Aseem Prakash

Trade-based Diffusion of Labor Rights: A Panel Study, 1986-2002

This article investigates the nature of the linkages between trade and labor rights in developing countries. Specifically, we hypothesize that a “California effect” serves to transmit superior labor standards from importing to exporting countries, in a manner similar to the transmission of environmental standards. We maintain that, all else being equal, the labor standards of a given country are influenced not by its overall level of trade openness, but by the labor standards of its trading partners. We evaluate our hypothesis using a panel of 90 developing countries over the period 1986–2002, and we separately examine the extent to which the labor laws and the actual labor practices of the countries are influenced by those of their export destinations. We find that strong legal protections of collective labor rights in a countrys export destinations are associated with more stringent labor laws in the exporting country. This California effect finding is, however, weaker in the context of labor rights practices, highlighting the importance of distinguishing between formal legislation and actual implementation of labor rights.

Responsible Care: An Assessment

Responsible Care is a voluntary code of conduct developed, enforced, and monitored by the Chemical Manufacturers Association. Voluntary codes could be designed and enforced by regulators, nonprofit groups, industry associations, and individual firms. They could vary in their scope, focusing on firms around the globe, in a given region, within a country, or in a given industry. This article focuses on Responsible Care’s self-regulatory services that pertain to establishing, monitoring, and enforcing industry-wide environmental, health, and safety standards. Employing insights from the club theory, stakeholder theory, institutionalist theory, and the corporate social performance perspective, it examines the demand and supply sides of voluntary codes. Finally, it discusses theoretical implications and the key challenges faced by Responsible Care in the future.

Risks and Risk Governance in Unconventional Shale Gas Development

A broad assessment is provided of the current state of knowledge regarding the risks associated with shale gas development and their governance. For the principal domains of risk, we identify observed and potential hazards and promising mitigation options to address them, characterizing current knowledge and research needs. Important unresolved research questions are identified for each area of risk; however, certain domains exhibit especially acute deficits of knowledge and attention, including integrated studies of public health, ecosystems, air quality, socioeconomic impacts on communities, and climate change. For these, current research and analysis are insufficient to either confirm or preclude important impacts. The rapidly evolving landscape of shale gas governance in the U.S. is also assessed, noting challenges and opportunities associated with the current decentralized (state-focused) system of regulation. We briefly review emerging approaches to shale gas governance in other nations, and consider new governance initiatives and options in the U.S. involving voluntary industry certification, comprehensive development plans, financial instruments, and possible future federal roles. In order to encompass the multiple relevant disciplines, address the complexities of the evolving shale gas system and reduce the many key uncertainties needed for improved management, a coordinated multiagency federal research effort will need to be implemented.

Regulatory Convergence in Nongovernmental Regimes? Cross‐National Adoption of ISO 14001 Certifications

Recent globalization discussions have revived the issue of regulatory convergence. Convergence advocates point to the structural pressures of the global economy on countries, while the divergence school points to the embeddedness of domestic regulatory institutions. This paper examines cross-national divergence in adoption rates of ISO 14001, an important international nongovernmental environmental regime developed with the cooperation of multinational firms. ISO 14001 offers a process-based system of voluntary regulation instead of an outcome-based system of public regulation that many firms find cumbersome. Our analysis of data from 59 countries suggests that ISO 14001 adoption rates are likely to be higher in countries whose trading partners have adopted this nongovernmental regime, which are embedded in international networks of nongovernmental organizations, whose governments flexibly enforce stringent environmental regulations with a less adversarial and litigious stance towards firms, and where consumers want mechanisms for identifying environmentally progressive firms.

Bargains old and new: multinational corporations in global governance

This paper outlines an approach for understanding the role of multinational corporations (MNCs) in global governance. We develop a typology of regime types with two dimensions, the goal of the regime, which can be market enabling or regulatory, and the location of authority, which can be national, regional, or international, with public and private elements. MNCs tend to support the creation of market enabling regimes at the international level, and prefer to keep social or environmental regulation under national or private authority. However, these are only generalizations and MNCs develop preferences based on their relative influence in various arenas, the costs of political participation, and competitive considerations. We argue that institutions of global governance represent the outcome of a series of negotiations among corporations, states, and non-state actors. The preferences and power of MNCs vary across issues and sectors, and from one negotiating forum to another, accounting for the uneven and fragmented nature of the resulting system. Our approach differs from the traditional FDI bargaining framework in that it recognizes the multi-party nature of negotiations and multiple sources of power. Moreover, the complexity and dynamic nature of the process results in a somewhat indeterminate process.

Trade Competition and Domestic Pollution: A Panel Study, 1980–2003

This research note examines whether trade competition abets regula- tory races in the environmental area+ To analyze trade competition, we develop a new measure, structural equivalence, which assesses competitive threats that a country faces from other countries whose firms export the same products to the same destination countries+ Employing this new measure, we analyze air pollution intensity ~sulfur diox- ide or SO2! and water pollution intensity ~biochemical oxygen demand or BOD! for a panel of 140 countries for the time period 1980-2003+ We find that trade competi- tion is a significant predictor of water pollution intensity among structurally equiva- lent countries+ We then test separately whether trade competition abets upward and downward regulatory races+ We find that in the case of water pollution, countries respond symmetrically to downward and upward races, that is, they follow their struc- turally equivalent competitor countries both when they ratchet down their regula- tions and when they ratchet up regulations+ In the case of air pollution, however, countries are responsive to downward policy changes only in competitor countries+

A new-institutionalist perspective on ISO 14000 and Responsible Care

This paper examines why US firms are lukewarm towards ISO 14000 while the US chemical industry has enthusiastically adopted Responsible Care. It also briefly explores why European and Asian firms are eagerly adopting ISO 14000. Employing a new-institutionalist framework it argues that firms have incentives to adopt beyond-compliance voluntary programs only if they perceive excludable benefits exceeding excludable costs. Institutions, the central conceptual pillar in a new-institutionalist framework, are important in shaping perceptions of benefits and costs and the extent of their excludability. US regulators can encourage adoption of ISO 14000 by granting attorney–client privileges and enhancing levels of regulatory relief. Firms, in turn, need to appreciate the political constraints of the EPA on this issue. They could relax these constraints by addressing the apprehensions of EPA’s key constituents. Copyright

Economic Development and Gender Equality: Is There a Gender Kuznets Curve?

This research note examines the relationship between economic development and gender equality. Drawing on the concept of the Kuznets curve, the authors hypothesize that the relationship between economic development and gender inequality is curvilinear (S shaped), with three distinct stages. In the first stage, economic development improves gender equality because it enables greater female labor-force participation. An independent income stream increases women’s intrahousehold bargaining power. The opportunity to develop human capital confers greater political and social recognition. In the second stage, labor-force stratification and gender discrimination encourage divergent male/female income trajectories, which decrease the opportunity costs of female labor-force withdrawal and lend traction to social resistance against burgeoning gender norms. Consequently, there is a deceleration in initial equality gains. In the final stage, gender equality again improves, as greater educational participation and technological advancement provide new employment opportunities for women, increase the opportunity costs of staying home, and encourage the evolution of new social institutions and norms that overcome prior discriminatory practices. The authors find support for this argument in statistical tests of the relationship between economic development and gender equality on a panel of 146 developing countries for the period 1980–2005. They employ four indicators that reflect distinct dimensions of women’s political, social, and economic status. They find economic development positively influences gender equality when per capita incomes are below

Corporate Responsibility Initiatives and Mechanisms

8,000–

Who Survived? Ethiopia's Regulatory Crackdown on Foreign-Funded NGOs

10,000. These equality gains level off or decline slightly in the second stage, from