...markets exist, simply taking forward positions in the complementary assets may suffice to capture much of the spillovers. Even after the innovation is announced, the innovator might still be able to build or buy complementary capacities at competitive prices if he innovation has iron clad legal protection (i.e. if the innovation is in a tight appropriability regime). However, if the innovation is not tightly protected and once "out" is easy to imitate, then securing control of complementary capacities is likely to be the key success factor, particularly if those capaci- ties are in fixed supply - so called "bottlenecks." Distribution and specialized manufacturing com- petences often become bottlenecks. As a practical matter, however, an innovator may not have the time to acquire or build the complementary assets that ideally it would like to control. This is particularly true when imitation is easy, so that timing becomes critical. Additionally, the innovator may simply not have the financial resources to proceed. The implications of timing and cash constraints are summarized in fig. 9. Accordingly, in weak appropriability regimes innovators need to rank complementary assets as to their importance. If the complementary assets are critical, ownership is warranted, although if the...
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... Democracies are on average richer than non-democracies, are less likely to go to war and have a better record of fighting corruption. More fundamentally, democracy lets people speak their minds and shape their own and their children’s futures. That so many people in so many different parts of the world are prepared to risk so much for this idea is testimony to its enduring appeal. Yet these days the exhilaration generated by events like those in Kiev is mixed with anxiety, for a troubling pattern has repeated itself in capital after capital. The people mass in the main square. Regime-sanctioned thugs try to fight back but lose their nerve in the face of popular intransigence and global news coverage. The world applauds the collapse of the regime and offers to help build a democracy. But turfing out an autocrat turns out to be much easier than setting up a viable democratic government. The new regime stumbles, the economy flounders and the country finds itself in a state at least as bad as it was before. This is what happened in much of the Arab spring, and also in Ukraine’s Orange revolution a decade ago. In 2004 Mr Yanukovych was ousted from office by vast street protests, only to be re-elected to the presidency (with the help of huge amounts of Russian money) in 2010, after the opposition politicians who replaced him turned out to...
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...Modern Political Science Ruslan Ulizskiy (MPF 151) 30.11.2015 Essay on methodology used in the article “The Effects of U.S. Foreign Assistance on Democracy Building, 1990-2003” (Steven E. Finkel, Aníbal Pérez-Liñán and Mitchell A. Seligson) The article “The Effects of U.S. Foreign Assistance on Democracy Building, 1990-2003” was written by Steven E. Finkel, Aníbal Pérez-Liñán and Mitchell A. Seligson and published in World Politics (Vol. 59, No. 3) in 2007. The research was focused on the effectiveness of democracy promotion programs by United States. The aim of this article is to make the first detailed investigation into the U.S. contribution to democratization worldwide between 1990 and 2003. And the research puzzle for authors is an interconnection between providing of democracy funds and following democratic outcomes in receiver countries. Authors assumes that U.S. promotion of democratization in different countries is useful: foreign assistance could be helpful and democratization could be heterogenic. Thus, the first hypothesis suggests that foreign NGO can stimulate democratic development. Although there isn’t proper analysis of specific mechanisms which allows international forces facilitate democratization within countries, authors argue that democracy can be promoted by international forces both indirectly and directly. Concerning the matter of causality, indirect promotion works through changing some of structural parameters, which could be prerequisites...
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...Briefly compare the political regime type in China and India. Which of the two would you prefer to do business in and why? The political regime of a country attempts to protect the interests of its citizens through social, environmental and economic goals. These objectives often have significant, yet varying impacts on organisations operating within the nation; depending upon the nature of their business and the political ideologies of the country in question. As a result, international companies looking to expand their operations overseas must carefully consider the nature of the political regime and the resultant factors which will impact their ability to conduct business and generate profits. The Peoples Republic of China and India are two vast nations which over the past several decades have undergone considerable development and economic growth and therefore represent substantial opportunity for international businesses to expand or outsource their operations. Despite their geographic proximity, China and India have very different political philosophies and regimes which have resulted in variations in their regulatory framework, taxation policies, stock exchanges, intellectual property rights and the consequential foreign direct investment and growth. The Peoples Republic of China operates through a single party political system led by the Communist Party of China. Traditionally, Marxist ideologies dominated the nation’s economic regulation, however reform in 1978...
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...Stability and Performance 3 THE BREAKDOWN OF DEMOCRATIC REGIMES: CRISIS, BREAKDOWN & REEQUILIBRATION Introduction Many existing literature on the collapse of the democracy concentrated on rises of nondemocratic political powers or the fundamental structural tension that lead to the breakdown of democratic institution. In this publication, author, Juan J. Linz is giving attention to dynamic of the political process of breakdown by referring to tragic consequences of democratic collapse in German, Spain and Chile. This attention has begun during the author childhood where he was concerned with the fate of Spanish democracy, the fate his as citizen. This concern later had shared with Alfred Stepan who writes a dissertation on the breakdown of democracy in Brazil. Both of them get support and attention from many people and agencies. The focus firstly gets attention at the Seventh World Congress of Sociology at Varna, Bulgaria in 1970. In year 1973, with the support from the Concilium of International and Area Studies of Yale University, and the Joint Committee on Latin America of Social Science Research Council and the American Council of Learned Societies, Linz and Stepan chaired the conference. With the contribution of their publication later on has influence other contributors to give attention to the related issues. In year 1978, Linz individually had published a book regarding The Breakdown of Democratic Regimes: Crisis, Breakdown & Reequilibration. In this publication...
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...to its enduring appeal. Yet these days the exhilaration generated by events like those in Kiev is mixed with anxiety, for a troubling pattern has repeated itself in capital after capital. The people mass in the main square. Regime-sanctioned thugs try to fight back but lose their nerve in the face of popular intransigence and global news coverage. The world applauds the collapse of the regime and offers to help build a democracy. But turfing out an autocrat turns out to be much easier than setting up a viable democratic government. The new regime stumbles, the economy flounders and the country finds itself in a state at least as bad as it was before. This is what happened in much of the Arab spring, and also in Ukraine’s Orange revolution a decade ago. In 2004 Mr Yanukovych was ousted from office by vast street protests, only to be re-elected to the presidency (with the help of huge amounts of Russian money) in 2010, after the opposition politicians who replaced him turned out to be just as hopeless. Between 1980 and 2000 democracy experienced a few setbacks, but since 2000 there have been many Democracy is going through a difficult time. Where autocrats have been driven out of office, their opponents have mostly failed to create viable democratic regimes. Even in established democracies, flaws in the system have become worryingly visible and disillusion with politics is rife. Yet just a few years ago democracy looked as though it would dominate the world. In the second half...
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...Enlightenment philosophes want to reform the ancien regime? The philosophes believed that the ancient regime was unjust and inefficient at creating a fair society, and thought the application of rational analysis to all activities would help reform the system that created such an unequal distribution of wealth and power. Their particular ideas of reform focused around those at the top of the hierarchal structure, such as the church and the king, as well as abolishing the structures based upon superstition. One reason the philosophes wanted to reform the ancien regime was that they believe it gave the church undue power. As the clergy withheld the position of the first estate-being at the top of the hierarchal society only under the king- they thought that the group were wealthy, corrupt and intolerant. Despite only owning 15% of the land, they still took in a vast amount of money through obligatory tithes and rents, despite not having to pay any tax themselves. The only money they did have to give was Dons Gratuits, meaning payment to the crown that they set the figure for themselves. Corruption throughout the church was rife, with plurality and consequently absenteeism occurring throughout France and leading to Bishops earning two incomes, whilst a vast majority of the population lived a poor, peasantry life. The philosophes saw this unfair behanviour as a result of the churches highly regarded position within the ancien regime, and saw this as a necessary point of reform. This...
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...“overthrow of a ruler or political system”. This term is generally used to describe an uprising by a disenchanted mass to overthrow existing ideology and practice and bring about major political, economic, social or cultural change in a society. Revolutions are mainly caused because of social and economic inequalities between classes causing the oppressed masses to become disillusioned with extreme excesses of the ruling classes. They then come together and revolt against the existing ruler or regime, often in a bloody movement. This is certainly true when describing the French Revolution and the Bolshevik Revolution, which not only brought about regime change through violent mass mobilization, but also overhauled the social, economic institutions of the time. So a revolution is essentially a struggle in which the holder of a power loses that power against their will. Aristotle’s view on revolutions was rather confined than its modern day interpretation. He suggested the doctrine of ‘stasis’ as a reason for revolution and decline of institutions, ‘stasis’ being an arrest of the political processes of a healthy polis leading to its political system breaking own and degenerating into violence and internal warfare. For him, the condition that led to all revolutions was the desire of the many for equality versus the desire of the minority for effective superiority. In an overview of Book V of ‘Politics’, it can be gathered that inequalities in a regime such as disagreements over...
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...POLI3001 Assignment No. 2 Briefly compare the political regime type in China and India. Which of the two would you prefer to do business in and why? India and China are two republics that have experienced very opposing political regimes throughout history. China has been fundamentally stable country with a lack of a distinct authority figure (Desai, 2003). Being a single party state China has been controlled by the Chinese Communist Party since the 5th National Congress held in 1927 (Wang, 2013). Correspondingly India, have always been a federal parliamentary democratic republic where the President of India elected is head of state and the Prime Minister elected is the head of government (U.S. Central Intelligence Agency, 2013). This essay will reflect on the political views of both China and India, and attempt to determine why it is more advantageous to do business in India. Government regulation is the process of dissemination, monitoring and enforcement of policy established by appropriate legislation. In, China regulation is central as particular industries are not accessible to foreign investors as the Communist Party aims to restrict external influences on its own population (Desai, 2003). An estimated 90 percent of companies listed on the Chinese exchanges are either partly or fully state-owned (Desai). Retaining a level competition base is significantly reduced, as the chances of competing against a government owned company is more than likely. A good example...
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...outlined the role of Spain’s political unit in which Franco nationalized Catholicism and the eventual revival of the monarchy. Franco appointed, Juan Carlos, as the next heir to the succession of the monarchy. In 1947, Franco stated that he had no intention to modify the existing authoritarian structure other than “combining traditional legitimacy with specific new features” (322). Franco intended to be head of state for life. It stated that the Franco accepted the “principles of monarchical legitimacy but redefined it to fit himself” in which he would “Franco would govern until his death” (372). The next King must be a “male, thirty years old, Catholic” and must...
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...Political scientists classify an authoritarian by having no elections or referendums and citizens do not participate in the states decision examples of authoritarian regimes are a one man dictatorship, military regimes or regimes that follow the ideology of political parties. To some degree, all states exercise authority over their citizens. Although some states are more responsive to their citizens’ wants and needs as to how authority and violence should be managed and there are some less responsive. Authoritarianism is defined as a form of government that has a strong power and has limited political freedoms. One ruler or a small group of leaders can either rule an authoritarian system, which may hold elections but citizens don’t have any...
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...the comparison methodology in political systems, in addition to the political attitudes and behaviors in relation with the ethical foundations of politics. Furthermore, it included an introduction to political ideologies with a focus on the democratic ones. Moreover, it showcased the development of the modern state, along with some key concepts in politics such as constitutions and processes such as pressure groups and social movements. Before engaging in comparing political systems, it is imperative to be aware of the comparison methodology used for this kind of social science. The scientific method used in social sciences is based on the empirical method which includes several steps, of which the most important are: the formulation of the hypotheses after asking curious questions related to a topic of interest - the data collection - the data analysis - the results’ interpretation related to the questions raised. Looking at the political attitudes of people under a specific political system helps to understand the political systems, but what is the reason behind that? Simply because looking at the political attitude of every individual might prove itself to be impossible, so social scientists started analyzing the general trend in the political attitudes of people and put it under a certain framework making it easier to link to the political system and to interpret it. While looking at the political attitudes under a certain regime, we might notice some differences...
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...Citizenship: The Compromise of Equality and Freedom The post modern-state citizenship regime was intended to be inclusive and promote social equality but from this regime stems ideas and practices that are exclusionary in nature. The idea that people in a state had the right to thrive in their communities as well as participate politically was revolutionary. Despite this positive intent, the idea of citizenship brought up the question of exactly who was entitled to this freedom and led to binary distinctions and new exclusions. The modern-state citizenship regime is an impediment to the full achievement of human freedom and equality because the hierarchies that dictate the duties and rights of citizens marginalize and deny rights to people of different genders, race, and class. The exclusionary principles of citizenship are apparent in the post modern-state citizenship regime and are exemplified through the disenfranchisement of women, people of color, and the working class. Wallerstein sheds light on the effect of the adoption of citizenship when he writes of how “the inclusiveness of citizenship was exclusion. Those who were not citizens of the state had become by definition aliens—citizens, perhaps, of some other state, but not of this state.” (Wallerstein pg. 2). This quotation shows how the idea of citizenship allowed many to have these rights to freedom and voting but also marginalized those who were not considered citizens. He also says that “all do not have...
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...Policy Paper on Political Stability and Economic Development: The Case of Bangladesh 1. Introduction Among the non-economic variables considered as sine qua non for development, political stability comes first. One may argue that other non-economic factors like rule of law, law and order situation are subsumed under political stability. On the other hand, major determinants of development like savings and investment, relative price stability, human resources, level of technology, factor productivity can play an effective role when political atmosphere is congenial. For example, it is argued that political stability and convenient law and order ensure the confidence of the people in the economy and its further development, which encourages the people to save. It also promotes confidence of the investors in the economy and convinces them to invest and reinvest. Of course, price stability, higher education and technical qualifications of the population, increasing factor productivity, technological modernity, export promotion etc. may not be directly related to political stability. But political stability in the long run ultimately ensures a relative price stability, improves educational and qualification status of the people, increases factor productivity, enables technology transfer, promotes exports. Those are the factors essential for economic growth. Moreover, long term political stability provides a congenial atmosphere for evolution of democracy. Democratic political order in turn...
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...ABSTRACT ECONOMIC GOVERNANCE IN PAKISTAN The paper’s main thesis is that the difficulty Pakistan has faced in maintaining macro-economic stability, sustaining economic growth and delivering public services to the poor can be ascribed to weak economic governance and gradual decline in the capacity of key institutions. To strengthen economic governance a non-partisan long term strategic approach is required in which narrow political considerations are set aside and a concerted effort is made to strengthen the key institutions that form the essential core of economic governance. As the capacity of these institutions takes several decades the temptation by incoming governments to abandon or neglect institutions or policies, projects and programs inherited from the previous regime should be seriously curbed. The tendency of starting with a clean slate every time a new government ushers in power without achieving tangible results is painful and also politically costly. It is better to build and consolidate on the previous programs and policies, fine tune and modify them according to the changed circumstances and experiences. The gains become visible during the incumbency period of the incoming government that can then claim credit for the realization of those achievements. The author is former Chairman, National Commission for Government Reforms and is currently Director Institute of Business Administration – Karachi 2 ECONOMIC GOVERNANCE IN PAKISTAN ISHRAT HUSAIN The...
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