The politics of bank ownership and currency policies in Central and Eastern Europe

This paper argues that state-owned, private domestic, and foreign banks have different preferences for exchange rate policies. More specifically, I posit that governments will be less willing and able to maintain fixed exchange rate arrangements in closed banking systems dominated by government-owned banks than in globalized banking systems with a large presence of foreign banks. The article’s principal claim rests on the notion that ownership structure of the banking system empowers different types of banks, affects their interests, and shapes the responsiveness of government politicians to bank demands. The bank ownership types further influence the stability of the domestic monetary system and financial regulation that are of paramount importance in the determination of exchange rate regimes. An empirical investigation of data on exchange rate regimes for 25 Central and Eastern European countries provides strong support for the theory. The results are robust to alternative estimation techniques, instrumental variable analysis, and the inclusion of several economic and political variables.     

Islamist politics in migrant cities: local identity cleavages and intra-party politics in Turkey

This article explores how the local party organizations of the Adalet ve Kalkinma Partisi (Justice and Development Party—AKP) interact with complex social structures in migrant-receiving cities in Turkey. Islamist movements are widely viewed as uniquely capable of appealing to working-class migrants. However, the support for Islamist parties varies across migrant-receiving cities. This article argues that local party organizations face two potential sources of discord that they have to resolve in order to build support in migrant neighbourhoods. They have to bridge the regional identity cleavages among different migrant communities while surmounting intra-party conflicts. In pursuing this argument, this article opens up the black box of local identity politics in the industrial heartland of Turkey and provides an ethnographic account of intra-party conflicts and political survival within the AKP.     

Writings on the margins: Welsh politics

Books reviewed in this article:
Andrews, L., Wales Says Yes
Davies, R., Devolution: A Process not an Event
Osmond, J., New Politics in Wales
Osmond, J. (ed.), The National Assembly Agenda
Taylor, B. and Thomson, K., Scotland and Wales: Nations Again?
Day, G. and Thomas, D. (eds), Contemporary Wales: An Annual Review of Economic and Social Research     

The elephant in the room: illiberal politics in Montenegro

ABSTRACT

Montenegro is at the same time considered both a success story as the leader of European integration in South-Eastern Europe and a country with severe democratic deficiencies. This paper builds upon the theory of democratic backsliding and uses theory-building process tracing to detect and analyse systematic patterns in the illiberal policies that the governing party uses to maintain its position in power. The three typical cases examined here reveal that assuring external control and maintaining the pretence of legality seem to be important elements of illiberal policies and that independent institutions and European standards are often used to assert and maintain control.     

Opposition politics in Malawi: hopeful signs amid the warnings

Across Africa, governments are either peacefully and legitimately ousted, or forced to share power, through the ballot box. In Malawi, the emergence of many political parties since the advent of a multiparty dispensation in 1993 signalled the flourishing of pluralism and opposition politics. However, in the May 2009 elections, the Malawi Congress Party and the United Democratic Front, which constituted the opposition, were largely rejected by the electorate in favour of President Bingu Mutharika's Democratic Progressive Party (DPP), credited for his sound economic policies emulated internationally. The reduced presence in parliament of parties outside of the Democratic Progressive Party coalition is troubling. This development has stimulated debate on the opposition's role and ability to defend democratic governance, and the challenges facing it. On the other hand, the DPP's landslide victory has to some degree demonstrated that it is possible to ‘de-regionalise’ and ‘de-ethinicise’ the configuration and alignment of political interests and forces, confirming for other African countries that the analysis of African politics need not be oversimplified into ethnic and cultural terms as is often the case. This paper contends that democratic governance is promoted by a credible opposition that effectively acts as an alternative government. Therefore, there is need for addressing the major factors that militate against its operations to enable it play its rightful role in Malawi's emerging democracy.