On the Impact of Inequality on Growth, Human Development, and Governance

Inequality is a major international development challenge. This is so from an ethical perspective and because greater inequality is perceived to be detrimental to key socioeconomic and political outcomes. Still, informed debate requires clear evidence. This article contributes by taking stock and providing an up-to-date overview of the current knowledge on the impact of income inequality, specifically on three important outcomes: (1) economic growth; (2) human development, with a focus on health and education as two of its dimensions; and (3) governance, with emphasis on democracy. With particular attention to work in economics, which is especially developed on these topics, this article reveals that the existing evidence is somewhat mixed and argues for further in-depth empirical work across disciplines. It also points to explanations for the lack of consensus embedded in data quality and availability, measurement issues, and shortcomings of the different methods employed. Finally, we suggest promising future research avenues relying on experimental work for microlevel analysis and reiterate the need for more region- and country-specific studies and improvements in the availability and reliability of data.

Sugar industrialization and distress selling of livestock among the Bodi pastoralists in Ethiopia’s lower Omo valley

This article, based on long-term fieldwork, argues that the Bodi, a small agro-pastoral community in Ethiopia’s lower Omo Valley, are experiencing distress selling of livestock and are undergoing collective impoverishment. These processes are a result of the rapid comprehensive transformations unfolding in the valley, which are themselves a product of the state’s aggressive resource extraction interests. These interests mainly relate to the building of the Gilgel Gibe III dam on the Omo River and the establishment of large-scale sugar estates. Increased insecurity in the valley followed these interventions. When combined, these changes resulted in the deterioration of the food security and livelihood situations of the Bodi, and the community attempted to cope by selling animals from their herds. Hence, the main reasons for market engagement relate to (1) coping with hunger, (2) coping with a high incidence of animal diseases and (3) coping with high rates of imprisonment of men. The Bodi also engage in three constrained livelihood alternatives: rain-fed farming, irrigated farming and wage employment. This article recommends that resolving the Bodi’s erosion of livelihoods necessitates addressing insecurity and the related socio-political outcomes, which lie at the heart of the Bodi’s dwindling livelihood situation and impoverishment.

Political Microtargeting and Online Privacy: A Theoretical Approach to Understanding Users’ Privacy Behaviors

Social media allow political parties to conduct political behavioral targeting in order to address and persuade specific groups of users and potential voters. This has been criticized: Most social media users do not know about these microtargeting strategies, and the majority of people who are aware of targeted political advertising say that it is not acceptable. This intrusion on personal privacy is viewed as problematic by users and activists alike. The overarching goal of this article is to elaborate on social media users’ privacy perceptions and potential regulating behaviors in the face of political microtargeting. This work is theoretical in nature. We first review theoretical and empirical research in the field of political microtargeting and online privacy. We then analyze how privacy is experienced by social media users during political microtargeting. Building on our theoretical analysis, we finally suggest clear-cut propositions for how political microtargeting can be researched while considering users’ privacy needs on the one hand and relevant political outcomes on the other.

Policy making e apprendimento di capacità politiche della società civile. Il terzo settore nella riforma lombarda dell’assistenza

After a period of general fervour for social capital, civil society and NGOs’ involvement, current literature is more cautious, trying to test the outcomes of networks’ participation on the quality of democracy. Third Sector political capabilities for voice, negotiation, lobbying and campaigning are very important variables. The article focuses on the formation of these capabilities in a contentious process of policymaking. Starting on a case study in the Lombardy Region, it shows how conditions, mechanisms and processes of Third Sector engagements play a role in the learning and gradual change of political capabilities. Particularly, it stresses the relevance of deliberative arenas for third sector coordination and reflexivity. Looking at the political outcomes in the implementation of the Social Care Reform at the Regional level, the article formulates a hypothesis about the policy dependency of Third Sector legitimate power.

Mediation, Regulation, Critique: Mapping the Relationship between Cultural Meanings and Political Responses to Poverty, 1970-2010

<p>Since 1970 there has been growing concern over poverty in New Zealand in academia, government, and popular culture. From 1970 until 1984, this concern focused on New Zealand’s prolonged recession and falling standards of living in a period of high inflation. Since then, however, poverty and economic disparity have increased dramatically. The 1970-1984 period is now looked upon as relatively generous and committed to economic equality. The increase in poverty in contemporary times is marked by two political features. Neoliberal economic and social policies have resulted in the polarisation of wealth, increased employment insecurity, and reduced income for those reliant on state benefits (Harvey 2005). At the same time, discourses of morality have blamed beneficiaries for their “dependence” on the state. These features are not simply coincidental: the Governments that pursued income supplement reductions in New Zealand also employed the rhetoric of “welfare dependency” (O’Brien, Bradford, Stevens, Walters & Wicks 2010). As such, the link between moral discourse about poverty and political outcomes for the poor seems undeniable. I argue in this thesis that the relationship between these moral discourses and political outcomes is not as straightforward as the narrative above suggests. To make this argument I analyse moral discourses of poverty in the pre-neoliberal and neoliberal periods and find that these discourses are not as clearly aligned with macroeconomic periods as some suggest. Using this analysis, I then draw upon three traditions of cultural studies with macro-sociological theoretical orientations to determine a more fruitful analysis of the relationship between cultural meaning and political outcomes. I propose in this thesis that an analysis of the cultural meaning and political outcomes of poverty requires an investigation into three related spaces of contestation: mediation, regulation, and critique. To operationalise this analysis I focus specifically on newsprint mediation of poverty and neoliberalism, the institutional arrangements of the state that correspond to macroeconomic periods, and anti-poverty social movements. I also argue – counter to trends in sociological cultural studies – that the concepts of ideology and class must be re-introduced to effectively analyse the relationship between the cultural meanings and political outcomes of poverty. In my analysis I find considerable spaces of contestation between newspaper media, state institutions, and social movements. At the same time, synergies between them emerge. In all three, a “cultural logic” that promotes social and ethnic identities over economic identities becomes institutionalized within social movements, state institutions, and media reporting within the neoliberal era. This promotion of identities runs counter to the economic regulation of the period, where polarization occurs throughout society. As this “cultural logic” is institutionalized in the state, it is used to promote the understanding that economic disparity occurs between cultural identities rather than across them. As such, it translates potentially radical claims for economic redistribution into claims for inclusion. From this finding I conclude that the cultural logic, although it is called upon by actors across the political spectrum, nevertheless constitutes an ideology. It not only serves, in economic terms, a limited class at the expense of many, but also masks relative class benefits.</p>

Mediation, Regulation, Critique: Mapping the Relationship between Cultural Meanings and Political Responses to Poverty, 1970-2010

<p>Since 1970 there has been growing concern over poverty in New Zealand in academia, government, and popular culture. From 1970 until 1984, this concern focused on New Zealand’s prolonged recession and falling standards of living in a period of high inflation. Since then, however, poverty and economic disparity have increased dramatically. The 1970-1984 period is now looked upon as relatively generous and committed to economic equality. The increase in poverty in contemporary times is marked by two political features. Neoliberal economic and social policies have resulted in the polarisation of wealth, increased employment insecurity, and reduced income for those reliant on state benefits (Harvey 2005). At the same time, discourses of morality have blamed beneficiaries for their “dependence” on the state. These features are not simply coincidental: the Governments that pursued income supplement reductions in New Zealand also employed the rhetoric of “welfare dependency” (O’Brien, Bradford, Stevens, Walters & Wicks 2010). As such, the link between moral discourse about poverty and political outcomes for the poor seems undeniable. I argue in this thesis that the relationship between these moral discourses and political outcomes is not as straightforward as the narrative above suggests. To make this argument I analyse moral discourses of poverty in the pre-neoliberal and neoliberal periods and find that these discourses are not as clearly aligned with macroeconomic periods as some suggest. Using this analysis, I then draw upon three traditions of cultural studies with macro-sociological theoretical orientations to determine a more fruitful analysis of the relationship between cultural meaning and political outcomes. I propose in this thesis that an analysis of the cultural meaning and political outcomes of poverty requires an investigation into three related spaces of contestation: mediation, regulation, and critique. To operationalise this analysis I focus specifically on newsprint mediation of poverty and neoliberalism, the institutional arrangements of the state that correspond to macroeconomic periods, and anti-poverty social movements. I also argue – counter to trends in sociological cultural studies – that the concepts of ideology and class must be re-introduced to effectively analyse the relationship between the cultural meanings and political outcomes of poverty. In my analysis I find considerable spaces of contestation between newspaper media, state institutions, and social movements. At the same time, synergies between them emerge. In all three, a “cultural logic” that promotes social and ethnic identities over economic identities becomes institutionalized within social movements, state institutions, and media reporting within the neoliberal era. This promotion of identities runs counter to the economic regulation of the period, where polarization occurs throughout society. As this “cultural logic” is institutionalized in the state, it is used to promote the understanding that economic disparity occurs between cultural identities rather than across them. As such, it translates potentially radical claims for economic redistribution into claims for inclusion. From this finding I conclude that the cultural logic, although it is called upon by actors across the political spectrum, nevertheless constitutes an ideology. It not only serves, in economic terms, a limited class at the expense of many, but also masks relative class benefits.</p>

Financial Turbulence and Crisis

Why do financial turbulence and crises occur? What are different types of financial crises? Why do different countries experience financial crises, while some are more resilient? These are intriguing questions that relate to financial turbulence and crisis. The financial system is inherently susceptible to turbulence and crises: The world has witnessed several rounds of financial turbulence since the early 2000s. The 2008 global financial crisis and the worldwide financial turbulence that took place following the impact of the COVID-19 pandemic are examples. Periods of financial turbulence relate to heightened uncertainty and volatility in financial markets, and some of those periods can trigger financial crises. It is puzzling that although some countries can weather financial turbulence without falling into a financial crisis, others do not. This was observed during the global financial crisis. For example, financial turbulence triggered a financial crisis in some of the liberal market economies such as the United States and the United Kingdom. In contrast, Australia and Canada remained relatively resistant to financial turbulence. The existing literature tends to justify how and why a period of financial turbulence resulted in a financial crisis by looking at individual structural-, institutional-, or actor-level factors. In addition to the independent (separate) effects of these three principal explanatory factors, there is a need for detecting and analyzing their individual; interactive; and/or cumulative structural, institutional, and agential explanatory factors at work. Thus, it is crucial to explore some of the interrelated dynamics informing agency behavior which generate socioeconomic outcomes. Specifically, we call for a rigorous and refined analysis of how and why complementarities and enabling conditions that stem from interactions between structural and institutional factors influence actors’ agency and socioeconomic/political outcomes.

Economic Inequality and Political Responsiveness: A Systematic Review

Do political outcomes respond more strongly to the preferences of the rich? In an age of rising inequality, this question has become increasingly salient. Yet, although an influential literature has emerged, no systematic account exists either of the severity of differentials in political responsiveness, the potential drivers of those differentials, or the variation across democracies. This article fills that gap. We analyze 1,163 estimates of responsiveness from 25 studies and find that, although this research collectively suggests that political outcomes better reflect the preferences of the rich, results vary considerably across models and studies. The divergence in results is partly driven by partisanship and the model specification, while we find no significant variation across either policy domains or general/specific measures of political outcomes. Finally, and against theoretical expectations, published research suggests that differentials in responsiveness are weaker in the United States compared to other developed democracies. The article contributes to our understanding of differential responsiveness by clarifying the main debates and findings in the literature, identifying issues and gaps, and pointing to fruitful avenues for future research.

Bringing the Legislature Back In: Examining the Structural Effects of National Legislatures on Effective Democratic Governance

Extant research in comparative politics has examined the role of institutional frameworks such as constitutional design, the nature of the electoral systems, parliamentarism and federalism on the quality of governance. Understanding variations on effective democratic governance has assumed a state-centric approach that has largely neglected how strong legislatures can drastically affect political outcomes. This study finds empirical evidence that the strength of national legislatures (in terms of its influence over the executive, institutional autonomy, its specified powers and institutional capacity) is correlated to effective democratic governance as measured by voice and accountability, governmental effectiveness, regulatory quality, control of corruption and rule of law entrenchment based on a cross-national analysis of 150 countries with available data from the period 1996–2016. The results hold even when the sample is restricted to developing countries, where party systems are more likely to be under-institutionalized. A sensitivity analysis also confirms that the relationship between strong legislatures and effective democratic governance is not attenuated or conditioned by its interactive effect with other institutional arrangements. Implications suggest that the substantive strength of national legislatures promotes higher levels of democratic accountability, and that the international community must focus on frameworks that strengthen global legislatures to avert political instability and creeping authoritarianism.