Shomron Center for Economic Policy Research

In Search for an efficient Institutions

January 4, 2016
by Moshe
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ONS (Social Sciences and Contemporary World) Journal 2015 Content

The leading Russian Social science interdisciplinary Journal “Obshestvennye nauki i sovremennost” (ONS, Social Sciences and Contemporary World) kindly provided us the Journal’s 2015 Content.

Among the key issues covered by the Journal’s articles’ authors – discussion on Social Liberalism, Russian society challenges, Institution history and modern state, Public opinion and more.

The file contain articles titles and short annotations.

You could find full texts of the ONS Journal Articles’  1991-2013 here, at the Journal page (Higher School of Economics’ web -site) – in Russian only.

 

December 27, 2015
by Moshe
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Political factors behind Surges and Cuts of Government spending

Our new paper just uploaded at SSRN: “Political Factors of the Cuts and Surges in Government Spending: The Effects on Old Market Democracies and Post-Communist Countries“.

Based on the comparative analysis of the experiences of both old and new market democracies, this paper emphasizes key factors that have triggered changes in government spending routine, measured in terms of each nation’s gross domestic product (GDP). By analyzing the history of the last several decades, the authors of this paper outline the factors (such as territorial separatism, the domination of the left- and right-wing parties or the long one-party domination) that affect governments’ abilities to balance the budget. Much attention is paid to the phenomenon of universal suffrage, which led to the contemporary left-wing parties and strong interest groups within the bureaucracy.
This paper reaches the following conclusions: First, most political factors are time sensitive—they only last for so long—and they differ from country to country; however, those factors that depend on universal suffrage consistent throughout all periods and countries. Second, a severe crisis usually opens the window of opportunity that is necessary to cut public expenditure, while the favorable economic conditions stimulate spikes in government spending. Third, the most effective way to curb the instability of public finance is to form a political coalition of nationalists and free market supporters.

 

November 4, 2015
by Moshe
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Anti -parent bill lost, 5th Commandment won by … leftists, feminists votes

Anti – parent bill “Parents and their Kids”  (see M.Feiglin’s comments on the bill) was defeated today in Knesset 41:42.

The bill adoption’s main consequence would be aggravated enforcement in Israel so called Convention on the Rights of the Child (hereafter, CRC). The  CRC prescribes the only “Right” for the child – to be separated by force from his (her) parents “in his ) her best interest” – see Article 9 – the only clause with real sense in this document. The core idea of the bill is to cancel the acting legislation’s’ assumption of parental rights. These rights are already reduced to the “guardian” / “custodian” level. The bill establish so-called “parental responsibility for the children’s good” instead the parental Rights. This small terminological change would cause great change in enforcement. It would be more than enough for Israel activist Court system to use the new Law to secure courts’ unrestricted power to intervene in private family relations, to rule, to control the family institution in the country.

The bill sponsored by equality (!) minister Gila Gamlieli and Member of Knesset Yoav Kish (both, Likud) in attempt to broaden support for the bill included in it the section which would have canceled the so called Tender Years Presumption in the current Family Legislation, which says that in divorce, children under six will be in their mothers’ custody on default (automatically).

Most of coalition members (Likud, Jewish Home) voted in favor the bill.  Vocal leftist extremist opposition speaker – Zahava Gal’on claimed mother’s need to use their children as a weapon in her war on man during divorce (famous feminist mantra “to empower women” by any price). She blasted the Bill sponsors for their “betrayal” of mother’s rights. All numerous Knesset feminists from opposition factions (Labor, Meretz, Yesh Atid) and even from coalition member “Kulanu” faction were conscripted against the bill (for short review on parties currently represented in the Knesset see our short report).

Even so-called “orthodox” Shas party objected against the clause which actually fits Halacha (Jewish traditional Law) not against clear attempt of the Bill to challenge 5th Commandment: “Honour thy Farther and Mother that thy days may be long upon the Land which the Lord thy God giveth thee” void and introduce instead something like “.

The attempt to declare 5th Commandment void in the Knesset of Israel failed this time. But we haven’t got any reason for optimism regarding new Big Government’s attempts to wage Jihad against the family institution. We addressed  this danger in our reports previously (gender role of Government;  Limits of Governmental intervention…) and we are full of resolution to advance further ideas of strong family institution, priority of parental power and responsibility free from Big Government “care” and interventions .

 

September 16, 2015
by Moshe
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Syrian “refugees” invasion

Syrian “refugees invasion actualizes problems we addressed in our book.
First and foremost it is an issue of corruption of incentives by welfare state. Politicians encouraged to “import” voters, bureaucrats to “import” new clients, supportive to their claim for more generous budget. These very incentives, powered European’s elite lack of vision and responsibility, inspired by taxpayers’ paid microphone of Public Media. These Public Media are left biased, they distort coverage of the events, they abuse dissenting opinions an join unholy alliance with politicians   (the sort of politician which is formally defined as “leftist”) and civilian bureaucrats to open the gates to impressive deterioration of social and political environment in the old EU countries.
Finally, welfare programs create adverse selection incentives machinery, attracting worst people instead of the best, poor educated and intolerant instead of well educated and ready to accept western values and identity of the country of their adoption. No any doubts,  huge majority of “refugees” will prefer lasting welfare to hard work and social adaptation in the European countries.

 

P.S. Dr. Guy Bechor had explained European infiltrators’ crisis by Iran Deal. I believe, this explanation contributes better understanding of the crisis. Bechor’s version looks as at least one (I guess minor, but important) additional reason for rise of incentives of middle-eastern males to invade the Europe. Dr Bechore wrote: “The millions of refugees in Turkey, Lebanon and Jordan had some vague hope that
Syrian President Bashar Assad would fall one day, that the Islamic State would disappear one day, that one day all this might end. As soon as they saw that the nuclear deal had been signed, and that Iran would receive $150 billion and an end to the sanctions, they realized that what is happening in Syria, Iraq and Lebanon is not going to end in our lifetime.”

July 4, 2015
by Moshe
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Notes on New and Old Military Justice, Army’s ethics & Morale

Modern military Justice punishes officers and soldiers of democratic nations’ armies  for their military success. “Excessive use of force” and similar artificial judicial constructions  undermine incentives of army officers, making the military machine virtually inoperative.  Artificially abridged Army capability prevents any opportunities to win the fight against terror, to defend democratic nations and to break trap of  violent dictatorship or warlords brutality  for peoples of rogue / failed states. Shurat a Din conference “Towards a new Law of War” addressed the  issues such as human shields, proportionality, fighting in civilian areas, defining war crimes in attempt to propose solution of the problem, to restore Democratic nations’ ability to defend themselves against Islamic  terrorism. Our comments are based on our extensive research program on the issues of Governments’ failures to provide sustainable defense for the people. The comments focused on the most obvious practical conclusions and recommendations based on the conference materials. The comments also raise some additional problems to be solved in order to restore our Armies’ deterrence capacities.

The notes proposed are poorly edited but, I hope, useful for people interested in the issue:

How to Scrap Modern Military Justice to Restore Army’s Deterrence Capacity.

 

March 31, 2015
by Moshe
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New paper: on selective enforcement of anti-discrimination Legislation

The paper: “The puzzle of selectivity in fighting discrimination: A public choice approach” is very preliminary draft of the text for the coming books on new way to fight Freedom, “fighting minorities’ discrimination”… of course, selectively fighting.

Advocates of the war against discrimination and for affirmative action claim it is necessary to set up additional regulatory procedures that will defend interests of minorities who, previously, were not given enough chances to succeed. Because there is no set definition of a minority who suffered from discrimination in the past (Historically Excluded Groups [HEGs] consider all women to be a minority), law-enforcement practices are to a large degree dependent on precedence (judicial authorities) as well as the behavior of bureaucrats who have the authority to defend people against discrimination. Incentives and the true criteria for choosing minorities will be analyzed in this report.
There are practices in the USA and Israel, as well as statistics of EEOC practices (a committee on equal rights in hiring, that is a kind of specialized public prosecution office) supporting the hypothesis that the main anti-discriminatory activity aims to mobilize groups who traditionally voted against a limited government, to vote for a nanny state that provides cradle to grave care.
Keywords: historically excluded groups, pure public goods, discrimination, Limited Government

JEL codes: D72, D73, J15, K31

March 2, 2015
by Moshe
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XX Knesset Elections: What Do These Parties Really Stand for?

Why people less and less interested in the parties’ electoral platforms? Why Leftists in spite of numerous failures in security (“Peace Process”) and in spite of poor performance in economic issues are going on in pushing their radical ideas and Rightist so easily surrender their positions?

In proposed short paper we propose our explanation to this phenomena and provide short review of party positions on 11 issues:

1. The judicial / court system reforms
2. Private property, including Real Estate safeguards
3. Taxation / new Governmental spending (mandatory), budget balance / deficit
4. Business climate / business regulations
5. Arabians, Arabian autonomy, Judea, Samaria and Jerusalem statute solution,
6. Freedom of speech, freedom of press and media-market
7.  Education
8.  The IDF statute, tasks, functions and responsibilities, “new military justice” and politicized prosecutions problem;
9. Self-defense and 2nd amendment (Right to bear Arms)
10. Family, Government intervention “to protect” wives against husbands and children against parents
11. Illegal immigration

We are focusing on parties’ deeds not on their platforms, first and foremost.

Israel primaries peculiarities’ short description in comparison with US original pattern provided (see annex 2).

February 9, 2015
by Moshe
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Businessman executed in PRC: versions and implications

A Chinese mining tycoon (Liu Han) linked to former security tsar Zhou Yongkang has been executed, according to state media.”

Officially, Liu Han, 48, “was found guilty of 13 charges – including murder, organising casinos, running a mafia-style gang and illegally selling firearms”. Incentives to run “mafia-style gang and illegally selling firearms” for successful businessman look pretty weak.

Reasonable version – continuing large scale property and power redistribution in PRC and fall of businessman’s protector – mighty chief of China communist security service Zhou Yongkang caused attack on businesses, left unprotected. “Word of honor” of Chinese communist leaders was highly valued 10-20 years ago. Wide – spread corruption was predictable, obligations of bribe-takers were revered and respectable, their promises – reliably kept.

Intensification of intra-elite conflict broken this “golden age” of Chinese industrial prosperity, curtailing influx of foreign direct private investments, gradually and not so successfully substituted by governmental investments.

Executions of Chinese businessmen and continuation of intra-elite conflict rises the question about prospects of Chinese economic growth and the quality of the latter. We discussed this issue in our book and papers and, unfortunately, our forecasts going to be true.

 

January 18, 2015
by Moshe
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Revisiting Terrorism studies: new papers’ 1st draft

We had started a series of short studies of terrorism “supply” and counter-terrorism “under-supply” incentives since 2004. After few years of break we returned to the issue starting with well forgotten story: how Oslo “peace” process was explained and advocated by needs to stop Arabian riots – so called 1st Intifada. So, here is very preliminary draft of new paper focused on the issue: how well founded were the decisions, made in 1992-94 to introduce radical changes in the terror-fighting strategy of Israel (switch from deterrence of terror to appeasement of terrorists)..

The First Intifada, the Oslo Accords, and the Escalation of Terror: Causalities Revisited” (January 15, 2015). Available at SSRN: http://ssrn.com/abstract=2550441

Abstract of the paper:

The analysis of events of the First Intifada focused on the question of how well founded the decisions made at the time were to introduce radical changes in the terror-fighting strategy. Most sources treat the process at Oslo as an outgrowth of Israel’s inability to suppress the Arab riots. We will consider an alternative interpretation in addition to this widespread view. The alternative approach will be based on understanding Oslo as the outcome of developments dictated by certain interests within Israel.

The magnitude of the events of 1987-1990 does nothing to explain the leadership’s refusal to come up with a strategy for fighting terrorism in favor of choosing a strategy of pacification instead. Most of the steps taken by the Israeli leadership in the course of the conflict cannot be adequately explained without taking into account the struggle for power and the evolution of the leftist elite’s interests after their loss of the monopoly of power in 1977 — along with their loss of motives for defending the country or the security of its citizens. Citizen security saw a drastic drop in the priority status it had formerly enjoyed as a state objective. This came in the wake of the disintegration of mechanisms of responsibility and the interest taken by the authorities in providing security.

The Oslo Accords were in no way dictated by the First Intifada; even so, the Intifada is used extensively as a means of Oslo legitimatization. In actuality, one and the same process and one and the same political choice led to both the Oslo Accords and the terror boom.

 

January 7, 2015
by Moshe
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How to make electorate informed: natural way vs. artificial way

There is old, reliable  well tested way to keep voter well informed. To enfranchise taxpayer only and his incentives to keep government accountable will make him well informed soon.

Our Canadian colleagues is searching a way to inform well “first nation” voters heavily depended on budget finance (“Aboriginal issues and spending per First Nations person in Canada rose more than 880 per cent over the past 60 years. In comparison spending per person on all Canadians rose by 387 per cent.”). They pointed out the cases of misuse of governmental money by the bands’ chiefs.  The author of the post – Ravina Bains expresses hope one could introduce new transparency standard for the First Nations which would deliver information about the spending to the bands of Indians, etc preventing Chief’s waste of federal money and more than generous salaries for these budget – extorting activities.

The problem is, the principal incentives of the band is the same as the band’s chief: to extort more money from the Government. The Chief, efficiently leading his band in this rent-extortion would be supported irrespective of his spending quality till the band gets “it fair share”.

Just stop waste federal money, create encouraging taxation and leave people (“First” and all the rest) alone – they will earn money. Provide taxation – representation legal framework, make Chief depended on local taxpayers funded budget, natural incentives would make voter well informed and the chiefs – accountable.