The politics of bank bailout in Japan: a cognitive capture and leadership view

Abstract

This article explores why the Japanese government did not decisively intervene on behalf of bank bailouts at the early stage of the banking crisis of 1997–98 and investigates the institutional and political context behind the use of fiscal money for bank bailouts in 1997–98, 1998–99, and 2001–05. In contrast with prevailing views, which emphasize the conflicts of interest or differences in policy preferences between politicians and bureaucrats and their captured nature either by bankers’ special interests or political/bureaucratic interests, this article argues that Japanese policymakers shared a congruent policy preference — that is, minimizing the disruptions in the existing institutional arrangement in government-bank-firm relations and this congruence in policy preference (or ‘cognitive capture’) compelled the government to take a creditor-centered approach to the banking problem — i.e., letting banks resolve their own problems. It also argues that a strong political leadership that can break with the ‘cognitive capture’ and sustain government's resolute commitment to solving the nonperforming loan problem is an essential factor for successful bank restructuring.     

Explaining the immigration policy mix: Countries' relative openness to asylum and labour migration

Western democracies have developed complex policies to manage migration flows. Much of the scholarly literature and political discourse assume that countries have become increasingly selective and that they prioritise economic intakes. Despite clear efforts by policymakers to distinguish between refugees and migrant workers, we know surprisingly little about how countries combine different policy dimensions and which factors shape their relative openness to different target groups. In this article, we shed light on how countries combine two of the main admission channels, asylum and labour migration, by introducing the concept of the ‘immigration policy mix’. A comparative analysis of 33 OECD countries between 1980 and 2010 examines the pattern and drivers behind their immigration policy mix: Does the policy mix follow a pattern of convergence, is it subject to political dynamics or is it path dependent? The results reveal that despite a shift in political sympathies from asylum to labour migration, countries' immigration policy mixes have strongly converged into more liberal policies overall. The immigration policy mix primarily reflects governments’ limited room to manoeuvre due to competing political pressures. These insights demonstrate that the immigration policy mix serves to enhance our understanding of countries’ complex regulation of immigration.     

Political context,policy networks and policy change: the complexity of transition in Hong Kong

Abstract

Central to the debates on the transition of Hong Kong to Chinese sovereignty is how this process has affected change in the policy process and policy outputs. Many see policy change as a result of the evolving political environment in Hong Kong following the political transition. This article, however, adopts the notion of policy networks and argues that the analysis of policy change cannot be reduced to a simple contextual stimulus – the policy alteration model. A case study – ‘the development of civic education’ – demonstrates the importance of policy networks, as a particular structure of government and group relations in decision making, in explaining the course of policy change. It is apparent that the relationship between regime change and political liberalization, on the one hand, and established networks, on the other, tends to be complex and dialectical in Hong Kong. Despite the importance of sovereignty transition and political restructuring, the effect of contextual factors on public policy greatly depends on the nature of the network involved.     

Beyond public administration? HIV/AIDS policy networks and the transformation of public administration in Botswana

What impact has HIV/AIDS had on the structure of public administration and what further lessons do these changes hold for other policy sectors in Botswana? For long, Botswana has had the highest prevalence of HIV/AIDS, bringing many developmental challenges. An under‐researched facet of HIV/AIDS is the effect it had on the public administration in Botswana. Whereas classical approaches to public administration suggest that it is ‘civil’ service organisations that lead in health administration, HIV/AIDS spawned a particular type of organisation, the policy network. In mitigating HIV/AIDS, the policy environment became more fragmented with networks for treatment, prevention, advocacy and research emerging. These networks are made up of entities from the public, private for‐profit and not for‐profit sectors. They participate in the agenda setting, formulation, implementation and monitoring and evaluation of HIV/AIDS policy. Traditional public administration theories cease to hold sway; private actors become engaged in ‘public policy’ and the other way round. Policy is carried out in horizontal arrangements; linking government, business and non‐governmental organisations in mutual inter‐dependences. Health care professionals share policy spaces with the media, social scientists and politicians. New challenges face public policy‐making including co‐ordination problems, fragmented accountability and shared policy spaces. Copyright © 2008 John Wiley & Sons, Ltd.     

Explaining variation in coalition agreements: The electoral and policy motivations for drafting agreements

This article explores the question of why coalition partners negotiate and publish coalition agreements before entering into a cabinet and why the content of these agreements varies so widely. Some scholars suggest that coalition partners draft agreements for electoral purposes, while others suggest that coalition agreements can be used to commit to policy negotiations. Although both sides of the debate have uncovered supportive evidence, the literature remains in disagreement. This article provides new organisation of previous work on agreements and develops two alternative theoretical arguments about the crafting of coalition agreements. It is argued here that coalition partners consider both electoral and policy motivations during the drafting of agreements and that the dominance of one of these motivations is conditional on the degree of issue saliency and division between partners. Empirical support is found for the theoretical argument that coalition partners include low saliency issues in the coalition agreement on policy dimensions on which they are less divided, and that coalition partners include high saliency issues in the coalition agreement on policy dimensions on which they are more divided.     

The contested nature of political leadership in the European Union: conceptual and methodological cross-fertilisation

Abstract

European leaders have struggled to find common responses to the polycrisis the EU is facing. This crisis of leadership makes it urgent that scholars provide a better understanding of the role and impact of leadership in EU politics and policy making. This article prepares the ground for a collection of contributions that addresses this need by strengthening old and building new bridges between the academic domains of European studies and leadership studies. It opens with a discussion of the contested concept of leadership in the context of the European polity and politics, challenging the conventional view that leadership is necessarily a matter of hierarchy. Moreover, it argues that rather than leaderless, the EU is an intensely ‘leaderful’ polity. Subsequently, this introduction identifies four key debates in contemporary EU leadership research and discusses the value and insights the contributions in this special issue bring to these debates.     

Policy networks,politics and decentralisation policies in Ghana

Policy‐making is a political process involving a network of actors with varied interests. This article uses policy network as an analytical framework to understand the politics of decentralisation policy‐making in Ghana from the perspective of interactions among interest groups. The article is based on a research study, which utilised semi‐structured interviews and documentary sources in its data collection. It argues that the lack of progress in decentralisation in Ghana can be explained by the politics surrounding government–interest group relations. The article also provides evidence to indicate how varied interests represented within the decentralisation policy networks affected politics and in turn influenced decentralisation policy‐making and outcomes. Copyright © 2008 John Wiley & Sons, Ltd.     

Local government reform in Jamaica and Trinidad: a policy dilemma

Issues of local governance have dominated Caribbean policy agenda for the past two decades, prompting considerable thought and action on local government reform by scholars, local government practitioners and policy makers, alike. No reforms have been as ubiquitous as those of local government. Permitted by an international reformist agenda, local government reform policy is linked positively to efforts to redress incapacities of public management and administration. This article examines conceptual and empirical issues relating to implementation of local government reform in two Caribbean countries, Jamaica and Trinidad. It analyses how the vision for local governance is articulated through specific reform taxonomies and argues that, although local government reform is normatively a policy aimed at fundamental changes in intergovernmental relations, in Jamaica and Trinidad reform has led merely to adjustments in the internal administration of local government. Copyright © 2007 John Wiley & Sons, Ltd.     

Efficiency,Incentives, and Transformational Leadership: Understanding Collaboration Preferences in the Public Sector

In the public sector, participant attitudes are an important determinant of the success of inter-organizational collaboration initiatives. In this study, a model of employee willingness to collaborate is proposed in which the influence of transformational leadership is determined in part by the performance orientation of the organizational context in which it is enacted. The theoretical model is tested empirically using survey data collected from public employees in South Korea and regression-based Monte Carlo simulation. The analysis suggests that the effect of transformational leadership is amplified by an organization’s emphasis on internal efficiency and its use of performance-based incentives, factors that themselves have independent positive and negative effects, respectively, on attitudes about collaboration. This study links transformational leadership to an increasingly necessary process in the public sector and highlights its context-dependent influence. Implications of the findings are discussed, including the notion that the efficacy of tactics adopted to support inter-organizational collaboration may be a function of their consistency with the realities of established organizational policies and processes.     

Domestic regulatory reform and transgovernmental networks: Brazil and China in the global competition regime

Developing countries increasingly participate in transgovernmental networks of global regulatory governance, but they do so in different ways. This article aims to provide an explanation for this variation for two of the major emerging powers in the world economy, Brazil and China, in their transition toward more active players in the global competition regime. Distinguishing between bilateral and multilateral transgovernmental networks and examining the domestic factors conditioning the transition of their national competition agencies from rule-takers to rule-promoters or rule-makers through these networks, the article makes theoretical contributions to the linkage between transgovernmentalism and the regulatory state. I argue that differing political needs and the incomplete process of regulatory state formation push domestic agencies to join transgovernmental networks, with a need for greater legitimacy steering the Brazilian regulators to multilateral networks and facilitating their transition from rule-takers to rule-promoters. The Chinese agencies' primary need for expertise rather than legitimacy, by contrast, led them to pursue technical assistance and cooperation via bilateral relationships. The Chinese approach has slowed its transition from rule-taker to rule-promoter where its norms and practices are aligned with the established powers. Such approach will further impede its transition into a global rule-maker in areas of competition law and policy where China's preferences diverge.     

Catalysts and barriers: Explaining electoral reform in Western Europe

Most accounts of electoral system change tend to consider it as being driven by purely partisan interests. Political parties are expected to change the electoral rules as a way to maximise gains or minimise losses. However, little work has been done on the question of why electoral reforms are so scarce in spite of these potential benefits. In this study, a wide range of both factors that may foster (‘catalysts’) and ones that may hinder (‘barriers’) the change of electoral institutions are investigated. A statistical analysis is performed of 16 West European countries from 1975 to 2005, covering 23 reforms of the proportionality of their electoral systems. It is found that procedural barriers are more effective for explaining the likelihood of electoral reforms than (most of) the catalysts. Additionally, there are indications that courts may play a more active role in triggering reform than previously thought.     

Building informal knowledge‐sharing relationships between policy makers and academics: Insights from a PM&C engagement project

This article outlines an innovative project to encourage knowledge sharing and engagement between academics and a policy team within the Department of the Prime Minister and Cabinet (PM&C). The project was designed to enhance policy advice by drawing on a group of academics outside the policy ranks to act as a sounding board, to question, and provide differing perspectives within the policy process of crafting advice to government. External expertise and particularly academic research has the potential to improve evidence‐based policy but often fails to be specific or timely for those at the “pointy end” of policy decision making. An informal knowledge sharing framework has the potential to improve the exchange of information through confidential and targeted conversations between researchers and public servants as one way of overcoming these barriers.     

Variation in policy success: radical right populism and migration policy

How do radical right populist parties influence government policies in their core issue of immigration? This article provides a systematic analysis of the direct and indirect effects of radical right anti-immigration parties on migration policy reforms in 17 West European countries from 1990 to 2014. Insights from migration policy theory serve to explain variations in the migration policy success of the radical right. While previous studies mostly treat migration policy as uniform, it is argued that this approach neglects the distinct political logics of immigration and integration policy. This article reveals significant variations in policy success by policy area. While immigration policies have become more liberal despite the electoral success of the radical right, when the radical right is in government office it enacts more restrictions in integration policies. Accordingly, anti-immigrant mobilisation is more likely to influence immigrants’ rights than their actual numbers.     

Formal and informal governance networks: Diabetes care in Australia and India

The concept of networks has gained interest in public administration and management. They address concerns such as the coordination of multiple actors within the policy process. Networks take both formal and informal forms. As the integration of formal and informal networks in public service delivery is gaining traction, this paper uses the example of diabetes care in Australia and India to provide an analytical framework to examine one of the ways such integration of networks take place. Diabetes, a chronic long‐term disease, poses to be a global problem with a high rate of diagnosis with implications for public health expenditure. A multi‐disciplinary team, which comprises both formal and informal categories, is required to manage diabetes. This paper highlights the integration of networks in diabetes care in different institutional and cultural settings. For such form of integration of networks to work, collaboration among the various actors is important. Lessons learnt from diabetes care will be relevant for other long‐term chronic conditions to help reduce the human resource and financial burden. The analytical framework developed based on the example of diabetes care will provide useful lessons for examining the mechanics and dynamics of the integration between formal and informal networks in the field of public administration and management.     

The rise and fall of a policy: policy succession and the attempted termination of ecological corridors policy in the Netherlands

In policy analysis, studies on policy termination are rare. This article offers such a study. It presents the story of how, despite attempts by the government to terminate it, Dutch nature policy on ecological corridors continued to be implemented by regional governments and in the field. A case analysis is presented that integrates theories and insights not only from the termination literature but also from the literature on implementation. The different factors identified in the literature that enable or constrain implementation and termination have served as a basis for developing possible explanations of the case study. They cannot, however, serve as generic theories with predictive power. Policy termination as well as policy implementation are highly contextual processes and the question which factors will enable or constrain policy termination and implementation can only be answered on a case by case basis.

Reflective and decisive supervision: The role of participative leadership and team climate in joint decision-making

Supervisory bodies can intervene in organizational practices that may harm society, but their effectiveness to do so depends on their ability to make decisions reflectively and decisively. Are these tendencies incompatible with each other or can they go together? Can empowering leadership (i.e. participative, coaching, informing behaviors) stimulate reflectiveness and decisiveness? A 10-item Joint Decision-Making Questionnaire was developed and tested among supervisory officers (N = 87) and supervisory board members (N = 158). Reflectiveness and decisiveness were positively correlated, indicating that these tendencies can be reconciled in joint decision-making (Study 1). An examination of 44 supervisory teams further revealed that participative leadership relates to more reflectiveness and decisiveness, via cooperative trust and goal commitment (Study 2). Moreover, teams that experienced this team climate prior to COVID-19 reported that they acted more reflectively and decisively during this crisis (Study 3). Hence, participative leaders can foster reflectiveness and decisiveness, by promoting cooperative trust and goal commitment.     

Political discourse networks and the conflict over software patents in Europe

In 2005, the European Parliament rejected the directive ‘on the patentability of computer‐implemented inventions’, which had been drafted and supported by the European Commission, the Council and well‐organised industrial interests, with an overwhelming majority. In this unusual case, a coalition of opponents of software patents prevailed over a strong industry‐led coalition. In this article, an explanation is developed based on political discourse showing that two stable and distinct discourse coalitions can be identified and measured over time. The apparently weak coalition of software patent opponents shows typical properties of a hegemonic discourse coalition. It presents itself as being more coherent, employs a better‐integrated set of frames and dominates key economic arguments, while the proponents of software patents are not as well‐organised. This configuration of the discourse gave leeway for an alternative course of political action by the European Parliament. The notion of discourse coalitions and related structural features of the discourse are operationalised by drawing on social network analysis. More specifically, discourse network analysis is introduced as a new methodology for the study of policy debates. The approach is capable of measuring empirical discourses both statically and in a longitudinal way, and is compatible with the policy network approach.     

The Power of Policy Regimes: Explaining Shale Gas Policy Divergence in Bulgaria and Poland

Shale gas policies vary significantly across Europe, notably in Russia‐dependent Central Eastern Europe. Most strikingly, Bulgaria banned shale gas, whereas Poland remains firmly committed to fostering it despite its drawbacks. This article uses a policy regime approach to explain the shale gas puzzle. Drawing on a large set of interviews, the piece investigates regime strength as the causal factor that explains the adoption of specific shale gas laws (Poland) or a fracking ban (Bulgaria). It finds that the Polish shale gas policy regime was strong, based on a powerful political narrative and characterized by an institutional process ensuring the buy‐in of actors from relevant policy levels and subsystems. In Bulgaria the policy regime was weak, failed to co–opt key stakeholders, and was institutionally ill‐designed. The findings show how different degrees of policy regime strength translate into diverging policy trajectories in two countries that otherwise operate in similar environments.     

Ideas and agency in immigration policy: A discursive institutionalist approach

Political science literature tends to depict the role of ideas in policy in two distinct ways: as strategic tools mobilised by agents to achieve pre‐given preferences; or as structures imposing constraints on what is considered legitimate or feasible. Discursive institutionalism seeks to combine these insights, suggesting that while actors are indeed constrained by deeply entrenched ideas, they nonetheless enjoy some autonomy in selecting and combining ideas. This article seeks to further develop this approach in two ways. First, it identifies three discursive strategies through which policy actors can selectively mobilise ideas: they may foreground one level over others; exploit ambivalence in public philosophies; or link programme ideas over time by invoking ‘policy legacies’. Second, the article elucidates the mechanisms through which such strategic selections can in turn modify existing public philosophies and programme ideas, thereby influencing policy change. These claims are examined by comparing discourse on immigration policy liberalisation in Germany and the United Kingdom between 2000 and 2008. Evidence is found of all three discursive strategies. Moreover, the article shows how, in the German case, these discursive representations led to longer‐term adjustments in underlying programme ideas and public philosophies on immigration.