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Posts Tagged ‘economics

a lacuna

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Almost every journal article I’ve ever read makes mention of “a lacuna in the literature.” Sometimes, they say “a gap” instead. Often, the supposed gap is about as wide as a single atom. Occasionally, however, one stumbles upon an area that has been genuinely overlooked. I may have discovered such an area and I can only hope my readers will correct me.

In economics and public administration, there is a popular theory called crowding out theory. Essentially, proponents of this theory argues that as government funding to a given charitable non-profits grows, individual contributions drop off. The reasons for this effect are somewhat debated. The classic argument is that individuals see the government grant as an indirect contribution via taxes and do not wish to give two contributions. Subsequent researchers have argued that individuals may not have that level of information and a much more sound explanation is that given an abundance of government funds, non-profits back off fundraising. Others have responded with so-called crowding in theory, which suggests that government funding actually increases individual contributions by lending legitimacy to the organization. Brooks (2003) proposes a synthesis: there is a non-linear relationship in which low levels of government funding increase contributions by lending legitimacy, but higher level decrease it by decreasing fundraising activities.

While this literature considers the consequences of government funding on non-profits, I can find no comparable literature examining the effect of corporate contributions on non-profit fundraising efforts. There’s plenty of research on the costs and benefits of charitable contributions for businesses, but apparently none on the consequences for the non-profits. I’ve done a number of searches and cannot find anything on this topic. If this truly is a lacuna in the literature, then it’s a big one. I can imagine all kinds of effects of corporate giving on non-profit fundraising efforts, nevermind on the nature of the non-profit itself.

So, I ask you two questions, Reader. First, am I wrong? Is there a literature on this topic? Second, is this topic so boring that the lacuna should exist?

Written by andrewska

April 7, 2008 at 8:48 am

london calling

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In the past year, I have read three books and seen a movie that deal with overlapping themes of tribalism in England. Two of the books — Paul Theroux’s The Kingdom by the Sea and Bill Buford’s Among the Thugs — and the film, the near-perfect This is England, are set in 1980s England and address the severe issues of poverty, nationalism, racism during that time. The third book, Bill Bryson’s cheerful romp through the UK, Notes from a Small Island, depicts England in the mid-1990s, a period of increasing prosperity. At the heart of all four items was a struggle for the meaning of Englishness in a time of growing diversity and a shifting economy.

This is England begins in the early 80s. Unemployment is high, England is involved in a war in the Falkland Islands, and PM Margaret Thatcher is denying that society exists. A young boy, whose father recently died in the Falkland Islands, is picked on in school and joins a group of friendly, harmless punks. However, when an older punk is released from prison, he introduces the boys to a brand of racist, white nationalism. What is presented as standing up for England is thinly veiled racism against blacks, South Asian immigrants, and Jews. In a similar vein, Among the Thugs notes the recruiting of football hooligans to the white nationalist organization, the National Front. Theroux notes that much of the language of economic downturn is couched in racist language. He writes,

“It’s the blacks, see,” a respectable-looking man named Strawby told me. “We whites are the original inhabitants of this country, but they make all the laws in favor of the blacks. That’s why it’s all gone bad.” Mr. Strawby saw me making notes. He was not alarmed. He gave me a little lecture on racial characteristics and offered me tea.

All three sources tend to suggest that faced with the dual threats of massive unemployment and increasing immigrant populations, many white British people began to formulate a brand of reactionary white nationalism and tribalism. These feelings were acted out in several ways. Theroux notices grafittied swastikas on walls throughout the country. TIE depicts a National Front rally in which feelings of patriotism are quickly turned into anti-immigrant language. Buford describes how white people who feel little sense of a unique ethnic identity turn to country and football club to develop a identity. Some supporters of various football clubs — Liverpool, Chelsea, Manchester United — develop tribal identities and engage in often horrific violence toward other supporters*. In sum, England of the 80s and early 90s was a place of bigotry, violence, and incredible inequality.

By the mid-90s when Bryson toured England, things sound a bit better. With dramatic interventions by FIFA and FA, football violent was significantly reduced. New economic prosperity was developing with the high-tech and service industries replacing many of the manufacturing jobs that disappeared in the late 1970s and 1980s. Whereas Theroux complained about historical buildings being neglected and falling into disrepair, Bryson’s gripe is about how new (ugly) construction was quickly replacing historic buildings. In 1994, Tony Blair, then regarded as the “British JFK,” was elected as Prime Minister.

Today, the outlook in the British Isles continues to be fairly good. The pound sterling is worth over $2. Building on tourism, the “Celtic Tiger” economy of Ireland has been one of the great economic success stories in recent years. Similarly, England has moved three quarters of the labor force into the service industry and Britain, as a whole, has one of the lowest unemployment rates in Europe. While there are certainly major issues of inequality (especially for immigrant populations), they are nowhere near the levels of American stratification**.

I mention all of this for a reason. Last week, I was discussing Juliet Schor’s The Overspent American with a friend who studies global inequalities. My friend claimed that on most social, political, and economic measures, the U.S. is on the same trajectory as Europe, but lagging about 15 years behind. I am aware that several members of the pundit class have claimed that “the European social and political model” will ultimately prevail. This social and political model, I suppose would include an expanded social safety net, a more reasonable balance between life and work, a consumption model that emphasizes quality over quantity, etc. While I wish this would happen, I remain skeptical given America’s stubbornly individualist, free-market, materialist culture.

Nonetheless, spinning this idea around in my head, I was struck by the similarities between 1980s England and 2000s U.S. of A.: the reactionary anti-immigration attitudes, the economic difficulties (and disappearance of manufacturing), a war that the public doesn’t know how to react to, a right-wing administration trying to dismantle the social safety net, and so on. Of course, there are big differences (e.g., Iraq ≠ Falkland Islands). But the idea that in a relatively short amount of time, we could genuinely improve this country is encouraging. Naivete? You decide.

*Buford rejects the idea that the violence of football supporters is rooted in economics, noting that hooligans come from a variety of class backgrounds. He claims that rather than passionately being pulled into a crowd by dramatic circumstances, football fans rationally seek out the violent encounters for the adrenaline rush it provides. These claims would tend to be supported by recent rational choice, social movements literature (e.g., resource mobilization), which reject older LeBonian theories of crowd behavior.

**I don’t doubt that there are any number of problems I’ve neglected. I’m simply making to key contentions here: a) things have gotten a bit better, and b) economic disparities in the UK are not as bad as the US.

Written by andrewska

March 10, 2008 at 3:46 pm