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Purpose – This chapter uses the work of Oxford economist Paul Collier to explore the conditions under which financing systems can be created to support the governance and economies of fragile states. This support is especially needed in the immediacy of a crisis or as a practical strategy to potentially change the dynamics of a particularly vulnerable state. The focus is on his 2008 proposal for Haiti, for a partnership of domestic and international financial institutions. Central to the proposal is the establishment of an Independent Service Authority (ISA) to fund and implement government policy, especially in delivery of basic services. Representatives from aid donors, Haitian expatriates or diaspora and members of the government would sit on the ISA board, sharing responsibility for effectively administering public funds. This model was proposed to the United Nations in late 2008 to stabilise and transform the government and economy of Haiti (Collier, 2008, 2009b).

Methodology – The chapter explores the issues raised in the model using a case study of the Regional Assistance Mission in the Solomon Islands (RAMSI).

Findings – “The work concludes that the RAMSI process worked well to stabilise financial systems and survived significant political challenge due to a framework of local agreements, regional or international resolutions, treaties, statutes and contracts. This suggests that such a framework will help to ‘buttress’ any mixed local–international financial institutions in the event of domestic political or legal contest in Haiti (or wherever else this model is considered).

Limitations – The chapter does not compare Haiti and the Solomon Islands as societies or economies, or go into the details of how the proposed financial institutions would operate and transition to other arrangements. Space also prevents consideration of the other international partnership models applied in Haiti from 2006–08 (e.g. the Haiti Economic Governance Reform Operation or EGRO; see the case study on Haiti by Bradford and Scott (forthcoming), 76–84). After the earthquake in January 2010, Collier re-visited Haiti and stressed the importance of longer-term economic transformation (a Haiti Marshall plan) as well as emergency relief.**Collier, P., & Warnholz, J.-L. (2010a). Haiti earthquake: Social and economic fabric must be rebuilt too. The Guardian, Sunday, 17 January. Available at http://www.guardian.co.uk/world/2010/jan/17/haitiearthquake-social-fabric-rebuilt; Collier, P., & Warnholz, J.-L. (2010b). We need a Marshall plan for Haiti. Globe and Mail, 13 January. Available at http://www.theglobeandmail.com/news/opinions/we-need-amarshall-plan-for-haiti/article1430309/ A key element of the international community's assistance will be finding mechanisms to handle finances. However the details of the new proposals are yet to be made public, hence this chapter focuses solely on Collier's 2008 proposals.

Alvin Hansen and John Williams’ Fiscal Policy Seminar at Harvard University is widely regarded as a key mechanism for the spread of Keynesianism in the United States. An original and regular participant, Richard A. Musgrave was invited to prepare remarks for the fiftieth anniversary of the seminar in 1988. These were never published, though a copy was filed with Musgrave’s papers at Princeton University. Their reproduction here is important for several reasons. First, it is one of the last reminiscences of the original participants. Second, the remarks make an important contribution to our understanding of the Harvard School of macro-fiscal policy. Third, the remarks provide interesting insights into Musgrave’s views on national economic policymaking as well as the intersection between theory and practice. The reminiscence demonstrates the importance of the seminar in shifting Musgrave’s research focus and moving him to a more pragmatic approach to public finance.

Paul Samuelson was attracted to the irregular economic development pattern of some South American countries because of the links between economic performance and political factors. He discussed the influence of “populist democracy” on Argentina’s relative economic stagnation, which, he argued in the 1970s and early 1980s, served as a dangerous paradigm for the American economy under stagflation. Stagflation phenomena marked the end of Samuelson’s “neoclassical synthesis.” Moreover, he applied his concept of “capitalist fascism” to deal with military dictatorships in Brazil and (especially) in Chile. The Brazilian translation of his Economics in 1973 brought about a correspondence with Brazilian economists about the “fascist” features of the regime. The main variable behind the South American economic and politically unstable processes discussed by Samuelson was economic inequality, which became also a conspicuous feature of the American economy since the adoption of market-based policies in the 1980s and after.

Communications regarding this column should be addressed to Mrs. Cheney, Peabody Library School, Nashville, Term. 37203. Mrs. Cheney does not sell the books listed here. They are available through normal trade sources. Mrs. Cheney, being a member of the editorial board of Pierian Press, will not review Pierian Press reference books in this column. Descriptions of Pierian Press reference books will be included elsewhere in this publication.

Post-conflict economies are characterized by high, and often growing, levels of debt. At the same time, peace is particularly fragile in the aftermath of a conflict. This chapter studies how debt affects the risk of war in the 10 years that follow the end of a previous conflict. After controlling for per-capita income and other economic, political, and geographical factors, external debt is found to increase the risk of war. Conversely, the effect of domestic debt is negligible. The policy implication for the international community is clear: debt relief helps stabilize peace in war-torn economies.

Fragile states (FS) are often neglected and categorized as “aid orphans”. In extreme circumstances, they are loaded with aid beyond their absorptive capacity. However, whether they receive little or too much, there is a compelling imperative to coordinate aid aimed at capacity development effectively. In an ever shrinking pot of funds from donors mainly due to the current global economic downturn, it is extremely important to coordinate and harmonise aid delivery. FS cannot afford to waste any money trapped under rubble of multi‐donor aid bureaucracy. Due to the multidimensional nature of fragility, we draw on case studies and interdisciplinary insights from Authority‐Legitimacy‐Capacity (ALC), Country Development Framework (CDF) and other models and frameworks of donor coordination. A number of asymmetries (e.g. technical, cultural and, financial) between donors and recipients need to be addressed. Donors can harmonise their respective Africa strategies reports and give priority to infrastructure instead of focusing exclusively on the social agenda as in the past. FS should fight the local culture of corruption, avoid fungibility, protect vulnerable groups in society, focus on reintegration as well as demobilizing ex‐combatants with employment provisions. Donors should not give mixed signals to recipients and need to be flexible in their operational procedures. Finally, we discuss the implications of key emerging issues that threaten or facilitate sustainable reconstruction, development and poverty reduction in post‐conflict environments.

A survey of the educational problems of the widely used but little known world of correspondence education, by Paul Glaister, Director of Course Development of Crowell Collier and Macmillan Schools. Operating from Aldermaston Court in Berkshire, the Schools include such colleges as the British Institute of Engineering Technology, School of Careers, Chambers College, Bennett College and Practical Arts and Sciences, and have close associations with Metropolitan College, St. Albans.

The Bureau of Economics in the Federal Trade Commission has a three-part role in the Agency and the strength of its functions changed over time depending on the preferences and ideology of the FTC’s leaders, developments in the field of economics, and the tenor of the times. The over-riding current role is to provide well considered, unbiased economic advice regarding antitrust and consumer protection law enforcement cases to the legal staff and the Commission. The second role, which long ago was primary, is to provide reports on investigations of various industries to the public and public officials. This role was more recently called research or “policy R&D”. A third role is to advocate for competition and markets both domestically and internationally. As a practical matter, the provision of economic advice to the FTC and to the legal staff has required that the economists wear “two hats,” helping the legal staff investigate cases and provide evidence to support law enforcement cases while also providing advice to the legal bureaus and to the Commission on which cases to pursue (thus providing “a second set of eyes” to evaluate cases). There is sometimes a tension in those functions because building a case is not the same as evaluating a case. Economists and the Bureau of Economics have provided such services to the FTC for over 100 years proving that a sub-organization can survive while playing roles that sometimes conflict. Such a life is not, however, always easy or fun.