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41. Why do we need self-employed persons? Some economic reflections, mainly tax related ones

Author:
Adam Adamczyk, Leszek Morawski, and Jarek Neneman
Publication Date:
05-2019
Content Type:
Special Report
Institution:
Center for Social and Economic Research - CASE
Abstract:
For many years, we have been hearing about the need for innovation and entrepreneurship. Successive Polish government declare their support for entrepreneurs and expand the catalog of privileges, mainly related to taxes and mandatory contributions. Not infrequently, in these discussions the self-employed are equated with entrepreneurs. In this work, we will seek an answer to the questions: Who, then, are the self-employed? Are they really entrepreneurs? Should we support their activities? And finally the fundamental question: What does the economy get from the self-employed? In this work we point out that the differences in rates of self-employment between countries may result from differences in taxation on the labor provided by self-employed and salaried workers. In the main part of the work, taking advantage of the potential of the EUROMOD tax-benefit microsimulation model, we show that in Europe there is no single model of taxation of work conducted as one’s own business. In the majority of the tax-contribution systems we examined, the profitability of employment or self-employment changes along with changes in income. In light of the regressivity of the burdens on the self-employed, as a rule it begins to be profitable only above a certain income level. In the first part of the work we define the self-employed as those who run a business, and later we distinguish within this group entrepreneurs, meaning those who take on risk and create innovations. Discussing the advantages and disadvantages of self-employment from the point of view of the self employed and the employer, we point out that the benefits – including systemic (tax and contribution) benefits, outweigh the disadvantages. We also discuss in more detail the imposition of income tax on the self-employed. In the second part we present changes in the value of self-employment over the last 25 years. Here we use data from the World Bank and certain data points from the European Union Statistics on Income and Living Conditions (EU-SILC). They allow us to observe how the relationship between the self-employed and the economy is changing: The significance of services provided for other businesses is growing. Additionally, we can see that the significance of self-employment is falling. In Poland the level of (non-agricultural) self-employment is low. The dynamics of the rate of self employment indicate that the influence of legal regulations on the scale of self-employment is secondary. It seems that in this case, technological and demographic factors are much more significant.
Topic:
Demographics, Labor Issues, Employment, Business, Social Policy, Tax Systems, and Fiscal Policy
Political Geography:
Europe and Poland

42. White Paper on Regulating E-Commerce in India: Need for Principles-based Approach

Author:
Ananth Padmanabhan and Arjun Sinha
Publication Date:
03-2019
Content Type:
Special Report
Institution:
Centre for Policy Research, India
Abstract:
E-commerce has come under heavy regulatory intervention in the past few months. From data localisation to mandatory sharing of data, and a catch-all definition of e-commerce itself to regulatory barriers for inventory-based business models in all these sectors, these recent proposals leave limited room for natural evolution through market competition. Pushing back against these proposals, this White Paper argues that a principles-based rather than rule-based approach must be adopted to regulate this sector. This can be operationalised through a four-step process: the first step is to identify critical sectors where a policy is required in the first place; the second requires prioritising concerns that regulation needs to address immediately rather than crystal-gazing; the third is to explore possible models of co-regulation; and the final step is to focus on effective enforcement of the limited number of areas where state intervention through policy would exist because of adherence to the first three steps.
Topic:
Science and Technology, Regulation, Internet, Business, and Trade
Political Geography:
South Asia, India, and Asia

43. Taking Care Of Business: Industrial Espionage And International Law

Author:
Russell Buchan
Publication Date:
09-2019
Content Type:
Research Paper
Institution:
Brown Journal of World Affairs
Abstract:
The essence of espionage is the non-consensual collection of confidential information. Espionage takes different forms depending upon the identity of the perpetrator and the nature of the confidential information targeted. Political espionage describes the state-sponsored theft of confidential information, and its purpose is to shed light on the capabilities and intentions of other state and non- state actors. Economic espionage is also state-sponsored, and it involves states stealing trade secrets from companies located in foreign jurisdictions, usually with the intention of passing this information to domestic companies so that they possess a competitive advantage. In contrast, industrial espionage is perpetrated by non-state actors insofar as it entails companies stealing foreign competitors’ confidential information without the support or assistance of a state.
Topic:
Globalization, International Law, Business, and Espionage
Political Geography:
Global Focus

44. A Healthier Way for the Security Community to Partner with Tech Companies

Author:
Douglas Yeung
Publication Date:
07-2019
Content Type:
Journal Article
Journal:
Fletcher Security Review
Institution:
The Fletcher School, Tufts University
Abstract:
Digital data captured from social media, cell phones, and other online activity has become an invaluable asset for security purposes. Online mapping or cell-phone location information can be used to collect intelligence on population movement, or to provide situational awareness in disasters or violent incidents. Social-media postings may be used to vet potential immigrants and job applicants, or to identify potential recruits who may be likely to join the military. ​ However, breakdowns in relationships between the tech industry and would-be consumers of technology’s handiwork could imperil the ability of security stakeholders to use this data. Ongoing issues have already begun to shape some technologists’ views on the ethical use of artificial intelligence and other technologies in war and conflict and their impact on human rights and civil liberties. It isn’t difficult to imagine a series of future incidents further souring collaboration between technologists and security stakeholders. ​ In contrast to its reluctance over security matters, the tech industry has been a willing partner for government agencies and communities that promote health and wellbeing—topics that present less of an ethical challenge. Although it may not be immediately apparent, wellbeing and security have much in common. Could the security community take a page from wellbeing efforts to improve their collaboration with the tech industry?...
Topic:
Security, Science and Technology, Business, Surveillance, and Private Sector
Political Geography:
Global Focus and United States of America

45. The Father of Japanese Capitalism: Shibusawa Eiichi’s Vision of the Ethical Corporation

Author:
Sean Valencia, Rebecca Orr, and Christopher McKenna
Publication Date:
04-2019
Content Type:
Case Study
Institution:
Oxford Centre for Global History
Abstract:
When Europeans began trading with Japan in the 16th century, they were amazed by Japanese craftsmanship, the country’s sophistication, and its extraordinary wealth but the Japanese elite were not equally convinced by the benefits of European trade. Wary of foreign influence, particularly the attempts by Christian missionaries to convert the Japanese, the Tokugawa Shogunate enforced a policy of strict isolation in Japan. Tokugawa Iemitsu, the shogun of Japan from 1623 to 1651, issued a series of edicts placing severe restrictions on trade and the movement of people and goods after 1638. These prohibitions remained in place for more than two hundred years until 8 July 1853 when, under the command of Commodore Matthew Perry, four United States Naval Ships sailed into Tokyo Bay. In the decades leading up to this confrontation, the presence of foreign ships in Japanese waters had become an increasingly common sight as western powers competed ever more fiercely to establish trade relations in the region. The arrival of Perry’s “black ships”, however, marked a stark shift in Japan’s foreign relations. American President Millard Fillmore had tasked Perry with forcing open Japanese ports to US vessels and, unlike in previous naval expeditions, granted him full and discretionary powers to achieve this end. On arriving into Tokyo Bay, Perry staged a week-long campaign of intimidation that began fiercely with the firing of blank shots and culminated in ominous threats to destroy the nation. The Tokugawa Shogunate, stymied by indecision, finally conceded that Perry would be allowed ashore to deliver a letter demanding that Japan abandoned its protectionist policies
Topic:
Capitalism, Ethics, Business, and Global Political Economy
Political Geography:
Japan and Asia

46. The “A1” Reputation of the Lloyd’s Register of Shipping

Author:
Charlie Harris and Christopher McKenna
Publication Date:
11-2019
Content Type:
Case Study
Institution:
Oxford Centre for Global History
Abstract:
For over two hundred years, Lloyd’s Register has surveyed and classified ships. Founded in 1760 in a coffeehouse on London’s busy Lombard Street, the company then known as the Society for the Registry of Shipping, surveyed and classified the seaworthiness of ships. For the first time, underwriters and merchants could gain an idea of the condition of the vessels they insured and chartered while ship builders and shipowners could demonstrate seaworthiness. Lloyd’s classified the best as “A1.” This term would become the Register’s greatest contribution to the popular lexicon and, ever since, the phrase “A1 at Lloyd’s” connotes the highest quality.
Topic:
History, Capitalism, and Business
Political Geography:
London and England

47. Union Cold Storage and the Birth of Multinational Tax Planning, 1897-1922

Author:
James Hollis and Christopher McKenna
Publication Date:
01-2019
Content Type:
Case Study
Institution:
Oxford Centre for Global History
Abstract:
Today’s corporate managers know that while tax planning may improve the bottom line, it also carries a downside in terms of reputational risk. The past decade has seen the rise of a phenomenon dubbed “tax shaming,” with legislators, activists and the popular press condemning multinationals for participating in “aggressive” or “unethical” tax avoidance. This campaign has occasionally been associated with dramatic changes in corporate policy. In 2012, for example, the global coffee chain Starbucks announced that it was voluntarily increasing its tax payments in the United Kingdom. And the following year, one of Britain’s leading banks, Barclays, closed down its profitable tax structuring division, citing the hostile political climate. Advocates of corporate social responsibility (CSR) promote the idea of a moral dimension to tax compliance, although it remains to be seen whether firms that consciously adopt an ethical approach to tax obligations will outperform their rivals. Some skeptics dismiss the CSR agenda as a public relations exercise; others regard it as a potential threat to legal certainty or economic competitiveness. A few practitioners even claim that “tax shaming” is a dangerous step towards “taxation by mob rule.”
Topic:
History, Capitalism, Ethics, Business, Multinational Corporations, and Risk
Political Geography:
Global Focus

48. The Impact of Business Regulatory Quality on Private Sector Investment in Botswana

Author:
Kedibonye Sekakela
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Botswana Institute for Development Policy Analysis
Abstract:
A market-friendly regulatory environment is key for private sector investment. In this paper, we examine the impact of business regulatory quality on private sector investment in Botswana. The paper finds that the business regulatory environment stimulates private sector investment in the long term and this phenomenon occurs when the quality of bureaucracy improves, among other factors. Other critical factors affecting private sector investment examined in this paper include; corporate credit, output and public infrastructure investment. Private sector investment responds positively to increases in corporate credit in the short term but not responsive in the long term. Economic activities support private sector investment positively but weak. On the other hand, public infrastructure investment crowds in(out) investment in the short and long term respectively. Policy wise, Botswana should further deepen its efforts towards creating a market-friendly regulatory environment and also consider how business regulatory quality interact with other policy variables for better investment and growth outcomes.
Topic:
Economics, Developing World, Regulation, Business, Investment, and Economic Development
Political Geography:
Africa and Botswana

49. China’s Social Credit System: A Chimera with Real Claws

Author:
Séverine Arséne
Publication Date:
11-2019
Content Type:
Policy Brief
Institution:
Institut français des relations internationales (IFRI)
Abstract:
China's Social Credit System remains a poorly understood combination of rating schemes and blacklists, but the consequences for individuals and businesses are very real. Since the State Council published a “Planning Outline for the Construction of a Social Credit System (2014-2020)”, all administrations and localities in China have been busy figuring out ways to develop social credit systems relevant to their own jurisdiction, while a few corporations have also been experimenting with private social credit ratings, more akin to loyalty schemes, in conjunction with the policy. From this hotchpotch of experimentation, two distinct instruments are taking shape in the so-called public system: first, personal credit ratings managed by localities, and secondly, blacklists of individuals and companies managed by sectorial administrations (the Supreme People’s Court, the Tax Department, Department of Agriculture, etc). Arrangements across administrations and corporate partners enable the implementation of rewards and punishments attached to the blacklists, while personal ratings carry only perks.
Topic:
Governance, Business, and Surveillance
Political Geography:
China and Asia

50. Emirates Airline, Etihad Airways and Qatar Airways: Global Airline Companies Promoting the International Position and Reputation of Dubai, Abu Dhabi and Qatar

Author:
Julien Lebel
Publication Date:
07-2019
Content Type:
Special Report
Institution:
Institut français des relations internationales (IFRI)
Abstract:
Airports in the Gulf emirates are major transit hubs in global airline networks today. Apart from their “advantageous” geographical location, their development results primarily from the ambitions of political actors seeking to maintain their power. This has led especially to the creation of the “Gulf companies”, namely Emirates Airline (Dubai), Etihad Airways (Abu Dhabi) and Qatar Airways (Doha). However, the three emirates are not following identical strategies. Within the unstable context of the Middle East, it is important to look at the development dynamics of these companies which symbolize the global reach of small but powerful political entities on the international stage.
Topic:
Development, Diplomacy, Business, and Airline Companies
Political Geography:
Middle East, Qatar, United Arab Emirates, Dubai, and Gulf Nations