Vol 12 No 1 (2018): JANUARY-APRIL
JANUARY-APRIL

This issue includes the articles that have been selected as monographs on, “Governability in Latin America countries in a globalized world”. It is possible thanks to the work of Professor Fr. Matthew Carnes, S.J., who has acted as guest editor, of the Department of Government (Edmund A. Walsh School of Foreign Service) and Director of the Center for Latin American Studies (CLAS) of Georgetown University. The Executive Board and the GCG Editorial Board would like to thank Professor Carnes for the excellent editorial coordination job he carried out in identifying the authors, performing the review processes and accepting the papers that meet the requirements established by the journal.

With this issue, the Journal of Globalization, Competitiveness and Governability begins a new journey after 10 years of faithfully meeting publishing frequencies for our readers and with internationally accepted quality criteria as audited by various institutions. GCG is currently indexed in: SCOPUS (Elsevier Bibliographic Databases, Scimago Journal Rank 2016, SJR), in the following categories: Business, Management and Accounting and Economics, Econometrics and Finance; EconLit (the American Economic Association's electronic bibliography); EBSCO Publishing's databases (Business Source Complete, Business Source Premier; Business Source Elite; Fuente Académica Premier, Fuente Académica Plus); ABI/INFORM (ProQuest, LATINDEX; REDALYC; Google Scholar Metrics) This commitment to quality has meant that GCG is categorized as an “A” journal (highest category) of all Spanish journals for human and social sciences on the Web of Science and/or SCOPUS (ISOC-CSIC).

The high percentage of foreign authors (76%) is noteworthy, especially those from Brazilian universities. Eighty-seven articles were received in 2017. The acceptance rate was 20.7%, and 60,968 articles were downloaded from the GCG website. We encourage authors to submit articles that comply with the requirements requested, so that managers, businessmen, and administrators can find answers to their thoughts, concerns and problems.

The topics analyzed in this issue are diverse and, undoubtedly, contribute to studying and analyzing the governability of Latin American countries. The first article addresses the issue of whether illicit economies, such as the illegal extraction of natural resources or trafficking in wildlife, constitute new challenges for governability. From this starting point, Marina Malamud (National Scientific and Technical Research Council, Argentina) analyzes the social, political, environmental, economic and regulatory factors of the informal economies in the Amazon basin. The investigation emphasizes the tri-border area between Brazil, Peru and Colombia, in relation to its impact on political institutions. The application of the qualitative analysis based on primary sources infers that there are still few political measures and regulations related to ecological crimes that increase social control and protection of biodiversity.

Corruption is a problem that appears in various countries and causes doubts to arise regarding its impact on the development of those regions. In this regard, Elis Bianca Azevedo; Antonio Gonçalves Oliveira; Camila Lima Buch; Thiago Cavalcante Nascimento and Christian Luiz da Silva of the Federal University of Technology – Paraná (UTFPR), Brazil, have attempted to identify whether there is a relationship between corruption, governance and the HDI in Brazil, as well as other social indicators. After identifying the variables used, the authors conducted a quantitative study, by means of linear regression and discriminant analysis, with secondary data about indexes that refer to all Brazilian states. Based on the results, the authors verify the existence of a relationship between the variables selected, and identify that there is a significant difference between Brazilian regions in terms of indicators of corruption, governance and human development.

Many provinces and states in Latin American democracies show autocratic characteristics that contrast with the national democratic context. The literature on sub-national authoritarianism has grappled with this question, but the explanations are mainly based on the political and economic role of the national government. To explain the emergence and resilience of autocratic sub-national governments, Manuel E. Mera (National University of San Martín, Argentina) introduces a theory that analyzes internal dynamics, arguing and developing the mechanisms of operation by means of a comparison of “most similar cases” in two neighboring Brazilian states: Bahía and Minas Gerais. For the author, sub-national autocracies are possible in a context of low economic diversification. Non-diversified economies, with a dominant economic sector, create a network of interests aligned with the local government and reduce support for opposition parties. In more diversified economies, inter-capitalist competition transfers the demands of economic players to the political arena, who then finance opposition parties when they feel they are not being heard.

In the following article, Josimar Pires da Silva, Rafael Martins Noriller; Emerson Santana de Sousa (University of Brasilia - UnB, Brazil) and Daiana Cardoso Silva (Mato Grosso State University - UNEMAT, Brazil) analyze the relationship between stock returns and the quality of the accruals of Brazilian open capital enterprises. The investigation is conducted on a sample of 353 companies, using information obtained from the annual financial statements from 2010 to 2015, panel data. An investigational hypothesis pertaining to the literature regarding the quality of the accrual was proposed. The hypothesis is confirmed that the quality of the accruals has a positive and significant relationship with stock returns. It is concluded that the outcome of the research corroborates most of the previous literature.

The investigation by Robério Dantas de França; Filipe Coelho de Lima Duarte; Paulo Amilton Maia Leite Filho (Federal University of Paraíba - UFPB, Brazil); and Luzivalda Guedes Damascena (Federal Institute of Education, Science and Technology of Paraíba - IFPB, Brazil) analyzes whether Latin American companies that are financially constrained (FC) and in periods of global financial crisis reduce the Effective Tax Rate (ETR). The study is conducted on a sample composed of Latin America, non-financial, open capital companies in the period from 2006 to 2015 for a total of 5328 business years. For the authors, the association between FR and ETR is confirmed; however, they were not observed in all Latin American countries. They conclude that due to the institutional differences between those countries, the results were not uniform, although the findings provide relevant information on the performance of Latin American companies in the face of financial constraints and periods of crisis in possible tax avoidance practices.

In the last article, Santiago López Cariboni (Catholic University of Uruguay) ponders the idea that irregular access to electricity can be understood as an “informal transfer social protection program”, which governments use to provide a social safety net in developing countries with volatile economies. The author analyzes the expected consequences of democratization for the irregular provision of access to electricity. In developing countries, democratic governments face the challenge of offering social safety nets given the absence of automatic mechanisms to soften consumption in the face of recurrent 'shocks' in the economy. The investigation presents descriptive evidence suggesting that electricity transmission and distribution losses (TDL) are counter-cyclical in democratic countries, but not in autocracies.

Once again, we would like to thank all those who have made it possible for the journal to operate smoothly: members of the Advisory Board, Editorial Board, Editors and Area Associate Editors, reviewers, authors, and above all, our readers, and, especially, in this issue, Professor Carnes' work, without whom it would not have been possible.

 

Ricardo Ernst

Editor in Chief

Professor, Georgetown University