International development institutions and national ­economic contexts: neo-liberalism encounters India’s indigenous political traditions

Drawing on the case of India, which since 1991 has been undergoing a far-reaching programme of market-oriented reform, this paper argues that the World Bank and other transnational development actors have been unable to adjust themselves ­sufficiently to indigenous ideological traditions that affect the sustainability of economic liberalization. While markets are becoming increasingly embedded at the level of institutions, they are not achieving what might be termed ‘ideological embeddedness’. The paper maps the ideological context facing market reformers in India by looking at the relationship between, on the one hand, the idea of swadeshi (an indigenous form of economic nationalism), and on the other, three competing forces in Indian politics. The paper concludes by arguing that it is the mutual antipathy among these political forces, rather than any fundamental incompatibility between swadeshi’s precepts and the embedded-market framework, that prevents organizations like the World Bank from adapting swadeshi as an indigenous basis for framing its approach to market embeddedness.     

Beyond the Social Market: Rethinking Capitalism and Public Policy

Despite its worthy motives, social market philosophy provides neither a useful analytical framework for understanding modern capitalism, nor the policy tools to address our present economic and social predicament. The concept of ‘market failure’, with its underlying assumption of market equilibrium, does not capture the systemically adverse outcomes of collective market forces. A more sophisticated understanding of capitalist economies, and the societies in which they exist, would recognise that the market economy is a dynamic but not self‐regulating system. It is embedded in, and impacts on, four other economies – of the natural environment, of family and care, of voluntary association, and of the public sector – which operate under different motivations and allocative principles. The role of government is central, to balance the values created by different kinds of institutions and to constrain the dynamic impacts of market forces. A number of policy conclusions are offered arising from this framework.     

All in it Together? The Unlikely Rebirth of Covid Corporatism

The battle to soften the labour market impact of the pandemic has thrown up some unlikely bedfellows, with trade union leaders competing with business chiefs over who can most fulsomely praise the government’s economic response. But does this entente really presage a new era of ‘Covid-corporatism’? Crises like Covid-19 can provide opportunities for temporary social pacts, even in countries lacking the labour market institutions needed to sustain these in normal times, and the ‘social partners’ have shown an unusual willingness to be bold and constructive. But cracks are already appearing over how and when the state should begin its withdrawal from the economy. Unions face structural weaknesses and recruitment problems that will hamper their ability to take full advantage of what will likely prove to be only a temporary lull in hostilities.     

A Bonfire of the Regulations,or Business as Usual? The UK Labour Market and the Political Economy of Brexit

Employment and labour market regulation initially appeared as one of the solid red lines in the UK's renegotiation of the country's place in the EU. The basic argument is that the UK's more deregulated labour market would sit uneasily in the more organised models, based on statutory instruments or collective bargaining, found on the continent. While there is a legitimate problem here, EU employment regulations appear manageable from the point of view of business, while unions see them as important tools for socially responsible economic restructuring. Most of UK employment case law is now deeply entangled with EU law; labour market regulations have, on the whole, become part of the way of doing business in the Single Market; and a simple cost–benefit analysis appears impossible because some costs are not quantifiable and the costs of others are reduced when taken as a bundle. Labour unions agree that transposition of European law needs to be done taking into account local sensitivities, while internationally oriented companies do not see EU regulations on the whole as detrimental to business. Importantly, though, the costs and benefits of EU employment regulations are not symmetrically distributed across different companies: large companies are better able to reap the rewards and accommodate the costs of operating in the Single Market than smaller companies.     

Unintended consequences: social policy,state institutions and the ‘stalling’ of the Malaysian industrialization project

Abstract

This paper examines the relation of particular forms of social and labour market policy to economic development. Taking the history of Malaysian industrialization as its empirical case, the paper assesses the unintended consequences of redistribution policy, on the one hand, and migration policy, on the other, for the limited upgrading of the country's electronics industry. It argues that, while the former has been central to social harmony in Malaysia's multi-racial society, it has contributed to the underdevelopment of small and medium-sized firms capable of linking with the TNCs on the basis of knowledge-intensive and higher value-added operations. Migration policy, on the other hand, has allowed manufacturers to have continued access to supplies of low-cost, lower-skilled labour that have released the pressures that would otherwise have been there for technological and skill upgrading in the electronics industry. Only in Penang, where regional state institutions have intervened to encourage SME upgrading, has the national picture been moderated. Malaysia's industrialization project emerged at time when export competition in manufactured commodities was less intense than it is now. Largely as a result of federal government priorities and for other reasons explored in the paper, advantage was not taken of this ‘window of opportunity’. As a consequence, the country's industrialization project – exemplified by its electronics industry – is now ‘stalling’ in the sense that it remains locked into low- to medium-technology operations. With the rise of China as a manufacturing exporter, this is a dangerous situation for a country's principal industry to be in.     

The Future of the European “Social Model” in the Global Economy

This article examines the prospects for European welfare states in the context of globalization. It begins with a critical review of the globalization arguments. While there is some evidence that external constraints make life harder for policymakers seeking positive-sum outcomes, it is the combination of national debt and spending limits, plus domestic tax resistance, that really count in making expenditure-based social and employment policies more difficult in certain countries. In understanding the constraints and opportunities that will shape Europe's welfare future, globalization—crudely understood—is therefore much less influential than many suppose. While EMU has radically diminished national autonomy in exchange rate, monetary policy, and fiscal policy, there are also beneficial consequences for social policy and broader economic management. On the employment and social policy side, initiatives required to match greater flexibility with sustained security are now at the top of the EU agenda, and mechanisms for diffusing best practice across Europe are being put in place. Within this framework, European welfare states must place more emphasis on dynamic equality, being primarily attentive to the worst off, more hospitable to incentive-generating differentiation, and actively vigilant with regard to the openness of opportunity structures.     

French capitalism ­transformed,yet still a third variety of capitalism

Rather than one or two varieties of capitalism, this paper argues that there are still at least three in Europe, following along lines of development from the three post-war models: market capitalism, characteristic of Britain; managed capitalism, typical of Germany; and state capitalism, epitomized by France. While France’s state capitalism has been transformed through market-oriented reforms, it has become neither market capitalist nor managed capitalist. Rather, it has moved from ‘state-led’ capitalism to a kind of ‘state-enhanced’ capitalism, in which the state still plays an active albeit much reduced role, where CEOs exercise much greater autonomy, and labour relations have become much more market-reliant.     

“Ragged urchins play on marquetry floors”: The discourse of filtering is reconstructed, 1920s–1950s

The idea of filtering has played a key role in our understanding of housing markets and in framing federal policy. The origins of the idea, however, and of the term itself, are poorly understood. Drawing loosely on the approach of discourse analysis, this article clarifies both issues, arguing that language shapes how we think about housing policy, and indeed policy itself. The concept of filtering emerged in Great Britain in the late nineteenth century where, by 1900, it informed arguments in favor of municipal (public) housing. It became influential in the United States in the 1920s but in 1938 was still referred to in different ways, notably as “hand-me-down housing.” Here, it was understood more narrowly, as an alternative to public housing. After 1939, the Federal Housing Administration, though not its leading consultant Homer Hoyt, popularized the term “filtering.” The neutral connotations of this metaphorical term suited the agency's goal of developing an apparently objective discourse of housing markets and market analysis. The term was normalized by the early 1960s.     

Austerity or welfare state transformation? Examining the impact of economic crises on social regulation in Europe

This article provides an encompassing analysis of how economic crises affect social regulation. The analysis is based on an innovative dataset that covers policy output changes in 13 European countries over a period of 34 years (1980–2013) in the areas of pensions, unemployment, and child benefits. By performing a negative binomial regression analysis, we show that economic crises do matter for social policymaking. Our main empirical finding is that crises impinge on social regulation by opening a window of opportunity that facilitates the dismantling of social policy standards. Yet crisis‐induced policy dismantling is restricted to adjustments based on existing policy instruments. We do not find significant variation in policymaking patterns across different macroeconomic conditions for the more structural elements of social policy portfolios, such as the envisaged social policy targets or the policy instruments applied. This suggests that economic crises do not lead to a profound transformation of the welfare state but to austerity.     

Fair Housing After “Big Government”: How Tax Credits Are Reshaping the Legal Fight Against Racial Segregation

ABSTRACT

In June 2015, the Supreme Court ruled, in a 5–4 split decision, that facially neutral state policies and practices that unintentionally segregated minorities could violate the Fair Housing Act. This article draws on the Texas fair housing litigation to engage broader debates on fair housing as a legal framework, and its potential for disrupting or transforming patterns of structural inequality. Specifically, it examines how shifts in the ways that society designs and implements housing policies may encourage courts, advocates, and legal actors to think about fair housing issues in new ways. Moving beyond the emphasis on disparate impact, my findings elaborate on two mostly overlooked ways that LIHTC reshapes the legal battleground in the fight for fair housing, by opening contentious debate on (a) the state level of government, and (b) passive government administration of policies. I interpret these effects as unintended consequences of the gradual shift toward market-driven policies that allow officials to govern at a distance.     

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.     

中国经济定型之后社会转型若干问题

与中国的经济转型相比,中国的社会转型远不如前者成功,存在许多值得争议之处。为此,首先需要明确社会转型的四个前提约束条件。在这样的前提约束条件之下认识中国社会转型的具体目标模式,就需要结合构建社会主义和谐社会的总体要求做进一步的理论探索。其中一个关键是如何正确看待社会事业的性质,前一段社会转型出现重大失误的主要原因就是沿用经济转型成功的理念指导社会转型,由此出现了重大偏差,忽略了社会事业自身的三种客观性。     

Assessing Material and Symbolic Variations in Punctuated Equilibrium and Public Policy Output Patterns

Numerous researchers have confirmed sharp and punctuated policy change. Newer findings in U.S. forest policy in the Pacific Northwest and U.S. state tobacco policy have found largely nonpunctuated changes. What are the implications for punctuated equilibrium theory? U.S. state tobacco policy‐making from 1990 to 2006 indicates a wide variety of nonpunctuated policy output patterns including: linear and constant, gently oscillating and increasing, linear and increasing, and linear and constant and then nonexponentially increasing. All nonpunctuated policies resulted in symbolic policy output change except state tobacco licensing, higher tobacco taxes, and enactment of clean indoor air legislation, which resulted in partially material and partially symbolic policy output change. Emerging from this research is a new public policy model based on social policy realism. Public policy output change can be quite complex, sometimes punctuated and sometimes not, reflecting the balance of power between sometimes competing and cooperating interest groups.     

Social Policy and Politics

Social policy is central to current political debates. The framework in which social policy is discussed remains largely a social services or micro-social policy framework. The contribution of the social services has been reappraised. The importance of the 'private' behaviour of individuals and families that has social consequences is being increasingly realised. There is a growing need for a new 'macro-social policy' approach that extends to all the actors or agents that are relevant to social objectives.     

Fiscal rules,fiscal outcomes and financial market behaviour

Since the outbreak of the eurozone's sovereign debt crisis, a range of fiscal policy measures have been adopted at the European Union (EU) and national levels that have given rise to claims of a significant reinforcement of fiscal policy constraint. Given the prominence and reinvigorated political appeal of fiscal rules in the EU and beyond, it is disconcerting how little we actually know about the link between fiscal rules, budgetary outcomes and market behaviour. In this research note, the aim is to take stock of the existing literature and challenge its contribution to the current policy debate on the merits of fiscal rules. Specifically it will focus on problems linked to endogeneity, measurements and contextuality.     

Putting Neoliberalism in its Place

Neoliberalism is not as popular as its opponents seem so much to fear; in democratic politics it nearly always hides behind other ideologies and policy types, as its essential message that we should pursue no goals that cannot be achieved through the market is intrinsically unattractive to the majority of people. Its power lies in the wealth of its key supporters, and in the difficulty of raising coordinated opposition to it among post‐industrial populations that have little sense of their political interests. The main base for hope of change in this comes from the as yet unrealised potential of women's movements.     

The Soviet constitution

Text Reviewed:

Pierre et Marie Lavigne Regards sur la Constitution sovietique de 1977, Economica, Collection Politique Comparée, Paris 1979.