The Power of Money: Global Capital and Policy Choices in Developing Countries

Extant studies of the impact that international phenomena have on policy choices, and those focused on the political economy of exchange-rate regimes in particular, are incomplete because they do not consider the effect that reliance on global capital has on the policy preferences of domestic groups. Consequently, they cannot explain why some newly emerging market countries pursue fixed exchange regimes under political and economic conditions—such as recently completed elections, uncompetitive export sectors, and poor national economic performance—in which others have altered their policies. I argue that reliance on different types of foreign capital generates distinct capital-specific policy preferences. Furthermore, rather than simply mimicking the preferences of foreign investors, domestic groups are likely to promote policies that reduce their capital-specific risks and vulnerabilities. Panel logit models of exchange-rate regimes in emerging market countries from 1973 through 2000 demonstrate that higher levels of democracy bolster these effects .     

The Foreign Relations of European Regions: Competences and Strategies

The article traces the foreign relations of 81 European regions by looking first at the constitutional competences which these regions enjoy within their nation-states. We discover that the regions in federal states have expanded their competences in two directions: conducting autonomous foreign activities and influencing national foreign policy. How far the Belgian regions, as well as the German and the Austrian Länder go in both directions depends very much on the scope of their competences in domestic politics. In non-federal states (France, GB, Italy), regionalisation brought rather more leeway to conduct a certain level of autonomous foreign activity than regional influence in national foreign policy. When we – in a second step – trace the strategies or directions of international activities which the regions pursue it becomes obvious that setting up an office in Brussels in order to adapt to political integration is very common among West European regions. In contrast, much more variety can be observed when examining the regions' strategies to adapt to fundamental economic and cultural transformations. Some European regions invest heavily in economic promotion offices and in transnational partnerships while others lack the motivation or ability to invest in these forms of foreign relations.     

Is The National Budget Controllable?

Previous scholarly analyses of national spending have shown a penchant for incre-mentalism in interpreting changes. They have also focused almost exclusively on annual national outlays or annual expenditures. This article argues that, in many cases, budget authority figures provide a better basis for analyzing the national budget. The author gathered annual budget authority (BA) figures from fiscal years 1969 to 1993 and used this BA data for an empirical test of budget controllability. If the national budget has or has not been controlled in the recent past, then it should help us to judge whether or not it is controllable now. Five potential major budget interventions from fiscal year 1980 to 1993 were tested using an interrupted time-series and two regression models. Different intervention results are anticipated depending upon whether one has a policy perspective that is incrementalist, international systemic, or domestic political. The analysis provides more support for the domestic political perspective than for incrementalist or international systemic views. Budget authority was found to be superior to outlays for linking budget results to policy decisions. The national budget responded appropriately to policy decisions in the recent past. In this sense, the budget was controlled and we should view it as controllable.     

The Impact of Federalism on the Organization of Canadian Foreign Policy

The international activities of Canadian provinces—mainlyAlbert, British Columbia, Ontario, and Québec—challengeconventional concepts of sovereignty and the federal view ofa national monopoly in foreign policy. These provincial activitieshave become more important since the early 1970s and have yieldedoutcomes in the field of foreign policy that would not haveoccurred otherwise. Provinces engage in international activitiesfor a number of reasons. They have the capacity, jurisdictionalobligation, and political desire to do so. Economic necessity,especially the international economic environment, is importantmotivation. Both conflict and cooperation with Ottawa also encourageprovincial involvements in international activities. Occasionally,foreign governments invite such activity as well. Present trendscoupled with the constitutional division of responsibilitiesin Canada suggest that territorial transgovernmentalism willhave greater consequences for Canadian foreign policy, therebygiving to Canada's international presence a character similarto the complexities and contradictions of the country's domesticmosaic.     

The European Community and South Africa: Economic Reality or Political Rhetoric?

This article examines the economic and political relationship between the European Community (EC) and the Republic of South Africa (RSA). From the economic perspective, the Community's objective of securing economic independence for the region, trends in EC-RSA trade and the arguments pertaining to mineral dependency are discussed. From the political perspective, Community statements on apartheid are compared with its foreign policy record. In particular, the Code of Conduct for European firms operating in the Republic is analysed within the framework of European Political Cooperation (EPC). The achievements, failures, future role and alternatives to the Code are considered and the limitations imposed by EPC in realizing a collective foreign policy are recognized.     

International political marketing: a case study of United States soft power and public diplomacy

• Political marketing can be categorized with three aspects: the election campaign as the origin of political marketing, the permanent campaign as a governing tool and international political marketing (IPM) which covers the areas of public diplomacy, marketing of nations, international political communication, national image, soft power and the cross‐cultural studies of political marketing. IPM and the application of soft power have been practiced by nation‐states throughout the modern history of international relations starting with the signing of the Treaty of Westphalia in 1648. Nation‐states promote the image of their country worldwide through public diplomacy, exchange mutual interests in their bilateral or multilateral relation with other countries, lobby for their national interests in international organizations and apply cultural and political communication strategies internationally to build up their soft power. In modern international relations, nation‐states achieve their foreign policy goals by applying both hard power and soft power. Public diplomacy as part of IPM is a method in the creation of soft power, as well as, in the application of soft power.
• This paper starts with the definitional and conceptual review of political marketing. For the first time in publication, it establishes a theoretical model which provides a framework of the three aspects of political marketing, that is electoral political marketing (EPM), governmental political marketing (GPM) and IPM. This model covers all the main political exchanges among six inter‐related components in the three pairs of political exchange process, that is candidates and party versus voters and interest groups in EPM ; governments, leaders and public servants versus citizens and interest groups in GPM, including political public relations and lobbying which have been categorized as the third aspect of political marketing in some related studies; and governments, interest group and activists versus international organizations and foreign subjects in IPM. This study further develops a model of IPM, which covers its strategy and marketing mix on the secondary level of the general political marketing model, and then, the third level model of international political choice behaviour based the theory of political choice behaviour in EPM. This paper continues to review the concepts of soft power and public diplomacy and defines their relation with IPM.
• It then reports a case study on the soft power and public diplomacy of the United States from the perspectives of applying IPM and soft power. Under the framework of IPM, it looks at the traditional principles of US foreign policy, that is Hamiltonians, Wilsonians, Jeffersonians and Jacksonians, and the application of US soft power in the Iraq War since 2003. The paper advances the argument that generally all nation states apply IPM to increase their soft power. The decline of US soft power is caused mainly by its foreign policy. The unilateralism Jacksonians and realism Hamiltonians have a historical trend to emphasize hard power while neglecting soft power. Numerous reports and studies have been conducted on the pros and cons of US foreign policy in the Iraq War, which are not the focus of this paper. From the aspect of IPM, this paper studies the case of US soft power and public diplomacy, and their effects in the Iraq War. It attempts to exam the application of US public diplomacy with the key concept of political exchange, political choice behaviour, the long‐term approach and the non‐government operation principles of public diplomacy which is a part of IPM. The case study confirms the relations among IPM, soft power and public diplomacy and finds that lessons can be learned from these practices of IPM. The paper concludes that there is a great demand for research both at a theoretical as well as practical level for IPM and soft power. It calls for further study on this subject.

Copyright © 2008 John Wiley & Sons, Ltd.     

Towards an International Antitrust Authority? Key Factors in the Internationalization of Competition Policy

Negotiated access to markets through the internationalization of business framework rules is of increasing importance. The article examines the political-economic factors that are contributing to, but also setting limits on, the greater internationalization of one such aspect of policy—competition policy. It analyzes whether internationalizing forces are likely to transform existing international arrangements in competition policy matters from those of a loose regime to that of a fully fledged international institutional system. The latter could be represented by recent proposals for an International Antitrust Authority. The four factors examined are: conflicting ideas about competition policy; the exercise of political power by nation states and business; the roles and stances of international agencies; and democratic concerns about the accountability, representativeness, and transparency of competition policy institutions.
The analysis concludes that future forms of institution-building at the international level of competition policy are important. This is so because, if lejt totally as a set of international regimes, competition policy may be arranged to an excessive degree in the interests of business power or in the interests of one or more dominant countries.     

The Differential Empowering Effects of Europeanization on the Autonomy of National Agencies

This article examines the influence of Europeanization on the relationship between ministries and agencies at the national level. The core argument is that the differentiated nature of the international environment (with policy development often transferred to the international level and policy implementation left at the national level) transforms national agencies into policy‐developing actors that shape policies without being directly influenced by their national political principals. The increasingly common involvement of national agencies in European policymaking processes thereby increases these agencies' policy‐development autonomy but does not change their role in policy implementation. We examine this argument by testing an innovative hypothesis—the differentiation hypothesis—on a combined data set of German and Dutch national agencies. Our empirical findings support the hypothesis in both countries, suggesting that similar effects can be expected in other contexts in which semiautonomous agencies are involved in transnational policymaking.     

Zur Theorie der Interessenvermittlung: Ein Netzwerkansatz dargestellt am Beispiel der Gemeinsamen Europäischen Agrarpolitik

Recent policy network studies contribute significantly to the theory of interest mediation. Despite this contribution policy network approaches still contain major theoretical deficiencies and a lack of empirical application can be observed. In this context a typology of systems of interest mediation is theoretically derived on the basis of new developments in the political exchange theory (Pappi/Henning 1998a). Analogously to the typology of economic markets, the typology corresponds to the social organization of political exchange in policy networks. Further, it is demonstrated that in contrast to conclusions found in the literature no general correspondence of specific types of interest mediation and policy-outcomes in terms of weak versus strong states, efficient versus inefficient economic policies and biased versus unbiased mediation of societies interests can be expected. In the empirical part of the paper the typology is applied to the European Common Agricultural Policy (CAP) using policy network data. In particular, a block model analysis is applied aggregating a set of multiple network relations among a multitude of public and private actors operating in the CAP to identify whether the overall social macro structure corresponds to national clientelism or supranational pluralism.     

International migration and liberal democracies: the challenge of integration

Migration theories that build on economic incentives and social network effects will generally predict much more international migration than we observe. We have to 'bring the state back in' to explain why so few potential migrations lead to actual flows, and why these flows are highly selective. Immigration policies have been strongly shaped by particular nation-building projects but the increasing diversity of origins in contemporary migrations has also challenged and transformed perceptions of national identity at the receiving end. Bauböck discusses the need for studying integration regimes from a comparative and normative perspective. He examines characteristic features of four regimes - the United States, Canada, Israel and the European Union - and defends a conception of integration that embraces the ambiguities of the term: it should be understood as referring to the inclusion of newcomers as well as to the internal cohesion of the societies and political communities that are transformed by immigration. These two meanings are combined in a third one of integration as federation: the process of forming larger political unions from distinct societies. Particularly in the context of the European Union integration policies for immigrants should live up to the same democratic principles that are invoked for the political integration of the EU. This suggests a European agenda for harmonizing the legal status of third country residents and their access to citizenship. Bringing the state back in makes us also aware that the transnational communities of migrants are no substitute for access, status and rights within territorially bounded polities. Instead of portraying migrants as harbingers of the end of the nation-state, we should rather think how to transform nation-states so that increasingly mobile populations can still share in political authority, a bounded territory and a common historical horizon. This perspective of integration is 'transnational' rather than 'postnational'. A transnational perspective does not envisage the dissolution of nation-states, but emphasizes instead that societies and cultures increasingly overlap both in space and time.     

International Constraints and Domestic Choices: Economic Convergence and Exchange Rate Policy in France and Italy

As tensions in the European Monetary System demonstrate, international capital flows can have a decisive influence on countries' economic policies. The external constraint of high international capital mobility led the countries of Western Europe in the 1980s to attempt to stabilize their exchange rates and converge toward low levels of inflation. Yet this process was not uniform: French governments pursued a rigorous anti-inflationary policy of high interest rates and a strengthening currency, while Italian governments had difficulty controlling inflation and maintaining the lira in the European Monetary System. This difference is best explained by comparing political institutions and policymaking processes in the two countries. Particular attention is given to political leaders' access to economic policy tools and their capacity to design and implement long-term goals.     

The ends justify the means: A global research agenda for political marketing and public affairs

Political marketing has developed into an increasingly mainstream discipline in universities globally over the last decade. There are many schools of political marketing with different approaches, such as the North American approach, the Western and Eastern European perspectives, and the Asian position. The study and application of political marketing has been categorised with different perspectives, such as electoral, governmental, and international aspects. It is becoming increasingly evident that political marketing needs further classification like any matured and established discipline. A close analysis of political marketing practices and academic research leads one to perceive two distinct areas of political exchanges in two different markets: the intranational market and the international market. The first deals with political marketing at a local, district, municipal, state/provincial, and national levels. The second deals with political marketing across national borders. As in the case of commercial marketing, international marketing became a major study field when marketing grew into a matured mainstream discipline in the 1980s.     

The organization of influence on the EC's common agriculturalpolicy: A network approach

The common agricultural policy of the EC with its market regulations is decided at EC level by a multilevel system of government, in which the Commission and the parliamentary parties of the European Parliament play the supranational role and the national ministries of agriculture act as parts of the intergovernmental system of the Council of Ministers. National interest groups have thereby three major access routes to the EC system, first through their national governments, or second indirectly, transmitted by their European peak organizations, or third directly to the supranational EC actors. The network approach is applied to study empirically the densities of access through these various routes. The links between actors in the agricultural policy domain are conceptualized as links for the exchange of resources, the most important resource of a policy domain being the final control of policy decisions. The political actors of the governance system originally hold full control of this valuable resource which they exchange for influence resources possessed by the interest groups, as public support or expert knowledge. Empirically, answers to the network questions depend on the type of resource and the viewpoint of the interviewed actors. An index is developed which indicates the resource flows between actors and the distribution of equilibrium control of policy decisions. It is shown that the national ministers of agriculture depend very much on the support and expertise of their national farmers' lobby, whereas the Commission relies more on contacts within the political sector itself. Multilevel systems need a lot of political coordination, so that the political actors within such systems, especially at the supranational level, seem to deal first of all with each other and not so much with the demand side of politics, compared to the national ministers of agriculture.     

The organization of influence on the EC's common agricultural policy: A network approach

Abstract The common agricultural policy of the EC with its market regulations is decided at EC level by a multilevel system of government, in which the Commission and the parliamentary parties of the European Parliament play the supranational role and the national ministries of agriculture act as parts of the intergovernmental system of the Council of Ministers. National interest groups have thereby three major access routes to the EC system, first through their national governments, or second indirectly, transmitted by their European peak organizations, or third directly to the supranational EC actors. The network approach is applied to study empirically the densities of access through these various routes. The links between actors in the agricultural policy domain are conceptualized as links for the exchange of resources, the most important resource of a policy domain being the final control of policy decisions. The political actors of the governance system originally hold full control of this valuable resource which they exchange for influence resources possessed by the interest groups, as public support or expert knowledge. Empirically, answers to the network questions depend on the type of resource and the viewpoint of the interviewed actors. An index is developed which indicates the resource flows between actors and the distribution of equilibrium control of policy decisions. It is shown that the national ministers of agriculture depend very much on the support and expertise of their national farmers' lobby, whereas the Commission relies more on contacts within the political sector itself. Multilevel systems need a lot of political coordination, so that the political actors within such systems, especially at the supranational level, seem to deal first of all with each other and not so much with the demand side of politics, compared to the national ministers of agriculture.     

The Institutionalization of Environmental Attention in the United States and Denmark: Multiple- versus Single-Venue Systems

The European countries have surpassed the United States with regard to comprehensive and stringent environmental regulation. This policy pattern has become very visible in the international debate about reduction of CO₂ emissions. From a comparative public policy perspective, the recent difference is interesting because it restates the question about policy consequences of political institutions. This article addresses this theoretical question from the perspective of policy agenda-setting theory. We present the argument that while the U.S. political system, with its many "venues" that are relatively open to internal and external competing forces, might be quicker in generating attention to new issues like the environment, the institutionalization of attention is also less strong than in a European parliamentary system. The article substantiates this argument with empirics by comparing attention to and policymaking for environmental issues in the United States to Denmark.     

Resistance from Within: Why Mexico's Attempt to Advance an Active Foreign Policy Failed

After becoming the first opposition candidate to win since 1910, President Vicente Fox kindled expectations at both national and international levels. He claimed he would enhance significantly the scope of the Mexico's foreign policy and engage the country in international politics in a way more befitting of its newly acquired democratic status. Nevertheless, little consideration was given to the fact that for many decades foreign policy in Mexico had been deployed to create an area screened‐off from domestic politics where conflicting factions were brought together and a policy consensus worked out. That consensus was sufficiently ample for the authoritarian elite, given its foreign policy goals and principles. It would, however, fail to suffice for any political leader willing to step outside the box of tradition. Fox did just that. In consequence, widespread reactions of disapproval from key political actors and the media led the president to settle for a more modest international agenda in 2002. This article explores the key processes that triggered so much internal resistance to Fox's foreign policy designs. I argue that these processes underpin what continues to be the essentially autarchic nature and scope of the Mexican foreign policy tradition. Such an autarchic approach is glorified in Mexican political rhetoric, yet has led to many lost opportunities for Mexico. Most importantly, I stress that the Mexican foreign policy tradition discourages and forecloses the kind of engagement in the international arena that seeks to share in rather than to free‐ride the collective efforts of the international community to procure security and peace. So despite its new democratic status, Mexico remains more of a spectator than an actor on the international stage.     

The International Dimension of Subnational Self-Government

In recent decades, complex interdependence as well as domesticissues have encouraged many constituent governments of largernational polities to assert an international competence of theirown, primarily in matters touching upon their respective jurisdictions,such as trade promotion, foreign investment, employment andrights of foreign workers, environmental and energy issues,and tourism. Two forms of the resulting paradiplomacy are identified:transborder regional regimes (dominantly based on informal consociationalprocesses) and "global micro-diplomacy" which bring constituentgovernments, including those of major cities, into direct contactwith foreign national and constituent governments. Examplesof the latter include the permanent representations of U.S.states and Canadian provinces in Tokyo, Brussels, Frankfurt,and London. The international initiatives of constituent governmentsevoke various reactions from national governments, ranging fromlack of concern to positive or highly negative responses, dependingon their perception of these activities as being politicallymarginal, complementary with, redundant to, or conflicting withnational foreign policy. From these activities there emergesthe concept of a territorial state as a multivocal actor. Neithera blessing nor a curse, subna-tional presence on the internationalscene has become a fact of life in an interdependent world.     

Do parties respond? How electoral context influences party responsiveness

How responsive are political parties to the issue priorities of voters? While there are numerous studies that examine policy position congruence between parties and voters or government responsiveness, we know little about the extent to which parties adjust their policy priorities to the issue concerns of voters. Following saliency and issue ownership theory, we argue that political parties listen to their voters by emphasizing policy issues in their election manifestos that have been prioritized by citizens. However, in line with second-order election theory, we expect that issue responsiveness varies with the electoral context. To test our theoretical expectations, we generated a novel dataset that combines data on issue attention of political parties from the Comparative Manifesto and the Euromanifesto projects with data on policy priorities of voters from the European Election Studies, the Comparative Study of Electoral Systems and various national election studies. We empirically test our theoretical claims based on a comprehensive analysis of 104 parties from 17 countries competing in 84 national and European elections from 1986 to 2011. Our findings have important implications for political representation in Europe.     

The Europeanisation of national party organisations: A conceptual analysis

Abstract.  The likely effects of the ongoing process of European integration on the internal workings of national political parties have hitherto attracted surprisingly little attention in comparative research. This conceptual article discusses how the increasing relevance of European-level decision making may have changed the balance of power within national political parties. It identifies two groups of party actors who are most likely to benefit from the process of Europeanisation of national political parties. First, the 'executive bias' of European Union (EU) decision making is likely to work in favour of party elites in general. However, while they may gain power in intra-party decision making, their control over the national policy agenda is likely to become increasingly eroded through a general shift of policy control to the European level. Second, EU specialists (i.e., those who specialise in EU affairs) are likely to have more access to resources and more control over policy decisions within national parties because of the growing importance of European integration. These propositions are discussed in detail and are then assessed with reference to the main findings from a major empirical study of the topic.     

Effects of Exchange Rate Regime on IMF Program Participation

This article investigates the effect of a domestic policy choice, the exchange rate regime, on countries’ interaction with an international institution, their participation in International Monetary Fund (IMF) lending agreements. I hypothesize that the effect of the level of international reserves on a country's probability of participation in an IMF program depends on the exchange rate regime. A low level of international reserves threatens unfavorable economic and political outcomes only in countries that maintain a fixed exchange rate regime. The level of reserves may thus be a significant determinant of participation in IMF programs only for countries that maintain a fixed exchange rate regime. I use a dynamic univariate probit model of IMF program participation to assess empirically the effect of reserves in countries that maintain fixed, intermediate, and floating exchange rate regimes. The empirical results support my hypothesis: reserves have a significant effect only in countries that maintain a fixed exchange rate.