Public service privatization and crisis in Argentina

This article discusses the privatization of public services in Argentina in light of the severe crisis that afflicted the country between 1999 and 2002. An inadequate regulatory framework and the absence of effective regulatory agencies resulted in the exercise of monopolistic power over public service fees. The emergence of a series of external shocks, starting in 1997 with the SE Asia crisis, weakened the country's external accounts. In the context of a strict fixed exchange rate regime-rising public service fees and overseas obligations contracted by the privatized firms placed growing pressure on the balance of payments. Even though privatized firms were not directly responsible for the four-year recession or the balance of payments crisis, their actions contributed to the onset and prolongation of the difficulties faced by Argentina.

Marketing that hits the sky: Critical review of economic aspects of "atmosphere" regulation I

The author treats in this article the modalities of ecological-political regulation. At first he analyzes the modalities of regulation that are government-related and connected to the normative engagement of government. The author especially emphasizes the advantageous and less advantageous aspects of the normatively based interventions of government. He critically explores the disadvantageous dimensions of the ecological aid and shows the discrepancy between the short and long run concerning the effects of aid-practice. At second the author deals with the regulation based on the market-mechanisms. The conclusion refers to the trade-off between the normatively determined govern mentality and the market-based mechanisms. The author pays special attention to the emission-trading schemes in Europe and demonstrates the main uncertainties in relation to the market of pollution and emission trading.

Economic aspects of globalization

Economic aspects of globalization are related to the increasing economic integration and interdependence on a global level through the processes of overall trade and financial liberalization and deregulation, minimization the role of the state, domination of market principles and mechanisms, and appearance of new actors on international economic scene. Ideological background of the new globalization wave is neoliberalism or market fundamentalism that is institutionalized in the form of trilateralism in international economic relations. Trilateralism includes concentrating the power of governing and regulation of international relations on three regional blocks in the world economy (SAD, Western Europe and Asia) and three international economic institutions (IMF, WTO and WB) that regulate specific area of international economic relations. Although globalization represents huge potential for creation of enormous economic prosperity these benefits aren't evenly distributed, so there exists an increasing gap between the wealthy and the poor that deepens the discontents of the globalization process. Considering that the only alternative is autarky and isolation of economy, globalization cannot be an option, but a reality that must be accepted, however, not at the cost of annulling national interests and sovereignty, degrading economic positions and initiating enormous social tensions.

Policy of the labour market and employment strategy

In terms of economy, it is practically impossible to tackle separately the issues of unemployment and labor market, Only in the non-market economy environment that existed till the very end of the past century the issue of human resources employment was treated as a dominant ideological and political issue. That resulted in inherited high rate of hidden unemployment, low labour productivity, technological gap in relation to the countries with the developed market economy, imbalanced regional development, and the like. People's psychological fear from unemployment resisted the reestablishment of the labour market. Many of them have experienced stressful job losses. Regretfully, in the first years of the market reestablish men t, due to well-known circumstances, new jobs have been created much slower than the surplus jobs have been eliminated in the rationalization process. That additionally increased the fear from unemployment and resistance to necessary transformation of labour legislation which should free the labour market from inflexible administrative restrictions. High unemployment rate does not characterize only the less developed countries. We have highlighted the problem in the EU member states, as well. Although we have not conducted a detailed empirical analysis, we have concluded that the issue of labour market functioning and unemployment have been the major internal problem for EU for many years now. EU plans to reach full employment in the foreseeable future. To reach the set goal, the labour legislation is being changed in terms of further labour market liberalization and achievement of flexible employment; establishment of European institutions with the task to tackle unemployment problems; and allocation of significant resources to finance employment programmes through structuring funds, first of all the European Social Fund. The general conclusion and the message to be drawn out of this paper are in that that the government and its social partners should, each in their domain of responsibility, do their best to free still hidden potentials of the labour market. In order to keep his job or to return to the work environment, a worker should master new competences and skills, and his employer should feel free to make decisions regarding his employees as much as he is free to choose work technology or the product he is going to produce. Of course, the labour market, particularly in high unemployment rate environment, does not imply employer's unlimited self-will toward his employees. Humane attitude and the heritage of the democratic world, which include equality among people without any kind of discrimination, gender equality, free movement, health care, right to social welfare, education, and the like, should be the leading principles. After all, EU has in its Social Welfare Charter clearly expressed its attitude toward man and his rights.

A contribution to (re)conceptualization and genesis of globalization

The main aim of this investigation is to provide understandable introduction into a globalization phenomenon. In the first part we explore the basic structure of phenomenon itself, and present some of the best known definitions of globalization today. After that we analyze the critical aspects and five main dimensions of globalization. In the second part, we give relatively original model of classification and periodization of vast and different arguments about historical origins of globalization.

Neoliberalism and democracy

Conclusion: After nearly two decades of largely uninterrupted implementation, neoliberal policies have provided but modest aggregate growth, while income and wealth disparities have increased dramatically, separating the super rich from other social classes. This is most clearly evident in Latin America, where governments, sheltered by a wall of neoliberal doctrine and international compromises, have made themselves highly resistant to popular pressures for income redistribution and changes in the existing social structures. In effect, neoliberalism - coupled with its strange brand of ballot box democracy- has managed to strangle the full array of political forces antagonistic to and resisting its project. Economic power has tended to concentrate in the hands of those social groups that share objectives of accelerated capital accumulation; benefiting themselves, their families, and their elite classes. Evidence of the undemocratic methods utilized by Latin American rulers of neoliberal democracies abound: the excessive use of presidential decrees in Menem's Argentina, the exclusion of popular leaders from consultative bodies Salinas de Gortari's Mexico, or the application of strong arm tactics in Fujimori's Peru, could start a long list.

Economic theory and the low quality of American beer

Conventional wisdom regarding the quality of American beer is explored. Three traditions in economic theory: neoclassical, path dependent, and path creation are applied to explain deteriorating nutritional quality of American beer. Broader notions of evolution over the course of time are also considered. Three tables of empirical evidence measure changes in the brewing industry, suggesting to explain decline in the nutritional quality of beer over time. Speculation is made regarding the future of beer quality (as well as the U.S. beverage and food industry), noting implications for public health.

Corporate management: Ownership, control and shareholders' rights

In spite of extent of economy development in one country, every corporation faces up with same problems connected with corporate governance. Problems are ownership, shareholders rights and control. The way to acquire ownership is by buying shares of company. Ownership is connected with making essential decisions in corporation like changing statute of firm, allowing new stock market flotation, etc. There are two types of ownership: widespread or dispersed ownership and concentrated ownership. Dispersed ownership is characteristic of Anglo-Saxon countries (United Kingdom and United States) where one-tier system is representative model of corporate governance. Dispersed ownership means that every single packet of shares is smaller than 20% of total shares in corporation. On the other hand concentrated ownership characterizes presence of ultimate owner(s) in company. Ultimate owner is person who holds more than 20% of shares in firm. If shareholder holds more than 50% of shares he is major shareholder what means that he has control over company. Concentrated ownership is characteristic of continental Europe and Japan where is presented two-tier model of corporate governance. Law and other institutional rules, like rules for listed companies of stock market, must guarantee the shareholder rights. Today, every country accepts Principles of Corporate Governance published by the Organization for Economic Cooperation and Development. Further more, the transitional countries, as Russia, must pass and respect laws, which protect shareholders rights. Control of management is one of the ways to protect shareholder rights. Control could be internal and external. Audit or Supervisory board is main part of internal control. Independent external auditor who is in relation with company does external control by contract of giving services. It is important that all auditors (internal of external) be independent of management of corporations. In this paper, we try to adduce main problems of modern corporate governance as ownership control and shareholders rights.

Dependence of work relocation by micro instruments of regional policy: Conceptual and methodological approach

Regional policy has been dominated by use of micro-policy instruments to bring about a reallocation of capital and labor. Instruments designed to stimulate an increase of regional mobility of labor, have played a relative minor role in regional economy theory to date. Much greater emphasis has been placed on instruments designed to move capital into disadvantage regions. However, instruments to reallocate labor, has a developed conceptual and methodological basis, today. Its aim is to introduce labor to located in areas which would not normally been chosen by those making the location decision. This involves not only locate labor in regions where jobs are available but also inducting disadvantage areas to produce their own jobs through indigenous development.

Market that hits the sky: Critical review of economic aspects of "atmosphere" regulation II

The author treats the ethical questions related to the market of the elements of the atmosphere. I agree with the statement that the issue of climate change is ultimately an ethical issue. In accordance, the author especially emphasizes the problem of the global governance and the ethics. The greening of the market is to be promoted, and market mechanisms can play certain role in international environmental measures. But they can only have a limited role. The market in itself can not secure the ecological needs of and protect the global commons. The opportunity of privatizing the dimensions of the atmosphere is limited by both ethical and ecological considerations. The privatizing of the nature pretends to provide incentives for protecting the commons but just the opposite happens. The needs concerted actions of the nations and the construction of a complex institutional setting, instead of relying exclusively on individual players and market forces. In such a design new forms of ecological authorities should be set up, and the coordination by norms should be reinvented.