Market Social Democracy: The Transformation of the SPD up to 2007

The article analyses the changes within German social democracy up to the passing of the SPD's new party programme in 2007. It argues that social democracy has transformed itself from Keynesian into ‘market social democracy’. The comparison takes place by means of a policy analysis in the fields of labour and social, as well as financial, policies. Furthermore, the policy comparison facilitates an analysis of the rationality of the political economy on which these policies are based. It demonstrates that market social democracy represents a reconfiguration of the relationship between the market, the state and the individual, one that renews the social realm with elements of economic liberalism. This process is also reflected in the new party programme, which now includes basic assumptions of German ordoliberalism.     

Whither Mr Abe's Japan?

This article reviews Japan's strategic options and policy initiatives under Prime Minister Abe, taking into consideration strategic changes in the region; chiefly a rising China and a United States approaching geopolitical retreat, and the policy implications of these developments. Mr Abe's announced goal is to restore Japan to its once great power status, and thus far success is proving elusive.

MAIN ARGUMENT

Hurdles in Mr Abe's path include the differing perceptions between Japan and its neighbours regarding Japan's history, and the deeply entrenched nature of these differences pose a significant barrier. A related aspect is the territorial disputes. A second task is to be a “normal” nation, that is exercising greater independence in security matters and matters of economic policy, and here differences arise with Japan's main ally, the United States. Furthermore Mr Abe also needs to convince the Japanese public as well as Japan's prospective allies about his views regarding Japan's security role in the region. A third task is to increase Japan's economic weight by turning around the Japanese economy from its existing stasis to sustained, robust growth.

POLICY IMPLICATIONS

Mr Abe is making urgent policy efforts in all directions and the rather uneven outcome experienced thus far has not deterred him, thus creating uncertainty for Japan, and enhancing the feeling of insecurity in the region. The ostensible policy choice facing Mr Abe now is to either persist with his existing policies, hence entrenching the increasing tensions in the region, or to accept a rapidly rising China and formulate policies more accommodative of that development.     

Shifting the debate on land reform,poverty and inequality in Zimbabwe,an engagement with Zimbabwe's Land Reform: Myths and Realities 1

Zimbabwe's land reform: myths and realities 2 2. Zimbabwe's Land Reform: Myths and Realities by Ian Scoones, Nelson Marongwe, Blasio Mavedzenge, Jacob Mahenehene, Felix Murimbarimba and Crispen Sukume, Woodbridge, Suffolk, James Currey, 2010, 304 pp., ISBN 9781847010247. purports to overturn the western media and academy's ‘myths’ of agrarian failure and cronyism in Zimbabwe's fast-track land reform with a study rooted in the ‘reality’ of its outcomes in the Masvingo area. Yet the positivist picture painted by Scoones, Marongwe, Mavedzenge, Mahenehene, Murimbarimba, and Sukume is another position in portrayals of a complex process entangling many local material struggles–including those seen as successful examples of the yeomanry admired by the authors–with the equally important processes of authoritarian nationalism they side-line. ‘Myth making’ is not counter to ‘reality’, but positions particular claims within it. By concentrating on the ‘local’ and celebrating what they see as non-technocratic successes, the authors ignore the context and politics of the state–which they later invoke to develop adequate supportive policy and stability for the new farmers. Their reality ignores as much as the myths they try to challenge, and thus fails to assist to develop the policies they would like.     

US Trade Deficits and Sino-US Relations

American politicians and policy makers have blamed China's exchange rate for the large US trade deficits. This paper explains why the USA treats its trade deficits with China as a security issue that have become a source of friction in Sino-US relations. The essay argues that this friction is a useful deflection from the politically difficult policy action needed to remedy the US economy and cannot easily be removed by the Chinese side alone. The structure of global trade and the reality of China's political economy, which forces Chinese leaders to develop policies for a “harmonious society” in the face of growing inequality also makes it difficult for China to respond positively to US pressure on the exchange rate.     

Financial crisis and capital controls: Latin America

Over two decades Chile has moved from an inward‐looking model of development based on industrialisation through import‐substitution to an outward‐looking model opening the economy to the outside world and based on export‐led development. This shift has brought about a profound change in the country's trade policies, entailing the adoption of neutral tariffs and tax policies, non‐discriminatory policies, and low level of protection. As a consequence, there has been a drastic improvement in the resource allocation process. Diversification of the country's foreign markets is a key component in the success of the new strategy, which has been reflected in the country's rapid economic growth of the last 12 years.     

South Africa’s Inclusion in BRICS: Challenges and Prospects for Development in Africa

Abstract

The forming of alliances on the international scene has reflected a provisional arrangement in the world economy. Amongst such alliances was the formation of BRICS by the five world economies—Brazil, Russia, India, China, and South Africa into what is commonly known as BRICS. BRICS is considered a joint initiative, aimed at shifting conventional norms in international economic and political cooperation to create a new trans-continental platform for these actors. Each member country in BRICS has, in one way or another, reflected growth either through its economy foreign policy, and developmental pursuit. However, South Africa is portrayed by some researchers as lagging behind, when compared to the other member countries. Hence, this study sought to analyse the potential mediumand long-term implications of South Africa's inclusion in BRICS. The study also aimed to underscore the benefits and risks associated with South Africa's membership in the alliance in the area of development; specifically poverty reduction, foreign policy, trade, and global partnership. The researchers collected secondary data to analytically critique the inclusion of South Africa in the BRICS alliance, its benefits, and shortcomings for development in South Africa, and in Africa as a whole. We argue that as a global player under BRICS, South Africa has opened a new vista of opportunities, including transnational gateways to Brazil, Russia, India, and China, with the attendant inflow of infrastructural and developmental investments, enriching educational exchanges and technology transfers. The article concludes by stressing the need for South Africa and other African countries to formulate policies that will drive meaningful development in their respective countries. The authors recommend that African leaders should come up with innate policies that are Africa-centred, that would incite development internally.     

Profits and Cold War - Politically Motivated Export Finance in West Germany during the 1950s: Two Case Studies

The importance of exports in the process of West Germany's reintegration into the international community after the Second World War is well documented. In addition to political rehabilitation and the fundamental need for hard currency, there were also political reasons for the importance the federal government placed upon exports. In order to support American Cold War strategy, it was drawn into a risky credit programme to Yugoslavia, which at one stage was also used to further Adenauer's own agenda. Changes in West German political priorities, resulting partly from the Hallstein Doctrine, forced the government into still more politically motivated export finance and foreign aid. Without losing importance as the engine of German economic growth, export finance and economic aid became increasingly important to the country's foreign policy from the late 1950s onward.     

Getting It Right: Japan and Trans-Pacific Partnership

This paper explores the opportunities presented by the Trans-Pacific Partnership (TPP) to Japan to revitalize its trade policy, bolster economic growth, and increase participation in regional multilateral fora for the 21^st century. Despite its strengths, Japan has continued to face problems caused by its economic, political, and strategic policies. The Japanese economy has been stagnant for the last several decades, and Japan needs to take bold steps to ameliorate this situation. Politically, domestic political paralysis has had a negative impact on Japan's alliances and partnerships and eroded Tokyo's ability to act as a major player in the increasing vital and important Indo-Pacific region. Connected to this, it is imperative for Japan to engage itself deeply in Asia in ways that increase strategic trust. This paper will also highlight the necessary reforms Japan must undertake to take full advantage of the benefits of the TPP, as well as what the TPP might mean for its relationship with both the US and other regional partners.     

Nigeria's foreign policy and transnational security challenges in West Africa

This article explores how Nigeria's foreign policy has responded to transnational security challenges in West Africa. It engages in a conceptual overview of the discourse on transnational security and links this with a discussion of Nigeria's foreign policy towards West Africa. Of note is Nigeria's pursuit of a leadership role in the Economic Community of West African States (ECOWAS), in its quest for security, economic integration and development. Several questions are posed: What do Nigerian policymakers consider to be the most significant transnational threats in West Africa? How and through what legitimate policies and instruments do they respond to such threats? How important is ECOWAS to Nigeria's attempt to respond to transnational threats? And how effective have Nigeria's attempts to influence the ECOWAS agenda in this regard been? Although ECOWAS has remained central to Nigeria's responses to transnational security threats in the subregion, the country has not been able to match its rhetoric on addressing transnational security threats with far-reaching concrete achievements. It is suggested that social transformation of Nigeria's current foreign policy (that is, to one focused and committed to putting people at its centre) and a change in the policies of dominant global powers towards West Africa would enhance human emancipation and eliminate the numerous insecurities confronting the peoples of the subregion.     

From scarcity to security: Water as a potential factor for conflict and cooperation in Southern Africa

The authors argue that South Africa's role as an economic gateway for various African countries primarily depends on geography, that is, on naturally given and man-made structures in geographical space. Hence, they first examine South Africa's location and physio-geographical conditions in Southern Africa in order to show important factors that affect the scope of the South African gateway. Second, they shed light on regional transport infrastructure, revealing how South Africa interlinks its neighbouring countries globally. Thirdly, regional economic interaction is analysed with regard to structural features of South Africa's economy that make it prone to being a gateway. The authors recognise that the impact of all these factors is influenced by strategic decisions taken by politicians and businesspeople. The outlook of the paper therefore addresses policies of the South African government that are often problematic for the country's gateway role. Potential challengers and their competitive advantages are presented, too.     

A Welfare State for Whom? A Group‐based Account of the Austrian Freedom Party's Social Policy Profile

What explains the social policy profile of populist radical right parties (PRRPs)? Building on the argument made by Mudde (2007) that socio‐economic policies are secondary elements within the populist radical right ideology, this paper conjectures that the primary elements of that ideology (nativism, authoritarianism, and populism) structure the PRRP's attitudes in the social policy domain. Based on a discussion of the PRRP's core ideology a number of expectations are derived as to which groups should be viewed as deserving or undeserving of support. These expectations are examined through an analysis of the social policies put forward in the election manifestos of the Austrian Freedom Party (FPÖ) between 1983 and 2013. The analysis confirms most of the expectations and highlights an important shift in the FPÖ's social policy agenda, from welfare populist arguments and some retrenchment proposals under Jörg Haider to strong welfare chauvinism after the leadership change in 2005.     

Teachers’ and bank workers’ responses to Zimbabwe's crisis: uneven effects,different strategies

While other studies have examined worker experiences in the informal sector during the crisis, this study is the first to focus on the formal sector, comparing the experiences of teachers and banking sector workers. The study shows that the Zimbabwean crisis (2000–2008) had uneven effects which elicited differential responses from workers. During the peak of the crisis in 2008, the teaching sector almost collapsed as most of the primary and secondary school teachers responded to hyper-inflation that had eroded their incomes by joining the diaspora or Zimbabwe's burgeoning speculative informal economy. The establishment of the Government of National Unity (GNU) saw the dollarisation of the Zimbabwean economy and the shelving of the Zimbabwean dollar in April 2009. These changes saw the teaching sector showing signs of revival, as some of the teachers who had left the profession re-joined the sector. This was largely because the dollarisation of the Zimbabwean economy ‘killed off’ the speculative activities that were sustaining a large proportion of the teachers in the informal economy during the crisis. In stark contrast, the banking sector thrived during the peak of the crisis, as most banks became key players in highly speculative activities such as Zimbabwe's bullish stock exchange and real estate. The profits realised in the banking sector trickled down to its workers who became the best remunerated amongst all the sectors in Zimbabwe. In a twist of irony, the banking sector was adversely affected by the dollarisation of the economy, as the speculative activities that were reaping huge rewards for the banks were wiped out overnight by the adoption of currencies more stable than the precarious Zimbabwean dollar. This spelt disaster for the banking fraternity. Most banks in the first few months of dollarisation struggled to pay their workers in hard currency; many were forced to downsize their operations and lay-off some employees.     

Sergey Glazyev and the revival of Soviet economics

A veteran Western observer and authority on Russia's political economy examines the recent debate on economic growth in Russia. Focusing on Sergey Glazyev, a prominent statist and nationalist favored by President Vladimir Putin, who reemerged at the top of the public debate, the author discusses the essence of his ideas (state capitalism, Eurasian integration, and expansionary fiscal and monetary policy). He proceeds to analyze the critical response of liberals, citing inter alia objections to loose fiscal and monetary policies. Russia's liberal economists favor broader international integration, whereas Putin is clearly in favor of state capitalism and Eurasian integration. This study ends with an up-to-date politico-economic assessment titled “Where is Putin going?”     

Repudiating or Rewarding Neoliberalism? How Broken Campaign Promises Condition Economic Voting in Latin America

Why do voters reward or punish the incumbent government? A number of studies show that economic performance often drives support, though the strength of this relationship is often conditional. This article suggests that economic voting may also be conditioned by the breaking and keeping of campaign promises. A number of presidents throughout Latin America have campaigned explicitly against neoliberal economic policies, only to pursue them aggressively once in office. This study argues that presidents who abandon their promises assert the executive's responsibility for the economy and raise the salience of economic issues in the next election. Consequently, voters respond rationally to these policy switches, rewarding them when they succeed and punishing them when they fail. Using data from 78 presidential elections across 18 countries, this study finds substantial evidence that broken promises exacerbate the consequences of poor economic performance and magnify the benefits of good economic performance.     

Place and Policy Preferences – Spatial Divides in Attitudes towards Social Policies in Germany

The rise of the knowledge economy has led to a bifurcation between prosperous, often urban, areas and “left-behind” regions. While the literature has started to analyse the political implications of these developments for electoral behaviour and socio-cultural attitudes, the structuring of social policy preferences by place remains unclear. Distinguishing between an economic (booming-declining) and a geographic (urban–rural) dimension, I argue that differences in material self-interest and ideological predispositions explain spatial divides in support for different types of social policies. Combining original survey data on voters' preferences with municipal-level data in Germany, I show that general support for social policy is higher in declining than in booming regions. However, social investments (e.g., active labour market policies) are preferred over consumption policies (e.g., unemployment benefits) in booming and, to a smaller degree, in urban than in declining and rural regions. These findings contribute to a bigger discussion on compensating “left-behind” regions.     

African modernities and the critical reappropriation of indigenous knowledges: Towards a polycentric global epistemology

ABSTRACT

While the African Union's New Partnership for Africa's Development (AU/NEPAD) strives for both plurilateralism and regionalism, there are ideological and practical conditions that challenge the feasibility of a fully fledged regional integration institution in Africa. This article examines the AU/NEPAD in relation to Africa's ideological back-loading, while it explores how the programme reconciles Western-dominated economic plurilateralism with Africa's developmental regionalism. It highlights the ideological changes that helped with the modernisation of Western countries and how these developments become a challenge to Africa's economic development efforts. Africa has always been an ideological back-loader and a delayed integrator into global interdependence. During the mid-20^th century, at the time Western countries (in particular Western European countries) were adopting regionalism, Africa was engaged in the same phenomenon for political and economic independence. While the economic crisis of the mid-20^th century following the Second World War (WW2) enabled the industrialised countries to adopt embedded liberalism for socioeconomic development, at decolonisation Africa sought to espouse what turned out to be the dependency paradigm as the economic development strategy for Africa. In the 21st century, developed regions are transcending regionalism and gearing towards plurilateralism while most African leaders remain fixated in traditional regional integration on the continent. As the neoliberal ideology dominates the contemporary international political economy of the 21^st century, albeit questionably, Africa's politico-socioeconomic realities are also premised on the same embedded liberalism. However, economic plurilateralism by industrialised countries with Africa challenges efforts towards regional integration on the continent. It would seem that the AU/NEPAD provides a viable compromise between developmental regionalism and economic plurilateralism on the continent.     

The politics of national‐populism: Ideology and policies of the German Republikaner party

In this article, the Republikaner party's ideology and policies are explored on the basis of programmes and other public statements. There will be an emphasis on economic policies and issues of national and ethnic identity. It will be argued that the Republikaner party is targeting a broader electoral coalition than its main competitors and predecessors on the extreme right. In its attempt to mobilise a broad and heterogeneous protest coalition and to attract voters beyond the narrow confines of traditional right‐wing extremism the party makes contradictory promises to various sectional groups without being able to integrate them into a consistent framework of economic policy. These contradictions are covered up by the party's radical nationalism, extreme xenophobia and populist propaganda.     

Europe and the German Model: Growing Tension or Symbiosis?

Recent conflicts between the Commission of the European Communities and the German government suggest a growing tension between structures of the German political economy and the agenda of economic liberalisation fostered by European integration. Will mounting conflict ultimately force Germany to choose between its commitment to the integrity of the social market economy and support for European economic integration? This article considers the cases of Germany's public sector banks and the German postal service. Both entail potential conflict between the public service functions integral to the social market economy and the competition central to Europe's single market. Examination of these cases suggests that, rather than forcing change on a reluctant Germany and jeopardising the core of the social market economy (SME), enforcement of European competition policy from Brussels has taken place in fundamental symbiosis with the SME. Nonetheless, tensions between federal government and Länder indicate that a positive-sum relationship between Europe's single market and Germany's social market economy may be constrained by German federalism.     

Differing Effects of the Global Financial Crisis: Why Mexico Has Been Harder Hit than Other Large Latin American Countries

In this article, we argue that the economic and financial crisis that began in Mexico in 2008 has not been primarily caused by the US crisis that began in 2007, as many have argued. As we will show, years of misguided economic policies at the national level have been at the heart of the Mexican crisis. On the one hand, the dominance of foreign banks in the country's financial system and the minimal presence of the public banks have greatly limited the range of counter‐cyclical policy options available to authorities. On the other hand, in the face of the crisis, Mexico has continuously applied deflationary Washington Consensus policies that have deepened the economic contraction. This article will focus on Mexico's individual problems, which offer important lessons for other Latin American countries with a shared recent history of Washington Consensus policies.     

The narrative gap in Ottoman Armenian history

The impact of globalization on the Ottoman Empire and modern Turkey was first observed broadly in the railways of the transportation sector in the 1850s, and eventually shifted towards highways by the 1950s. This change profoundly affected the structure of the economy, ultimately leading to its integration into the global system. In this article, we look at three questions: what was the role of railways in the Ottoman Empire from the 1850s to 1914? What were the characteristics of modern Turkey's railway policies following the War of Independence? And, finally, how did transport policies shift from railways to highways following the Second World War? The Ottoman railway network held special importance for the Empire's economic integration into world markets. Foreign capital was invested in railways to provide crucial links between production areas and harbours with the goal of facilitating the export of raw materials and agricultural goods with the government's financial support. Until the proclamation of the Republic in 1923, the rail network was unbalanced and lines were unconnected, damaging both the economic unity and integration of the Ottoman economy. Forming a nation state on the basis of a national economy was the primary goal of Republican government. As such, all of the early Republican governments continued building and funding the rail network despite problems allocating sufficient financial resources and pressing needs for social (i.e. a lack of health and education services) and economic development. After the Second World War, following liberalization in economic and political life and an infusion of foreign aid (heavily invested in agriculture and road transportation networks), Turkey saw its economy grow. With this economic expansion, modern Turkey began to shift the focus of its transportation policies from railways to highways. As demand increased and highway investments skyrocketed, a highly developed road transport network began to take shape in Turkey, ultimately at the expense of the railway system.