Fire safety in urban China

A rapidly rising percentage of the Chinese population is living in high-rise apartment buildings in hundreds of cities around the country. There is concern, however, about the quality and effectiveness of fire-safety regulation and enforcement for these buildings (as well as factories, warehouses, ports, and other structures). This means that high-rise fires represent a growing …

Conflicts of interest

The possibility or likelihood of conflict of interest is present in virtually all professions and occupations. We expect a researcher, a physician, or a legislator to perform her work according to the highest values and norms of their work (searching for objective knowledge, providing the best care possible for the patient, drafting and supporting legislation …

Is corruption a social thing?

When we discuss the ontology of various aspects of the social world, we are often thinking of such things as institutions, organizations, social networks, value systems, and the like. These examples pick out features of the world that are relatively stable and functional. Where does an imperfection or dysfunction of social life like corruption fit …

Exercising government’s will

Since the beginning of the industrial age the topic of regulation of private activity for the public good has been essential for the health and safety of the public. The economics of externalities and public harms are too powerful to permit private actors to conduct their affairs purely according to the dictates of profit and …

What the boss wants to hear …

According to David Halberstam in his outstanding history of the war in Vietnam, The Best and the Brightest, a prime cause of disastrous decision-making by Presidents Kennedy and Johnson was an institutional imperative in the Defense Department to come up with a set of facts that conformed to what the President wanted to hear. Robert McNamara …

Regulatory failure

When we think of the issues of health and safety that exist in a modern complex economy, it is impossible to imagine that these social goods will be produced in sufficient quantity and quality by market forces alone. Safety and health hazards are typically regarded as "externalities" by private companies -- if they can be …

Gaining compliance

Organizations always involve numerous staff members whose behavior has the potential for creating significant risk for individuals and the organization but who are only loosely supervised. This situation unavoidably raises principal-agent problems. Let's assume that the great majority of staff members are motivated by good intentions and ethical standards. That means that there are a …

Corruption and institutional design

Robert Klitgaard is an insightful expert on the institutional causes of corruption in various social arrangements. His 1988 book, Controlling Corruption, laid out several case studies in detail, demonstrating specific features of institutional design that either encouraged or discouraged corrupt behavior by social and political actors. More recently Klitgaard prepared a major report for the …

Institutional design for democracies

How can we design practical, effective, and fair institutions for making the basic decisions that are needed within a democratic government? This is, of course, one of the oldest questions in democratic theory; but it is also a recent concern of Jon Elster's. Under this rubric we can investigate, for example, the ways a legislature …

Appearance and reality in public life

So what kind of democracy do we have?  Do our institutions do a great job of establishing the public interest over the medium term, or have our institutions been captured by private interests, leaving essentially no real power in the hands of citizens? The way it is supposed to work, according to Civics 101: Elected …