater electoral competition receive higher per capita transfers in the year before an election. Second, this increase is driven by the conditional grant, which is the nonformula-based component of total the intergovernmental transfer. The ability to implement political budget cycles is successfully constrained when it comes to the formula-based equitable share component of the total transfer for which no evidence of electorally-induced funding is found. Overall, the results suggest that even in a dominant party framework, political competition can function as an incentive to implement political budget cycles.
Topic:
Democratization, Economics, Government, and Governance
Political Geography:
Africa and South Africa

54. Moral Hazard in an Economic Union: Politics, Economics, and Fiscal Gimmickry in Europe

Author:
James Alt, David Dreyer Lassen, and Joachim Wehner
Publication Date:
07-2012
Content Type:
Working Paper
Institution:
Weatherhead Center for International Affairs, Harvard University
Abstract:
This paper examines empirically how transparency of the budget process affects fiscal rules and incentives for fiscal gimmickry or creative accounting in the European Union. Using stock-flow adjustment data for EU countries from 1990-2007, we show that pressure from a deficit limit rule as in the Stability and Growth Pact creates incentives for fiscal gimmicks, as does political pressure from the electoral cycle and economic pressure from negative shocks in the business cycle. However, we show that where institutional transparency is higher, these incentives are damped and largely disappear. We infer that fiscal rules do not work well when institutional transparency is low.
Topic:
Economics, International Trade and Finance, Monetary Policy, and Financial Crisis
Political Geography:
Europe

55. Does the Sun Shine Really Shine on the Financial Markets?

Author:
Manfred Fruehwirth and Leopold Sögner
Publication Date:
06-2012
Content Type:
Working Paper
Institution:
Weatherhead Center for International Affairs, Harvard University
Abstract:
After a series of papers has provided { partially ambiguous { results on the impact of weather variables on stock (index) returns, this article studies the impact of weather on a wide variety of financial market instruments, namely "risk-free" interest rates, the US corporate bond market, stock returns, stock index returns and the VIX volatility index. First, we construct a model that combines asset pricing and results from psychology to show how weather variables can affect asset prices in different market segments via mood. Second, in our empirical analysis we use several weather variables from the National Climatic Data Center (NCDC) and control variables motivated by economic theory. Applying various econometric techniques and using different market segments (motivated by differences in the risk level and institutional differences) allows to give a more detailed picture on the impact of weather on financial market prices. We demonstrate that on none of the market segments analyzed the weather has any significant impact.
Topic:
Economics, International Trade and Finance, Markets, Monetary Policy, and Financial Crisis

56. The Imperial Peace in Colonial Africa and Africa's Underdevelopment

Author:
Robert H. Bates
Publication Date:
12-2012
Content Type:
Book
Institution:
Weatherhead Center for International Affairs, Harvard University
Abstract:
When praised at all, imperialism is most often commended for the peace it bestowed. By demobilizing armies, deposing marauding princes and subduing war-like states, European powers fashioned a half-century of political order. The question nonetheless arises: Should they be lauded for that? In this chapter, I view Africa's history through the lens of comparative history and argue that the imperial peace may have retarded Africa's development.
Topic:
Development, Economics, Imperialism, Post Colonialism, and Natural Resources
Political Geography:
Africa and Europe

57. Socio-Psychological Motives of Socially Responsible Investors

Author:
Julia M. Puaschunder
Publication Date:
03-2012
Content Type:
Working Paper
Institution:
Weatherhead Center for International Affairs, Harvard University
Abstract:
The 2008/09 World Financial Crisis underlined the importance of social responsibility for the sustainable functioning of economic markets. Heralding an age of novel heterodox economic thinking, the call for integrating social facets into mainstream economic models has reached unprecedented momentum. Financial Social Responsibility bridges the finance world with society in socially conscientious investments. Socially Responsible Investment (SRI) integrates corporate social responsibility in investment choices. In the aftermath of the 2008/09 World Financial Crisis, SRI is an idea whose time has come. Socially conscientious asset allocation styles add to expected yield and volatility of securities social, environmental and institutional considerations. In screenings, shareholder advocacy, community investing, social venture capital funding and political divestiture, socially conscientious investors hone their interest to align financial profit maximization strategies with social concerns. In a long history of classic finance theory having blacked out moral and ethical considerations of investment decision making, our knowledge of socio-economic motives for SRI is limited. Apart from economic profitability calculus and strategic leadership advantages, this article sheds light on socio-psychological motives underlying SRI. Altruism, need for innovation and entrepreneurial zest alongside utility derived from social status enhancement prospects and transparency may steer investors' social conscientiousness. Self-enhancement and social expression of future-oriented SRI options may supplement profit maximization goals. Theoretically introducing potential SRI motives serves as a first step towards an empirical validation of Financial Social Responsibility to improve the interplay of financial markets and the real economy. The pursuit of crisis-robust and sustainable financial markets through strengthened Financial Social Responsibility targets at creating lasting societal value for this generation and the following.
Topic:
Economics, International Trade and Finance, Markets, Sociology, and Financial Crisis

58. Public Policy, Price Shocks, and Conflict: Price Shocks and Civil War in Developing Countries

Author:
Robert H. Bates and Brett L. Carter
Publication Date:
11-2011
Content Type:
Working Paper
Institution:
Weatherhead Center for International Affairs, Harvard University
Abstract:
Those who study the role of agriculture in the political economy of development focus on government policy choices on the one hand and the impact of price shocks on the other. We argue that the two should be studied together. We find that civil unrest (Granger) causes government policies, pushing governments in poor and medium income countries to shift relative prices in favor of urban consumers. We also find that while civil wars are related to food price shocks, when government policy choices are taken into account, the relationship disappears. We thus learn two things: Policies that placate urban consumers may inflict economic costs on governments, but they confer political benefits. And when estimating the relationship between price shocks and political stability, equations that omit the policy response of governments are misspecified.
Topic:
Agriculture, Development, Economics, Government, Markets, Political Economy, and Food

59. The New Institutionalism and Africa

Author:
Robert H. Bates, Steven Block, Ghada Fayad, and Anke Hoeffler
Publication Date:
10-2011
Content Type:
Working Paper
Institution:
Weatherhead Center for International Affairs, Harvard University
Abstract:
After briefly reviewing the new institutionalism, this article uses the history of political reform in Africa to test its key tenet: that power, if properly organized, is a productive resource. It does so by exploring the relationship between changes in political institutions and changes in economic performance, both at the macro- and the micro- level. The evidence indicates that political reform (Granger) causes increases in GDP per capita in the African subset of panels of global data. And, at the mIcro-level, it demonstrates that changes in national political institutions in Africa strongly relate to changes in total factor productivity in agriculture.
Topic:
Agriculture, Development, Economics, and Political Economy
Political Geography:
Africa

60. The Future of Convergence

Author:
Dani Rodrik
Publication Date:
10-2011
Content Type:
Working Paper
Institution:
Weatherhead Center for International Affairs, Harvard University
Abstract:
Novelists have a better track record than economists at foretelling the future. Consider then Gary Shteyngart's timely comic novel “Super Sad True Love Story” (Random House, 2010), which provides a rather graphic vision of what lies in store for the world economy. The novel takes place in the near future and is set against the backdrop of a United States that lies in economic and political ruin. The country's bankrupt economy is ruled with a firm hand by the IMF from its new Parthenon-shaped headquarters in Singapore. China and sovereign wealth funds have parceled America's most desirable real estate among themselves. Poor people are designated as LNWI (“low net worth individual s”) and are being pushed into ghettoes. Even skilled Americans are desperate to acquire residency status in foreign lands. (A degree in econometrics helps a lot, as it turns out). Ivy League colleges have adopted the names of their Asian partners and yuan-backed dollars are the only safe currency.
Topic:
Debt, Economics, Emerging Markets, Sovereign Wealth Funds, and Financial Crisis
Political Geography:
United States, China, America, and Singapore