Institutional transfer,social learning and economic policy in Eastern Germany

This article applies a model of social learning to examine the pattern of economic policy change in eastern Germany since reunification. It argues that the virtually complete transfer from West to East of the institutions and policies for regional economic development locked eastern states into a process of largely incremental policy change. This is so despite the large ‘performance gap’ between economic policies pursued and progress in revitalising the eastern economy. Empirical evidence is drawn primarily from a case study of Saxony.     

Collective and individual economic judgments and voting in West Germany, 1961–1984

Abstract: : This article attempts to provide individual-level support to findings of longitudinal macro-level studies of the relation between economic variables and electoral outcomes in the Federal Republic. The theoretical framework is one of incumbency-oriented vs. policy-oriented political responses to collective vs. individual economic judgments (Kiewiet, 1983). The data base consists of 25 surveys from 1961 through 1984. Empirical analysis comprises three steps: First, the relation between economic judgments and partisan sympathies is analyzed, since it appears likely that part of the covariations between voting and such judgments is spurious due to a common dependence upon partisan orientations. Second, the impact of both kinds of economic judgments upon voting over time is investigated with and without controls for partisan affiliation. Finally, the impact over time of macropolitical and macroeconomic variables on individual political response patterns to economic judgments is estimated at the longitudinal macro-level. The analysis demonstrates that collective economic judgments are generally a more potent predictor of electoral choice than individual economic judgments, and that there is clear empirical evidence both for the incumbency-oriented and the policy-oriented hypothesis linking such judgments to the vote.     

Changing chancellors in West Germany

All political systems encounter the need for leadership change at some point. This article examines how the change of chancellors has been accomplished in the Federal Republic of Germany. It argues that the connection between parliamentary elections and the subsequent election of a chancellor has not been the primary reason for a change. Rather, the changes which have occurred reflect the role of the Bundestag and the primary influence of the parliamentary parties in leadership change. The politics of the parliamentary term, rather than past Bundestag election campaigns, emerge as the decisive setting for chancellor change in West Germany.     

Federalism and Party Democracy in West Germany

According to Gerhard Lehmbruch, there is a growing inconsistencyin West Germany between the principles of a federal polity andparty democracy, primarily because the former relies on bargaining,and the latter relies on majority rule as a mechanism of conflictregulation. However, comparative analyses have shown that federalismand party competition are not incompatible. Generally, federalstructures are neither detrimental nor conducive to the recruitmentfunction of parties. Competence and experience as a parliamentaryleader or as a specialist is the most essential preconditionfor advancement to national executive positions. The integrativecapacities of political parties may even be strengthened bythe federal division of power. Only in the area of the formulationand implementation of public policy may an inconsistency betweenthe federal system and party democracy arise because the strainon consensus-building inherent in German cooperative federalismmay, under specific conditions, prevent the national majorityparty from converting its programs into public policy.     

Neoconservatism: Myth and reality

Seymour Martin Lipset is the Caroline S. G. Munro Professor of Political Science, professor of sociology, and senior fellow at the Hoover Institution, all at Stanford University. He taught previously as the George D. Markham Professor at Harvard University. Among his books are Consensus and Conflict, Political Man, The First New Nation, Party Coalitions in the 1980s,and Revolution and Counterrevolution.This text was originally delivered as the First Ernst Fraenkel Lecture, given at the John F. Kennedy Institute at the Free University of Berlin.     

Bank power in West Germany revised

This article examines the empirical and theoretical validity of the power of banks over industry in West Germany. An outline of the historical development, structure and institutions of credit in the Federal Republic is followed by discussion of the three alleged factors behind the banks' power: the functional linkage of bank and industrial capital; property rights and ‘personal influence’; the planning and economic guidance capacities of the banks. Finally, it is argued that the thesis of bank power in Germany, in the light of empirical evidence and theoretical reflection, should be somewhat more differentiated.     

On economic values in policy analysis

Analyses of public policy are rooted in the economic theory of the private sector. How relevant is this approach to the public sector? Specifically, where the organization is generally viewed as a controlled variable it often exhibits the characteristics of an independent variable working to constrain the feasible solution space. An illustration of this phenomenon is discussed, using a state rehabilitation agency as the case in point. Conclusions of an analysis based mainly on maximizing the economic value of return on investment conflicted with the agency professional values of individualized client service. This external/internal value conflict led to the apparent inability of the agency to implement the study conclusions in the near term. The substance of this conflict is seen as the main problem facing many public administrators. Recognition of economic values as but one element of public agency analysis is suggested as an approach superior to sole concentration on maximization of the return on public investment. By taking a broader view, the analyst may be able to encourage more rapid implementation of his recommendations.     

Brazilian technocrats and economic development policy

Are there factors of continuity that help in predicting economic development policy in Third World countries? What groups will influence policy as regime types change? In Latin America today several military regimes are shifting to civilian leadership. Technocrats could provide continuity as new decision makers face difficult economic choices. The Brazilian case provides a dramatic example, given the prominent role played by technocrats during the military regimes since 1964 and the increased electoral activity begun in 1982. This study evaluates the role and potential future impact of Brazilian technocrats. It uses the example of Brazilians trained or otherwise influenced by the U.N. Economic Commission for Latin America (ECLA). Given that ECLA has been a major force in promoting development policy involving planning and import substitution, the Brazilians in question could affect major policy change during the current economic crisis.     

Liberal collectivism and national economic policy

The subtlety of contemporary philosophical reflection, proclaimed and magisterially displayed in Gillian Rose's The Broken Middle, is an effect of postmodern challenge, rather than inner tendency of modern thought; above all, this applies to the acceptance of inherent ambiguity of ‘:the middle’ - the space where possibility is recast into actuality, and hence of the infinity of philosophy's task. ‘The middle’, though already structured by the law (the ethical codification of morality), was through modern times the locale of moral solitude: what was determined was inescapability of choice. ‘The middle’ has been ‘broken’ - a site of freedom/ unfreedom, uncertainty/determination - from the start, yet the recognition of its nature has been hard earned mostly through the experience of persons/ categories refused or refusing ‘assimilation’ into the Law modernity stood for; what is called ‘postmodern condition’ is the universalization of that experience. Universalized, this experience is increasingly wary of the two most tried modern attempts to ‘repair’ ‘the middle’ - through the ‘general will’ or through the escape into privatized self.     

Incremental and cyclical developments in public expenditure in West Germany

Abstract. The 'cyclical' effect covered in this paper deals with the development of public expenditure in West Germany in combination with the timing of elections. The underlying hypotheses on the cyclical development of certain expenditures are based on the 'New Political Economy' literature. This approach is then contrasted with the theory of budgetary incrementalism, an alternative mode of explanation of public sector growth. The data are tested to see whether a cyclical or linear model is more appropriate for describing public expenditure developments.     

The politics of corporate crises in West Germany

This article examines the experience of corporate crisis in the major industrial economy of Western Europe. West Germany's experience of corporate crisis is analysed by reference to its legal framework, political context and economic history. Particular attention is given to two modes of crisis management: ‘bank‐led’ rescue and ‘the crisis cartel’. Case studies include AEG, Grundig, the steel corporations of the Ruhr and the Saar, shipbuilding corporations and Krupp. The argument draws on the evidence of mounting problems of corporate crisis management to assess the prospects for the theory and practice of the social market economy in West Germany.     

Labour market flexibility in West Germany,Britain and France

To resolve the high unemployment rates in many Western European countries, the notion of labour market flexibility has been gaining favour with academics and policy‐makers. This article examines the notion of labour market flexibility in detail and assesses the extent to which it has been implemented in West Germany, Britain and France. It is argued that the most significant developments towards flexibility have occurred in Britain because of the Thatcher government's commitment to neo‐liberal economic policies and because the ‘voluntarist’ British industrial relations system does not represent a barrier to the pursuit of such a policy. By contrast, there has been only a partial incorporation of flexibility initiatives within Germany and France largely because no government in either country has been committed to a full neo‐liberal assault in the existing dense array of national industrial relations institutions, norms and legislation. The article also assesses the extent to which labour market flexibility represents a coherent and workable approach to the challenge of resolving unemployment. In several important respects, we find it an inadequate policy to help restore employment growth in Western Europe.     

On revolt and endogenous economic policy in autocratic regimes

Numerous empirical studies have investigated the direction of causality between democracy and economic growth (as well as the level of income per capita), but this empirical work has been paralleled by relatively few theoretical models that endogenize the institutional structure of the regime. Moreover, the different types of autocratic regimes have received relatively little attention. This paper develops a game-theoretic model of endogenous economic policy in autocratic regimes facing a revolt or an insurgency. In this model, there are three players: the regime, the rebels, and the masses. There are three stages in the game. In the first stage, the regime determines the level of infrastructure and the tax rate. In the second stage, the masses allocate their time between production and helping the rebels. In the third stage, the regime and the rebels simultaneously choose their fighting effort levels in a contest, in which the probability of survival of the regime is determined. It is found that autocratic regimes facing a revolt endogenously sort themselves into “tinpot” regimes that maximize their consumption at the cost of their survival, and (weak and strong) “totalitarian” regimes that maximize their probability of survival at the expense of their consumption. Empirical implications of the model are derived, and the relevance of the model to public policy is discussed.     

Federalism and the Controversy Over the New Media in West Germany

The possibilities of expanding the television network by meansof cable and satellite service have paved the way for the Länderto determine relevant organizational structures. The newly completedState Media Treaty seems to represent a definite breakthroughin regulatory policy. The legal regulation of the new media—cableand satellite television—faces further complications,however, insofar as nine Land media laws impose different legalrequirements on the new broadcasters. Even so, differences amongthe Länder in the area of cable TV are no longer as greatas they were in the past, and a satellite agreement reachedby the Länder provides for more uniform regulation. Also,the Federal Constitutional Court's 1986 decision emphasizingthe importance of a uniform system of broadcasting and requiringdual private and public broadcasting may have settled the fundamentalpolitical dispute among the Länder over the new media.     

Political participation and parliamentary careers: Women's quotas in West Germany

Drawing on a survey of women candidates and parliamentary handbooks, this article examines the effects of women's quotas in West German political parties. Since the mid‐1980s, the number of women members in Land parliaments and in the Bundestag increased sharply, in particular for the SPD and Greens. In the CDU and SPD, women require a track‐record of office‐holding before their nomination, while the party organisation carries little weight in FDP and Greens. CDU and FDP women tend to link political success to personality while women in the SPD and Greens look for an end to a male‐dominated party culture. The focus on women appears to favour the academically qualified, especially in the Greens and in the SPD.     

Federalism and Party Interaction in West Germany, Switzerland, and Austria

The federalism established in the constitutions of the FederalRepublic of Germany, Switzerland, and Austria, in addition tothe common language of these countries, distinguishes them fromthe other West European countries, which lean toward centrallyorganized states. After examining the historical foundationand development of the federal systems in the three countries,the article analyzes the segmentation, federal-state interaction,and intraparty effects of political parties in them. While federalismis strengthened by the heterogeneity and regional solidarityof the political parties in Switzerland, federalism has becomea pure "party federalism" in the Federal Republic of Germanyand Austria.     

Gender equality in Germany: Comparing policy change across domains

Focusing on the past 25 years in three central arenas of political, social, and civil rights, this article engages in the current debate over policy change and the direction of German politics by analysing the issue of gender equality. Combining T.H. Marshall's concept of citizenship and Hall's analysis of policy change, I obtain a two-level framework that differentiates between policy changes and categorises reform in Germany in three different domains. The case studies are: quotas in political representation (political citizenship), women and reconciliation policy (social citizenship), and anti-discrimination policies (civil citizenship). Comparing policy change across domains demonstrates that change in these three arenas has occurred to different degrees and for different reasons; electoral competition has fostered policy change in representation, while the male-breadwinner model has slowed down reform for reconciliation of family and employment. A conservative affirmative action regime stands in opposition to individual anti-discrimination and limits potential change. This comparison across domains defines the dependent variable ‘policy change’ in a more nuanced way, helping to pinpoint and differentiate specific areas of reform.