International Institutions and Domestic Compensation: The IMF and the Politics of Capital Account Liberalization

Certain governments have been faster than others in relaxing their restrictions on the cross‐border movement of capital. How can we explain the timing and extent of financial liberalization across countries since the 1970s? We argue that IMF stabilization programs provide a window of opportunity for governments to initiate financial reforms, but that policy makers are more likely to seize this opportunity when welfare expenditures are high. Large loans from the IMF shield policy makers from the costs of financial reform, while welfare expenditures provide credibility to the government's ex ante promises of compensation to individuals who are harmed by the reforms. We test this hypothesis on data for 87 countries from 1975 to 2002. We employ a spatial autoregressive error sample selection model which accounts for the nonrandom participation of countries in IMF programs as well as the processes of international policy diffusion. The results provide strong support for the interactive effect of IMF programs and domestic welfare expenditures on financial liberalization.     

Fiscal Policy,Deficits and Politics of Subnational Governments: The Case of the German Laender

The first part of the paper briefly describesinstitutional aspects of the German federal system andexamines the economic and fiscal performance of theGerman Laender since 1970. Taking into account theinstitutional settings, especially the fact that theGerman Laender cannot set tax rates individually, wedevelop a highly stylized model of subnationalgovernments that do not have access to the tax rateinstrument and thus have to use expenditures as apolicy variable. The model implies an expendituresmoothing policy of subnational governments andcomplements the famous tax smoothing model. Theempirical section examines whether governments ofvarious ideology show significant differences infiscal stabilization policy. Our results indicatethat regional differences in public debt accumulationand public expenditure policy in general is largelydetermined by interregional differences in economicperformance, whereas we do not find any significantimpact on the ideological composition of the Laendergovernments.     

Reconsidering the Effects of Bonding Social Capital: A Closer Look at Black Civil Society Institutions in America

Few studies consider how Putnam’s bridging and bonding social capital arguments apply to voluntary associations within American minority group communities. Consequently, I examine African-American civic groups to explore Putnam’s claims about the potential negative political effects of bonding social capital. In contrast to the bonding social capital thesis, I argue that black communal associations encourage African-Americans to be involved in a variety of mainstream civic and political activities that reach beyond their own group interests. Using the 1993–1994 National Black Politics Study I demonstrate that although black organizations are predominantly composed of African-Americans and work to advance their interests, these goals are not pursued at the expense of connecting blacks to others in the general polity.

Comparative Green Politics: Beyond the European Context?

It is argued that there are significant differences between green electoral politics in Europe and green developments in the affluent non-European west, and that these are such that, despite the greater political formalization of the green movement in Western Europe, there is a sense in which North American and Antipodean developments are ultimately more fundamental than those that have occurred in Europe. Loosely adopting explanatory categories employed by Rudig and Lowe in a Political Studies article, we examine evidence under four sub-heads: electoral thresholds; the historical legacy of the environment movement; the different contextual roles played by the anti-nuclear movement and wilderness experience, and ecology, Marxism and the new left.     

Unarmed Utopia Revisited: The Resurgence of Left-of-Centre Politics in Latin America

This paper seeks to examine the extent to which left-wing forces are making a comeback in Latin America and to draw out the political implications of their political ascendancy. It argues that while left-of-centre parties have developed a persuasive critique of the failures of liberal democracy and economic neoliberalism in the region, there is as yet no conceptual clarity or distinct policy initiatives materialising from the left's promises of deepening democracy and implementing an alternative economic model. When in power, left-of-centre parties have followed a strategy of 'bending and moulding' existing political institutions and the free-market economic model rather than attempting radical political and economic reforms. This paper concludes that left-of-centre parties are right in accepting that there is little room in the region for an anti-systemic model and that instead the emphasis should be placed on making states, markets and democracy work better to secure development, address social demands and attack the root causes of discrimination and inequality. But leaving behind old certainties and adapting to the new political and economic environment has come at the cost of a loss of intellectual confidence, ideological clarity and weakened identities.