Globalisation, Marketisation and Power: The Swedish Case of Institutional Change

Globalisation is often thought to threaten the autonomy of national policymaking and generous welfare policies. This article examines two decades of policy change in Sweden, often viewed as a prime example of a fully fledged welfare state. The analysis is focused on reforms within the welfare sector, which is compared with three other important areas – credit markets, the labour market, and infrastructure policy. These areas can all be seen as crucial aspects of the Swedish social democratic model.  The findings can be summarised in three parts. First, seeing the credit–market deregulation as the first phase of the internationalisation of capital in Sweden lends some support to the idea of globalisation as the result of political decisions rather than a structural change caused by technical change. Second, during the last two decades, there have been signs of marketisation of the Swedish public sector. However, this analysis does not give support to the simple hypothesis of globalisation. There are quite large variations both between and within policy areas, variations that are not easily related to international integration. Third, marketisation involves a shift in political power. An overall effect is that the government has lost some of its former direct influence. However, behind the façade of the invisible market we find the same actors as before influencing policy. Globalisation can have tremendous effects on power. Whether or not this will be the case is first and foremost the result of political decisions and individual desires.     

Policy dynamics and the evolution of state charter school laws

Baumgartner and Jones (1993) showed how radically new policies emerge on government agendas as a consequence of exogenous shocks to policy subsystems displacing privileged interests. But how do these policies evolve post-punctuation? In this paper, we present three different models of policy change. Policies may revert to the old status quo if displaced interests re-assert themselves, or they may be “locked-in” by new interests now reaping the benefits. Alternatively, they may incrementally change as lawmakers “learn” how to better meet target population needs, particularly by witnessing how other jurisdictions address similar problems. We test these models with data on change in state charter schools laws over time. We find that whether old status quos are overthrow, and the fate of charter policies when they are enacted, is influenced more by competing political interests, especially interest groups, than elite and public perceptions of broad systemic crises. Yet, we also find that changing demands on the state and learning from the successes and failures of neighboring states also play significant roles.     

Sub-state Climate Pioneers: The Case of Scotland

Climate change poses a global challenge, but many of the most ambitious and innovative efforts to confront it have emerged from the sub-state level. While such action has received significant attention in North America, less attention has been paid to European sub-state nations and regions, even though several of these regions are at the forefront of policy efforts to reduce carbon emissions and promote renewable energy. This article begins to fill that knowledge gap. It explores the puzzle as to why, and how, given their more limited scope for policy action, some sub-state governments position themselves as ‘climate pioneers’. The article undertakes a heuristic case study of Scotland, which has developed a particularly ambitious climate change and renewable energy programme. Drawing on public policy literature, we use the case study to consider the extent to which such ambition is enabled by constitutional and fiscal capacity, facilitated by a cohesive policy network, and motivated by economic and political goals. While we find evidence of these enabling features in the Scottish case, we argue that understanding sub-state climate action also necessitates examining such action through the lens of territorial politics. Adopting a territorial perspective highlights the opportunities, constraints and motivations associated with the politics of territorial identity and multi-level government.     

Institutions, Policy Innovation, and E-Government in the American States

Examining the rankings of American states in one fast‐growing policy area, e‐government, states with the most sophisticated and comprehensive policies varied over a five‐year period. What factors account for change in digital government policy innovation over time? Using time‐series analysis and 50‐state data, the authors find that state institutional capacity is important for continued innovation. They also find an association between reinvention in state governments and the institutionalization of information technology, suggesting a more general orientation toward government reform and modernization. Although state wealth and education were not significant in previous studies, they emerge as predictors of later innovation. The theoretical contribution of this study is to better understand the dynamic character of innovation over time and the role of institutions. The link between reinvention and e‐government raises the possibility that the modernization of state institutions generally facilitates innovation.     

Centralization, Access, and Influence: The Reagan Administration and the Semiconductor Industry's Trade Complaints

This article explores how the relative centralization of decisionmaking authority can affect a societal group's ability to achieve its interests. It examines the US semiconductor industry's efforts to persuade the Reagan administration to press Japan on its import barriers and its firms' trade practices. I find that the industry's eventual success was facilitated by an institutional change that centralized the structure of decisionmaking authority. Centralization proved more favorable to the industry's influence in this case because it reduced the number of competing state interests involved in policymaking and concentrated authority in state units that shared the industry's preferences. To account for the change in this structure I focus on the interplay between government officials and policy windows. The analysis suggests that centralization may under some conditions be more conducive than decentralized structures to societal influence, and that modest institutional changes can have significant policy implications.     

Revenue Cyclicality and Changes in Income and Policy

The past two recessions have proved alarming to state government finances. In 2001, a relatively shallow national recession led to a severe downturn in state revenues that took three years to unwind. In the wake of the recent economic downturn, signs of fiscal stress are readily apparent. In this paper, we investigate whether the revenue patterns surrounding these two recessions are the result of state government revenues having grown more sensitive to economic conditions. We find that the responsiveness of revenues to measures of business cycle conditions has grown since the 1990s. We use data on state government revenues, state‐specific information on economic conditions, and measures of state policy to examine fiscal performance and budgeting practice over the economic cycle. Our findings suggest that increasing income cyclicality, in particular of investment income, has made state revenues more responsive to the business cycle since the mid‐1990s. We also find that changes in policy making have served to increase revenue cyclicality.     

Learning from the States? Federalism and National Health Policy

In its 1993 report, the Winter Commission gave direction to the federal government in the area of health policy and Medicaid: lead, follow, or get out of the way. This article examines how the federal government responded to that advice, specifically asking what has happened in the allocation of responsibility in health policies between 1993 and 2006. In short, unlike the suggestion that there be a better‐defined direction in federal–state policy assignments in health, the ensuing years have resulted in more of the same. The authors examine what has happened, particularly focusing on vertical diffusion—where the states have acted first—and on the role of policy learning in federal decision making. They find little recognition of policy learning in recent federal health laws—even in areas in which state experience was extensive. The federal government is leading in some health policies—but it is leading without learning.     

Beyond (and Within) City Limits: Climate Policy in an Intergovernmental System

This analysis explores the role of city‐level and state‐level variables to explain why some cities make more progress on climate‐related policy implementation than others. Using multilevel modeling, we find little support for the influence of state factors on local government leadership among the 812 cities in the dataset, but local government institutional and community variables are strongly associated with climate policy initiatives. We argue for a rethinking of the notion of the limited and constrained city and suggest that, in the realm of climate protection and environmental policy, cities are leading a bottom‐up federalism. Moreover, where some political analysts and scholars have argued that climate protection and environmental policies may not be economically rational for cities to pursue, we theorize that cities are acting locally to further their self‐interest in an increasingly global economy.     

Comparing Implementation of Internet Diffusion in the United States and France: Policies,Beliefs, and Institutions

Comparing Internet diffusion policies in the United States and France from an implementation perspective brings to light institutional and historical differences, even though both countries used the same top‐down approach. We find that France not only followed the technological lead of the United States in information technology but also emulated some of its more business‐oriented approaches in the implementation of the Internet, despite its own longstanding tradition of government intervention in industrial and commercial matters. This policy shift appears to be spurred by the global economy. Traditionally state‐controlled national economies are now increasingly leveraging private interests for successful industrial policy. When applying Sabatier and Jenkins‐Smith's advocacy coalition framework to the American and French diffusion of the Internet, we find policy communities actually expanding to private and public actors, including industry captains, legislators, and civil servants. These subsystems work together through classic lawmaking and lobbying under technological and economic constraints.     

Uneven local implementation of federal policy after disaster: Policy conflict and goal ambiguity

As climate change continues to increase both the frequency and intensity of environmental hazards and disasters, the need for a cohesive national mitigation policy grows. As the environmental federalism scholarship indicates, the inherent tension in federal, state, and local policy implementation highlights that despite a national need, environmental quality is a local public good. To complicate matters, there is disagreement about the optimal level of decision-making regarding the adoption and implementation of environmental policy. This study addresses this gap by considering the role of policy ambiguity and conflict in policy implementation. The analysis relies on primary qualitative data collected from open-ended interviews with 22 local government officials in 12 municipalities following Hurricane Harvey. Through the lens of policy ambiguity and conflict, we find confirmatory support for the idea that policies with less ambiguous goals are more likely to be implemented. Furthermore, we find that policy conflict arises when local governments perceive there is little for the community to gain by implementing the federal program. Thus, the level of protection afforded to citizens varies greatly between communities and is influenced heavily by politics. This research supports the Ambiguity-Conflict Model of policy implementation, an oft-cited but rarely tested theoretical framework for assessing the intergovernmental politics of policy implementation. It also demonstrates the barriers to local implementation of federal environmental policy in a nested system of government.     

Enhancing democracy via bureaucracy: Senior managers' social identities and motivation for policy change

This article challenges the depiction of bureaucracy as a hurdle to democratic responsiveness. It proposes that senior civil servants' (SCSs) dual position as professionals and citizens may enhance government permeability to salient public agendas. Building on social identity theory, we argue that salient public agendas may arouse SCSs' social identification with in‐groups and thereby elicit their motivation for policy change within their task domain. Employing a mixed‐methods design, we analyze SCSs' social identification with the participants of the large‐scale social protests that took place in Israel during the summer of 2011, and their motivation for policy change in response to the protest agenda. We find that SCSs' social identification with the protesters enhanced their motivation for policy change. In addition, SCSs' perception of a conflict between responsiveness to the protest agenda and their organizational or professional identities shaped their preferences for policy solutions more than their motivation for policy change.     

Three-party competition in parliamentary democracy with proportional representation

This article studies the long-run dynamics of policy choices, government formations, and voting behavior under a parliamentary constitution and proportional representation. I develop an infinite period game where, in each period, voters participate in a proportional representation election, and three farsighted parties bargain over one-dimensional policy programs and government positions. The model incorporates the interaction between elections and coalition bargaining, which is the essence of politics in most parliamentary systems, as well as a dynamic environment of policymaking: a policy once implemented remains in effect until another replaces it. I find a Markov perfect equilibrium in which (1) there is no majority party in any election; (2) election results converge over time to a stable vote distribution; (3) policy outcomes change over time but eventually stay within a set of three points; (4) minimal winning coalitions and minority governments are formed with positive probability and alternate over time.     

Dynamics of change in internal policy advisory systems: the hybridization of advisory capacities in Germany

Recent scholarship on advisory systems has focussed on the externalization of advisory capacities and sectoral dynamics of change, whereas changes of internal policy advisory systems have not yet been approached systematically. This article proposes an analytical concept for exploring change dynamics in internal policy advisory systems by means of three logics for assessing policy advice (political salience, credibility and representativeness). The approach is illustrated by analysing changes within the internal policy advisory system of the German federal government (1990–2015). The analysis relies on three original datasets on ministerial departments, research agencies and governmental advisory bodies. We find that the internal advisory system of the German federal government is characterized by a differentiated hybridization of advisory logics, which has changed the nature of policy advice.     

ECONOMIC THEORY AND POLICY ANALYSIS: CONCEPTUAL GUIDELINES FOR PUBLIC POLICY-MAKERS

Abstract: Traditionally public policy analysis has been able to employ the conceptual framework offered by the theory of market failure in order to evaluate the efficiency of market outcomes. However, until fairly recently, no corresponding analytical structure existed which could facilitate the examination of the efficiency and equity characteristics of government or non-market outcomes. Quite apart from public choice theory, an embryonic normative theory of government failure has now been developed which can act as a conceptual analogue to the market failure paradigm. At present, three theories of government failure coexist in the literature: Wolf's theory of non-market failure; Le Grand's theory of government failure; and Vining and Weimer's theory of govern- ment production failure. These models form the basis for a more universal theory of government failure. Nevertheless, in its current state of development this seminal literature can still assist in rational public policy design subject to certain caveats. Foremost amongst these is the need for policy analysts to augment the efficiency and equity criteria with some additional broader normative measures, and the necessity for care to be taken in the use of allocative efficiency as a benchmark in non-market circumstances.     

The Quality of Management and Government Performance: An Empirical Analysis of the American States

Government performance is an enduring concern for students of public management, public administration, and political science. Government's administrative arrangements and managerial behavior can profoundly influence programmatic content, activities, and outcomes; therefore, considering public management's effects is necessary for a true understanding of public policy and government performance. This article uses data from the Maxwell School's Government Performance Project to examine the relationship between state governments' managerial capacity and a measure of government performance (specifically, state policy priorities). We find that state management capacity has direct effects on state policy commitments: States possessing higher levels of management capacity tend to favor programmatic areas that distribute societal benefits widely (that is, collective benefits) as opposed to narrowly (that is, particularized benefits). Our analysis demonstrates that public interest group activity, government ideology, and citizen ideology each have significant, predictable effects on state policy commitments. Thus, our findings place managerial capacity alongside other more commonly studied state characteristics as an important influence on government activities.     

Changing Agendas in Australian Indigenous Policy: Federalism,Competing Principles and Generational Dynamics

This paper identifies two periods of punctuated change in the content and style of Australian Indigenous policy in the last fifty years. It also identifies a third period in which attention to Indigenous policy was heightened through the nationalisation of land issues already well‐established on the agendas of sub‐national jurisdictions. The paper relates all three periods to the changing federal institutions of Australian Indigenous policy, with the Commonwealth slowly exploring its post‐1967 role as a national government in Indigenous affairs. In later sections, the paper identifies some more conceptual bases of changing policy agendas, through ideas of the competing principles of equality, choice and guardianship and the generational moral dynamics of Indigenous affairs.     

Understanding State Rulemaking Processes: Developing Fracking Rules in Colorado,New York,and Ohio

Rulemaking is an integral component of environmental policy at both the federal and state level; however, rulemaking at the state level is understudied. With this research, we begin to fill that gap by focusing on rulemaking regarding the issue of hydraulic fracturing (fracking) in three states: Colorado, New York, and Ohio. This policy issue is well suited to begin exploring state‐level rulemaking processes because the federal government has left fracking regulation to the states. Through semistructured interviews with a range of actors in the rulemaking process across these states, we establish a foundation from which future research in this area may build. This exploratory research yields some valuable insights into the roles different stakeholders are playing in regulating fracking in these three states, and our findings may be useful for explaining state‐level rulemaking more generally.     

The Rise of 'New' Policy Instruments in Comparative Perspective: Has Governance Eclipsed Government?

Governance is a term in good currency, but there are still too few detailed empirical analyses of the precise extent to which it has or has not eclipsed government. This article explores the temporal and spatial characteristics of the governance transition by charting the deployment of new policy instruments in eight industrialised states and the European Union. The adoption and implementation of ('old' and 'new') policy instruments offer a useful analytical touchstone because governance theory argues that regulation is the quintessence of government. Although there are many 'new' environmental policy instruments in these nine jurisdictions, this article finds that the change from government to governance is highly differentiated across political jurisdictions, policy sectors and even the main instrument types. Crucially, many of the new policy instruments used require some state involvement (that is, 'government'), and very few are entirely devoid of state involvement (that is, pure 'governance'). Far from eclipsing government, governance therefore often complements and, on some occasions, even competes with it, although there are some cases of fusion. Future research should thus explore the many complex and varied ways in which government and governance interact in public policy-making.     

The checks and balances of party federalism: German federal government in a divided legislature

Abstract In this study, we assess the potential for policy change of the German government of Helmut Kohl after unification combining party positions with formal bicameral settings in a spatial model of legislative action. We distinguish between two policy areas and two types of legislation, mandatory and non–mandatory legislation imposing either a symmetric or asymmetric power distribution between both German chambers. In order to identify German legislators' party positions in different policy areas, we use data from ECPR Party Manifesto research covering the period from German unification in 1990 to the end of the government of Helmut Kohl in 1998. We find that the federal government of Helmut Kohl had a policy leadership position until April 1991 with no procedural differences, but the gridlock danger for governmental proposals was higher on the societal than the economic dimension. Afterwards, the government's potential for policy change was considerably determined by the type of legislation, independently from the policy dimension. At the end of the Kohl era, the governmental policy leadership position was limited to policies that left even the opposition majority of German states better off. The procedural settings mattered greatly on the economic dimension, and the danger of gridlock on societal policy was smaller only for non–mandatory legislation.     

The checks and balances of party federalism: German federal government in a divided legislature

In this study, we assess the potential for policy change of the German government of Helmut Kohl after unification combining party positions with formal bicameral settings in a spatial model of legislative action. We distinguish between two policy areas and two types of legislation, mandatory and non–mandatory legislation imposing either a symmetric or asymmetric power distribution between both German chambers. In order to identify German legislators' party positions in different policy areas, we use data from ECPR Party Manifesto research covering the period from German unification in 1990 to the end of the government of Helmut Kohl in 1998. We find that the federal government of Helmut Kohl had a policy leadership position until April 1991 with no procedural differences, but the gridlock danger for governmental proposals was higher on the societal than the economic dimension. Afterwards, the government's potential for policy change was considerably determined by the type of legislation, independently from the policy dimension. At the end of the Kohl era, the governmental policy leadership position was limited to policies that left even the opposition majority of German states better off. The procedural settings mattered greatly on the economic dimension, and the danger of gridlock on societal policy was smaller only for non–mandatory legislation.