Being unequal and seeing inequality: Explaining the political significance of social inequality in new market democracies

Market economies inevitably generate social inequalities, of which the new democracies of Central and East European (CEE) societies have seen dramatic – though widely diverging – levels of growth. Do CEE citizens believe that inequality is excessive and, if so, why? And what is the connection between perceptions of social inequality and citizens' views of new markets and democracy? These questions are addressed using new data from mass surveys conducted in 2007 in 12 post‐communist CEE states. Surprisingly weak links are found between social inequality perceptions and national‐level measures of inequality as well economic, social and political conditions. Perceptions of social inequality are mainly driven by individual‐level assessments of market and democratic performance, but not by market or democratic ideals.     

Defending the organisation,not the members: Unions and the reform of job security legislation in Western Europe

European labour markets are often described as rigid with comparatively high levels of job protection that do not allow for the flexible adjustment of employment to economic fluctuations. This interpretation overlooks important sources of flexibility, however. Research has shown that recent labour market policy reforms have allowed for the creation of two‐tier labour markets consisting of insiders in standard employment relationships and outsiders in non‐standard employment. This outcome has typically been explained by pointing to the representational interests of unions or social‐democratic parties. It has been argued that rather than protecting all labour market participants, unions and social‐democratic parties focus on the interests of their members and their core constituency, respectively, most of whom are in standard employment relationships. In contrast, it is argued here that unions' institutional power resources are the crucial variable explaining this outcome. In difficult economic times, when unions are asked to make concessions, they will assent to labour market reforms, but only to those that do not fundamentally threaten to undermine their organisational interests. In the context of job security legislation, this means that unions defend the protection of permanent contracts while they compromise on the regulation of temporary employment. This ‘second best solution’ allows them to protect their organisational interests, both by retaining their institutional role in the administration of dismissals and by living up to their institutional role as one of the organisations responsible for the direction of labour market policy reform. Using fsQCA this article shows that unions' institutional power resources are more apt to explain the observed two‐tier reform pattern than the unions' or the social‐democratic parties' representational interests.     

Do social policy reforms have different impacts on employment and welfare use as economic conditions change?

This paper uses March Current Population Survey data from 1985 to 2004 to explore whether social policy reforms implemented throughout the 1990s have different impacts on employment and welfare use depending on economic conditions, a topic with important policy implications but which has received little attention from researchers. I find evidence that many reforms operate differently as labor market conditions fluctuate. Although social policies increase employment during economic slowdowns, the largest effects are generated in favorable labor market conditions. The impact of time limits, mandatory job search, and cash diversion programs are particularly sensitive to the macroeconomy, while the earned income tax credit is associated with similar employment effects in most environments. The results vary substantially across policy “carrots” and “sticks,” levels of work intensity, and subsamples of single mothers, but a tentative conclusion is that a strong economy reinforces the positive incentives created by social policy reforms. © 2008 by the Association for Public Policy Analysis and Management.     

Polanyi in Brussels or Luxembourg? Social rights and market regulation in European insurance

The decision of the Court of Justice of the European Union to ban sex discrimination in insurance has shown the potential reach of the principle of non‐discrimination. This paper discusses the different positions taken by participants in the policy process leading up to the decision, in order to reveal the potential and limitations of non‐discrimination as the basis for market‐regulatory social policy. It is shown that the European Commission's initial support for prohibiting insurance discrimination faltered with the realization that the measure would have little efficacy as a distributive social policy. It was left to the Court to assert that non‐discrimination rights are constitutive for European markets, regardless of their functional and instrumental limitations. The Court's focus was on the market‐integrative potential of rights as sources of norms for the conduct of insurance relationships. It is argued that this form of constitutive regulation is distinct from distributive social policy as it does not require that outcomes are egalitarian, but, rather, that the processes governing market relations should respect fundamental rights.     

Biofuel Investments in Sub‐Saharan Africa: A Review of the Early Legal and Institutional Framework in Zambia

Concerns about domestic energy security and global climate change mitigation have led the European Union, the United States, and others to introduce policies to enhance the use of biofuels in the transport sector fuel mix. While countries throughout the global South are positioning themselves to capture the economic benefits of this fuel transition, their capacity to do so is highly variable. This paper reviews the early evolution of the biofuel sector in Zambia to explore the extent to which the country is positioned to leverage future benefits of the emerging industry while forestalling negative social and environmental costs. In doing so, it sheds light on an under‐researched dimension of the ongoing debate over large‐scale land acquisitions and foreign investment: the role of legal and institutional frameworks in host countries in shaping outcomes. The analysis draws on the following: policy documents; stakeholder interviews with government departments, investors, and civil society stakeholders; and published and reported data on investments. Findings suggest that while existing and incipient policies and legislation provide an important foundation for attracting investors and achieving diverse sector aims, a number of gaps remain that are likely to hinder efforts to leverage meaningful benefits while minimizing negative impacts.     

Coping with economic integration: Corporatist strategies in Germany and Austria in the 1990s

While Germany is facing the wholesale disorganisation of sectoral collective bargaining, the Austrian social partnership has gained new strength in the 1990s. Comparatively, Austro‐corporatism proved able to undergo a process of skilful adaptation. This divergence in performance poses a puzzle, given Germany's commanding presence both in international markets and in the European Union, and given Austria's traditional hostility to modernisation. This article explains German—Austrian differences in the performance and resilience of corporatist governance in the face of modernisation and market integration in terms of (i) the organisational differences between German and Austrian corporatism (sectoral concentration versus vertical centralisation and little horizontal formalisation); (ii) the long term policy strategies employed by labour unions in either system (co‐determination versus macro‐level policy influence); and (Hi) by the different responses to modernisation chosen by German and Austrian corporatist actors (internal organisational reforms verus becoming modernisation brokers).     

Veto player theory and reform making in Western Europe

Veto player theory generates predictions about governments’ capacity for policy change. Due to the difficulty of identifying significant laws needed to change the policy status quo, evidence about governments’ ability to change policy has been mostly provided for a limited number of reforms and single‐country studies. To evaluate the predictive power of veto player theory for policy making across time, policy areas and countries, a dataset was gathered that incorporates about 5,600 important government reform measures in the areas of social, labour, economic and taxation policy undertaken in 13 Western European countries from the mid‐1980s until the mid‐2000s. Veto player theory is applied in a combined model with other central theoretical expectations on policy change derived from political economy (crisis‐driven policy change) and partisan theory (ideology‐driven policy change). Robust support is found that governments introduce more reform measures when economic conditions are poor and when the government is positioned further away from the policy status quo. No empirical support is found for predictions of veto player theory in its pure form, where no differentiation between government types is made. However, the findings provide support for the veto player theory in the special case of minimal winning cabinets, where the support of all government parties is sufficient (in contrast to minority cabinets) and necessary (in contrast to oversized cabinets) for policy change. In particular, it is found that in minimal winning cabinets the ideological distance between the extreme government parties significantly decreases the government's ability to introduce reforms. These findings improve our understanding of reform making in parliamentary democracies and highlight important issues and open questions for future applications and tests of the veto player theory.     

State of the Field

Although scholars of West European politics have long debated whether the region's highly institutionalised party systems were becoming de‐aligned and electorally unstable, the political fallout from the post‐2008 financial crisis has lent a new sense of urgency to the debate. The threats posed to party systems by economic crises are hardly unique to Europe, however. The Latin American experience with the debt crisis of the 1980s and 1990s suggests that party system upheaval was not simply a function of retrospective economic voting during the period of crisis. It was also attributable to programmatically de‐aligning policy responses to crises – namely the ‘bait‐and‐switch’ imposition of austerity and adjustment measures by labour‐based, left‐leaning parties that were traditional champions of statist and redistributive policies. Such patterns of reform made it difficult for party systems to channel societal resistance to market orthodoxy in the post‐adjustment era, setting the stage for convulsive ‘reactive sequences’ when such resistance arose outside and against mainstream parties through varied forms of social and electoral protest, typically on the left flank. This article explores the political fallout from the European and Latin American economic crises from a comparative perspective, arguing that it is essential to think beyond the short‐term political dynamics of crisis management to consider the longer‐term institutional legacies and fragilities of the different political alignments forged around crisis‐induced policy reforms.     

Adjusting policy implementation frameworks for non‐pluralist conditions: A case study of Ukraine's single tax for small business

Traditional frameworks for assessing policy implementation have been developed almost exclusively in the context of market‐based, pluralist democracies. This research explores policy processes in more diverse contexts, testing the applicability of existing implementation measurement models in the socio‐political context of a post‐Soviet country. Fieldwork conducted in Ukraine examines the factors affecting implementation of the Simplified Single Tax policy and considers the impact of formal and informal institutions on policy processes and small business conditions. Results include an expanded model for assessing policy implementation in non‐pluralist conditions, an original contribution to the fields of policy, small business, and development studies. The research further contributes to the literature concerning policy transfer, policy advocacy, and tax reform in developing nations. For theoreticians, this research may inform design considerations when conducting policy research outside of a pluralist democracy. For practitioners, it may inform efforts to mitigate implementation obstacles in diverse socio‐political contexts.     

Towards a professional civil service in post‐transition Romania

To what degree and under what conditions can a young democracy build a competent, politically neutral public bureaucracy? A crucial component of the transition from communist party rule to democracy is the creation of a professional civil service. Success along this dimension of state‐building generates administrative capacity: non‐elected public officials ensure the implementation of reforms initiated by political leaders. In the communist party‐led regimes of Eastern Europe, forging this new administrative class from its highly politicised predecessor took place as new democracies sought to overcome historical legacies and integrate with the European Union. A case study of administrative reform in Romania during the post‐1989 period suggests the importance of external influences in forming a civil service more closely adhering to the Weberian ideal of an expert, rules‐based bureaucracy. Through analysis of survey data from a nationally representative sample of the Romanian civil servants, the public bureaucracy has professionalised insofar as educational and training credentials rather than political affiliation are significant predictors of salary levels. Copyright © 2009 John Wiley & Sons, Ltd.     

Gendering the ‘responsible risk taker’: citizenship relationships with gender-neutral social assistance policy

This paper explores the gendered relationships among reforms to social assistance policy, concurrent transformations in citizenship rights to benefits, and low-income parents' experiences of these changes in the Canadian provinces of British Columbia, Alberta, and Saskatchewan. Policy discourse in all three provinces increasingly constructs mothers and fathers as ‘responsible risk takers’ who are entitled to income support conditional on their employability efforts (for example, attendance in welfare-to-work programmes) or market citizenship. Qualitative interviews with 41 mothers and five fathers illustrate how this ‘gender-neutral worker-citizen’ model can be gendered in application and is contradicted by parents' gendered identities and everyday realities when living on social assistance. Using the theoretical perspective of gender as a social structure, the paper draws upon these findings to provide empirical support for a dominant theoretical argument in feminist scholarship – that gender-neutral policy is gendered and has deeply gendered consequences.     

Ideas, Paradigms and Institutions: Agricultural Exceptionalism in the European Union and the United States

The differing trajectory of agricultural policy reforms in the 1990s in the world's two most important agricultural powers, the United States and the European Community/Union (EC/EU), can only be fully understood by appreciating the role that ideas play in policy outcomes. The idea of agricultural exceptionalism underwrote a paradigm of state assistance in the US and the EC/EU. By the mid-1980s, the state assistance paradigm was under stress, and subject to a number of anomalies in both the US and the EC. But while the paradigm was overthrown and replaced with a market liberal model in the US grain sector in the 1990s, it remained intact in the European Union. Explaining why agricultural exceptionalism and the state assistance paradigm has endured in the EU while it has withered in the US highlights three factors: the importance of the political institutional framework in locking in—or not—policy principles and instruments; the degree of fit of a sectoral policy paradigm with the broader societal ideational framework regarding appropriate relations between the state, the market, and the individual; and the capacity of a paradigm to adjust in the face of challenges and anomalies.     

IMF Conditionality,Government Partisanship,and the Progress of Economic Reforms

The International Monetary Fund (IMF) often seeks to influence countries' domestic public policy via varying levels of conditionality—linking financial support to borrowing governments' commitment to policy reforms. When does extensive conditionality encourage domestic economic reforms and when does it impede them? We argue that, rather than universally benefiting or harming reforms, the effects of stricter IMF conditionality depend on domestic partisan politics. More IMF conditions can pressure left‐wing governments into undertaking more ambitious reforms with little resistance from partisan rivals on the right; under right governments, however, more conditions hinder reform implementation by heightening resistance from the left while simultaneously reducing leaders' ability to win their support through concessions or compromise. Using data on post‐communist IMF programs for the period 1994–2010, we find robust evidence supporting these claims, even after addressing the endogeneity of IMF programs via instrumental variables analysis.     

Politics and Markets in the Irish 'Celtic Tiger'

Ireland's rate of growth and employment creation during the 1990s far outstripped economic performance in the rest of the OECD. Competing explanations are available in accounting for these outcomes, one stressing the primacy of the market, the other focusing on political choice. A case is made for the importance of politics, particularly the successful strategic adaptation to the challenges and opportunities afforded by the completion of the Single European Market during the 1990s. Ireland, as a small open economy, needs to combine effective external adjustment with appropriate domestic adjustment policies. Two policy areas are chosen for particular attention: industrial development strategy, and social partnership arrangements. This experience has implications beyond the Irish case, as the new central European and Baltic EU member states face similar challenges of policy adaptation.     

Globalization,state, and innovation: An appraisal of networked industrial policy

One of the most pressing questions in comparative social science is whether, and to what extent, the rapid advance of globalization has negatively affected states’ capacity to initiate successful economic and social policies. This paper puts forward the notion that states continue to be relevant because they have the potential to build and sustain networks of production and learning, which are sorely needed in the current era of globalization when productive arrangements are dominated by decentralized production networks. The paper argues that government efforts aimed at building and sustaining such networks, labeled as “networked industrial policy,” have become predominant. The study features a series of fixed‐effects time series cross‐section (TSCS) regressions linking innovation performance to several networked industrial policies in 17 countries from western and central Europe. The study finds that several of the policies have a robust effect on innovation performance and technology competitiveness, even after controls are included. These findings constitute considerable support for the notion of networked industrial policy. However, the results of the present study must be treated less as a definitive answer to the research question and more as a first step in an ongoing research process.     

The first supranational policy in the European Union: Competition policy

Abstract. Competition policy has become a salient issue in the last decade. The purpose of this article is to widen discussion amongst political scientists of an issue that has been dominated by the disciplines of economics and law. The concept of a competition policy is the foundation stone of the entire European Union. It lies at the very heart of efforts to establish a common market and within the EU competition policy arena the decision making powers have laid firmly with the supranational institutions. This article provides an overview of the issue; it traces the constitutive foundations of policy and discusses the functions of the core EU competition policy actors. It is primarily concerned with the European Commission, in particular, DGIV. The paper accounts for DGIV's metamorphosis in the 1980s and the myriad of problems now confronting its procedures and efficiency in the 1990s. Whether these defects can be resolved will ultimately determine the fate of DGIV. Arguments for institutional reform are raging through the European institutions and DGIV provides no exception. The paper concludes with a discussion on the plausibility of the creation of an independent European Competition Office, modelled on the role of the German Federal Cartel Office.     

Governing the Chinese Economy: Regulatory Reform in the Service of the State

Pursuant to its extensive program of market reforms, China’s government tried to restructure itself to support a market‐dominated economy. Reform efforts have included elements that are familiar to scholars of public administration: streamlining government, strengthening bureaucratic capacity, distancing government from firms, and establishing independent regulators. But how deep have these reforms been, and with what ultimate goals? This article examines a crucial segment of the economy—China’s so‐called lifeline industries—to show how reforms to China’s economic governance system have been mapped onto an existing system characterized by extreme institutional fragmentation and an inability to imbue new governmental bodies with authority. Moreover, for these key industrial sectors, the Chinese party‐state’s strong interests in ownership, revenues, and social policy dictate that it use a variety of tools to protect these interests.     

Citizenship—the real democratic deficit of the European union? 1

Given the pressures of globalisation, the nation state is limited in its control over public policy agendas, particularly in the field of social policy. The response of domestic governments to the heat of international competition has been to create more flexible, post‐welfare state economies. A significant consequence of this development is the removal of social rights and the acceleration of social exclusion. This gap which has opened up could be filled by the European Union, but it has so far failed to take a leading role in this regard.

So, as European citizens we should be concerned that the forces which operate to balance the harsher effects of the free market have been lost at the European, supranational level. There are three central reasons why this is the case: (1) the European Union consists of 15 member states with competing, historically rooted understandings of social protection and, therefore, social rights; (2) defining social rights is traditionally a state‐derived function and as such, the absence of an EU state means the absence of comprehensive citizen protection; (3) these two factors are magnified by the relative weakness of the supranational institutions and democratic deficit between the key EU institutions (weak vis‐à‐vis member state governments and with regard to the supremacy of the market).

The combination of these problems has meant that the European Union has not taken the primary role in providing the kind of social protection that we used to enjoy in the domestic context. The result of this is a situation in which the market is determining both the level and even the kind of rights that we are entitled to, thus we are citizens of a European market and not of a European state.

As a state‐derived function, and without a European state, social and citizen rights are being neglected. As a consequence, unless citizen protection is developed through an intergovernmental or supranational framework, it is difficult to see how governments can honour their responsibility to safeguard their people.     

On religion and public policy: Does Catholicism make a difference?

Abstract. This paper suggests that differences in religious adherence and/or in degrees of secularization between advanced nations may be as relevant to understanding cross-national variance in a wide range of public policy outcomes as the impact of socio-economic and political factors. The prima facie evidence for such a thesis is demonstrated in areas as diverse as welfare expenditure, family policy and labour market policy outcomes, and is shown to have a particular salience wherever gender-related outcomes are at issue. On the basis of this evidence, it is suggested that, in policy outcome terms at least, it is possible to identify a distinctive Catholic family of nations consisting of a grouping of core Western European and Southern European countries.     

Institutional and policy issues experienced in the implementation of Botswana's national disability policy

People with disabilities (PWDs) are often subjected to economic and social exclusion. Despite the Government of Botswana's efforts to uplift marginalised and vulnerable groups, PWDs remain disenfranchised as a result of social, physical, and legislative barriers. This paper assesses policy and institutional factors that contribute to and or hinder the implementation of Botswana's national disability policy. Data were collected using secondary data sources and analysed using thematic analysis. The analysis of determinants of policy impact (ADEPT) approach, which aims to explain and influence policy development and policy impact implementation with four determinants (goals, obligations, resources, and opportunities), was adopted. The study's findings show that 22 years after its adoption, the National Policy on Care for People with Disabilities has not resulted in the desired policy outcomes, let alone achieved its objective of improving the lives of PWDs. Although the policy has the potential to be an important tool in achieving social inclusion and protecting the rights of PWDs, implementation gaps remain, essentially limiting its effectiveness.