From rule-taker to rule-promoting regulatory state: South Korea in the nearly-global competition regime

When rapid economic growth catapults a country within a few years from the margins of the global economy to middle power status, does global regulatory governance need to brace for a challenge to the status quo? To answer this question, we extend the power transition theory of global economic governance to middle powers: A rising middle power should be expected to challenge the international regulatory status quo only if increasing issue-specific strength of its regulatory state coincides with preferences that diverge from the preferences of the established powers, which are enshrined in the status quo. We examine this argument empirically, focusing on South Korea in the realm of competition law and policy. We find that South Korea, a non-participant in the international competition regime until the 1980s, developed in the 1990s substantial regulatory capacity and capability and thus “spoiler potential.” At the same time, however, its policy preferences converged upon the norms and practices established by the United States and the European Union, albeit with some distinct elements. Under these conditions, we expect a transition from rule-taker to rule-promoter. We find that South Korea has indeed in recent years begun to actively promote well-established competition law and policy norms and practices – supplemented by its distinct elements – through technical assistance programs, as well as various bilateral channels and multilateral institutions. The findings suggest that the power transition theory of global economic governance is usefully applicable to middle powers, too.     

Power transitions and the rise of the regulatory state: Global market governance in flux

This special issue examines the consequences of the ongoing power transition in the world economy for global regulatory regimes, especially the variation in rising powers' transition from rule-takers to rule-makers in global markets. This introductory article presents the analytical framework for better understanding those consequences, the Power Transition Theory of Global Economic Governance (PTT-GEG), which extends the scope of traditional power transition theory to conflict and cooperation in the international political economy and global regulatory governance. PTT-GEG emphasizes variation in the institutional strength of the regulatory state as the key conduit through which the growing market size of the emergent economies gives their governments leverage in global regulatory regimes. Whether or not a particular rising power, for a particular regulatory issue, invests its resources in building a strong regulatory state, however, is a political choice, requiring an analysis of the interplay of domestic and international politics that fuels or inhibits the creation of regulatory capacity and capability. PTT-GEG further emphasizes variation in the extent to which rising powers' substantive, policy-specific preferences diverge from the established powers' preferences as enshrined in the regulatory status quo. Divergence should not be assumed as given. Distinct combinations of these two variables yield, for each regulatory regime, distinct theoretical expectations about how the power transition in the world economy will affect global economic governance, helping us identify the conditions under which rule-takers will become regime-transforming rule-makers, regime-undermining rule-breakers, resentful rule-fakers, or regime-strengthening rule-promoters, as well as the conditions under which they remain weakly regime-supporting rule-takers.     

G20 institutional transition and global tax governance

The G20 is in transition from a short-term crisis institution to long-term steering institution, adopting a new ‘G20 + established international organization’ governance approach. In this approach, the main role of the G20 is to set the agenda and build political consensus for global economic governance. The established international organization provides the technical support and facilitates proposal implementation, while the precondition for the G20 institutional transition is that the emerging economies need to participate on an equal footing with the advanced economies. The case of global tax governance is among the few success stories of the G20's institutional transition. Within the ‘G20 + OECD’ governance architecture, the G20 builds the political consensus that the profits should be taxed where they are performed, while the OECD proposes the technical Base Erosion and Profit Shifting Action Plan. In this way, the G20's political leadership and the OECD's technical advantage complement each other, making a giant leap in global tax governance.     

Crisis management and the diversity of capitalism: fiscal stimulus packages and the East Asian (neo-)developmental state

Abstract

This paper contributes to the understanding of East Asian capitalism by investigating the political economy of crisis management in Japan, Korea and China during the global economic crisis. Reacting to the global shock of the economic crisis that began in 2008, East Asian capitalism has remained a distinct state-led model that differs substantially from the liberal, neo-corporatist or welfare state varieties of capitalism in the West. More specifically, this paper studies the fiscal stimulus packages implemented by East Asian countries to address the global financial crisis from 2008 to 2010. We find that East Asian fiscal stimulus packages were comparatively large and supply-side-oriented. Unlike in the West, where a (short-lived) revival of demand-side-oriented Keynesian strategies stimulating consumption could be observed, East Asian countries reinforced industrial policies and supported investment and international competitiveness. We argue that the East Asian variety of crisis management can largely be explained by a path-dependent transformation of the East Asian developmental state into a neo-developmental competition state.     

Re-Stating the problem of regulation and re-regulating the local state

In recent years a substantial body of literature has grown up around the application of the theorectical insights of regulation theory to the evolution of patterns of local governance and the structures of the local state (Geddes 1988: Goodwin, Duncan and Halford 1993; Painter 1991: Peck and Tickell 1992: Stocker 1989 inter alia). These new patterns of local governance are characteristically seen to be associated with the replacement of the formallly accountable, democracitcally elected structures of local government with a plethora of unaccountable and non-elected agencies involving public-private sector ‘part-nership’, Within this literature the emergence of new patterns of local governance is accounted for in terms of a response to the crisis of Fordism. In this article it is argued that regulation theory's principal analytical strength lies in its analysis of the internal contradictions and dynamics of modes of regulation, but that it has thus far failed to develop an adequate explanation of the transition between modes. As a consequence, existing accounts of the emergence of new modes of local governance couched in terms of the transition from Fordism to post-Fordism (or after-Fjordism) have tended to fail to reveal the complex mechanisms and processes linking global economic dynamics and the transformation of the structures of the national and local state. By interrogating the concept of ‘crisis’ in regulation theory and by considering the processing of the failures of Foprdism through the state at national and local level as a condition of any response to crisis, it is hoped to begin to develop a theory of the transition between modes of regulation. Such a theory, as it is hoped to demonstrate, might provide the basis for a more nuanced understanding of the complex process and mechanism resulting in the transformation of political and economic structures at the local level.     

Regulating finance after the crisis: Unveiling the different dynamics of the regulatory process

It is now widely recognized that regulatory failures contributed to the onset of the global financial crisis. Redressing such failures has, thus, been a key policy priority in the post‐crisis reform agenda at both the domestic and international levels. This special issue investigates the process of post‐crisis financial regulatory reform in a number of crucial issue areas, including the rules and arrangements that govern financial supervision, offshore financial centers and shadow banking, the financial industry's involvement in global regulatory processes, and macroeconomic modeling. In so doing, the main purpose of this special issue is to shed light on an often understudied aspect in regulation literature: the variation in the dynamics of regulatory change. Contributors examine the different dynamics of regulatory change observed post‐crisis and explain variations by accounting for the interaction between institutional factors, on the one hand, and the activity of change agents and veto players involved in the regulatory reform process, on the other.     

The March Towards Post‐Democracy,Ten Years On

Events since I published my book Post‐democracy in 2004 suggest that democracy continues to decline in effectiveness in those parts of the world where it has been most strongly established. The global financial crisis, the consequent euro crisis, the likely shape of a Transatlantic Trade and Investment Partnership (TTIP) and growing evidence of the political power of giant mass media corporations all suggest that the dominant forces in today's politics are not those of democratic will. Movements like Syriza in Greece possibly suggest a democratic reawakening, but that is too early to determine. Meanwhile, it is important also to be aware of democracy's limits, and to try to resolve the problem of post‐democracy by extending its reach beyond its competence.     

Power and changing modes of governance in the euro crisis

Which European Union actors are most powerful in the governance of the euro crisis? The euro crisis has reignited the classic debate between intergovernmentalists, who tend to stress the coercive power of dominant member states in the European Council, and supranationalists, who maintain that through the use of institutional power, the Commission, and the European Central Bank turned out the “winners” of the crisis. This article argues that euro crisis governance is best understood not just in terms of one form of power but instead as evolving through different constellations of coercive, institutional, and ideational power that favored different EU actors over the course of the crisis, from the initial fast‐burning phase (2010–2012), where the coercive and ideational power of Northern European member states in the European Council was strongest, to the slow‐burning phase (2012–2016), when greater influence was afforded supranational actors through the use of ideational and institutional power.     

Future Public Service Capacity: Employment of Young People into Australian Public Services during the GFC

Public services face several workforce challenges, including impending retirements and austerity programs. Although employing more young people is a likely solution to balancing the demographic profile of public services, the literature and theory suggest that young people would have fared worse during the global financial crisis. This research tests propositions around the vulnerability of young people in selected Australian public services during the global financial crisis, in terms of quantity and quality of jobs obtained. Surprisingly, the findings suggest that many young people fared as well or sometimes better than other age cohorts during the global financial crisis in terms of both recruitment and access to ongoing jobs. There are several indications that perhaps public services provided a safe haven in a turbulent labour market.     

Learning from the Katrina Crisis: A Global and International Perspective with Implications for Future Crisis Management

The study of crisis and emergency management—or mismanagement—during Hurricane Katrina will continue to proliferate in the near future. This article presents a global and international perspective on Katrina as a case of "grand failure" in crisis and emergency management, with lessons and implications for future crisis management. Benefiting from empirical data collected from international interviews, the essay presents a theoretical analysis of emergency governance and crisis management, discusses a detailed global perspective on Katrina crisis management as "management and leadership crisis," offers a number of key lessons learned from Katrina, and draws policy and administrative recommendations for future crisis and emergency management through a theory of "surprise management" that is adaptive, collaborative, and citizen engaging and draws on chaos and complexity theories to cope with hyper-uncertainties and unknowns.     

公共政策的缺失与当前世界性经济危机

以次贷危机为导火索、进而席卷全球的金融海啸,正方兴未艾,引发了世界性的经济危机,各国政府努力救市.媒体和学术界开始从各个角度分析危机的原因所在.列举出来的原因有:市场和公众投资信心降低、克林顿政府的房贷政策、在政府政策压力下从格林斯潘开始的长期的低利率低通胀政策、华尔街的贪婪等等.虽然这些都可以算是原因,但在它们的后面其实有着人们不愿探究的更深层次的原因,包括:多年来美国政府改革路线的失衡、现代资本主义金融体系包括市场经济本身的内生性制度缺陷、深藏于现代西方政治文化与社会治理结构中的脆弱因素、资本主义特质在现代技术条件下对社会提出的新挑战、缺失的公共利益文化等等.重点对后面的几个原因进行阐述和讨论,提请学术界对全球化条件下处于不同发展阶段的国家在自己的公共政策和政府治理改革问题上做更深层次的思考和探索.     

State intervention and neoliberalism in the globalizing world economy: lessons from Singapore's regionalization programme

The recent 1997-98 Asian economic crisis has thrown Asia's divergent pathways to development into serious question. Protagonists of neoliberalism argue that their agenda is now becoming a global orthodoxy when several ailing Asian economies have accepted IMF packages which come with neoliberal economic programmes. Drawing on lessons from Singapore's regionalization programme, this article contends that it is far too early to conclude that Asian developmental states are giving up their governance of domestic economies. Instead, there is evidence that these Asian developmental states are re-regulating their domestic economies to ride out of the economic crisis. The article first starts with the debate between neoliberalism and state developmentalism in our understanding of global political economy. It then examines the political economy of Singapore's regionalization programme through which Singapore-based transnational corporations are strongly encouraged by the state to regionalize their operations, followed by a critical discussion of the impact of the recent Asian economic crisis on the re-regulation of the regionalization programme by the state in Singapore. Some lessons for Asian emerging economies are suggested in the concluding section.     

Governing Under Pressure: German Policy Making During the Coronavirus Crisis

The global threat of the coronavirus pandemic has forced policy makers to react quickly with totally new policy-making approaches under conditions of uncertainty. This article focuses on such crisis-driven policy learning, examining how the experiences of China and South Korea as early responder states influenced the subsequent coronavirus crisis management in Germany. The first reaction of the German core executive was the quick concentration of decision-making power at the top of the political hierarchy. Asserting the prerogatives of the executive included the radical simplification of the relationship between politics, law and science. State actors took emergency measures by recourse to a single piece of legislation—the ‘infection protection law’ (Infektionsschutzgesetz)—overriding other elements of the legal order. They also limited the government’s use of scientific expertise to a small number of advisors, thereby cutting short debates about the appropriateness or otherwise of the government’s crisis measures. Finally, German actors failed to understand that some of the earlier Chinese and Korean responses required a precondition—namely public willingness to sacrifice privacy for public health—that is absent in the German case.     

Globalisation,Legitimacy, and Pacification: The Emergence of a Global Welfare Regime

The globalisation-induced rollback of social expenditures, and the concomitant increase in inequality and unemployment in developed as well as developing countries, are leading to a crisis of legitimacy for the national capitalist state and the capitalist system as whole. It is argued that the global capitalist class will attempt to offset this crisis of legitimacy through the development of a "global welfare regime" to perform the functions that the nation-state is increasingly unable to fulfil, namely, those of pacifying populations through the handing out of material and symbolic rewards. This article will formulate a working definition of legitimacy, show that this legitimacy is being threatened by globalisation, and then present empirical support for this hypothesis of a crisis of legitimacy. Finally, it will analyse in detail the policies of the international governmental organisations that are predicted to constitute a global welfare regime, showing that they are moving to shore up the faltering stability of unregulated global capitalism.     

Class, Capital and Crisis: A Return to Fundamentals

The financial crisis that currently threatens the stability of global capitalism is the latest in a long line of similar episodes stretching back some 200 years. While many orthodox economists explain the crisis in terms of the failure of the proper operation of the market mechanism, radical accounts see crisis as an aspect of the constitution of capital and of the process of the accumulation of capital itself. This article explores the extent to which Marx's understanding of accumulation and crisis can provide the basis for a general theory of capitalist crisis. It concludes that the growing and chronic separation between financial (fictitious) accumulation and productive accumulation is the key to understanding the latest crisis of capital expressed as a global credit crunch. Furthermore, Marx opens the door to the development of an overtly 'political' theory of crisis stressing the 'capitalist use of crisis' as a means for the violent reassertion of the fundamental class relation.     

Korea and the global economic crisis

Abstract Korean policy-makers constructed the global economic crisis as a purely external threat to the domestic economy. This understanding of the crisis supported a selective retreat from neo-liberalism. More problematically, the construction of the crisis as an exogenous phenomenon allowed policy-makers to focus on maintaining short-term growth without seriously addressing the structural weaknesses of the economy that the crisis should have drawn attention to. Levels of household debt in Korea have risen since the crisis and are considerably higher than in the USA. Equally, the economy remains over reliant on exports as a source of growth.     

The Return of the State: Globalization,State Theory,and the New Imperialism *

The interest in state theory that swept academic circles following the Miliband–Poulantzas debate waned considerably in the late 1980s and 1990s so that much of the last decade was notable for the impoverishment of state theory. Indeed, during this time, there was a never ending litany of books and articles on the crisis of the nation-state, the eclipse of the state, the retreat of the state, and even the end of the nation-state. The central theme in these eulogies was that nation-states had lost control of their national economies, currencies, territorial boundaries, and even their cultures and languages and that macroscopic forms of power were shifting from the nation-state to the global market, transnational corporations, and globalized channels of communication. However, this article reexamines the relationship between globalization theory and state theory to argue that nation-states are the principal agents of globalization as well as the guarantors of the political and material conditions necessary for global capital accumulation. In contrast to those who see a nebulous logic of empire, a network state, or even a global state as the repositories of a new sovereignty, this paper suggests that globalization, in its current form, is actually a new form of American imperialism.     

公共管理与公众舆论

自18世纪开始兴起的公众舆论推动了近代西方民主思想的形成,而20世纪公共管理的勃兴正是这种民主思想体制化的必然结果。对于公众舆论的理性与非理性认识分野,受制于背后复杂的权力博弈。在近代公众舆论观向现代公众舆论观转型的过程中,公众权力论逐渐让位于管理控制论。由于国家-市场-市民社会的关系失衡,当代公众舆论面临着环境危机。在目前善治的要求下,公共管理从公共利益出发,必须以保护公众舆论的自由和多元为己任,确立自身被监督者、反馈者和配给者的多重角色,做到有所为和有所不为。     

理性认识金融危机下我国中间阶层的作用

在全球性金融危机中,中国承受着巨大压力,一部分人认为,作为社会中流砥柱的中间阶层能够以其强劲的消费拉动中国经济,从而维护社会的稳定与发展。文章认为,在金融危机下,这不是一种理性的对待中间阶的态度,并从经济、政治和社会责任感三个角度,分析了在当前环境下这种观点是值得商榷的,随后,从不能正视中间阶层的现状,忽略中国社会发展的实情以及对中间阶层理解的偏差性等方面分析了持这种观点的原因。     

From asset to patrimony: the re-emergence of the housing question

Abstract

The global financial crisis has ushered in a major housing crisis in many European countries. The paper seeks to shed light on why, despite massive housing crises, there are few policy efforts at tackling it. Probing into the policy paradigms that have informed housing policies, the paper demonstrates a shift towards housing as an asset before the crisis. Increasingly, housing policies have become interwoven with financial markets. This has led to a major policy mismatch after the crisis: while the return of the ‘housing question’ would have required renewed efforts at establishing housing as a social right, de facto policy makers sought to stabilise financial markets. The result is a paradoxical outcome, where neoliberal market-driven programmes are embedded in increased dependence on family wealth. The article demonstrates the shift from housing as asset to housing as patrimony in three different varieties of residential regimes, represented by Ireland, Denmark and Hungary.