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States have a strong incentive to enforce the requirements.
Under the old form, each partner was liable for all acts by all partners, a powerful incentive to enforce compliance with the law.
The solution is to dramatically increase the penalties — for example, revocation of the driver's license for one year and a $500 fine, with $100 going to the arresting officer as an incentive to enforce these laws.
Moreover, since the pollutant industries are mostly owned by the ruling party, the government has less incentive to enforce any measure of corporate environmental responsibility practice.
So, optimists say, the Chinese government will have every incentive to enforce intellectual property laws in order to retain its newly won WTO membership–and to avoid the penalties that WTO members have retained the right to impose for 12 years if China does break the rules.
Compared to the behaviour of a social planner, the MNE provides more differentiated goods than a social planner and when the local firm does not do undertake any R&D activities but can imitate the Process R&D of the MNE, a social planer has no incentive to enforce strong IPR at the optimum level.
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The party with the strongest incentives to enforce a testing program is the players.
Brazil, for instance, has strong environmental-protection laws but lacks the funds and the incentives to enforce them.
Bits and bobs The little party behind the throne ReprintsBritain would not be the first to use financial incentives to enforce immigration policy.
(The United Kingdom, that fearful bastion of socialized medicine, spends roughly 9% of its GDP on healthcare; in the United States the figure is close to 18%.) I also believe Brill overestimates the healthcare industry's incentives to enforce its own cost-control regime, even with the increased consolidation and enhanced government oversight that he proposes.
In an era of large government budget deficits, the incentive to aggressively enforce tax laws may be greater than ever.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com