Sunday, February 12, 2017

Eastern Panhandle Independent Community (EPIC) Radio:Poetry and Literature on Monday on EPIC Radio

John Case has sent you a link to a blog:

Blog: Eastern Panhandle Independent Community (EPIC) Radio
Post: Poetry and Literature on Monday on EPIC Radio
Link: http://www.enlightenradio.org/2017/02/poetry-and-literature-on-monday-on-epic.html

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Fwd:

Sent from my iPhone

Begin forwarded message:

From: Stewart Acuff <acuff.stewart@gmail.com>
Date: February 12, 2017 at 4:30:54 PM EST
To: red-ink <red-ink@earthlink.net>
Cc: Stewart <acuff.stewart@gmail.com>

When the sky grays

And the wind comes stronger

With the shortening of the days

The memories and thoughts unresolved are longer

And the light at 4 still plays

The color fades in pure effort to maintain the grace

Of lighter times and brighter skies

We know again this fight is ours

And if there be a win ours is the prize

But we stand on uneven land staring over the edge for hours

We try to make sense of a world running from wise

It is not the sparkle of our minds but the steel honed in the soul

That will decide whether we make this fight right

And from our guts create what will be known as might.

Sent from my iPhone

Re: Fwd: [CCDS Members] The Political Economy of Indiana 2017

Good piece, Harry!

On Feb 12, 2017 1:01 PM, "John Case" <jcase4218@gmail.com> wrote:

---------- Forwarded message ----------
From: "Targ, Harry R" <targ@purdue.edu>
Date: Feb 12, 2017 11:01 AM
Subject: [CCDS Members] The Political Economy of Indiana 2017
To: "members@lists.cc-ds.org" <members@lists.cc-ds.org>
Cc: "rpa_discussion@lists.riseup.net" <rpa_discussion@lists.riseup.net>

Diary of a Heartland Radical

Sunday, February 12, 2017

THE POLITICAL ECONOMY OF INDIANA 2017

Harry Targ

Social and Economic Wellbeing Survey Shows No Progress

A flurry of newspaper stories appeared the first week of February in The Wall Street Journal and several Indiana newspapers reporting on data from a "health and wellness" national survey about the performance of the 50 states. Indiana according to several measures was ranked as the fourth "worst state" in the country. The national survey consisted of data from 177,281 people interviewed by the Gallup and Healthways organizations. Data included responses to questions about feelings of community support and pride, physical health, and financial security.

According to the survey The Times of Northwest Indiana, (February 8, 2017) reported, "31.3 percent of Indiana residents are obese, 30.6 smoke, and 29.4 percent don't exercise at all." Only 24.9 percent of the population has a bachelor's degree (one of the lowest percentages of any state). The NWIT article indicated that median household income of Hoosiers was $5,000 less than the national median income.

As The Wall Street Journal put it: "Indiana is one of just a handful of states to rank worse in every category of well-being--sense of purpose, social life, financial health, community pride, and physical fitness--than most other states…" On all these measures combined Indiana's rank was only ahead of Oklahoma, Kentucky, and West Virginia.

Previous Data on the Indiana Economy

The centerpiece of Indiana public policy since 2004 has been corporate and individual tax cuts and reduced budgets for education, health care, and other public services. Indiana was one of the first states to begin the privatization of the public sector, including transferring educational funds from public to charter schools. It established a voucher system to encourage parents to send their children to private schools. Also Indiana sold public roads; privatized public services; and recruited controversial corporations such as Duke Power to support research at the state's flagship research universities. Meanwhile the manufacturing base of the state shifted from higher paying and unionized industrial labor (automobiles, steel, and durable goods) to lower paying service jobs and non-union work such as at the Amazon distribution center.

The narrative about Indiana economic growth presented by the former Governor Mike Pence varied greatly from data gathered between 2012 and 2014. For example, between 2013 and 2014, despite enticements to business, Indiana grew at a 0.4 percent pace while the nation at large experienced 2.2 percent growth.

Indiana's economy historically was based on manufacturing but has experienced declines since the 1980s (with only modest increases in recent years). However, newer manufacturing between 2014 and 2016 has been mostly in low-wage non-unionized sectors. For example, the Indiana Institute for Working Families reported on data from a study of work and poverty in Marion County, which includes the state's largest city, Indianapolis. Four of five of the largest growing industries in the county paid wages at or below family sustainability ($798 per week for a family of three) and individual and household wages declined significantly between 2008 and 2012 (Derek Thomas, "Inequality in Indy - A Rising Problem With Ready Solutions," August 13, 2014, (www.iiwf.blogspot.com).

Further, Thomas quoted a U.S. Conference of Mayors' report on wages and income: "…wage inequality grew twice as rapidly in the Indianapolis metro area as in the rest of the nation since the recession." This is so because new jobs created paid less on average than the jobs that were lost since the recession started.

Thomas pointed out that the mayors' report had several concrete proposals that could address declining real wages and stimulate job growth. These included "raising the minimum wage, strengthening the Earned Income Tax Credit, public programs to retrain displaced workers," and developing universal pre-kindergarten and programs to rebuild the state's crumbling infrastructure. They may have added that declining real wages also relates to attacks on unions in both the private and public sectors and the dramatic reduction in public sector employment.

Thomas recommended in 2012 that Indianapolis (and Indiana) should have taken these data seriously because in Marion County "poverty is still rising, the minimum wage is less than half of what it takes for a single-mother with an infant to be economically self-sufficient; 47 percent of workers do not have access to a paid sick day from work, and a full 32 percent are at or below 150 percent of the federal poverty guidelines ($29,685 for a family of three)."

More recently, November 10, 2014, the Indiana Association of United Ways issued a 250 page report on the state called the "Study of Financial Hardship." The study, parallel to similar studies in five other states and prepared by a research team at Rutgers University, introduced the concept of Asset Limited, Income Constrained, Employed or (ALICE). ALICE refers to households with incomes that are above the poverty rate but below "the basic cost of living." The startling data revealed that:

-a third of Hoosier households cannot afford adequate housing, food, health care, child care, and transportation.

-specifically, 14 percent of households are below the poverty line and 23 percent above poverty but below the threshold out of ALICE, or earning enough to provide for the basic cost of living.

-570,000 households are within the ALICE status and 353,000 below the poverty line.

-over 21 percent of households in every Indiana county are above poverty but below the capacity to provide for basic sustenance.

Referring to those within the ALICE category of wage earners who have struggled to survive but earn less than what it takes to meet basic needs, Kathy Ertel, Board Chairperson of Indiana Association of United Ways said: "ALICE is our child care worker, our retail clerk, the CAN who cares for our grandparents, and our delivery driver" (Roger L. Frick, "Groundbreaking Study Reveals 37% of Hoosier Households Struggle With the Basics," Indiana Association of United Ways, November 10, 2014, Roger.Frick@iauw.org).

Assessing these recent studies and the 2017 report cited at the outset leads to the conclusion that an evaluation of the current state of the Indiana economy depends upon where one is located in terms of economic, political, or professional position. Those Indiana men, women, and children who come from the 37 percent of households who earn less, at, or slightly above the poverty line probably have a negative view of their futures. For them, the tax breaks for the rich and the austerity policies for the poor are not positive.

Indiana Politics

Perhaps the starkest fact to note in reference to the growing economic insecurity in the state of Indiana over time is that in 1970 forty percent of Hoosier workers were in unions, then the state with the third highest union density. By the dawn of the second decade of the twenty-first century only 11 percent of workers were in trade unions. Recent legislation has disadvantaged Hoosier workers including passage of a Right to Work law and repeal of the state version of prevailing wage. The Mitch Daniels/Mike Pence administrations (2004-2016) have used charter schools and vouchers to weaken teachers unions. In addition, in his first day in office in January, 2004, newly elected Governor Mitch Daniels signed an executive order abolishing the right of state employees to form unions.

In 2005 the Indiana state government (legislature and governor) passed the first and most extreme voter identification law. Voters were required to secure voter identification photos. Michael Macdonald a University of Florida political scientist estimated that requiring voter IDs reduces voter participation by 4-5 percent, hitting the poor and elderly the hardest. In addition, Indiana law ended voter registration in the state one month before election day. And polls close at 6 p.m. election day, among the earliest closing times in the country. Finally, requests for absentee ballots require written excuses.

Republican control of the executive and both legislative branches led to redistricting which further empowered Republicans and weakened not only Democrats but the young and old and the African American community. Nine solidly Republican congressional districts were drawn in 2000. In 2014, of 125 state legislative seats up for election, 69 were uncontested. 2014 Indiana voter turnout was 28 percent, the lowest state turnout in the country. The Governor's office has been held by Republicans since 2004 and Republicans have had majorities in both legislative bodies since 2010, when statewide redistricting was implemented.

Traditionally when Democrats were in the Governor's mansion and/or controlled a branch of the legislature, they too tended to support neoliberal economic policies, but less draconian, and had been more moderate on social policy questions. In recent years, many legislators and the two most recent governors have been friends of or received support from the American Legislative Exchange Council (or ALEC) funded by major corporations and the Koch brothers.

With ALEC money, some active Tea Party organizations, the growth of rightwing Republican power, and centrist Democrats, Indiana government has been able to initiate some of the most regressive policies in reference to voting rights, education, taxing, and deregulation in the country. And as the data above suggests, the political economy of Indiana has increased the suffering of the vast majority of working families in the state. Other data suggests that the quality of health care, education, the environment, and transportation have declined as well.

The political picture is made more complicated by the fact that Indiana is really "three states." The Northwest corridor, including Gary and Hammond, are cities which have experienced extreme deindustrialization, white flight, and vastly increased poverty. Political activists from the area look to greater Chicago for their political inspiration and organizational involvement. Democratic parties are strong in these areas but voter participation is very low.

Central Indiana includes a broad swath of territory with small cities and towns and the largest city in the state, Indianapolis. Much of the area is Republican, many counties have significant numbers of families in poverty, and some smaller cities have pockets of relative wealth. Democrats hold some city offices but the area is predominantly Republican.

The southern part of the state, south of Indianapolis, in terms of income, political culture, and history resembles its southern neighbor Kentucky, more than the northern parts of the state. The state of Indiana was the northern home of the twentieth century version of the Ku Klux Klan. In the 1920s, the KKK controlled Indiana state government. That reality, the institutionalized presence of overt racism, remains an aspect of Hoosier history that may still affect state politics.

In sum, the working people of Indiana enter the coming period with little economic hope, a politics of red state dominance, and the number two person in the White House who bears some responsibility for the economics and politics left behind. Social change in Indiana, as with the nation at large, will require a vibrant, active progressive program in the electoral arena, the 2018 elections for example, at the same time that mass movements direct their attention to improving the lives of the 99 percent.

www.heartlandradical.blogspot.com

_______________________________________________
CCDS Members mailing list

CCDS website: http://www.cc-ds.org

CCDS welcomes and encourages the full participation of our members in
this list serve. It is intended for discussion of issues of concern to
our organization and its members, for building our community, for
respectfully expressing our different points of view, all in keeping
with our commitment to building a democratic and socialist society. To
those ends, free and honest discussion of issues and ideas is
encouraged. However, personal attacks on named individuals, carrying on
old vendettas, excessive posts and, especially, statements that are
racist, sexist, homophobic, anti-semitic and/or anti-working class are not
appropriate.

Repeated failure to respect those principles of discussion
may result in exclusion from the list.
Please respect each other and our organization.

Any member of the list who objects to a posting on the list or the
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You are subscribed as: jcase4218@gmail.com

Fwd: [CCDS Members] The Political Economy of Indiana 2017

---------- Forwarded message ----------
From: "Targ, Harry R" <targ@purdue.edu>
Date: Feb 12, 2017 11:01 AM
Subject: [CCDS Members] The Political Economy of Indiana 2017
To: "members@lists.cc-ds.org" <members@lists.cc-ds.org>
Cc: "rpa_discussion@lists.riseup.net" <rpa_discussion@lists.riseup.net>

Diary of a Heartland Radical

Sunday, February 12, 2017

THE POLITICAL ECONOMY OF INDIANA 2017

Harry Targ

Social and Economic Wellbeing Survey Shows No Progress

A flurry of newspaper stories appeared the first week of February in The Wall Street Journal and several Indiana newspapers reporting on data from a "health and wellness" national survey about the performance of the 50 states. Indiana according to several measures was ranked as the fourth "worst state" in the country. The national survey consisted of data from 177,281 people interviewed by the Gallup and Healthways organizations. Data included responses to questions about feelings of community support and pride, physical health, and financial security.

According to the survey The Times of Northwest Indiana, (February 8, 2017) reported, "31.3 percent of Indiana residents are obese, 30.6 smoke, and 29.4 percent don't exercise at all." Only 24.9 percent of the population has a bachelor's degree (one of the lowest percentages of any state). The NWIT article indicated that median household income of Hoosiers was $5,000 less than the national median income.

As The Wall Street Journal put it: "Indiana is one of just a handful of states to rank worse in every category of well-being--sense of purpose, social life, financial health, community pride, and physical fitness--than most other states…" On all these measures combined Indiana's rank was only ahead of Oklahoma, Kentucky, and West Virginia.

Previous Data on the Indiana Economy

The centerpiece of Indiana public policy since 2004 has been corporate and individual tax cuts and reduced budgets for education, health care, and other public services. Indiana was one of the first states to begin the privatization of the public sector, including transferring educational funds from public to charter schools. It established a voucher system to encourage parents to send their children to private schools. Also Indiana sold public roads; privatized public services; and recruited controversial corporations such as Duke Power to support research at the state's flagship research universities. Meanwhile the manufacturing base of the state shifted from higher paying and unionized industrial labor (automobiles, steel, and durable goods) to lower paying service jobs and non-union work such as at the Amazon distribution center.

The narrative about Indiana economic growth presented by the former Governor Mike Pence varied greatly from data gathered between 2012 and 2014. For example, between 2013 and 2014, despite enticements to business, Indiana grew at a 0.4 percent pace while the nation at large experienced 2.2 percent growth.

Indiana's economy historically was based on manufacturing but has experienced declines since the 1980s (with only modest increases in recent years). However, newer manufacturing between 2014 and 2016 has been mostly in low-wage non-unionized sectors. For example, the Indiana Institute for Working Families reported on data from a study of work and poverty in Marion County, which includes the state's largest city, Indianapolis. Four of five of the largest growing industries in the county paid wages at or below family sustainability ($798 per week for a family of three) and individual and household wages declined significantly between 2008 and 2012 (Derek Thomas, "Inequality in Indy - A Rising Problem With Ready Solutions," August 13, 2014, (www.iiwf.blogspot.com).

Further, Thomas quoted a U.S. Conference of Mayors' report on wages and income: "…wage inequality grew twice as rapidly in the Indianapolis metro area as in the rest of the nation since the recession." This is so because new jobs created paid less on average than the jobs that were lost since the recession started.

Thomas pointed out that the mayors' report had several concrete proposals that could address declining real wages and stimulate job growth. These included "raising the minimum wage, strengthening the Earned Income Tax Credit, public programs to retrain displaced workers," and developing universal pre-kindergarten and programs to rebuild the state's crumbling infrastructure. They may have added that declining real wages also relates to attacks on unions in both the private and public sectors and the dramatic reduction in public sector employment.

Thomas recommended in 2012 that Indianapolis (and Indiana) should have taken these data seriously because in Marion County "poverty is still rising, the minimum wage is less than half of what it takes for a single-mother with an infant to be economically self-sufficient; 47 percent of workers do not have access to a paid sick day from work, and a full 32 percent are at or below 150 percent of the federal poverty guidelines ($29,685 for a family of three)."

More recently, November 10, 2014, the Indiana Association of United Ways issued a 250 page report on the state called the "Study of Financial Hardship." The study, parallel to similar studies in five other states and prepared by a research team at Rutgers University, introduced the concept of Asset Limited, Income Constrained, Employed or (ALICE). ALICE refers to households with incomes that are above the poverty rate but below "the basic cost of living." The startling data revealed that:

-a third of Hoosier households cannot afford adequate housing, food, health care, child care, and transportation.

-specifically, 14 percent of households are below the poverty line and 23 percent above poverty but below the threshold out of ALICE, or earning enough to provide for the basic cost of living.

-570,000 households are within the ALICE status and 353,000 below the poverty line.

-over 21 percent of households in every Indiana county are above poverty but below the capacity to provide for basic sustenance.

Referring to those within the ALICE category of wage earners who have struggled to survive but earn less than what it takes to meet basic needs, Kathy Ertel, Board Chairperson of Indiana Association of United Ways said: "ALICE is our child care worker, our retail clerk, the CAN who cares for our grandparents, and our delivery driver" (Roger L. Frick, "Groundbreaking Study Reveals 37% of Hoosier Households Struggle With the Basics," Indiana Association of United Ways, November 10, 2014, Roger.Frick@iauw.org).

Assessing these recent studies and the 2017 report cited at the outset leads to the conclusion that an evaluation of the current state of the Indiana economy depends upon where one is located in terms of economic, political, or professional position. Those Indiana men, women, and children who come from the 37 percent of households who earn less, at, or slightly above the poverty line probably have a negative view of their futures. For them, the tax breaks for the rich and the austerity policies for the poor are not positive.

Indiana Politics

Perhaps the starkest fact to note in reference to the growing economic insecurity in the state of Indiana over time is that in 1970 forty percent of Hoosier workers were in unions, then the state with the third highest union density. By the dawn of the second decade of the twenty-first century only 11 percent of workers were in trade unions. Recent legislation has disadvantaged Hoosier workers including passage of a Right to Work law and repeal of the state version of prevailing wage. The Mitch Daniels/Mike Pence administrations (2004-2016) have used charter schools and vouchers to weaken teachers unions. In addition, in his first day in office in January, 2004, newly elected Governor Mitch Daniels signed an executive order abolishing the right of state employees to form unions.

In 2005 the Indiana state government (legislature and governor) passed the first and most extreme voter identification law. Voters were required to secure voter identification photos. Michael Macdonald a University of Florida political scientist estimated that requiring voter IDs reduces voter participation by 4-5 percent, hitting the poor and elderly the hardest. In addition, Indiana law ended voter registration in the state one month before election day. And polls close at 6 p.m. election day, among the earliest closing times in the country. Finally, requests for absentee ballots require written excuses.

Republican control of the executive and both legislative branches led to redistricting which further empowered Republicans and weakened not only Democrats but the young and old and the African American community. Nine solidly Republican congressional districts were drawn in 2000. In 2014, of 125 state legislative seats up for election, 69 were uncontested. 2014 Indiana voter turnout was 28 percent, the lowest state turnout in the country. The Governor's office has been held by Republicans since 2004 and Republicans have had majorities in both legislative bodies since 2010, when statewide redistricting was implemented.

Traditionally when Democrats were in the Governor's mansion and/or controlled a branch of the legislature, they too tended to support neoliberal economic policies, but less draconian, and had been more moderate on social policy questions. In recent years, many legislators and the two most recent governors have been friends of or received support from the American Legislative Exchange Council (or ALEC) funded by major corporations and the Koch brothers.

With ALEC money, some active Tea Party organizations, the growth of rightwing Republican power, and centrist Democrats, Indiana government has been able to initiate some of the most regressive policies in reference to voting rights, education, taxing, and deregulation in the country. And as the data above suggests, the political economy of Indiana has increased the suffering of the vast majority of working families in the state. Other data suggests that the quality of health care, education, the environment, and transportation have declined as well.

The political picture is made more complicated by the fact that Indiana is really "three states." The Northwest corridor, including Gary and Hammond, are cities which have experienced extreme deindustrialization, white flight, and vastly increased poverty. Political activists from the area look to greater Chicago for their political inspiration and organizational involvement. Democratic parties are strong in these areas but voter participation is very low.

Central Indiana includes a broad swath of territory with small cities and towns and the largest city in the state, Indianapolis. Much of the area is Republican, many counties have significant numbers of families in poverty, and some smaller cities have pockets of relative wealth. Democrats hold some city offices but the area is predominantly Republican.

The southern part of the state, south of Indianapolis, in terms of income, political culture, and history resembles its southern neighbor Kentucky, more than the northern parts of the state. The state of Indiana was the northern home of the twentieth century version of the Ku Klux Klan. In the 1920s, the KKK controlled Indiana state government. That reality, the institutionalized presence of overt racism, remains an aspect of Hoosier history that may still affect state politics.

In sum, the working people of Indiana enter the coming period with little economic hope, a politics of red state dominance, and the number two person in the White House who bears some responsibility for the economics and politics left behind. Social change in Indiana, as with the nation at large, will require a vibrant, active progressive program in the electoral arena, the 2018 elections for example, at the same time that mass movements direct their attention to improving the lives of the 99 percent.

www.heartlandradical.blogspot.com

_______________________________________________
CCDS Members mailing list

CCDS website: http://www.cc-ds.org

CCDS welcomes and encourages the full participation of our members in
this list serve. It is intended for discussion of issues of concern to
our organization and its members, for building our community, for
respectfully expressing our different points of view, all in keeping
with our commitment to building a democratic and socialist society. To
those ends, free and honest discussion of issues and ideas is
encouraged. However, personal attacks on named individuals, carrying on
old vendettas, excessive posts and, especially, statements that are
racist, sexist, homophobic, anti-semitic and/or anti-working class are not
appropriate.

Repeated failure to respect those principles of discussion
may result in exclusion from the list.
Please respect each other and our organization.

Any member of the list who objects to a posting on the list or the
behavior of a particular member should send email describing his or her
concerns to members-owner@lists.cc-ds.org

Post: Members@lists.cc-ds.org
List info and archives: https://lists.mayfirst.org/mailman/listinfo/members
To Unsubscribe, send email to:
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You are subscribed as: jcase4218@gmail.com

Saturday, February 11, 2017

Eastern Panhandle Independent Community (EPIC) Radio:Sunday, Feb 12, on EPIC Radio -- Philosophy, Religion, Bluegrass

John Case has sent you a link to a blog:

Blog: Eastern Panhandle Independent Community (EPIC) Radio
Post: Sunday, Feb 12, on EPIC Radio -- Philosophy, Religion, Bluegrass
Link: http://www.enlightenradio.org/2017/02/sunday-feb-12-on-epic-radio-philosophy.html

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Tim Taylor: The Middle Income Trap and Governancce Issues

The Middle Income Trap and Governance Issues

The "middle-income trap" is an argument that when countries have emerged from dire poverty to middle-income status, they can become stuck at that point, and stop making progress toward higher income levels. The World Development Report 2017 notes: "Contrary to what many growth theories predict, there is no tendency for low- and middle-income countries to converge toward high-income countries." The overall theme of this year's WDR is "Governance and the Law," and as usual, the report offers a wealth of examples and insights. Here, I'll just focus on the arguments about the middle-income trap, where the report illustrates its underlying theme by arguing that "the difficulty many middle-income countries have in sustaining growth can be explained by power imbalances that prevent the institutional transitions necessary for growth in productivity."

This figure illustrates the patterns of transition for economies between low-income, middle-income, and high-income status. On the horizontal axis, countries are plotted by their per capita income level in 1970; on the vertical axis, by their per capita income level in 2010.

To get a sense of how the graph works, look at the category of "lower-middle income" countries on the horizontal axis, with per capita GDP between 5 and 15% of the world leaders. Now run your eye up, and see how those countries are faring by 2010. A substantial share of them have fallen into the "low-income" category, although most remain in the same "lower middle" category as before. Only one of thee lower-middle countries from 1970, Korea, had emerged into the high-income category after 40 years. Similarly, if you start by looking at low-income countries in 1970, only two of them had risen as high as "upper middle income" by 2010: Equatorial Guinea (GNQ) and Botswana (BWA), which is a prosperity largely founded on oil and diamonds, respectively.

The World Bank researchers writing the WDR argue that a core problem is that the institutions and strategies that raise a country up to middle-income status are often different from the strategies that would allow taking the next step to high-income status--and entrenched interest groups can make the transition a difficult one. Here's some commentary from the WDR (citations and references to figuress omitted):

"Middle-income countries may face particular challenges because growth strategies that were successful while they were poor no longer suit their circumstances. For example, the reallocation of labor from agriculture to industry is a key driver of growth in low-income economies. But as this process matures, the gains from reallocating surplus labor begin to evaporate, wages begin to rise, and decreasing marginal returns to investment set in, implying a need for a new source of growth. Middle-income countries that become "trapped" fail to sustain total factor productivity (TFP) growth. ... Efficient resource allocation and industrial upgrading require a set of institutions that differs from those that enable growth through resource accumulation. ...

"The creation of these institutions may be stymied by vested interests. Creative destruction and competition create losers—and in particular may create losers of currently powerful business and political elites.This is a more politically challenging problem than spurring productivity growth through the adoption of foreign technologies, which tends to favor economic incumbents. These political challenges may be particularly great in middle-income countries because actors that gained during the transition from low to middle income may now be powerful enough to block changes that threaten their position. In this sense, the challenges that middle-income countries face go beyond policy choice to the challenge of power imbalances. ... Understanding the policy arena in which elites bargain is essential for explaining the political economy traps faced by middle-income countries.

"One such political economy trap is a persistent deals-based relationship between government and business. Deals-based, sometimes corrupt, interactions between firms and the state may not prevent growth at low income levels; indeed, such ties may actually be the "glue" necessary to ensure commitment and coordination among state and business actors. But they become more problematic for upper-middle-income countries. For example, theory suggests that as markets expand and supply networks become more complex, deals-based relationships can no longer act as a substitute for impersonal, rules-based contract enforcement. ... Combating entrenched corruption and creating a
level playing field for firms imply a need for accountable institutions. At upper-middle-income levels, legislative, judicial, media, and civil society checks become increasingly important."

The difficulties in moving toward types of governance that can offer a foundation for both representation and growth is an ongoing theme throughout the report. As another example, here are some facts about elections worldwide that raised my eyebrows. The share of countries holding elections is steadily rising, but the the share of elections rates as "free and fair" is steadily falling.

The number of elections is steadily rising (as shown by the bars) but voter turnout worldwide in those elections has been steadily falling.

Governments have become much less likely to censor the media in a direct way in the age of the internet, but they have become more aggressive about regulations that limit the ability of civil service organizations (CSOs) to organize themselves or to spread their messages. The report notes:

As the report notes:

"Evidence from the last decade, however, suggests that the global trend may be a shrinking civic space (figure 8.10). Many governments are changing the institutional environment in which citizens engage, establishing legal barriers to restrict the functioning of media and civic society organizations, and reducing their autonomy from the state. For example, in the case of media, governments may award broadcast frequencies on the basis of political motivations, withdraw financial support of media organizations and activities, or enforce complex registration requirements that raise barriers to entry into a government-controlled media market. In the case of nongovernmental organizations (NGOs), governments might resort to legal measures to restrict public and private financing or pass stricter laws that restrain associational rights ..."

In short, economic growth and development isn't just about pulling the right economic policy levers--government budgets, monetary policy, investment in education, foreign aid, and the like. It's also about the extent to which economic forces have flexibility to function within the political and legal institutions of that society.

For some earlier posts on the hurdles in the way of economic convergence, see

"Will Convergence Occur?" (November 25, 2015)
"Dani Rodrik on Economic Convergence: Jackson Hole I" (September 14, 2011)

John Case
Harpers Ferry, WV

The Winners and Losers Radio Show

7-9 AM Weekdays, The EPIC Radio Player Stream,

Check out Socialist Economics.

Check out The EPIC Radio website

SUNYAB: Four decades of evidence finds no link between immigration and increased crime

PUBLIC RELEASE: 10-FEB-2017

Four decades of evidence finds no link between immigration and increased crime

UNIVERSITY AT BUFFALO

BUFFALO, N.Y. - Political discussions about immigrants often include the claim that there is a relationship between immigration patterns and increased crime. However, results of a University at Buffalo-led study find no links between the two. In fact, immigration actually appears to be linked to reductions in some types of crimes, according to the findings.

"Our research shows strong and stable evidence that, on average, across U.S. metropolitan areas crime and immigration are not linked," said Robert Adelman, an associate professor of sociology at UB and the paper's lead author. "The results show that immigration does not increase assaults and, in fact, robberies, burglaries, larceny, and murder are lower in places where immigration levels are higher.

"The results are very clear."

Adelman's study with Lesley Williams Reid, University of Alabama; Gail Markle, Kennesaw State University; Charles Jaret, Georgia State University; and Saskia Weiss, an independent scholar, is published in the latest issue of the Journal of Ethnicity in Criminal Justice.

"Facts are critical in the current political environment," said Adelman. "The empirical evidence in this study and other related research shows little support for the notion that more immigrants lead to more crime."

Previous research, based on arrest and offense data, has shown that, overall, foreign-born individuals are less likely to commit crimes than native-born Americans, according to Adelman.

For the current study, the authors stepped back from the study of individual immigrants and instead explored whether larger scale immigration patterns in communities could be tied to increases in crime due to changes in cities, such as fewer economic opportunities or the claim that immigrants displace domestic workers from jobs.

The authors drew a sample of 200 metropolitan areas as defined by the U.S. Census Bureau and used census data and uniform crime reporting data from the Federal Bureau of Investigation for a 40-year period from 1970 to 2010.

"This is a study across time and across place and the evidence is clear," said Adelman. "We are not claiming that immigrants are never involved in crime. What we are explaining is that communities experiencing demographic change driven by immigration patterns do not experience significant increases in any of the kinds of crime we examined. And in many cases, crime was either stable or actually declined in communities that incorporated many immigrants."

Adelman says the relationship between immigration and crime is complex and more research needs to be done, but this research supports other scholarly conclusions that immigrants, on the whole, have a positive effect on American social and economic life.

"It's important to base our public policies on facts and evidence rather than ideologies and baseless claims that demonize particular segments of the U.S. population without any facts to back them up," said Adelman.

John Case
Harpers Ferry, WV

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