Climate Justice in Durban

This chapter situates itself in the climate justice discourse and unpacks the paradoxes in state and grassroots action. It argues that due to market-orientated and neo-liberal water and sanitation governance, the failure to take into account water and climate change governance as well as ecological and institutional economics resulted in climate change chaos. Due to this paralysis, communities failed to adapt to climate variability. The illogicalities and ambiguities in what the municipality says and does leaves local communities at the vagaries of nature and to deal with the resulting chaos albeit with some doing so in quite inspiring ways. The empirical data is collected through 120 interviews and four participatory action workshops conducted with civil society actors, government officials, academics, and communities of AmaQadi situated in North Central Durban, Umbumbulu in South Durban, Wood Glen and Zamani B in Durban Outer West, Ntuzuma G and Soweto in North Central Durban. The key finding is that the municipal Climate Change Protection Unit adopted a ‘climate-resilient' strategy on the one hand, but on the other, city electricity officials built power stations in flood plains, the Economic Development Unit promoted a shopping mall in a wetland, and eThekwini Water is introducing unpopular UD toilets to deal with water scarcity, without looking at externalities in wetlands and the discharge of faecal waste from broken sewers that compromise biodiversity and ecosystem balances. This chapter is contributing knowledge of climate change resilience and adaptation by communities within the framework of new institutional and ecological economics.

The Search for the Virtuous Corporation

The corporation is the most complex, adaptive, and resilient model of organizing economic activity in history. In an era of globalization, the transnational corporation has significant power over society. While its rights are specified through private ordering, and choice of jurisdictional home, in the event of conflict of laws, the corporation's duties and responsibilities remain contested. Notwithstanding the argument in institutional economics that all transactions take place within governance and legal frameworks, underpinned by a 'non-calculative social contract,' the terms are notoriously difficult to define or enforce. They are made more so if regulatory dynamics preclude litigation to a judicial conclusion. This Element situates the corporation – its culture, governance, responsibility, and accountability – within a broader discourse of duty. In doing so, it addresses the problem of the corporation for society and the corporation's problem in aligning its governance to changing community expectations of obligation.

Tax collection in the Roman Empire: a new institutional economics approach

This paper reviews the Roman tax collection system since the Late Republic to the Principality, focusing on the transition from the tax-farming system to a more centralized, census-based administration. We attempt to justify this transition according to New Institutional Economic theories (Transaction Cost Economics and Property Rights Theory). The paper argues that, during the Republic, the auction-based system of tax farming ended up giving place to opportunistic behaviors and abusing practices due to information asymmetries and contract incompleteness, enhanced by the collusion of tax farmers and governors. The Principality improved the efficiency of the tax collection system through the introduction of a bureaucratic and census-based administration, which allowed imperial employees to monitor the tax-farming activities.

Sustainable development: Innovations in business

Innovation and sustainable development have become buzzwords in the 21st century with the idea of creative destruction launched by Joseph Alois Schumpeter being the base for evolutionary economics. However, new institutional economics helps to understand the necessity of support provided to entrepreneurs and innovators by science and administration to reduce the risk of launching the said innovations. This e-book is devoted to selected types of innovation. Every type of innovation is described with the use of theoretical background and is enriched by adequate case study. Traditional division into four types of innovation, proposed by J.A. Schumpeter (1934), containing product, process, organizational and marketing innovations, was widely accepted, including European Union institutions (OECD/Eurostat, 2008). The concept of innovation has long been dominated by a technical approach to the innovation process, despite the economic arguments exposed by one of the precursors of the theory of innovation and, at the same time, the school of evolutionary economics—Joseph Alois Schumpeter. Frequently, in the context of innovation, it is indicated that organizational and marketing aspects play a part in the successful introduction of innovation onto the market. The structure of the book is based on the typology proposed by Keeley, Walters, Pikkel and Quinn (2013), which focuses on the economic character of innovations. Ten types of innovation are directly related to Schumpeter’s and Oslo Manual classification. A new set of innovations emphasize the economic side of innovation process. The technical novelties are to support new configuration, offering or customers’ experience. This new approach is based on presumptions coming from design thinking idea, leading to user—driven innovation and on cooperation with institutions and entities supporting innovation process. The chapters are devoted to every type of innovation, grouped into three major parts: innovations based on configuration, offering and experience. In the book, configuration includes types of innovations focused on innermost workings of an enterprise and its business system. Offering part contains the types of innovations, that are focused on an enterprise’s core product (good or service), or a collection of its products. The last part, dedicated to innovations based on experience, is focused on more customer-facing elements of an enterprise and its business system.

Transaction Costs in Planning Literature: A Systematic Review

“Transaction costs,” as a well-established theory in New Institutional Economics, has been used to explain and analyze various planning matters for about 30 years since its introduction to planning literature. However, there is no study on how planning-related studies have utilized the theory. This paper conducts a systematic review that aims to develop a better understanding of how transaction-cost theory is used in planning literature. The review shows that while potential contributions and implications of transaction costs have been conceptually discussed in planning literature, the empirical studies have remained limited, particularly concerning the magnitude of such costs in planning systems.

The Impact of Regional Culture on the Psychological Characteristics, Startup Behaviors and Regional Economy of Modern Chinese Business Gangs

Business gang refers to the enterprise cluster formed by geographical relationship, which has always been the focus of research on entrepreneurship and regional economic development. The research of new institutional economics shows that culture, as an informal system, will change the social psychology, thinking mode and behavior of economic individuals, and provide a good environment for the growth of start-ups, thus affecting economic activities and economic development. Taking the five modern business gangs in China as the research subject, this paper uses the comparative method to analyze the regional cultural differences of the five modern business gangs, as well as the differences of the entrepreneurs’ psychological characteristics and startup behaviors. Through the analysis of the economic data of the provinces where the modern business gangs are located, this paper summarizes the differences of economic development in different regions. It is concluded that regional culture has a significant impact on the development of modern business gangs and regional economy. It is necessary to give full play to the advantages of regional culture and promote the high-quality development of modern business gangs and regional economy.

Institutional Diversity of Transferring Land Development Rights in China—Cases from Zhejiang, Hubei, and Sichuan

With the continuous urbanization, China is facing a dilemma of achieving two conflicting targets in land governance, i.e., the continuous supply of urban construction land to support urbanization and the preservation of cultivated land for food security. Under China’s dual land system, the implementation of the “Linkage between Urban-land Taking and Rural-land Giving” (Linkage) policy is of great significance in promoting more inclusive urbanization by commodifying the land development right and connecting urban and rural land markets. In the specific land property right system and changing land governance of China, this policy appears to provide an opportunity for stakeholders other than the state to compete for the value from the transfer of development rights (TDR) and triggers the emergence of diversified approaches in organizing land projects in rural China. Based on the theoretical perspective of New Institutional Economics and empirical evidence from Zhejiang Province, Hubei Province, and Sichuan Province, this paper conducts a comparative institutional analysis for China’s TDR practice and argues that the diversified operational approaches in China’s practice have aligned various interests of the stakeholders through flexible participation methods and elaborate reallocation of land property rights, in order to fit various institutional environments and material conditions

Economics as the scientization of politics

This paper uses Beck's concept of reflexive modernity, and a Foucauldian approach, to critique the positivist philosophy associated with contemporary conventional economics, and to show its inadequacy for the environmental emergency. The paper suggests economics is not neutral but performs an ideological function in justifying the political and social order. Economics can be deconstructed by tracing its history, thereby laying bare its philosophical and political roots. The environmental debate repeats past debates of the 1920s and 30s. By employing the 'subjugated' institutional economics approaches economics can be redefined, and the path to a truly Green New Deal can be unearthed.

Introduction to the Oliver E. Williamson memorial issue

Oliver E. Williamson, who died on May 21, 2020 at the age of 87, was one of the most influential social scientists of modern times. In 2009, he was co-recipient of the Nobel Prize in Economics. As of mid-October 2021, he had been cited an astonishing 317,838 times according to Google Scholar. His measured influence outdistances that of even his fellow Nobel Laureates Elinor Ostrom (230,667), Douglass C. North (187,577) and Ronald H. Coase (123,686). This special issue of the Journal of Institutional Economics brings together a distinguished roster of scholars to remember Williamson, to elucidate some of his key ideas and influences, and to extend the reach of his ideas to new arenas.