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Why Public Efforts to Boost Entrepreneurship and Venture Capital Have Failed--and What to Do About It
Silicon Valley, Singapore, Tel Aviv--the global hubs of entrepreneurial activity--all bear the marks of government investment. Yet, for every public intervention that spurs entrepreneurial activity, there are many failed efforts that waste untold billions in taxpayer dollars. When has governmental sponsorship succeeded in boosting growth, and when has it fallen terribly short? Should the government be involved in such undertakings at all? Boulevard of Broken Dreams is the first extensive look at the ways governments have supported entrepreneurs and venture capitalists across decades and continents. Josh Lerner, one of the foremost experts in the field, provides valuable insights into why some public initiatives work while others are hobbled by pitfalls, and he offers suggestions for how public ventures should be implemented in the future.
Discussing the complex history of Silicon Valley and other pioneering centers of venture capital, Lerner uncovers the extent of government influence in prompting growth. He examines the public strategies used to advance new ventures, points to the challenges of these endeavors, and reveals the common flaws undermining far too many programs--poor design, a lack of understanding for the entrepreneurial process, and implementation problems. Lerner explains why governments cannot dictate how venture markets evolve, and why they must balance their positions as catalysts with an awareness of their limited ability to stimulate the entrepreneurial sector.
As governments worldwide seek to spur economic growth in ever more aggressive ways, Boulevard of Broken Dreams offers an important caution. The book argues for a careful approach to government support of entrepreneurial activities, so that the mistakes of earlier efforts are not repeated.
How Ethnic Politics Have Shaped Government Responses to AIDS
Why have governments responded to the HIV/AIDS pandemic in such different ways? During the past quarter century, international agencies and donors have disseminated vast resources and a set of best practice recommendations to policymakers around the globe. Yet the governments of developing countries in sub-Saharan Africa, Asia, Latin America, and the Caribbean continue to implement widely varying policies. Boundaries of Contagion is the first systematic, comparative analysis of the politics of HIV/AIDS. The book explores the political challenges of responding to a stigmatized condition, and identifies ethnic boundaries--the formal and informal institutions that divide societies--as a central influence on politics and policymaking.
Evan Lieberman examines the ways in which risk and social competition get mapped onto well-institutionalized patterns of ethnic politics. Where strong ethnic boundaries fragment societies into groups, the politics of AIDS are more likely to involve blame and shame-avoidance tactics against segments of the population. In turn, government leaders of such countries respond far less aggressively to the epidemic. Lieberman's case studies of Brazil, South Africa, and India--three developing countries that face significant AIDS epidemics--are complemented by statistical analyses of the policy responses of Indian states and over seventy developing countries. The studies conclude that varied patterns of ethnic competition shape how governments respond to this devastating problem. The author considers the implications for governments and donors, and the increasing tendency to identify social problems in ethnic terms.
Rethinking U.S. Immigration Policy
Many of America's greatest artists, scientists, investors, educators, and entrepreneurs have come from abroad. Rather than suffering from the "brain drain" of talented and educated individuals emigrating, the United States has benefited greatly over the years from the "brain gain" of immigration. These gifted immigrants have engineered advances in energy, information technology, international commerce, sports, arts, and culture. To stay competitive, the United States must institute more of an open-door policy to attract unique talents from other nations. Yet Americans resist such a policy despite their own immigrant histories and the substantial social, economic, intellectual, and cultural benefits of welcoming newcomers. Why?
In Brain Gain, Darrell West asserts that perception or "vision" is one reason reform in immigration policy is so politically difficult. Public discourse tends to emphasize the perceived negatives. Fear too often trumps optimism and reason. And democracy is messy, with policy principles that are often difficult to reconcile.
The seeming irrationality of U.S. immigration policy arises from a variety of thorny and interrelated factors: particularistic politics and fragmented institutions, public concern regarding education and employment, anger over taxes and social services, and ambivalence about national identity, culture, and language. Add to that stew a myopic (or worse) press, persistent fears of terrorism, and the difficulties of implementing border enforcement and legal justice.
West prescribes a series of reforms that will put America on a better course and enhance its long-term social and economic prosperity. Reconceptualizing immigration as a way to enhance innovation and competitiveness, the author notes, will help us find the next Sergey Brin, the next Andrew Grove, or even the next Albert Einstein.
Environmental Advocacy and Agenda Setting
Sarah B. Pralle takes an in-depth look at why some environmental conflicts expand to attract a lot of attention and participation, while others generate little interest or action. Branching Out, Digging In examines the expansion and containment of political conflict around forest policies in the United States and Canada. Late in 1993 citizens from around the world mobilized on behalf of saving old-growth forests in Clayoquot Sound. Yet, at the same time only a very few took note of an even larger reserve of public land at risk in northern California. Both cases, the Clayoquot Sound controversy in British Columbia and the Quincy Library Group case in the Sierra Nevada mountains of northern California, centered around conflicts between environmentalists seeking to preserve old-growth forests and timber companies fighting to preserve their logging privileges. Both marked important episodes in the history of forest politics in their respective countries but with dramatically different results. The Clayoquot Sound controversy spawned the largest civil disobedience in Canadian history; international demonstrations in Japan, England, Germany, Austria, and the United States; and the most significant changes in British Columbia's forest policy in decades. On the other hand, the California case, with four times as many acres at stake, became the poster child for the collaborative conservation approach, using stakeholder collaboration and negotiation to achieve a compromise that ultimately broke down and ended up in the courts. Pralle analyzes how the various political actorsùlocal and national environmental organizations, local residents, timber companies, and different levels of governmentùdefined the issues in both words and images, created and reconfigured alliances, and drew in different governmental institutions to attempt to achieve their goals. She develops a dynamic new model of conflict management by advocacy groups that puts a premium on nimble timing, flexibility, targeting, and tactics to gain the advantage and shows that how political actors go about exploiting these opportunities and overcoming constraints is a critical part of the policy process.
Legislative Member Organizations as Social Networks in the United States and the European Union
Legislative member organizations (LMOs)—such as caucuses in the U.S. Congress and intergroups in the European Parliament—exist in lawmaking bodies around the world. Unlike parties and committees, LMOs play no obvious, predefined role in the legislative process. They provide legislators with opportunities to establish social networks with colleagues who share common interests. In turn, such networks offer valuable opportunities for the efficient exchange of policy-relevant—and sometimes otherwise unattainable—information between legislative offices. Building on classic insights from the study of social networks, the authors provide a comparative overview of LMOs across advanced, liberal democracies. In two nuanced case studies of LMOs in the European Parliament and the U.S. Congress, the authors rely on a mix of social network analysis, sophisticated statistical methods, and careful qualitative analysis of a large number of in-depth interviews.
In 1999, one in four British children lived in poverty—the third highest child poverty rate among industrialized countries. Five years later, the child poverty rate in Britain had fallen by more than half in absolute terms. How did the British government accomplish this and what can the United States learn from the British experience? Jane Waldfogel offers a sharp analysis of the New Labour government’s anti-poverty agenda, its dramatic early success and eventual stalled progress. Comparing Britain’s anti-poverty initiative to U.S. welfare reform, the book shows how the policies of both countries have affected child poverty, living standards, and well-being in low-income families and suggests next steps for future reforms. Britain’s War on Poverty evaluates the three-pronged anti-poverty strategy employed by the British government and what these efforts accomplished. British reforms sought to promote work and make work pay, to increase financial support for families with children, and to invest in the health, early-life development, and education of children. The latter two features set the British reforms apart from the work-oriented U.S. welfare reforms, which did not specifically target income or program supports for children. Plagued by premature initiatives and what some experts called an overly ambitious agenda, the British reforms fell short of their intended goal but nevertheless significantly increased single-parent employment, raised incomes for low-income families, and improved child outcomes. Poverty has fallen, and the pattern of low-income family expenditures on child enrichment and healthy food has begun to converge with higher-income families. As Waldfogel sees it, further success in reducing child poverty in Britain will rely on understanding who is poor and who is at highest risk. More than half of poor children live in families where at least one parent is working, followed by unemployed single- and two-parent homes, respectively. Poverty rates are also notably higher for children with disabled parents, large families, and for Pakistani and Bangladeshi children. Based on these demographics, Waldfogel argues that future reforms must, among other goals, raise working-family incomes, provide more work for single parents, and better engage high-risk racial and ethnic minority groups. What can the United States learn from the British example? Britain’s War on Poverty is a primer in the triumphs and pitfalls of protracted policy. Notable differences distinguish the British and U.S. models, but Waldfogel asserts that a future U.S. poverty agenda must specifically address child poverty and the income inequality that helps create it. By any measurement and despite obstacles, Britain has significantly reduced child poverty. The book’s key lesson is that it can be done.
Anatomy of a Market Failure and a Policy Dilemma
As the Internet revolution continues to unfold and transform telecommunications, pressure is building for faster, less expensive, and more widely accessible broadband service. Such a development would facilitate improved and less expensive traditional applications such as voice telephony and web browsing. It would also enable new and useful applications such as Internet-based television, videoconferencing, and software distribution. Broadband has great potential to improve efficiency and productivity, even to improve national security in some cases. Broadband service and affordability, however, have consistently lagged well behind demand and progress in information technology, with damaging results. The Internet revolution remains incomplete and threatens to stagnate if the situation continues. In The Broadband Problem, economist and technology entrepreneur Charles H. Ferguson explains the causes and ramifications of this damaging bottleneck, and he offers suggestions on improving the current state of affairs. He asserts that current telecommunications law and policy have not provided sufficient levels of new entry, competition, and innovation in the local telecom market. The continuing dominance of ILECs (incumbent local exchange carriers) in that market impedes the healthy, and much-needed, development of an efficient broadband market. The result of these policy and market failures is inadequate technological progress, innovation, and productivity in advanced Internet services and telecommunication services generally. The broadband problem is holding us back, and thus must be addressed and solved. With this important volume, Charles Ferguson has contributed mightily to that mission.
Immigrant Identity in Anti-Immigrant Times
Anti-immigrant sentiment reached a fever pitch after 9/11, but its origins go back much further. Public rhetoric aimed at exposing a so-called invasion of Latino immigrants has been gaining ground for more than three decades—and fueling increasingly restrictive federal immigration policy. Accompanied by a flagging U.S. economy—record-level joblessness, bankruptcy, and income inequality—as well as waning consumer confidence, these conditions signaled one of the most hostile environments for immigrants in recent memory. In Brokered Boundaries, Douglas Massey and Magaly Sánchez untangle the complex political, social, and economic conditions underlying the rise of xenophobia in U.S. society. The book draws on in-depth interviews with Latin American immigrants in metropolitan New York and Philadelphia and—in their own words and images—reveals what life is like for immigrants attempting to integrate in anti-immigrant times. What do the social categories “Latino” and “American” actually mean to today’s immigrants? Brokered Boundaries analyzes how first- and second-generation immigrants from Central and South America and the Caribbean navigate these categories and their associated meanings as they make their way through U.S. society. Massey and Sánchez argue that the mythos of immigration, in which newcomers gradually shed their respective languages, beliefs, and cultural practices in favor of a distinctly American way of life, is, in reality, a process of negotiation between new arrivals and native-born citizens. Natives control interactions with outsiders by creating institutional, social, psychological, and spatial mechanisms that delimit immigrants’ access to material resources and even social status. Immigrants construct identities based on how they perceive and respond to these social boundaries. The authors make clear that today’s Latino immigrants are brokering boundaries in the context of unprecedented economic uncertainty, repressive anti-immigrant legislation, and a heightening fear that upward mobility for immigrants translates into downward mobility for the native-born. Despite an absolute decline in Latino immigration, immigration-related statutes have tripled in recent years, including many that further shred the safety net for legal permanent residents as well as the undocumented. Brokered Boundaries shows that, although Latin American immigrants come from many different countries, their common reception in a hostile social environment produces an emergent Latino identity soon after arrival. During anti-immigrant times, however, the longer immigrants stay in America, the more likely they are to experience discrimination and the less likely they are to identify as Americans.
Building Market Institutions in Russia
A classic problem of social order prompts the central questions of this book: Why are some groups better able to govern themselves than others? Why do state actors sometimes delegate governing power to other bodies? How do different organizations including the state, the business community, and protection rackets come to govern different markets? Scholars have used both sociological and economic approaches to study these questions; here Timothy Frye argues for a different approach. He seeks to extend the theoretical and empirical scope of theories of self-governance beyond groups that exist in isolation from the state and suggests that social order is primarily a political problem. Drawing on extensive interviews, surveys, and other sources, Frye addresses these question by studying five markets in contemporary Russia, including the currency futures, universal and specialized commodities, and equities markets. Using a model that depicts the effect of state policy on the prospects for self-governance, he tests theories of institutional performance and offers a political explanation for the creation of social capital, the formation of markets, and the source of legal institutions in the postcommunist world. In doing so, Frye makes a major contribution to the study of states and markets. The book will be important reading for academic political scientists, economists (especially those who study the New Institutional Economics), legal scholars, sociologists, business-people, journalists, and students interested in transitions. Timothy Frye is Assistant Professor of Political Science, The Ohio State University.
Advocacy in the United States and the European Union
This book presents the first large-scale study of lobbying strategies and outcomes in the United States and the European Union, two of the most powerful political systems in the world. Every day, tens of thousands of lobbyists in Washington and Brussels a