Explaining Policy Responses to Danish and Irish Banking Failures during the Financial Crisis

The 2008 global financial crisis produced very different responses in Ireland and Denmark. While both countries embraced depositor guarantee schemes and recapitalisation programmes, these were designed and adopted in significantly different ways. Crucially, the Irish state initially assumed full responsibility for sector losses and only later defined terms for industry contributions. In Denmark, a negotiated settlement from the outset transferred most of the risk associated with banking failures collectively to the banking sector. The article assesses two explanations for these different responses: (1) variations in domestic exposure to the financial industry, notably its relative size, dominant business models and exposure to real estate markets and (2) variations in institutional features, notably banking sector preferences and legacies of collective action. While limited explanatory power can be attributed to the former, collaborative legacies decisively swayed policy responses in Denmark and Ireland in the hectic weeks of late September and early October 2008.     

Macroeconomic Control of Local Governments in Scandinavia: The Formative Years

The three Scandinavian countries have been able to radically decentralize their public sectors without losing the ability to control macroeconomic performance. The explanation of this puzzle is that, in all three countries, institutions have been established to coordinate economic activity levels at the local level with macroeconomic policy goals at the central level. The article investigates how these institutions were established, and pays special attention to the precise nature of these institutions since they show interesting differences among the otherwise very similar Scandinavian countries. The article pursues the thesis that institutional legacies in intergovernmental relations shape institutions like these, unless decision makers face an institutional tabula rasa. Alternative explanations are briefly considered, but the article concludes by supporting the historical approach to politics.     

Delegation of Clinical Authority,Administrative Culture and Policy Adoption: A Comparative Analysis

Numerous countries have adopted reforms that allow medical personnel other than physicians to engage in tasks that traditionally were exclusively performed by physicians. This policy is controversial because it challenges the medical profession’s traditional boundaries. This study is an exercise in comparative policy research based on the experience of 18 Organisation for Economic Co-operation and Development countries. It evaluates the contribution of different structural factors – socioeconomic, cultural, and institutional – to policy adoption. Based on both quantitative analysis and an examination of how delegation unfolded in Israel, the role of administrative culture is highlighted: a category that combines cultural legacies and institutional properties in explaining policy adoption. It is argued that because, in entrepreneurial administrative cultures, administrators are more likely to possess a managerial mindset than in Rechtsstaat cultures, and also have more institutional leeway for action, delegation is more likely to be adopted in the former.     

Institutional competitiveness in the global economy: Denmark,the United States,and the varieties of capitalism

Despite high taxes, a large welfare state, and much economic regulation, Denmark competes successfully against other advanced capitalist economies. Denmark’s success is based in large part on its institutional competitiveness – its capacity to achieve socioeconomic success as a result of the competitive advantages that firms derive from operating within a particular set of institutions. The institutional basis for successfully coordinating labor markets and vocational training programs are examined for Denmark and the US – two countries that were very different institutionally but very successful in the 1990s and in the 2000s. We show that there is no one best way to achieve success in today’s global economy, except with respect to social inequality; that the mechanisms underlying institutional competitiveness are more complex than often recognized; that institutional hybrids can be as successful as purer political economic cases; and that high taxes and state spending can enhance socioeconomic performance. As such, this paper challenges both neoliberalism and the varieties of capitalism school of comparative political economy.     

Similar Ends, Differing Means: Contractualism and Civil Service Reform in Denmark and New Zealand

State sector reform was an integral component of the radical economic and social policy changes enacted by New Zealand governments between 1984 and 1991. This reform replaced the traditional tenured public service with a contractual regime. Through a comparison with Denmark, it is shown that New Zealand's reforms were not unique. Similar reforms were enacted in Denmark. But contrary to what occurred in New Zealand, the Danish reforms had already begun in the 1960s, and have since been gradually expanded. The parallel contractual regimes introduced in the two countries are accounted for by an increasing demand among politicians to secure a civil service that is responsive to political executive demands. However, because of institutional differences and diverging regulatory regimes, the strategic approaches in the two countries have been different. Whereas the New Zealand approach was dominated by an appeal to a coherent and sophisticated body of theoretical knowledge, combined with strict formalization, the Danish strategy has been based on political bargaining with the civil service unions. In both cases the reforms rest on critical assumptions regarding their positive and negative implications.     

Trust in Scandinavia: Findings from Moving Borders between Denmark and Germany

Scandinavian societies express the world's highest levels of trust in surveys and display high levels of social capital more generally. Scholars and policy makers disagree on whether this reflects high economic equality brought about by inclusive, universalist welfare states after the Second World War or historical legacies of political stability and relative social harmony. This article utilizes a geographic regression discontinuity (GRD) natural experiment from history of moving borders between Denmark and Germany to examine the effect of belonging to a Scandinavian state on trust and cooperative behavior. Results from historical Danish rule prior to 1864 in North Germany and German rule in South Denmark from 1864 to 1920 suggest that institutional differences influenced early mass political behavior, but not social behavior. However, such early regime impacts petered out quickly. Today, there is little to no discernable difference in trust attributable to Danish state heritage in North Germany or South Denmark. This suggests that sizable differences in social trust between Germany and Denmark are instead attributable to post‐1920 factors.     

Why Denmark and Belgium Have Different Implementation Records: On Transposition Laggards and Leaders in the EU

Statistics of the European Commission show different performances among member states regarding the implementation of European policies. In particular, this article explains why Denmark and Belgium have different records with respect to the legal or administrative transposition of European Union environmental directives. The article starts with a short overview of the implementation problematique and a presentation of the latest available statistics. Then European-level factors are ruled out as possible explanations for the differences in performance. The author argues, on the contrary, that the differences between Belgium and Denmark must be explained by national institutional contexts. To this end, an institutional approach is presented, which draws attention to 'hard' and 'soft' institutions as explanatory variables. In total seven categories of variables are discussed: four 'hard' categories – the constitutional and administrative context (division of competencies and coordination mechanisms), institutional capacity, administrative and legal adaptation pressure, communication and continuity – and three 'soft' categories – institutional jealousy, Europeanisation and political adaptation pressure. It was found that both member states under study have different scores on almost all variables, pointing to rather unfavourable implementation conditions for Belgium and much more favourable conditions for Denmark.     

From Safety Net To Trampoline: Labor Market Activation in the Netherlands and Denmark

In recent years Denmark and the Netherlands have made dramatic shifts from passive to active labor market policies. Though often portrayed as a necessary response to high levels of structural unemployment, such changes are more than a mere technical adjustment of welfare programs to a changing economic climate. They represent new ideas about the goals of public policy and the social rights of citizenship. This article surveys the politics of labor market policies in the two countries to demonstrate that the recent activation programs reflect a departure from the ideas and goals of the postwar welfare state.     

Old Ideas and New Investments: Divergent Pathways to a Knowledge Economy in Denmark and Finland

This article identifies and explains two very different pathways to a knowledge economy, based on investment in training in Denmark and research in Finland. The fact that these ostensibly similar countries have pursued such divergent strategies cannot be explained using the established literature on employer organization, labor power resources, and small states. This article develops and resolves this puzzle by focusing on the interaction among organized actors. It argues that nineteenth‐century economic and geopolitical challenges generated two distinctive and enduring collective responses based on industry–labor cooperation in Denmark and state–industry cooperation in Finland. Those coalitions continue to shape the twenty‐first‐century experimentation, supporting investment in continuing education in Denmark and technological innovation in Finland. In explaining these differences, this article not only identifies an enduring and constructive role for strategic cooperation but also explains how it varies among ostensibly similar coordinated economies.     

Costs, Output, and Institutional Differentiation in Danish Childcare Policy

Investigating differences in costs due to institutional differentiation is of central importance, since most public sectors struggle with limited resources combined with high demands. Similar public services produced in different institutional set-ups constitute excellent units of observation, since the production costs can be directly compared. An example of such services is found in Denmark, where the municipalities provide two types of public childcare arrangements. All Danish municipalities, to varying degrees, offer the cheaper type, namely day-care homes. It is, however, remarkable that day-care centers and day care in private homes coexist in the same municipality with a cost difference of about 40 percent. Using the framework of rational institutionalism, this article claims that the institutional set-ups in the two kinds of childcare result in different employee strategies, which, together with varying sector strength, lead to widely different costs. The case is established by an analysis of interviews with employees, politicians and users of childcare services, combined with statistical evidence from the Danish municipalities.     

The politics of de‐delegation: Regulatory (in)dependence in Turkey

This essay explores the rise and decline of regulatory independence in Turkey. Framing the ongoing process of limiting independence of these agencies as the politics of de‐delegation, it raises the question of why Turkish regulatory agencies have become subject to increasing political intervention. Contending that institutional legacies and mounting illiberal predispositions of the Turkish state facilitate the politics of de‐delegation, the essay focuses on centralization, executive discretion, and politicization of bureaucracy as the major institutional legacies. Then it briefly discusses formal and informal mechanisms of political intervention, which have impaired the independence of the regulatory agencies.     

Debating Food Security Policy in Two Different Ideational Settings: A Comparison of Australia and Norway

Food security has emerged as a relatively new policy issue in agricultural policy making in developed countries. This policy problem is addressed within an institutional landscape in which agricultural ideas and institutions are well‐established. In this article, food security policy making in Australia and Norway is compared. In Australia, agricultural normalism (agricultural markets and production are considered to be similar to those of other economic sectors) has been dominant since the mid‐1980s, while Norwegian agricultural policy making has been dominated by agricultural exceptionalism (agriculture is considered a unique economic sector with special market and production conditions). It is demonstrated in the article how these two opposing institutionalised ideational foundations have influenced the nature of the food security debate in the two countries. In Australia, the debate emphasises the positive role of the market and trade in providing global food security. In Norway, the debate highlights the need to regulate market forces and restrict trade in order to allow countries to develop their own agricultural sectors.     

The Expansion of “Private” Schools in England,Sweden and Eastern Germany: A Comparative Perspective on Policy Development,Regulation, Policy Goals and Ideas

In a diverse range of European countries, there has been an increase in the proportion of pupils attending schools owned by private bodies but funded by the state. This article compares the policy development and governance of private government-dependent schools in three countries/regions: England, Sweden and Berlin/Brandenburg in Eastern Germany. It is found that the regulatory frameworks vary and are associated with specific policy goals and ideas, with apparently similar ideas having different meanings. It is also found that the growth of private government-dependent schools is related to policy goals, differing institutional configurations and political parties.     

The Politics of Social Learning: Finance,Institutions, and Pension Reform in the United States and Canada

Because the traditional concept of social learning has faced significant criticism in recent years, more analytical work is required to back the claim that the lessons drawn from existing institutional legacies can truly impact policy outcomes. Grounded in the historical institutionalist literature, this article formulates an amended concept of social learning through the analysis of the relationship between finance, social learning, and institutional legacies in the 1990s debate over the reform of earnings‐related pension schemes in the United States and Canada. The article shows how social learning related to specific ideological assumptions and policy legacies in the public and the private sectors has affected policymaking processes. At the theoretical level, this contribution stresses the political construction of learning processes, which is distinct from the technocratic model featured in the traditional literature on social learning. This article also distinguishes between high‐ and low‐profile social learning while emphasizing the impact of private policy legacies on learning processes.     

Globalization,International Organizations,and Telecommunications

Since the 1990s over 158 countries established pro‐market reforms in telecommunications—a fast pace for such a drastic change. For example, Sweden and Botswana, two nations vastly different across multiple dimensions, both liberalized their telecom sectors. Why did so many countries adopt liberal reforms in such a short period of time? Conventional wisdom highlights the role of global markets and technology, powerful states, global diffusion, and domestic politics. I argue that contrary to these claims, diffusion through key international organizations is the critical and overlooked factor in explaining rapid global convergence of pro‐market telecom reforms. Using an original dataset for 189 countries between 1970 and 2003 and event history analysis, I demonstrate that membership in key liberal trading organizations, especially the WTO and the OECD, increases the likelihood that countries will adopt liberal pro‐market reforms in telecommunications. These results speak directly to current public policy debates about the reregulation of global markets and bridges the literatures of policy diffusion, institutional design, and regulatory regimes.     

The Relationship between Media and Political Agendas: Variations across Decision-Making Phases

This article examines the patterns of party patronage in post-communist Europe and provides an explanation for the varying practices observed by stressing the institutional legacies of the past. Drawing on the distinction between different types of communist regimes, it formulates three hypotheses concerning the extent, underlying motivations and intra-party control of patronage which guide the empirical analysis. It then clarifies the key concepts and discusses the methodology and data used in the article. Further, the three hypotheses are probed with data collected in a large expert survey in Bulgaria, Hungary and the Czech Republic. In accordance with the hypotheses, these three countries are found to differ in the pervasiveness of patronage within the state institutions, in the reasons why party politicians engage in patronage practices and, to a lesser degree, in the intra-party mechanisms of controlling and distributing patronage. It is argued that this variation can be, at least partially, attributed to the nature of the communist regimes in the countries under study.     

Nationhood and Scandinavian naturalization politics: varieties of the civic turn

The neighboring countries of Denmark, Sweden, and Norway represent three very similar societies that differ markedly with respect to naturalization policy. While the general trend of a civic turn has brought about some of Europe’s strictest residence and citizenship requirements in Denmark, it has left the liberal Swedish policy largely untouched and the Norwegian somewhere in between the other two. How might such divergence in otherwise very similar societies be explained? This article investigates the role different conceptions of nationhood have played. It is argued that different conceptions of nationhood have mattered, but that the national differences have less to do with the normative content of nationhood than with how politicians tend to conceive of the integration process that newcomers must commit to in order to develop a strong sense of national belonging.     

Are Danes More Inclined to Ticket Splitting than the Swedes and the English?1

The first ever simultaneous general and local elections in Denmark (November 2001) allow for a comparison of Danish voters’ inclination towards inter‐level ticket splitting with similar phenomena in Sweden and England. Inter‐level split‐ticket voting occurs when voters cast their vote on two different parties in the two different (but simultaneous) elections; this happened far more often in Denmark in 2001 than in the two other countries. One hypothesis suggests that this owes to party system differences between the three countries, since both the number of parties running in the different elections and the discrepancy between the national and the local party systems are expected to influence the level of inter‐level vote splitting. However, elec‐tion statistics and survey data based analyses (Denmark in 2001, Sweden in 2002, and England in 2001) give only limited support to the hypothesis. It appears that Danish voters did in fact split their 2001 national and local votes more than Swedish and English voters did and more than party system differences can account for.     

From Corporatism to Lobbyism? — Parliaments,Executives, and Organized Interests in Denmark and Norway

The integration of organized interests into the formation and implementation of public policies is a core institutional trait of the Scandinavian countries. However, significant changes have taken place in the relations between organized interests and public authorities in Denmark and Norway during the last two decades. The use of traditional corporatist structures of interest intermediation has been reduced in favor of a corresponding increase in lobbyism. At the same time a marked increase in the frequency and intensity of contacts between organized interests and parliamentary actors has taken place. The shift in focus mirrors the increasing role played by the two parliaments in public policy formation and a less positive assessment of the outcomes of strongly institutionalized corporatist policy making by administrative decision makers.     

Unpacking the Path‐Dependent Process of Institutional Change for PPPs

In the recent past, several countries and states have begun to use Public‐Private‐Partnerships (PPPs) for infrastructure development and have attempted to create institutional environments that enable PPPs. Providing an enabling environment for PPPs entails a combination of institutional creation and changing existing institutions relating to project procurement. This paper attempts to understand how path‐dependant institutional change takes place in the context of PPPs and their enabling environments, and why different institutional environments evolve differently, using two cases: the implementation of PPPs in the road sector in the Netherlands and in the Indian state of Tamil Nadu. We identify two factors that can be used as predictors of the direction of institutional change: a long‐term orientation towards institutional change and a willingness to learn and modify transitional institutions. Where these factors exist, and thereby provide a goodness of fit, institutional change is likely to occur.