ABSTRACT:In this updated and revised version of his 2008 Society for Business Ethics presidential address, Richard Nielsen documents the characteristics and extent of the 2007–2009 economic crisis and analyzes how the ethics issues of the economic crisis are structurally related to a relatively new form of capitalism, high-leverage finance capitalism. Four types of high-leverage finance capitalism are considered: hedge funds; private equity-leveraged buyouts; high-leverage, subprime mortgage banking; and high-leverage banking. The structurally related problems with the four types of high-leverage finance (...) capitalism converged in something of a perfect economic storm. Explanations for the crisis are offered in the context of the type of the high-leverage finance capitalism system that permitted and facilitated the economic crisis. Ethics issues and potential reforms are considered that may be able to mitigate the destructive effects of what Schumpeter referred to as the “creative destructive” effects of evolutionary forms of capitalism while realizing the Aristotelian economic ideal of creating wealth in such a way as to make us better people and the world a better place. (shrink)

The quest for freedom from hunger and repression has triggered in recent years a dramatic, worldwide reform of political and economic systems. Never have so many people enjoyed, or at least experimented with democratic institutions. However, many strategies for economic development in Eastern Europe and Latin America have failed with the result that entire economic systems on both continents are being transformed. This major book analyzes recent transitions to democracy and market-oriented economic reforms in Eastern Europe and Latin America. (...) Drawing in a quite distinctive way on models derived from political philosophy, economics, and game theory, Professor Przeworski also considers specific data on individual countries. Among the questions raised by the book are: What should we expect from these experiments in democracy and market economy? What new economic systems will emerge? Will these transitions result in new democracies or old dictatorships? (shrink)

Analyses of market-based reforms of state schooling have occasionally acknowledged positional elements in parental demand, but none has fully examined their nature and implications. Contrary to the normal predictions of orthodox economic analysis, competition in positional markets can result in inefficient outcomes. Predominantly relying upon recent British experience, we examine the extent to which compulsory schooling can be viewed as a positional good and explore its implications for policy. In particular, we consider whether policies targeting increases in parental choice (...) assist a rise in the overall level of educational attainment. (shrink)

Only ten to twelve percent of Americans would voluntarily live within a mile of a nuclear plant or hazardous waste facility. But industry spokespersons claim that such risk aversion represents ignorance and paranoia, and they lament that citizen protests have delayed valuable projects and increased their costs. Who is right? In _Risk and Rationality_, Kristin Shrader-Frechette argues that neither charges of irresponsible endangerment nor countercharges of scientific illiteracy frame the issues properly. She examines the debate over methodological norms for risk (...) evaluation and finds analysts arrayed in a spectrum. Points of view extend from cultural relativists who believe that any risk can be justified to naive positivists who believe that risk evaluation can be objective, neutral, and value free. Both camps, she argues, are wrong, because risk evaluation as a social process is rational and objective, even though all risk-evaluation rules are value-laden. Shrader-Frechette defends a middle position called "scientific proceduralism." She shows why extremist views are unreliable, reveals misconceptions underlying current risk-evaluation methods and strategies, and sketches the reforms needed to set hazard assessment and risk evaluation on a publicly defensible foundation. These reforms involve mathematical, economic, ethical, and legal procedures. They constitute a new paradigm for assessment when acceptance of public hazards is rational, recognizing that laypersons are often more rational in their evaluation of societal risks than either experts or governments have acknowledged. Such reforms would provide citizens with more influence in risk decisions and focus on mediating ethical conflicts, rather than seeking to impose the will of experts. Science, she argues, need not preclude democracy. (shrink)

Choudhury, elected president of the General Assembly in 1986, reviews the changes within the UN and reasserts its enduring role as a global instrument of peace.

This paper explores whether the Clean Development Mechanism (CDM), a flexibility mechanism under the Kyoto Protocol, has contributed to poverty alleviation in countries that host CDM projects. We argue that the CDM should deliver pro-poor benefits to the communities in which projects are established, since poverty alleviation is integral to sustainable development, which is one of the main purposes of the CDM. After briefly discussing the background of the CDM, we discuss assessment difficulties to which research is prone when evaluating (...) CDM projects for alleged sustainable development contributions. Section 4 brings together and analyses available empirical research on the pro-poor benefits the CDM purportedly delivers to host country communities, concluding that the CDM has failed to deliver poverty alleviation. Therefore, without attempting to be exhaustive, we suggest policy reforms that aim to redirect the CDM to those most in need of assistance. (shrink)

The financial sector has seen a transformation towards ‘sustainable’ finance particularly in Europe, driven also by unprecedented regulatory reforms. At the same time, many are sceptical about the real impact of these reforms, fearing that they are triggering a paradoxical financialisation of sustainability. Building on recent research on institutional logics and institutional fields formation, we examine changes in the EU regulatory dynamics as characterised by shifts in framing the relationship between sustainability and finance. Deploying a longitudinal approach, consisting (...) of archival data and semi-structured interviews, we explore the development of EU sustainable finance regulation as an extended, interactive and contested process. Specifically, we suggest that regulatory dynamics depend on the hybrid configuration of the social constituencies supporting sustainable finance reforms and on shifts in the overall prevalence of the financial logic in society. Our paper sheds light on the inherent contradictions and limitations of sustainable finance as a means for transformative sustainability reforms. (shrink)

This study examines the impact of bank corporate governance reforms in the wake of the financial crisis. These reforms correspond to criticism of shareholder-focused agency-based corporate governance practices and a renewed focus on the stakeholder impact of corporate governance lapses in the financial sector. This study differs from previous studies of corporate governance in the financial sector in using performance indicators that proxy the interests of customers and the community. Drawing on data from 134 countries over an eight-year (...) period from 2004 to 2011, we find that the post-crisis corporate governance reforms in the banking sector appear to be effective in promoting greater bank attention to non-shareholder stakeholders’ interests. This study provides a means to conceptualize measures of bank performance from a stakeholder perspective in order to test emerging ideas about governance effectiveness in the financial sector. (shrink)

The average annual profits before fees of the $10 billion plus Renaissance Technologies’ hybrid Medallion “Leveraged, High Frequency, Artificial Intelligence ” trading hedge fund between 1988 and 2019 were about 66 percent. Total trading profits during this period were over $100 billion. The fund has never had a losing year. The fund is not open to the general public. First, distinctions among, in more or less historical order, the traditional market-maker trading model, the hedge fund trading model, the artificial intelligence (...) trading model, and the hybrid LHFAI trading model are discussed. Second, the micro components of the LHFAI trading model are explained in the context of Renaissance Technologies’ Medallion Fund. Third, key positive contributions of the model with respect to profitability, low annual volatility, market liquidity, and intellectual property development; negative ethical issues concerning exclusive access, tax fairness, financial transparency, shared responsibility for losses and systemic risk, and short vs. long-term capital allocation are discussed. Potential reforms that retain the positives, reduce the negatives, and that could positively transform the model are discussed. Fourth, potential impacts that the potential reforms might have on the macro LHFAI form of finance capitalism and the larger finance capitalism political-economic system are considered. Fifth, conclusions are offered and discussed. (shrink)

According to a standard picture in the educational policy and educational ethics literature, justice requires significant alterations to higher-education arrangements, in order to equalize opportunity and benefit badly-off social groups. I argue that, if political liberalism is correct, then a range of higher-education reforms favored by the standard picture lack support. After canvassing the standard picture (section 2), I explain why political liberalism entails that some institutions have a special status that prohibits certain kinds of interventions on them (section (...) 3), and I explain why this means that political liberalism cannot vindicate the standard picture (sections 4 and 5). (shrink)

This paper contributes to international feminist debates on shared parenting and family violence via reforms to Canada’s Divorce Act, in force since 2021. Looking backwards, it reviews parliamentary debates and early judicial discussions. The documentary review reads the reforms as an unstable compromise between calls from feminist voices and experts on family violence and from groups representing fathers. Family violence is now defined broadly and declared relevant to children’s welfare. But language in the statute may undermine its seriousness. (...) Exposing the tensions underlying these reforms is useful for Canadian participants in family justice and for scholars, practitioners, and policymakers elsewhere, exemplifying the promise and perils of reform in this area. Looking ahead, the paper offers recommendations to higher courts. Appellate judges should read rules on contact with both parents and parental cooperation in the light of the new recognition of family violence, taking the latter as an overarching objective of the statute. (shrink)

In the mid-1990s, several state legislatures enacted a "second generation" of small group health insurance reforms that required guaranteed issue of all products and prohibited the use of health as a rating factor. We use data from two large employer surveys to compare the behavior of small business in nine states that adopted these reforms between 1993 and 1997 to the behavior of small business in 11 states and the District of Columbia, where neither of these small group (...) health insurance market reforms existed prior to 1997 (N = 8,465 in 1993; N = 12,219 in 1997). Our analyses focus on several outcomes: health insurance offer and enrollment rates in any employer plan, and in an HMO plan; turnover in offer decisions; and premiums, variability in premiums, and the rate of change in premiums. Overall, we find no effect of small group reform on any of the outcomes; the sign of the effect is not consistent across reform states, the estimates rarely attain statistical significance, and they show no consistent pattern across the outcomes within each state. Therefore, predictions of the harm these regulations might cause to the market have not come to pass. On the other hand, proponents' hopes for a solution to low coverage rates among small businesses have not materialized either. (shrink)

India is a party to several international laws which speak of the duty to prosecute, investigate, and punish crimes. In light of India’s commitments to international law, the scope of its criminal laws appears to be failing on several counts. The following are a few general and specific recommendations for penal law reforms in India. These have been framed in light of several international developments, international laws, and relevant Indian laws and judgments. The recommendations concern the following themes: 1. (...) gaps in criminal law, 2. harmonization of standards 3. liabilities for derogations from fundamental duties (cultural heritage), and 4. a project for decolonization. (shrink)

In lieu of an abstract, here is a brief excerpt of the content:IntroductionFrom the closing decades of the fourteenth century onwards, reform attempts within the various religious orders gained impetus under the banner of so-called Observant movements. In nearly all orders, these Observant movements advocated a return to the lifestyle of an imagined pristine beginning in the face of a real or perceived crisis.1Within the Clarissan world, there were a number of signs pointing towards such a crisis. Adherence to the (...) rule, as well as a viable form of communal religious life could be conspicuously absent by the later fourteenth century. This was not solely the result of failing religious stamina, due to the interference of lay benefactors or sheer lack of motivation among the choir nuns. From the later 1340s onwards, many religious houses suffered heavily from recurrent Plague epidemics and the effects of prolonged military campaigns.This was particularly visible in some areas in France that were touched by the Plague and the Hundred Years War. In Toulouse, the Clarissan monastic community was reduced from around 80 women in 1330 to just four by 1370. Other houses more or less disappeared altogether because of the Plague, as was the case in Carcassone, Lavaur, Narbonne and Samatan, and had to be refounded. The Clarissan monasteries of Auterive, Béziers, Boisset, Les Cassés, Gourdon, and Le Pouget were heavily damaged or completely destroyed by warfare, and needed rebuilding.2In many cases, surviving nuns from destroyed monasteries extra muros moved into town. They had to restart their community life under very difficult circumstances. To make ends meet, the women sometimes had to engage in forms of economic exploitation of their goods that were not in line with the requirements of their rule. To make up for extreme losses in population and revenue, they also had to resort to recruitment practices that brought in people not equipped to embrace the vows of poverty, abstinence and obedience.There was no uniformity in the ways in which reforms were initiated. Nor did they always have the same results. This becomes clear as soon as we take into account the choice for a specific rule, the implementation of additional reform constitutions and convent statutes, and the role played by nuns and abbesses, secular authorities, secular clergymen and, of course, leading Observant and non-Observant friars of the Franciscan order.The Tordesillas congregationAn early attempt at reform in Castile resulted in a congregation named after the Poor Clare monastery at Tordesillas. This royal foundation had been created around 1363 to perform intercessory prayers on behalf of Pedro I of Castile and his new wife Maria of Padiella. The house was well endowed, and papal privileges freed the house from episcopal oversight, in line with important Urbanist houses elsewhere.3 In 1377, this autonomy was augmented, when Pope Gregory XI, ‘for certain reasons’ , freed the house from control from the Franciscan provincial minister.4 This might have been motivated by thoughts towards religious reform.5In any case, the new Castilian ruler Juan I was not content with the nuns’ intercessory works for the royal family. He obtained several papal bulls from the Avignon Pope Clement VII to entice the monastery to return to its former “observance” of the rule and its prayer obligations. These bulls made the Franciscan confessor of the king, friar Fernando of Illescas, perpetual visitator of the Tordesillas house, with full powers for the duration of his life.6 He could remove the abbess from office and enter the monastic enclosure to correct abuses. He could also absolve nuns and monastic personnel from sins and excommunication, as well as appoint and dismiss confessors and deliver punishments.7From 1410 onwards, the Tordesillas reform model began to attract other monasteries, which coagulated into the reform congregation of Santa Maria la Real or Santa Clara de Tordesillas. By 1447.. (shrink)

In recent years India has been moving further in the direction of adopting an Anglo-American model of corporate governance. This decision, the result more of international economic and political pressures than public debate, in effect represents a new development strategy for the world's most populous democracy. In light of this situation, it is important to ask two basic questions: 1) why has the Anglo-American model of corporate governance been adopted? and; 2) can it be justified? This paper addresses the first (...) of these questions by distinguish and examining three historical models of governance in India: 1) the managing agency model in the colonial period; 2) the business house model that emerged after independence, and; 3) the Anglo-American model which has recently been adopted (and is still emerging). The second question is approached through an examination of the "development impact" of the new model, as indicated by such measures as growth, employment and respect for shareholder rights. (shrink)

The normally staid topics of judicial ethics and the standards for judicial recusal have become the focus of political debates, editorials and letter writing campaigns. Most of the recent focus falls on conservative justices of the US Supreme Court and in particular on their anticipated participation in what is expected to be an important ruling on the constitutionality of the heath care reforms championed by President Obama and the Democratic Party. But the issue is not simply about partisan politics. (...) It's also about the structure of the US federal judiciary and the need to think about the impact of two-career couples on the judicial recusal rules. (shrink)

The institutional change literature has predominantly focused on successful changes and sparsely on failed changes, but the idea of institutional fields reverting to their pre-change or near pre-change state, after change attempts, remains underexplored. Although recent studies have explored similar phenomenon from the perspective of actors resisting change and trying to restore status quo, a field-level understanding of the processes and the dynamics associated with it remains underexamined. The present study, using the case of reforms in the field of (...) petroleum exploration and production in India, examines an institutional change where the institution, once modified, gradually reverted near to its prechange state. We suggest the concept of institutional elasticity to explain such reverting of institutions, and elaborate on three boundary conditions—scope of change, pace of change, and field-level actor constellations—which have implications for the relationship between institutional elasticity and reverting of institutions. (shrink)

Documenting how the Japanese state responded to increasing social discontent during initiation of unpopular welfare reforms, this study examines the factors that hindered the political empowerment of civil society despite the timely introduction of participatory policymaking institutions. The Japanese government opted in the early 2000s to introduce a participatory method to initiate the unpopular pension reform. Deliberation councils were established to encourage open discussions among government policymakers and committee members, including citizen representatives. The final outcomes of the deliberations, however, (...) were mostly about parametric adjustments and did not adequately consider the urgent demand of the general public. The participatory measure did not significantly improve the public's trust in the pension programs, but it did justify the government's reform initiatives. The welfare bureaucracy that set the goal, defined the scope of the agenda, and steered the discussions toward technical issues structurally restricted the voices of the citizen members in the deliberation councils. The lack of citizen advocacy groups, which could otherwise have effectively supported the citizen members on the committee, contributed to the limited roles and influences of the citizens. It is argued that the traditional conservative corporatism of Japan was reinforced during this time period, despite the introduction of the idea of participatory governance. (shrink)

This paper explores some of the important parallels between recent reforms to legal rules for the admissibility of scientific and expert evidence, exemplified by the US Supreme Court's decision in Daubert v Merrell Dow Pharmaceuticals, Inc. in 1993, and similar calls for reforms to medical practice, that emerged around the same time as part of the Evidence-Based Medicine (EBM) movement. Similarities between the “movements” can be observed in that both emerged from a historical context where the quality of (...) medicine and legal approaches to science were being subjected to growing criticism, and in the ways that proponents of both movements have used appeals to “folk epistemologies” of science to help legitimate their reform aspirations. The term folk epistemology is used to describe the weaving together of formal and informal images of scientific method with normative and pragmatic concerns such as eradicating “junk science”, and promoting medical best practice. Perhaps unsurprisingly, given the unfocused breadth of these aspirations the implications of these “reforms” for medical and legal practice have not been straightforward, although they do represent an important new set of rhetorical resources to critique and or legitimate expertise in medical and legal domains. Discussion closes, by noting the growth of calls for these movements to reciprocate in areas where law and medicine intersect, such as medical negligence litigation. (shrink)

Markets have long had a whiff of sulphur about them. Plato condemned innkeepers, whose pursuit of profit he believed led them to take advantage of their customers, Aristotle believed that the pursuit of profit was indicative of moral debasement, and Cicero held that retailers are typically dishonest as this was the only path to gain. And even those who are more favorably disposed towards markets in general are frequently inclined to be suspicious of markets in medical goods and services. For (...) example, Margaret Thatcher supported the legal prohibition of markets in kidneys despite being arguably the most pro-market Prime Minister the United Kingdom saw in the 20th century. (shrink)

Intellectual engineering movements in early 20th century America – including scientific management, the progressive engineering platform, and technocracy – have received a great deal of attention from historians. Contemporaneous with these American movements, a British engineer was also developing a system of social and economic reform: the engineer was Major Clifford Hugh Douglas and the reforms would form the foundations of the Social Credit philosophy. While Social Credit has been studied extensively as a political and economic system, little consideration (...) has been given to the influence of Douglas’ engineering career on his ideology or to the relationship between Douglas and the American engineering reformists. This paper remedies this lacuna by analyzing Douglas’ proposed reforms in an engineering context. It is argued that the set of reforms proposed by Douglas in the final years of the First World War was an engineer’s view of the economic re-organization necessary for the betterment of the lower classes, the alleviation of scarcity, and the loosening of the noose which the existing financial system held around the neck of productive industry. Developed contemporaneously with, but ideologically independent from, the American intellectual engineering movements, Douglas’ reforms represent a technical response to the ills of World War I British society. It is concluded that Douglas’ engineering training and experience was central to his reform platform. (shrink)

This is a pivotal moment in the global governance response to pandemic threats, with crucial global health law reforms being undertaken simultaneously in the coming years: the revision of the International Health Regulations, the implementation of the GHSA Legal Preparedness Action Package, and the negotiation of a new Pandemic Treaty. Rather than looking at these reforms in isolation, it will be necessary to examine how they fit together, considering: how these reforms can complement each other to support (...) pandemic prevention, preparedness, and response; what financing mechanisms are necessary to ensure sustainable health governance; and why vital norms of equity, social justice, and human rights must underpin this new global health system. (shrink)

Africa is undergoing considerable political, economic and labor market reforms. In this context, education and training stands literally at a crossroads. In the past, it has been oriented toward mass production emphasizing numbers and quantities rather than skills and quality. The primary clientele of the universities were the state organs, local governments, state-controlled cooperatives, commissions and mass organizations. The universities, though frequently in conflict with the state, were very much part of the predominant bureaucratic command economies. As part of (...) the command system the market had to go to them; they did not have to reach out to the market. The current economic crisis and its subsequent reforms have turned the wheel of fortune against the state and the universities. Financial and employment cuts cannot sustain the traditional levels and practices of employment in the public sector. As the roles of the state and the private sector change, the mission, orientation and future of the universities, university staff and their graduates cannot afford to remain what they used to be. This raises the question of the extent to which the university education system of any country in the region is ready for change? The present study undertakes to identify the mechanisms for reducing state regulation of the university curricula and increasing the acceptability, relevance, reliability and dynamism of university education to the market and nonmarket, thereby increasing the capability of university graduates to be more readily employable in various sectors and, where not directly employable, to be able to employ themselves in profitable and sustainable activities. (shrink)

The essay examines the conditions that gave rise to undesirable trends in Russian economic transformation leading to creation of a market that the author refers to as a “wild” market opposing it to the form of market economy inherent in the West. Discussing specific archetypes of Russian mass consciousness and Russian system of fundamental values, the author emphasizes the importance of balancing the specific steps of contemporary economic reforms in the country against unique features of Russian mentality and cultural (...) traditions. (shrink)