Private Business Enterprises Research Articles

The State of Public-Private Partnerships in Times of Global Economic Disruption

Growth in large private business enterprises in the 20th century established an environment that enabled a competitive relationship through Public-Private Partnerships (PPP) with the public sector, which historically suffered from inefficiencies and an over-reliance on projects and services, especially in emerging economies. PPPs can positively impact public safety, quality of life, new economic opportunities, poverty reduction, and benefit from long-term private capital and outside expertise. However, PPP investment is sensitive to critical factors such as: the macroeconomic environment, institutional and regulatory conditions, market size, rule of law, and enforceable contracts, among others. Thus, managing PPP projects is a very complex task, due to its multidisciplinary characteristics and the involvement of multiple stakeholders. In times of global economic disruption, this task becomes even more challenging. This study presents threats and opportunities for the execution of PPPs in times of global crises and their relationship with globalization trends.

Public–Private Partnership Strategy in Increasing Competitiveness Advantage of Malaysia’s Halal Cosmetic and Personal Care Industry

The Halal Industry Master Plan reflects the commitment and effort of the Malaysian government to encourage private business enterprises in the halal cosmetic and personal care industry to be more competitive. The private business enterprises need a more competitive advantage to compete with international non-certificate halal cosmetic products and more capacity to export halal cosmetic and personal care products. This empirical study was conducted to test the relationship between government support programmes and the competitive advantage of private business enterprises and examine the effect of the mediating variable of business opportunity on the relationship between government and public business enterprises. Data were collected from 84 participants from the top management in private business enterprises in cosmetic and personal care products. Data were analysed by using PLS-SEM. A significant positive relationship between contractual programmes and competitive advantage was found. However, this relationship could have been more significant when business opportunity was included as a mediating variable. Meanwhile, the study found a negative relationship between relational programmes and competitive advantage. Surprisingly, the relationship between relational programmes and competitive advantage became positive when business opportunity was added to the model. This study focused only on Malaysia’s halal cosmetic and personal care industry. Future studies may be conducted in other halal sectors and other regions.

СРАВНИТЕЛЬНАЯ ОЦЕНКА КОНКУРЕНТОСПОСОБНОСТИ ПРЕДПРИЯТИЙ МАЛОГО И СРЕДНЕГО БИЗНЕСА НА ПРИМЕРЕ РЕСПУБЛИКИ ТАТАРСТАН

In market conditions, the development of private business, especially small and medium-sized enterprises, plays a key role for any country. The effectiveness of this process is one of the main indicators of economic growth and has a direct impact on the composition and quality of national income. The main task of the management personnel of modern enterprises is to create their competitive advantages, which ensures the demand for products sold and financial stability. At the same time, the implementation of this task becomes more complicated in the context of constant foreign economic changes, reinforced by sanctions pressure. In addition, small and medium-sized businesses often face limited access to financial resources, management difficulties and competition from large companies. Analysis and comparative assessment of the competitiveness of small and medium-sized businesses provides an understanding of the key factors influencing the success of these enterprises, and makes it possible to develop strategies and support measures aimed at strengthening their position in the market. The object of the study is the activities of small and medium-sized businesses (SMEs) in the region. The purpose of the study is to conduct a comparative analysis of the level of competitiveness of certain areas of small and medium-sized businesses using the example of the Republic of Tatarstan. Research methods include deduction and induction, analysis and synthesis, documentary method, abstract-logical, economic-mathematical and tabular methods. The scientific novelty of the research is the formation of competitiveness criteria, the development of a model for comparative assessment of the competitiveness of small and medium-sized businesses, the application of this model in the conditions of the Republic of Tatarstan.

Innovative Motivation Methods of Staff At Small and Private Business Enterprises

.This article discusses one of the crucial challenges for small businesses today- issue of motivation at staff members which in the long run can lead either to prosperity of business or to the failure of it. The aim of this work is to study the reasons and consequences of this phenomenon for small business and private enterprises. During our research we comprehensively studied the works of world expertise on the raised issue, different research methods were used such as abstraction, induction and deduction, methods of observation, logical and structural analysis, grouping, mutual and comparative comparison. Various concepts of work motivation were analysed, concepts proposed by A.Maslow, K.Alderfer, McCelland, F.Herzberg were studied in detail taking into account the specific of human resource management at small business companies. In conclusion, several recommendations were given for small businesses’ managers regarding creating favourable conditions for staff motivation at workplace.

Sole companies: analysis and feasibility in Iran and the United States of America

The purpose of the article was to analyze the legislation governing sole proprietorships in Iran. Although the new draft commercial law and the existing laws in European and American companies indicate the possibility of forming a sole proprietorship, it is not possible in Iran to form a sole proprietorship under the existing regulations, especially the existing commercial law. Methodologically in the essay, based on a comparative study on American commercial law and through analytical issues, we point out that, from the analytical (not legal) point of view, the formation of such corporations not only does not face any strong obstacles, but also, it can be beneficial in various ways. We then present the benefits of the Single Corporation and finally discuss the administration and liquidation of these Corporations. Everything allows us to conclude that, the idea of forming a sole corporation is unusual in Iran, but it is also accepted by the state-owned companies. Therefore, the Iranian legislator can develop this idea and apply it to private business enterprises. However, it is noted that permission to run such companies should be considered while ensuring the rights of third parties.

The Future Taxation of Private Business Firms

© 1998 by George K. Yin. This article represents a continuation of work I have done as reporter to the American Law Institute's Federal Income Tax Project on the Taxation of Private Business Enterprises. Portions of this article have been drawn from drafts and discussions undertaken in connection with that project as well as from a prior article, George K. Yim, The Taxation of Private Business Enterprises: Some Policy Questions Stimulated by the "Check-the-Box" Regulations, 51 SMU Law Rev. 125 (1997).This article was prepared for presentation at a February 1998 symposium and research for it was completed in May 1998. A final ALI Reporters' Study is scheduled to be published in June 1999.Recent federal and state law developments liberalizing the permissible forms of business organizations and the classification of such organizations for tax purposes have underscored the need to reexamine the current system of taxing the income of private businesses. This article, which undertakes that reexamination, makes two principal claims. First, current law ought to be replaced by a system whereby all private business firms, no matter what their form of organization and organizational characteristics, are taxed as conduits for income tax purposes. Second, because conduit taxation is so complicated, the system should be implemented through a "two-track" approach in which a subset of private business firms would, at their election, be subject to a simplified set of tax rules. In general, the simplified version would be available to firms which have only individuals as owners and which have surrendered some flexibility in their economic dealings. Part II of this article briefly explains why current law merits reexamination and Parts III and IV correspond to the two main claims being made. A final part contains a brief summary and conclusion.

Corporate governance and firms financial performance amongst private business enterprises in Uganda, a perspective from Lira City

The study examined the effect of corporate governance on firm’s financial performance amongst private business enterprises in Uganda. The study used descriptive and survey design. A mixed method approach which involved both qualitative and quantitative techniques were also used. The study found out that corporate governance significantly influences the financial performance of hotels and manufacturing firms in Lira City and majority of the firms investigated performed on average financially. It was also established that firms whose boards demonstrate high integrity were likely to register positive changes in their financial performance than firms whose boards do not. The study also noted that board independence would propel the firm to grow to greater heights. The study recommends that hotel and manufacturing firm owners should exercise some discipline and leave boards to operate independently. This would allow the board to remain focused on the long-term goals of the firm. The hotel and manufacturing firm owners should be cautious in selecting board members lest they attract many that would increase the firm’s liabilities. Key words: Corporate governance, board diversity, board integrity, firm performance, financial performance.

The Economic Decolonisation of Indonesia: a Bird�s-eye View

An oft-quoted statement by the Indonesian nationalist leader Haji Agus Salim runs as follows: The economic side of the Indonesian Revolution has yet to begin. (Higgins, 1957: 102, cited in Lindblad, 2008: 2). The statement was made shortly before or shortly after the transition of sovereignty from Dutch colonial rule on 27 December 1949. At long last, the Netherlands had acknowledged that Indonesia was independent, which brought the Indonesian Revolution to its logical conclusion. But, by the conditions laid down at the Round Table Conference in The Hague in late 1949, the interests of Dutch private capital were still omnipresent in the Indonesian economy. In addition, the Indonesian government was obliged to consult the Netherlands government in matters affecting the economy until the debt of the former colony to the metropolitan mother country had been repaid in full. As Haji Agus Salim rightly stressed, economic and political decolonisation did not coincide but followed different historical trajectories.This contribution offers an abridged account of the process of economic decolonisation as it unfolded between 1945 and 1959, from the proclamation of independence until the nationalisation of the vast majority of Dutch-owned companies that had retained operations in Indonesia after independence.1 Four themes serve as devices tofurther our understanding of the process of economic decolonisation. These four themes, in order of appearance, are below: the new spirit in Indonesian economic life following the transfer of sovereignty; the changing climate of economic policy-making during the 1950s; the response and accommodation by remaining Dutch companies; and, finally, the concluding phase of expropriation and nationalisation.A couple of points of departure need to be spelled out. The ideological basis of the thrust towards economic decolonisation in Indonesia was provided by a small booklet, Ekonomi Indonesia, which made a very timely appearance in 1949. Its subtitle, Dari ekonomi kolonial ke ekonomi nasional, carried an immediate appeal to contemporary public discourse, offering the briefest possible summary of what economic decolonisation in Indonesia was all about. For the remainder, the book offered very little concrete guidance (Hadinoto, 1949). A second point of departure may be traced in the international historiography on Indonesian decolonisation, notably John Sutters voluminous PhD dissertation on domestic developments up to the general election in 1955 (Sutter, 1959). Although providing a wealth of information from government sources and press material, Sutters survey offers little on the fate of private business enterprises; in addition, he did not consult Dutch-language sources. Yet another point of departure in our quest to better understand economic decolonisation in Indonesia is, of course, the wider international context of the Cold War. Decolonisation in Indonesia, whether political or economic, did not take place in a vacuum but was intrinsically linked to Indonesias efforts to position itself in the tension between the Western powers and the Soviet bloc. Just as Sukarnos young republic secured American support against the returning Dutch by heavy-handedly crushing the Communist uprising in Madiun in 1948; did increasing flirtation with the Soviet bloc during the Guided Democracy period alienate Indonesia from the internationalcommunity and bring flows of incoming foreign investment to a virtual standstill?

The climate justice movement, trade unions and the working class

22 | International Union Rights | 26/4 FOCUS | CLIMATE CHANGE & TRADE UNIONS Climate change is a public health issue and workers’ rights issue The past three decades are characterised by an unprecedented rise in CO2 emissions as well as the gradual development of a global movement against climate change, which routinely surfaces in the runup to the ‘COP’ conferences.1 As the global community is still far off fulfilling the targets of the 2016 Paris Agreement, new kinds of environmental and climate movements, such as Fridays for Future and Extinction Rebellion, have emerged, using the slogan of ‘climate justice’. Recent school student strikes and large-scale climate change demonstrations are an expression of a deep feeling that large numbers of people in the Global North want to do something about climate change. Many of them are engaging in political action for the first time and understandably look towards the existing structures of climate activism in order to articulate their hopes. Yet, the there are numerous issues that limit the ability of the climate movement to involve a broader spectrum of workers and trade unionists in their movement. Many of these are related to the organising tactics but there are also wider politics at play… The ‘NGO-ization’ of climate politics Since the late 1990s mainstream NGOs have been mobilising their members and subscribers onto the streets before major summits of the G8, World Trade Organisation and the COP talks. At the Rio Earth Summit in 1992, NGOs took the global stage with a massive presence. Since the mid-1990s, many multinational companies also run their own company-internal environmental campaigns and set their own environmental goals. It has become attractive to sign up to the UN Sustainable Development Goals, as environmental and social governance features higher on the agendas of institutional investors. From the Rio Earth Summit onwards, larger NGOs have suceeded in getting a ‘seat at the table’ on policy processes concerning the environment and climate change. Unlike trade unions that are financed by their membership dues, many NGOs are however structured like private business enterprises without any democratic leadership and are dependent either on government funding or large private donations (or both). Thus, they must always be able to showcase their successes and keep their donors satisfied. That offers one possible explanation as to why some NGOs have keenly promoted market-based mechanisms and technological ‘fixes’ currently being promoted by transnational corporations. Such NGOs may argue that without their involvement the climate would be in a far worse situation, but in doing so, they also seek to legitimise their participation in a highly ecologically ineffectual process. A group of critical NGOs formed a loose network under the banner of ‘Climate Justice Now’ when the COP13 in Bali failed in 2007. This network laid the basis for global justice activists and radical environmentalists to come together at the 2009 World Social Forum in Bélém to draft the Declaration for Climate Justice. This enabled various wings of the climate movement to mobilise huge numbers of people into campaigning, protesting, and letter writing. The subsequent 2009 Copenhagen climate summit was a turning point: it did succeed in building a strong foundation for a broad movement with a minimal consensus around the ubiquitous slogan of ‘climate justice’, which continues to inspire today’s school strikers. Nonetheless, the COP15 ended with no binding targets. The breakdown of the COP15 talks made it clear that lobbying and expert work had become obsolete. NGOs were no longer exerting the same influence as they had done for the previous fifteen years. Meanwhile, the radical wing of the climate movement spearheaded by ‘Reclaim Power’ was not able to delegitimise the UNFCCC process as they had hoped for. One possible explanation for this was the absence of trade unions and organised labour from their mobilisations. Indeed, trade unions have not yet realised their potential in exposing companies’ green-washing strategies and regulating capital through their collective agreements from below. Such approaches are more necessary than ever, as it is unlikely that the climate crisis will be solved through the free market. Even to this day policymakers and world leaders are hesitant to use the state to drive through...

The Indian Diaspora in Africa: The Commodification of Hindu Rashtra

A new approach to India’s diaspora has taken place within the wider context of the adoption, in 1991, of a neoliberal economic policy framework. In recent years, Indian private business enterprises have led the way in Africa and this has had an important impact on the state’s conceptualization of the diaspora. New Delhi’s elites actively seek to embrace an objectified ‘globalization’ as a means to benefit powerful externally oriented fractions and the diaspora’s value is measured in its contribution to this project. There has been a determined attempt to commodify the diaspora to serve particular Indian economic interests. However, the current government’s Hindu chauvinism makes the very question of what constitutes a genuine Indian rather narrow. Two factors thus dominate current policy: commodification and categorization. The diaspora in South Africa is discussed as an example where these dynamics can be acutely observed.

Competitive Neutrality: Challenges on the Application for Vietnam

The growing importance of competitive neutrality in the national and global market-place has given rise to concerns about how to ensure a level playing field – where state-owned enterprises and private entities compete. The paper aims to clarify the issue of competitive neutrality in general and current challenges faced by Vietnam policy makers committed to the level playing field between public and private business enterprises in particular. It is also to serve as an inspiration to governments that confront similar challenges and a contribution to establish the competition regime based on principles of competitive neutrality. This paper also aims at establishing a comprehensive overview of Vietnam’s Competition environment and Competition Law as well as presenting a representative picture of Vietnam’s State-owned enterprises and challenges for the application of competitive neutrality in Vietnam, from that recommendations will be made. It is carried out as a study in the field of competitive neutrality that promotes the efforts of governments and policy makers committed to the level playing field between public and private business enterprises.

Growth of bank frauds and the impact on the Nigerian banking industry

Banks all over the world have through their unique position in an economy, contributed immensely to the economic growth and development of a nation. The significance of the banking sector in any country stems from its role of financial mobilization from surplus to deficit units of any economy, provision of a competent payment system and facilitation of the implementation of monetary policies. In intermediation, banks mobilize savings from the surplus units of the economy and channel these funds to the deficit unit, particularly private business enterprises, for the purposes of expanding their productive capacity. As intermediaries to both suppliers and users of funds, banks are effectively situated in a continuum that determines the pulse of the economy.

A Linux-based IDPS using Snort

Computer networks are the backbone of enterprises and the corporate sector. Because of financial constraints, private- and public-sector corporations have shifted much of their services and business activities on to the Internet. Also, members of the general public have increased their dependence on information technology in their daily lives. This multifactor web of resources is helping organisations and the general public in their endeavours to promote businesses. Network systems deployed in an organisation communicate with other networks through the Internet for the purpose of sharing services. In addition, corporate intranets connect together through the Internet to provide services to users around the world. Financial cartels, banks, public service organisations and private business enterprises also communicate with their worldwide users over the Internet.

Entrepreneurial Activity of Institution of Higher Education: Learn From American Experience

Postsecondary educational institutions have expanded the scope of commercial activity that now involves the institution in the sale of goods, services, or leasehold interests in real estate. The trend toward commercialization of college and university operations continues to emerge which means the growth of commercial activities and related entrepreneurial activities. These developments may affect the institutions, their campus communities, and local communities in many ways: some good and some not so good, and may also raise questions about the academic values and institutional mission. The educational institutions may engage in such activity for a variety of reasons. The goal may be to make the campus life more convenient and self-contained, to increase institutional visibility and show good will with professional and corporate organizations, to make productive use of underutilized space, especially in the summer, to generate new revenue streams and become self-supporting. It is reasonable to learn from the positive experience of American institutions of higher education and implement it in Ukrainian system of education. The scope of an institution's authority to perform entrepreneurial activity may be questioned whether or not the institution's activity puts it in competition with local businesses. Challenges may be made by business competitors, by state taxpayers, or by the state attorney general. Early and modern legal precedents illustrate the variety of approached that courts may use in analyzing the authority of a public institution to engage in arguably commercial activities or to compete with private business enterprises. The circumstances that should be taken into account are: (1) particular functions and objectives of the enterprise, (2) the relation of these functions and objectives to the institution's educational purposes, (3) the particular wording of the statutes or constitutional provisions delegating authority to the institution or limiting its powers, (4) judicial precedent in that state indicating how to construe the scope of delegated powers. If a court finds that commercial activities serve an educational function or are related to the institution's educational purposes, it probably would conclude that the institution has the authority to operate the enterprise. In contrast, the institution's authority will likely be questionable or nonexistent if the competitive or profit-seeking aspects of its enterprise are not incidental to its educational aspect but rather are the primary driver behind the institution's decision to operate the enterprise.

Sustainability Commitment In Saudi Arabia And Need For Educational Reforms For The Jobs Of The Future

Saudi Arabia is an important country among the Middle Eastern nations and a pivotal one because of its key position in international petroleum production. Sustainable practices are becoming prominent considerations among public and private sector Saudi Arabian business enterprises. Secondary and primary data pertaining to sustainability and carbon management practices in Saudi Arabia and its business enterprises were analyzed in this study. Saudi Arabian government has been serious in tackling the environmental problems. Primary data revealed private sector managers were better prepared and eager to deal with sustainability and carbon management problems compared to public sector enterprises. Surveyed Saudi managers reported hope that their employers would start rewarding positive sustainability actions and focus on educating managers about carbon management practices. There is a need to reform the educational system to prepare future managers who are ready to implement sustainability policies in their organizations. The findings of this project can assist Saudi Arabian policymakers and leadership of public and private sector universities to restructure the higher education sector to prepare students for the jobs of the future and help Saudi Arabia in pursuing sustainability goals.

FROM DATA MINING AND KNOWLEDGE DISCOVERY TO BIG DATA ANALYTICS AND KNOWLEDGE EXTRACTION FOR APPLICATIONS IN SCIENCE

“Data mining” for “knowledge discovery in databases” and associated computational operations first introduced in the mid-1990 s can no longer cope wit h the analytical issues relating to the so-called “ big data”. The recent buzzword big data refers to large volumes of diverse, dynami c, complex, longitudinal and/or distributed data generated from instruments, sensors, Internet transactions, email, video, clic k streams, noisy, structured/unstructured and/or all other digital sources available today and in the fu ture at speeds and on scales never seen before in human his tory. The big data also being described using 3 Vs, volume, variety and velocity (with an additional 4t h V for “veracity” and more recently with a 5th V f or “value”), requires a set of new technologies, such as high performance computing i.e., exascale, architectures (distributed or grid), algorithms (fo r data clustering and generating association rules) , programming languages, automated and scalable software tools, to uncover hidden patterns, unknown correlations and other useful information lately re ferred to as “actionable knowledge” or “data produc ts” from the massive volumes of complex raw data. In view of the above facts, the paper gives an introduct ion to the synergistic challenges in “data-intensive” s cience and “exascale” computing for resolving “big data analytics” and “data science” issues in four main d isciplines namely, computer science, computational science, statistics and mathematics. For the realis ation of vital identified foundational aspects of a n effective cyber infrastructure, basic problems need to be add ressed adequately in the respective disciplines and are outlined. Finally, the paper looks at five scientif ic research projects that are urgently in need of h igh performance computing; this is in contrast to the e arlier situations where private business enterprise s were the drivers of better modern and faster technologie s.

Deep in Debt: A Review of David Graeber’s Debt: The First 5,000 Years

Deep in Debt: A Review of David Graeber’s Debt: The First 5,000 Years

Challenges of Internal Bank Fraud Policy. A Case Study of Commercial Banks In Harare Central Business District

In the intermediation, banks mobilize savings from the surplus units of the economy and channel these to the deficit units, particularly private business enterprises for the purpose of expanding their productive capacity (Adeyemo 2012). Levi (2001), asserts that corporate financial scandals in the USA such as Enron and Tyco debacles send shockwaves in the corporate world, regulatory authorities, audit fraternity and the economic world society at large. These have led to the erosion of investor confidence in the financial markets. The Zimbabwe banking sector has had its fair share of financial scandals. The Reserve Bank of Zimbabwe Report (RBZ, 2006) examines the 2003-2004 financial turmoil that was caused by many fraud related factors such as the shocking inadequacy of the risk management system, diversion from the core business of the banks to speculative activities contrary to the dictates of the Banking Act Chapter 24:20 and its regulations, creative accounting which increased the audit risk and overstatement of the banks‟ financial statement (window dressing), high level of non performing insider loans and rapid expansion and chronic liquidity challenges. Oseni (2006) argues that the incessant frauds in the banking industry have resulted in the banking public losing their trust and confidence in the industry. Wells (2004) opined that most accountants and auditors think internal controls are an answer to fraud yet many organizations with these controls still experience fraud. Wells (ibid) further state that fraud prevention and internal control is not the same thing. The Central Bank of Nigeria (2000) reported that by half way mark more cases of fraud and attempted fraud worth N5.4 trillion (USD34.8) million were reported more than that reported in the whole of 2006 which was USD 30.97 million (Adeyemo 2012). The Zimbabwe National Statistics Agency Quarterly Report (2013) reveals that in 2010 Zimbabwe Republic Police (ZRP) received 2624 fraud reports and in 2011 ZRP received 8027 fraud reports, a 205.9% increase. It is indeed worrisome that while banks are constantly trying to grapple with the demand of monetary authorities to recapitalize up to the stipulated minimum standards, fraudsters are always at work threatening and decimating their financial base.

Quality of Accounting Graduates: A Survey of Employers in Nigeria

This study examined the quality of accounting graduates based on a survey of employers in Nigeria. The study was prompted by a perceived gap between the skills possessed by accounting graduates and the skills needed by employers. Specifically, the study investigated the private and public sectors perception of the quality of accounting graduates for skills required by employers, whether educational institutions provided the skills most vital to the graduates and as needed by employers and employers' perception of the differences among the accounting graduates. The study adopted a survey research design method. The population of the study consisted of all private and public business enterprises in the area. Sample for the study consisted of 350 respondents made up of 225 and 125 private and public business enterprises, respectively. Data were collected through the use of copies of well structured questionnaire. Descriptive statistics of frequency, rated mean and mean rankings were used in analyzing the data. The hypotheses were tested using student t-distribution statistics with the aid of a MINTAB Student computer software. The findings of the study showed that today's accounting graduates were computer literate and possessed insufficiency of skills in accounting procedures and principles, as well as initiatives. More so the study found out that there were significant differences between the private and public employers' perception of the quality of accounting graduates, in the quality of accounting graduates as needed by the private and public employers and in the skills most vital to accounting graduates as perceived by the private and public employers. Based on the findings of this study, it was recommended that the National Universities commission and other agencies should work in synergy with the business world to get the latest input on business developments and requirements, which can be achieved by organizing trainings and workshops.

K. William Kapp's theory of social costs: A Luhmannian interpretation

In developing his famous theory of social costs, K. William Kapp claimed to draw inspiration from the theory of open systems. The present paper reconstructs the notion of social costs from the perspective of the Luhmannian theory of autopoietic social systems, an alternative systems-theoretic paradigm. According to Luhmann, these systems build up their internal complexity at the cost of lowering their sensitivity to the complexity of their environment, both societal and ecological. From the Luhmannian perspective, social costs can be understood as those segments of environmental feedback that are thus ignored by social systems. This perspective is not only consistent with Kapp's own vision of social costs as a systematic outcome of private business enterprise, but also even more radical as it traces these costs back to the regime of functional differentiation of society, and thus to human civilization generally. It follows from the Luhmannian perspective that social costs can be reduced by improving the coordination between the individual functional systems, such as economy, law, politics, and science.