Grounding transnational business governance: A political-strategic perspective on government responses in the Global South

Recent scholarship on transnational business governance has begun to examine public-private interactions and the active role of governments. We make two key contributions that integrate and expand this literature. First, in juxtaposition to functionalist accounts, we foreground the fundamentally political and often contentious character of these interactions. As private transnational governance schemes and standards “hit the ground,” private-public interactions, we argue, are embedded in national political arenas and tied to domestic distributional struggles among competing regulatory coalitions. Building upon multiple empirical streams of research, we develop a political-strategic framework that maps the diversity of Southern government responses (substitute, adopt, repurpose, replace, or reject) to transnational private governance. Our framework shows that government responses are a function of both strategic fit with domestic industrial capabilities and structures, and strength of developmental state capacity. Second, our proposed framework adopts the vantage point of Global South governments and industries, particularly how development challenges and strategic options within global value chains affect their understanding of, and responses to, transnational schemes and standards. This is an important corrective to a Northern bias in the private governance literature.     

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Institutional change and continuity in German infrastructure management: The case of electricity reform

Why, despite improving living conditions, has the acceptance of the Western system of institutions (democracy, market economy) decreased in the past few years in eastern Germany? This article criticises the widely held socialisation thesis which seeks to explain the declining acceptance of the Western system on the basis of the difficulties faced by east Germans in adapting to the new conditions. Their attitudes were formed by the socialist system of the GDR, and they still clung to socialist ideals. This article, on the contrary, argues that the declining trust in political institutions and market economy results from current experiences of the transformation process in unified Germany, primarily as a consequence of being treated as ‘not equal’ to west Germans.