The Institutional Foundations of China’s Unbalanced Economy

China has become a fast-growing economy with an unbalanced economic structure. Economic policies, especially fiscal and financial policies, contribute to the current growth model by depressing household disposable income and reducing the social services provided by the government. Laws that have been used by the government to subsidise investment and production by distorting factor markets are also to blame. Finally, rebalancing China’s growth pattern has proven to be extremely difficult due to political obstacles, including pressure from interest groups, gridlock caused by factional politics, and ideological discrimination against private entrepreneurs.     

The Role of Power in EU–Russia Energy Relations: The Interplay between Markets and Geopolitics

Abstract

Energy trade is an essential factor in EU–Russia relations. This essay argues that Russia and the European Union have deployed two types of power in their post-Cold War energy relationship. Russia has predominantly exerted geopolitical power through the sale of its vast energy resources and selected strategies to channel them to partners. With a large market but lacking fossil fuels, the EU attempted to achieve its aims mostly through regulatory power. However, both the Russian and the EU external energy policy strategies have recently become more nuanced. This evolution in their approaches has resulted in Russia’s gradual acceptance of the regulatory and market principles promoted by the EU.     

The Tyranny of Pragmatism: EU–Kazakhstani Relations

The pragmatic interests of Kazakhstan and the European Union have profoundly influenced the relationship between them, preventing the establishment of successful cooperation in the human dimension. This article investigates these dynamics in detail, placing its spotlight on the role assigned to the relationship with the European Union in the most recent technologies of power devised by the Kazakhstani regime. Particular attention here will be devoted to the tension between the regime's search for international legitimacy and its efforts to insulate itself from EU pressures for political liberalisation.     

The Dynamics of Party-System Supply and Demand in Poland, 1997–2007. Cleavage Change or Shapeless Shifting?

The 2007 Polish general election confirmed a significant shift in patterns of elite political competition, as the inherited ‘regime divide’ was superseded by a ‘transition divide’ defined by the ‘liberal-orthodox’ model of post-communist reform. However, the existing literature on Polish voting behaviour lacks diachronic analyses of the changing relationships between structures, attitudes, party preferences and voting behaviour. This article seeks to fill that gap. It finds that there was no clear evidence of cleavage change over the period: there was more consistency than flux in preferences, and limited shifts in the influence of particular variables on voting behaviour.     

The Political Economy of Improving Health Care for the Poor in Rural Africa: Institutional Solutions to the Principal–Agent Problem

Both governments and private for-profit markets have been disappointing in meeting the needs of the African poor for health care. NGO services provide a much more attractive alternative for this clientele, despite the fees they charge. They do so because they represent an institutional solution to the ‘imperfect information’ problem in health care. Through simulations based on data from Cameroon, we demonstrate that if fee-charging NGOs replace the highly subsidised but poorly managed facilities operated by African governments the poor would be better off. Those NGOs that are decentralised in their financial and personnel management are most effective. The politics of making the recommended changes are assessed.     

The Things They Learned: Aspiration,Uncertainty, and Schooling in Rwanda’s Developmental State

The role of formal education in the reproduction of inequalities is well documented. Less clear is how this lens can be applied to a study of post-conflict state-building. The present study pairs policy analysis with student-centred ethnographic fieldwork to examine education policy in Rwanda. Since the end of the genocide, the government has staked its claim to legitimacy in delivering inclusive development. Its basic education policy is an entitlement programme with broad public support and designed to allow all children to attend primary and secondary school. Students found themselves caught up in a web of contradictions with important symbolic and material dimensions. They went to schools designed to improve access for the poor. But they were also poor schools, lacking in quality and associated with failure. The country’s switch from French to English was bound up in alliances of domestic power that further undermined effective teaching and learning. The basic education policy intended to highlight the government’s commitment to deliver development to all. But in absence of a sustained and effective strategy to improve quality, young people felt excluded from meaningful engagement in the education system. Whether the basic education policy constitutes inclusive development is therefore debatable.     

The Political Economy of Child Mortality Decline in Tanzania and Uganda, 1995–2007

This article identifies political economy factors that help explain dramatic differences in the pace of child mortality reduction between Tanzania and Uganda from 1995 to 2007. The existing literature largely explains divergence in basic health outcomes with reference to economic variables such as GDP per capita. However, these factors cannot explain recent divergence across African countries with similar levels of GDP per capita, rates of economic growth, and levels of health funding. I argue that institutional and governance divergences between Tanzania and Uganda can be linked directly to differing coverage levels of key child health interventions (especially related to malaria control), and thus to differing child health outcomes. These institutional differences can be explained in part by historical factors, but more relevant causes can be found in recent political events. In Tanzania, there was an unusually effective project of institution building in the health sector, while in Uganda, by contrast, there was a negative political shock to the health system. This was driven by the repatrimonialization of the Ugandan state after President Yoweri Museveni??s decision to eliminate term limits in the 2001?C2006 period. This repatrimonialization process reversed previous health sector institutional gains and had particularly negative effects on child health service delivery in Uganda over the period in question.     

The Political Economy of Crisis Management in East–Central European Countries

The financial and economic crisis in the Central and East European countries raised the profile of economic policy themes that relate to the role of taxation and state spending. The key policy differences related to public budgets and support for a demand stimulus. Responses fall broadly into two categories that we link to a social-democratic and a neo-liberal response. The distinction indicates that the policy responses were linked to the party affiliation of the government on the left–right spectrum. There were some remarkable common trends that cannot be explained by the logical requirements of the economic situation alone. There are differences in timing and in severity, but every country has at some point moved towards a policy of balancing the budget by making cuts. In all cases there were cuts in benefits for marginal groups in society and a switch towards indirect rather than direct taxes. These carry clear distributional implications.     

Citizens versus Parties: Explaining Institutional Change in German Local Government, 1989–2008

Abstract

From 1989 to 2008, local governments in Germany have experienced ‘massive’ institutional change. Local constitutions have been altered in all German states giving citizens more say in local politics, while at the same time reducing local parties' influence. The paper first describes the changes according to two analytical models of local democracy. It then tries to explain the institutional change as a process of diffusion in a federal state. Three questions are answered in the explanatory part: Why did some forerunner states start with the reforms at the beginning of the 1990s and not earlier? Why did the reforms continue in other states although there was no general pressure from above? And why did some states continue with the reforms while others did not? In the first part of the paper the changes are described quantitatively while a qualitative approach is used in the explanatory part. The analyses show that the beginning of the reforms is related to ‘massive political failure’ while further reforms are a result of rational learning by different actors (large parties, small parties, non-governmental actors) depending on different means of reform. Based on these results we forecast a continuation of the reforms in the next years leading to a convergence of citizen-oriented local government all over Germany.     

The Communist Ideological Legacy and Serb–Albanian Relations in Kosovo∗

This article uses Central Asian examples to challenge theories of ethnic nationalism that locate its origins in intellectual activism (Hroch), state modernization processes (Gellner), or the rise of mass media (Anderson). Modern Uyghur cultural politics and traditional Central Asian dynastic genealogies reveal related processes used in constructing modern nationalist symbols and pre-modern ideologies of descent. Modern territorial states with ideals of social unification and bureaucratic organization rely upon nationalist discourses to elaborate and rework cultural forms into evidence for the ethnic nation. The state links citizens to institutions through nationalist content used in political discourse, schooling, and public performances. Because such content is presented as authentic but used instrumentally, its contingency and fabrication have to be concealed from view: the culturally intimate spaces of bureaucratic production of culture and narratives are separated from public performances. The creation of genealogies used to legitimate pre-modern states are similar: compositional processes and goals are kept offstage, and little is disclosed in the public historical narratives and performances.     

The Politics of Telecommunications Regulation: State–Industry Alliance Favouring Foreign Investment in India

This paper explores the political economy of three significant policy decisions of the Congress–United Progressive Alliance government between November 2005 and February 2006. These decisions improved the regulatory incentives for the smaller and efficient firms in the Indian GSM industry, which were heavily dependent on foreign investment for their expansion. India's telecommunications sector became more attractive to foreign investors as a result of these regulatory changes. This was a notable departure from the past when government policy had favoured large domestic investors using CDMA technology who were not dependent on foreign capital. A globalisation friendly policy change occurred after a Centre-Left United Progressive Alliance coalition came to power. The paper argues that these decisions, which promoted both competition and foreign investment, occurred due to the increased sensitivity of the Department of Telecommunications towards the needs of the relatively smaller GSM service providers, driven by considerations of efficiency. They were not driven by a crisis of private investment, foreign pressure, or stealth. The shift occurred in normal times when the Department of Telecommunications under a persistent ministerial stewardship took on a regulator, which was less interested in engineering this shift. This globalisation-friendly strategy depended to a large extent on the particular industrial sub-sector that the ruling party or coalition supported for spreading telecommunications in India.     

Small Business’ Place in the South Korean State–Society Relations

Korean small businesses have come a long way as sources of industrial power more important than heretofore credited. The nation's undemocratic dirigisme had largely slighted small businesses to the country's disadvantage. Although the government's policy bias against them started to change in the early 1980s, its support of them remained less than fully-fledged. Despite tough socio-economic conditions, however, both the first and second generation small entrepreneurs have strived to prove their self-worth as viable business enterprises and constantly—and increasingly over time—contributed to the incremental improvement of the economy. By shedding light on the little-known motivations, perceptions, and performances of the small business people, this article offers a more balanced and nuanced account of the past and present state of small businesses in the country, which provides a tentative basis for considering alternative vision for future development.