Volume 11, No. 1, Summer 2007

Regional Decentralization and Institutional Remedies: The Potential for Regional Government with a Focus on Chicagoland
Matt Maloney

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Hurricane Evacuation and the Vulnerability of Older Adults: Hurricane Katrina as a Case Example
Chrissie James

The Cultural Thing About Corruption: A Case Study of Bribery in Uganda
Duncan Kisia

The issue of corruption has for a long time gone without significant empirical study, and even in the cases where empirical analyses have been carried out, the studies have largely focused on corruption through the lens of macroeconomics. A few economists have laid out some interesting and conceptually appealing microeconomic theories to explain corrupt behavior (Vishny 1993; Becker and Stigler 1974) but generally these contributions have been developed without empirical support. This paper aims to provide an empirical analysis of illicit behavior by government agents with the goal of verifying, and, where applicable, strengthening already developed microeconomic theories of corruption. The issue salient to my topic is the public’s perception and normalization of this thing called corruption, and how this perception affects the prevalenceof bribery as well as the realistic possibilities of controlling it. To analyze this, I use data obtained from the United Nations Interregional Crime and Justice Research Institute and focus on the International Crime Victimization Survey (ICVS) carried out in the Ugandan capital city of Kampala in the year 2000. With a better understanding of how corruption manifests itself in different societies, we can better inform policymakers and help them design more effective methods to tackle the problem.

The Domestic Piece of the International Puzzle
Sahar Khan

Poverty Alleviation and Income Inequality in Brazil: Task Force Report
Valentina Calderon-Meija, Joseph Costa, Reeba Daniel, Nicole Donnelly, Christina Forst, Carolyn Hight, Tana Johnson, Duncan Kisia, Ana-Sofia Leon, Sarah McLaughlin, Justin Palfreyman, Felicity Vabulas

Though Brazil is the ninth largest economy in the world, home to a wealth of natural resources, a large and diverse population, and a central location within South America, the nation’s growth is hindered by a mounting divide between rich and poor. The key findings are: 1) The divide between rich and poor and the racial gaps have historical roots; 2) Centuries of financial instability have led to periods of depression and hyperinflation; 3) A complicated multi-party system; complex constitution and limited access to political officials limit government accountability; 4) Despite recent improvements in increasing access to education, there are low retention rates; 5) Urbanization has created cities that are peppered with crime-ridden slums; 6) A complicated, multi-level tax system hinders business creation while heavy regulations encourage informal hiring; 7) The current pension system accounts for an unsustainable share of federal spending, and benefits only a small wealthy portion of the population; 8) An inefficient banking system and an underdeveloped credit market limit investment opportunities and hinder the movement of capital; and 9) Government underinvestment in roads and technology has left a hole that privatization might fill. President da Silva has pledged reform in several of the above areas. Our recommendations for immediate action are to broaden access to education and improve 63 retention rates, reduce taxes and labor market restrictions, cap pensions and place responsibility with the people, improve political accountability, lead the world in environmental accountability, and encourage creativity and innovation in addressing problem areas. Brazil finds itself at a critical stage in its history. Success in alleviating poverty and narrowing the income gap will be necessary first steps if Brazil hopes to make the transition from a nation of promise to a leader in the global economy.

Mexican Embassies and Their Impact on Exports
Paulo Esteban Alcaraz, Dawn Bushover, Christina Forst, Karla G. Mendoza-Lopez

Embassies fulfill many diplomatic functions in representing their respective countries and citizens abroad. In addition, they are increasingly becoming associated with important economic roles as well. Using a standard gravity model, we investigated whether the presence of a Mexican foreign mission abroad is systematically correlated with Mexican exports to that country, and find there to be a positive relationship. Specifically, the probability of exports increasing from zero to a positive number is approximately 14% if Mexico installs an embassy in a given country, and the level of real exports annually increase by an average of $105,000,000 US dollars (USD). However, increases in the average level of real exports vary by region. For example, the opening of a Mexican embassy in a country in Africa correlates to an increase in the level of real exports to that country by approximately $6,000,000 USD per year, whereas the opening of an embassy in a country in the European Union increases real exports to that country by an average of $239,000,000 USD per year.