Corporate interests and public affairs: organised business–government relations in EU member states

The internationalisation of economic and political affairs changes the way in which business interests are brought to bear on public policy. This is a global phenomenon but can, in particular, be observed in Europe. The construction of the European Union, the development of the Single Market and the build‐up of the policy institutions to go with it, together change business–government relations profoundly. This paper answers the question of how organised business interests relate to government agencies and political institutions. By using the example of trade associations in the Netherlands and Germany, the paper shows that, despite the internationalisation of public affairs in Europe, the national political level remains strategically important for the representation of business interests. The paper thus argues that changes in European business–government relations are institutionally embedded at both the European and the national level. The implication for future research is that much of the dynamics of economic and political internationalisation materialises within the domestic arrangements of interest politics. Copyright © 2004 Henry Stewart Publications     

The state of public affairs in Bulgaria

This paper studies the recent post-communist developments of linkages amongst organisations, society and government in Bulgaria. I argue that public affairs is in a very early, embryonic stage of development. This is to a large extent due to the very slow re-establishment of the non-centralised market economy; this is very specific to Bulgaria compared with the rest of the Central and Eastern European countries and can be explained by the significant heritage from the communist period. Today, the economic actors in Bulgaria are represented by two extremes—a myriad of small and medium enterprises, lacking the capacity and resources to develop government relations, and a few monopolistic groups with an unclear structure and ownership, which are influencing the government policy in a non-transparent way. Despite the exceptionally strong state tradition, the government institutions are very often paralysed by the lack of long-term political vision. As a result, the government was and is still easily subject to external influences. However, the situation is progressively changing, although not without external pressure from the European Union and the internal pressure of foreign investors. Public affairs will therefore develop at the speed of the development of political democracy, a modern corporate culture and the establishment of economic operators with long-term vision and interests. The profession of public affairs consultant, almost non-existent today, will then progressively find its natural place, acting as a catalyst for the development of business–government–society linkages. Copyright © 2014 John Wiley & Sons, Ltd.     

Small firm membership in national trade associations

• Business associations play a significant role in private–public interactions by aggregating company interests and relating these to political decision makers. Associations are particularly important for smaller firms, which generally do not have the resources to pursue political strategies independently. This paper discusses the question of what the motives are for small and medium‐sized firms to maintain their membership in national trade associations at a time when the European business environment is undergoing profound changes. Using the example of the Netherlands, it is argued that associational membership is determined foremost by political considerations. The implication of this conclusion is that national business associations continue to perform an important function in mediating business–government relations. Despite the internationalization of public decision making, these organizations remain important intermediaries for corporate public affairs.
• 1 We would like to thank two anonymous referees for their helpful comments and suggestions.

Copyright © 2005 John Wiley & Sons, Ltd.     

Public relations for public affairs

The term ‘public affairs’ has now become a much‐discussed topic in continental Europe's political and economic circles, including Germany and Austria. The problem is that few people really understand just what the term means. Many people have the impression that ‘public affairs’ is another way of describing lobbying. Others perceive it as classic public relations. In Europe many decision makers of the business world lack the specific knowledge of policy making; however, until now just a few such executives have taken advantage of the real opportunities opened up by using the services of professional public affairs consulting. Communications companies in Europe are now offering public affairs consulting as part of their services, with increasing success. The first task to make public affairs better known in Europe therefore must be public relations for public affairs. Copyright © 2001 Henry Stewart Publications     

Political allegiance and European integration

Under what conditions and to what extent do national publics come to accept the increasing efforts of state elites to build new political institutions that transcend the constitutional frontiers of the nation-state and affect their interests beyond their direct control? This paper explores the role of national publics and social policy in the process of national and European integration. A theory of allegiance is proposed as particularly useful for analyzing this topic. Allegiance is defined as the willingness of a national public to approve of and to support the decisions made by a government, in return for a more or less immediate and straightforward reward or benefit. National publics accept the efforts of their national state elites to build new trans- or supranational political institutions on the condition that this guarantees or reinforces economic (e.g. employment) and social (e.g. income maintenance) security in the national context. European integration depends on a double allegiance, consisting of a primary allegiance to the nation-state and its political elite and a secondary or derived allegiance to the EC or EU. Secondary allegiance, however, exists only to the extent that European integration facilitates nation-states to provide the resources upon which primary allegiance hinges. The theory of double allegiance specifies theoretically the mechanism explaining the link between national economic and social conditions, and public support for the European Union.

     

Sliding doors in Brussels: A career path analysis of EU affairs managers

This article investigates the revolving doors phenomenon in the European Union (EU). It proposes a management approach that treats this phenomenon as a form of corporate political activity through which companies try to gain access to decision makers. By using sequence analysis to examine the career paths of almost 300 EU affairs managers based in public and private companies across 26 countries, three different ideal‐typical managers are identified: those EU affairs managers coming from EU institutions and public affairs; those who make a career through the private sector; and those who establish themselves in national political institutions. This identification confirms that EU institutions need different types of information and companies need EU affairs managers with different professional backgrounds able to provide it. Rather than observing a revolving door of EU officials into EU government affairs, what the authors term ‘sliding doors’ – namely the separation of careers, especially between the public and private sectors – is discerned.     

The changing politics of lobbying: private sector organizations in Mexico

This article analyzes how the relations between Mexico's private sector, particularly that of business power groups and interest groups, and the political elite changed as a result of processes of neo-liberalization and democratization from the early 1980s through the presidency of Vicente Fox (2000–2006). The analysis provides several insights into Mexico's developing interest group system during these years and particularly that of business interests. On the one hand, the changes increased political pluralism, the number of groups operating, and their lobbying options and helped move Mexico toward liberal democracy. On the other hand, with its major resources and political connections, big business was able to maintain, in fact enhance, its political status, whereas small business was less politically successful. Moreover, many old political practices used by big business to influence government persist as well as skepticism among the public regarding democratic institutions. As a consequence, this article argues that despite the new developments in political advocacy, the continuation of traditional political practices presents obstacles to the development of interest group activity resulting in a plutocratic element to Mexico's emerging democracy. Copyright © 2013 John Wiley & Sons, Ltd.     

Refusing to be Sidelined: The Engagement of the Finnish Eduskunta in Foreign Affairs

It is often argued that foreign and security policy is dominated by the executive, with parliaments wielding marginal influence. However, as legislative‐executive relations in the realm of foreign and security policy have attracted remarkably little scholarly attention, there is a demand for subjecting the alleged executive drift in foreign affairs to careful empirical scrutiny. There is also a need to examine whether and how parliamentary politics in foreign affairs differs from domestic or European matters, both regarding control mechanisms and party competition. The notions of ‘executive dominance’ and ‘politics stopping at the water's edge’ certainly point in the direction of less active control and casting aside public partisan differences in favour of providing domestic support for the government. A case study of the Finnish Eduskunta forces us to reconsider such arguments. This article examines the multiple instruments members of parliament (MPs) have for becoming involved in foreign affairs, from participating in the formulation of the national ‘grand strategy’ document to ministerial hearings in the committees. It also provides strong evidence of the Europeanization of national foreign policies, with matters relating to the foreign policy and external relations of the European Union (EU) in a central role in the Foreign Affairs Committee. Parliamentary culture is consensual, especially in security policy, but there is nonetheless greater room and willingness for party‐political contestation in foreign affairs.     

Perspectives,practices and prospects of public affairs in Central and Eastern Europe: a lobbying future anchored in an institutional context

‘Public Affairs’ is not a term most people in Central and Eastern Europe (CEE) will recognise and associate with interest representation and lobbying as ways of linking business, society and government. The term may be seen as a euphemism for corruption-inspired ‘lobbying’, an artificial and confusing umbrella term or a public relations creation. It is a term in transition for a subject in transition in a part of Europe in transition. Even as part of the European Union, CEE is still different, in transition, finding its own feet like a phoenix arising from the ashes of 50 years of communism, but slowly, in bursts, réculer pour mieux sauter and very different from country to country. Which are the features and values of the 50 years of communism that will disappear, fast more slowly, which ones will linger on? What are the institutions in CEE countries that public affairs will have to deal with, and what is the view on transparency and transparency regulation in CEE? To add understanding, values, cultural differences, institutional context and other factors affecting the public affairs environment are examined. Copyright © 2014 John Wiley & Sons, Ltd.     

The acceptance,relevance and dominance of lobbying the EU Commission — a first‐time survey of the EU Commission's civil servants

Among public affairs techniques lobbying is by far the most mystifying one — at least in Europe. Lobbying comes from the Latin word ‘labium’ and means ‘entrance hall’ or ‘lounge’. Therein the essential meaning can be seen: today political decisions are not made in plenary assemblies but primarily in the pre‐political phase of balancing the various interests. Lobbying is to be understood as the ‘diverse intensive activities of social groups, chambers and companies in the political and bureaucratic vestibule’ (Beyme 1980). Modern lobbying on the EU level is an intermediary policy for the support of political decision making — even if some critics refuse to believe it. Lobbying at EU level has become a politically realistic dimension. Even if the mass media still take a very sceptical and negative view of lobbying in Brussels, based on the existing European taboo on influencing politics, an in‐depth analysis reveals various lobbies at work in EU institutions. Lobbying today is an essential part of all EU decision areas. This paper describes the functional theory approach of lobbying known as ‘cooperation as confrontation through communication’. For the first time, recipients of lobbying in the EU Commission are demonstrating their acceptance of lobbying efforts. The paper is based on the doctoral thesis ‘The acceptance, relevance and dominance of lobbying the EU Commission’ by Peter Koeppl, University of Vienna (unpublished). Copyright © 2001 Henry Stewart Publications     

State and Capital in Sweden: The Importance of Corporatist Arrangements

In what way does corporatist representation change the behaviour of participating organizations? The classical question is whether the interest organizations' representatives are captured or not. Sweden is one of the countries in which the class-based interest organizations are heavily represented in the central public administration. The importance of corporatist arrangement in this area in Sweden is due to the fact that the task of implementing government policy is largely given to semi-independent directorates. Since the early 1970s, the major business organization in Sweden has been strongly demanding cuts in public spending. As it is represented in some of the most important, and expanding, public agencies of the Swedish welfare state, it could be expected that their representatives would demand a decrease in the agencies' yearly budget proposals. During a ten-year period (1974–1983), there is no sign of such behaviour of the business organization's representatives in these corporatist institutions. On the contrary, business in Sweden can be said to have been more generous with the taxpayers' money than both Social Democratic and bourgeois governments have found possible. Assuming that both its general demand for cuts in public spending and its specific action in the corporatist institutions are rational, it is discussed how this seemingly contradictory behaviour of Swedish business can be explained. The starting point for the debate about corporatism is the organizations' increasing influence on the state. The Confederation's standpoint is that this influence has now reached such a level that there is need for a change On various occasions. representatives of other interest organizations have also emphasized the importance of keeping a clear-cut distinction between the area of political responsibility and the area of the organizations' responsibility. In political issues it is the politicians' duty to weigh up the different judgments and standpoints and to come to a common public interest. The interest organizations' task is to pursue their special interests. These interest organizations should not take part in decisions in the political sector. I f this were to happen the special interests would have too much influence on the political decisions.     

Responsive Government? Public Opinion and Government Policy Preferences in Britain and Denmark

The ability of a political system to respond to the preferences of its citizens is central to democratic theory and practice; yet most empirical research on government responsiveness has concentrated on the United States. As a result, we know very little about the nature of government policy responsiveness in Europe and we have a poor understanding of the conditions that affect cross-national variations. This comparative study examines the relationship between public opinion and policy preferences in the United Kingdom and Denmark during the past three decades. We address two key questions: First, are the government's policy intentions driven by public opinion or vice versa? Second, do political institutions influence the level of government responsiveness? We suggest that public opinion tends to drive the government's policy intentions due to the threat of electoral sanction, and that this is more pronounced in proportional systems than in majoritarian democracies.     

Lokale Politik und die Sozialisation demokratischer Einstellungen in Europa

The legitimacy of European democracies is challenged by a fading away of their citizens’ support (see Putnam et al. 2000). This phenomenon of declining support might even become more severe when formerly national political competencies are moved away to supranational institutions like the European Union. In this situation the local level gains importance. Can local government be a “training-ground” for positive democratic attitudes that strengthens political support also at higher levels of government? And is local autonomy a tool to foster this support function of local politics? Using comparative survey data on local and national political attitudes in Europe as well as macro data on local autonomy these questions will be investigated. The results show a remarkable socialization function of local politics, which is especially strong concerning feelings of local political competence. However, positive effects from local autonomy that support this democratic support function of local politics are hardly to be found.     

Pharmaceutical regulation in Denmark and the UK: Reformulating interest representation to the transnational level

Abstract. Common elements are recognised across Denmark and the UK in regulation of the pharmaceutical industry, which are attributed to the impact of associational action at the sector level. Our examination of arrangements for regulating medicine prices and information displays many of the hallmarks of neo-corporatism – namely negotiation with state agencies, compliance seeking among members, and policy implementation through acting as a Private Interest Government. During a period of economic internationalisation and directive international agencies, we show how business interests have reformulated to transnational levels, with associations, despite facing a greater complexity of interests to represent, having a strong impact upon regulatory outcomes. These have been neither wholly deregulatory or reregulatory, but partly reflect events at national levels. This may predict regulatory developments at the European level in other sectors.     

Estimating the Effect of Elite Communications on Public Opinion Using Instrumental Variables

A central question in the study of democratic polities is the extent to which elite opinion about policy shapes public opinion. Estimating the impact of elites on mass opinion is difficult because of endogeneity, omitted variables, and measurement error. This article proposes an identification strategy for estimating the causal effect of elite messages on public support for European integration employing changes in political institutions as instrumental variables. We find that more negative elite messages about European integration do indeed decrease public support for Europe. Our analysis suggests that OLS estimates are biased, underestimating the magnitude of the effect of elite messages by 50%. We also find no evidence that this effect varies for more politically aware individuals, and our estimates are inconsistent with a mainstreaming effect in which political awareness increases support for Europe in those settings in which elites have a favorable consensus on the benefits of integration.     

Responsible Party Government in a World of Interdependence

This article opens up the closed model of the responsibility of a national government to its national electorate by adding constraints on its capacity to enact effective economic, national security and political policies. These constraints come from policy interdependence. The European Union exerts a denationalising influence through the Council, a multinational effect through the European Parliament, and the eurozone is designed as a transnational technocracy. Intergovernmental institutions spanning continents add further constraints. The result is a growing gap between the efforts of a national government to deliver outputs that match the preferences of voters and a reduction in the capacity of national electorates to hold accountable institutions outside their country that have a major impact on national outcomes. The conclusion considers three prospective possibilities: a growing frustration with a policy-irrelevant rotation of parties in office; institutional reform at the supranational level; and a learning process in which a recognition of the constraints of interdependence leads to a change in expectations.     

Participation,Dialogue, and Civic Engagement: Understanding the Role of Organized Civil Society in Promoting Active Citizenship in the European Union

Abstract

This article looks at current policies concerning the civic and political participation of youths, women, migrants, and minorities in the European Union. It highlights the ways in which active citizenship and civic engagement have become a political priority for European institutions. Representation of local policy actors at the supranational level and strategies for the inclusion of civil society provide a platform for evaluating the impact of Europeanization at the national and subnational level. The article focuses on key discourses and narratives associated with specific policy frames (e.g. European citizenship, European social policies, and the European public sphere (EPS)). Some of the key questions addressed by the article are: What are the strategies that are employed, both by the European institutions in Brussels and organized civil society (OCS), to enhance participation and reciprocal communication? What vision of governance do practices such as active engagement and civil dialogue represent? Drawing on current theories of governance, our article contributes to the debate about the EPS by evaluating the role of OCS in bridging the gap between European institutions and national polities. Equally, our focus on traditionally marginal groups provides a platform for assessing the institutionalization of the ‘European social dimension’.     

The Limits of Europeanization: Regulatory Reforms in the Spanish and Portuguese Telecommunications and Electricity Sectors

The creation of a European Union‐level regulatory regime for telecommunications and electricity was a highly successful political initiative of the European Commission. However, this article argues that the causal link between European initiatives and national policy change is weak. Building on an emerging tradition of cross‐sector research of these two sectors, and considering two most similar European countries, the article applies a series of comparisons, including a stepwise comparative analysis of two countries (one a reluctant liberalizer, the other an enthusiastic one), of two sectors (a pacesetter and a footdragger), and of two time periods (before and after the regulatory reforms). We suggest that Spain and Portugal were able to shape their sectors according to the preferences of their national policy communities and in a context of a global shift in the way countries both within Europe and outside it defined their interests.     

International political marketing: a case study of United States soft power and public diplomacy

• Political marketing can be categorized with three aspects: the election campaign as the origin of political marketing, the permanent campaign as a governing tool and international political marketing (IPM) which covers the areas of public diplomacy, marketing of nations, international political communication, national image, soft power and the cross‐cultural studies of political marketing. IPM and the application of soft power have been practiced by nation‐states throughout the modern history of international relations starting with the signing of the Treaty of Westphalia in 1648. Nation‐states promote the image of their country worldwide through public diplomacy, exchange mutual interests in their bilateral or multilateral relation with other countries, lobby for their national interests in international organizations and apply cultural and political communication strategies internationally to build up their soft power. In modern international relations, nation‐states achieve their foreign policy goals by applying both hard power and soft power. Public diplomacy as part of IPM is a method in the creation of soft power, as well as, in the application of soft power.
• This paper starts with the definitional and conceptual review of political marketing. For the first time in publication, it establishes a theoretical model which provides a framework of the three aspects of political marketing, that is electoral political marketing (EPM), governmental political marketing (GPM) and IPM. This model covers all the main political exchanges among six inter‐related components in the three pairs of political exchange process, that is candidates and party versus voters and interest groups in EPM ; governments, leaders and public servants versus citizens and interest groups in GPM, including political public relations and lobbying which have been categorized as the third aspect of political marketing in some related studies; and governments, interest group and activists versus international organizations and foreign subjects in IPM. This study further develops a model of IPM, which covers its strategy and marketing mix on the secondary level of the general political marketing model, and then, the third level model of international political choice behaviour based the theory of political choice behaviour in EPM. This paper continues to review the concepts of soft power and public diplomacy and defines their relation with IPM.
• It then reports a case study on the soft power and public diplomacy of the United States from the perspectives of applying IPM and soft power. Under the framework of IPM, it looks at the traditional principles of US foreign policy, that is Hamiltonians, Wilsonians, Jeffersonians and Jacksonians, and the application of US soft power in the Iraq War since 2003. The paper advances the argument that generally all nation states apply IPM to increase their soft power. The decline of US soft power is caused mainly by its foreign policy. The unilateralism Jacksonians and realism Hamiltonians have a historical trend to emphasize hard power while neglecting soft power. Numerous reports and studies have been conducted on the pros and cons of US foreign policy in the Iraq War, which are not the focus of this paper. From the aspect of IPM, this paper studies the case of US soft power and public diplomacy, and their effects in the Iraq War. It attempts to exam the application of US public diplomacy with the key concept of political exchange, political choice behaviour, the long‐term approach and the non‐government operation principles of public diplomacy which is a part of IPM. The case study confirms the relations among IPM, soft power and public diplomacy and finds that lessons can be learned from these practices of IPM. The paper concludes that there is a great demand for research both at a theoretical as well as practical level for IPM and soft power. It calls for further study on this subject.

Copyright © 2008 John Wiley & Sons, Ltd.     

Explaining the Decline of Macro-corporatist Political Bargaining Structures in Advanced Capitalist Societies

A growing consensus among many observers of Western European politics has developed in recent years that, in certain countries, national level, consensus-based political bargaining arrangements involving representatives of organized capital, trade unions, and the state are giving way to more sectorally-based, conflictual forms of relations. These developments suggest an overall decline in the efficacy of national-level corporatist institutional structures in the liberal democracies of Western Europe. This article contends that neither of the two general theoretical approaches to the study of corporatism - the liberal model of the "neocorporatist state" (which fails to acknowledge the potential for serious system-threatening instability within corporatism) nor the Marxist model of corporatist "political structures" (which incorrectly predicts labor-generated corporatist instability due to inevitable rank-and-file discontent with the policy outputs of corporatist forms) - can account for this current wave of macro-corporatist instability and decline. In response to this theoretical impasse, this article develops a capitalist-centered explanation for the declining significance of corporatist forms. Business interests, it is maintained, may no longer be viewing corporatist arrangements as beneficial due to certain domestic structural economic changes and to transformations in the global capitalist system.