Citizens,Partners or Patrons? Corporate Power and Patronage Capitalism

Abstract

The addition of new social roles in public service and civil society to large business corporations' enormous economic power and substantial political influence suggests novel but little-understood changes in the institutional relations between business, state and civil society. Sociological emphasis on the centrality of power relations in business conduct and radical diagnoses of a corporate ‘take-over’ of public and civil society institutions is contradicted by other literature which portrays corporations as socially responsible benefactors rather than all-powerful behemoths. The present analysis assesses rival emphases on power relations and normative shifts toward corporate social responsibility in the sphere of business–civil society partnerships. It argues that, in the United States and Britain, a new set of institutional relationships is emerging to fill a vacuum in tackling social and environmental problems. In this new institutional field, large corporations are taking on the role of patrons to a variety of clients amongst public and civil society organisations. This social relationship parallels similar episodes of patronage when systems of community and public welfare disintegrated during the rise of capitalism.     

Industrial Relations and Public Sector Reform: The Victorian Case

Few anticipated the radical program of public sector reform introduced by the Kennett government. A commitment to downsizing, markets and privatisation has transformed employment relations in the Victorian public sector. Familiar institutions have disappeared, major employment areas have been restructured, and jurisdiction for much public sector industrial relations has been transferred to the Commonwealth. Despite some industrial unrest, and occasional successes, public sector unions have been unable to fend off this ideological assault on traditional patterns of public sector employment.     

Dysfunctional state institutions,trust, and governance in areas of limited statehood

Areas of limited statehood where the state is absent or dysfunctional are rarely ungoverned or ungovernable spaces. The provision of rules and regulations, as well as of public goods and services – governance – does not necessarily depend on the existence of functioning state institutions. How can this be explained? To begin with, we identify functional equivalents to state institutions that fail to govern hierarchically. Moreover, we focus on informal institutions based on trust that are endogenous to areas of limited statehood. Personalized trust among community members enables actors to overcome collective action problems and enhances the legitimacy of governance actors. The main challenge in areas of limited statehood, which are often characterized by social heterogeneity and deep social and cultural cleavages (particularly in post‐conflict societies) is to move to generalized trust beyond the local level and to “imagined communities among strangers,” despite dysfunctional state institutions. We propose two mechanisms: First, the more group‐based identities are constructed in inclusive ways and the more group identities are cross‐cutting and overlapping, the more they lead to and maintain generalized trust. Second, experiences with fair and impartial institutions and governance practices – irrespective of whether state or non‐state – also lead to generalized trust beyond the local level and allow for the upscaling of governance.     

Governance,the State,and the Market: What Is Going On?

Analyses of the 'shrinking state' tend to focus on the pressures being felt by the welfare state. The 'state' is viewed as a provider of social benefits and as redistributing wealth. To the extent these functions are being challenged the state is perceived as being 'rolled back' by the forces of the market. Yet the state is also involved in 'building' markets. This function, overshadowed in the past, has now become an important state activity. Such activity, however, is carried out by state actors different from those involved in the provision of social benefits and the evolution of the welfare state. Majoritarian institutions are largely responsible for the latter while non-majoritarian institutions oversee theformer. Although the balance of power among different types of state actors has shifted, the power of public authority has not necessarily been 'rolled back' by the market.     

The politics of history and historical memory in China-Japan relations

The current state of China-Japan relations is characterized by two seemingly contradictory developments adjacent to each other: while economic and cultural relations have experienced an unprecedented and continuous improvement since the 1980s, Chinese and Japanese public perceptions of each other have been deteriorating. This raises interesting questions. How do we explain this discrepancy and what are the sources of the increasing public animosity in China or Japan toward the other country? Can China and Japan maintain amicable relations and continue economic cooperation in spite of the enduring mistrust between their peoples? What is the role of public perception and memory of history in the foreign policies of East Asia? This paper addresses these questions, focusing especially on the last one — the role of history and collective historical memory in international relations and the interaction between public sentiment and government foreign policies. Through a detailed study of recent events and the issue of Japanese textbooks, the author argues that public perception of history can and should be guided toward more positive directions. Otherwise, it will be increasingly difficult to maintain amicable relations between the two countries, especially when new nationalism is on the rise in both counties.     

Democratic Government,Institutional Autonomy and the Dynamics of Change

Against the backdrop of decades of public sector reforms in Europe, this essay aims to make sense of the processes through which institutions, democratic government included, achieve and lose autonomy or primacy and why it is difficult to find a state of equilibrium between democratic government and institutional autonomy. The analytical value of ‘autonomy’ as detachment-from-politics and the apolitical dynamics of change assumed by NPM reformers are challenged. In contrast, the interplay between democratic government and institutional autonomy is interpreted as an artefact of partly de-coupled inter-institutional processes involving struggle for power and status among interdependent and co-evolving institutions that are carriers of competing yet legitimate values, interests and behavioural logics. The problem of finding a stable equilibrium between democratic government, autonomous agencies and non-majoritarian institutions is illustrated by the cases of public administration and the public university.     

Spheres of liberty,conflict and power: The public lives of private persons

State‐society relations during the modern period reflect notions of citizenship analogous to Isaiah Berlin's concepts of positive and negative liberty. Positive citizenship, motivated by what Robert O'Brien calls ‘the democratic impulse’, is highly participatory. The politics of seventeenth‐century Protestant social movements constitutes one historical model to which twentieth‐century fundamentalist movements can be compared. Characterized by a shrinkage of the private sphere and an expansion of public life, positive citizenship emphasizes active engagement in establishing and implementing normative standards for individuals and communities, and control of the state for virtuous ends. Negative citizenship concentrates on the protection of individual rights, expanding both the private sphere and a third or meta‐space which evinces qualities of public and private realms simultaneously. The historical model presented is what Jürgen Habermas has called the ‘bourgeois public sphere’, a quasi‐parallel polis from within which critics of state power assert their right to resist and organize their capacity to repel attempts to enforce standards of public virtue however arrived at. These ideal types are compared to different scenarios of state‐society relations to analyze the likely impact on public and private life of rapid globalization.     

Communicative Diplomacy for the 3rd Millennium

Abstract

In today's world of revolution in communications and information as well as of global interdependency, a medialised politics became a general reality. One can observe such a trend specifically in the field of international and foreign affairs where state and other actors use communication channels and public relations to a large extent to improve on the content and in particular, on the image of their policies. Here one can also argue that a major share of bilateral and multilateral relations among states is shaped by the international media, or vice versa, that all major “wars” are “fought” through the media.

This article explores the increasing inter-relation between state foreign affairs on one side, and media and public relations, on the other. The article starts off with basic concepts of a “new/democratic diplomacy” (Nicholson, 1988) and a “public diplomacy” (Signitzer in Combs, 1992), and compares them with definitions of “international public relations” (Kunczik, 1997). It attempts to build the general analytical framework on the basis of comparative case studies of developed countries with an established diplomatic tradition and of new democracies still proving themselves on the international fora. In this context, particular attention is given to communication in relation to international organisations like NATO and the EU.     

Meso‐discourses,state forms and the gendering of liberal‐democratic citizenship

This article builds upon Michel Foucault's fleeting observation that ‘the state consists in the codification of a whole number of power relations’ and that ‘a revolution is a different type of codification of these same relations’ (Held et al., 1983, pp. 312–3). Specifically, the article uses the case of Canada to argue that distinct state forms rest on particular meso‐discourses which inform a logic of governance, historical configurations of the public and private and gendered citizenships. The meso‐discourses of separate spheres, liberal progressivism and performativity (the logics of governance for the laissez‐faire state, the Keynesian welfare state and the neo‐liberal state, respectively) have coded and recoded gendered citizenships, thereby providing women and men with differential access to the public sphere and to citizenship claims. The neo‐liberal state's meso‐discourse of performativity is especially challenging for women and all equity‐seeking groups because it prescribes the ascendency of market relations over political negotiation or ethical considerations, as well as the attrition of social and political citizenship rights. Social citizenship is being eclipsed by market citizenship.     

Explaining Institutional Change: Policy Areas,Outside Options,and the Bretton Woods Institutions

I propose and test a theoretical framework that explains institutional change in international relations. Like firms in markets, international institutions are affected by the underlying characteristics of their policy areas. Some policy areas are prone to produce institutions facing relatively little competition, limiting the outside options of member states and impeding redistributive change. In comparison, institutions facing severe competition will quickly reflect changes in underlying state interests and power. To test the theory empirically, I exploit common features of the Bretton Woods institutions—the International Monetary Fund and World Bank—to isolate the effect of variation in policy area characteristics. The empirical tests show that, despite having identical membership and internal rules, bargaining outcomes in the Bretton Woods institutions have diverged sharply and in accordance with the theory.     

Corruption,Trust and their Public Sector Consequences: Introduction to the Special Edition

Abstract

Corruption and trust are two important determinants of the quality of public sectors. Empirical studies in different literatures suggest that corruption and trust have effects on factors such as economic growth, the quality of democratic institutions, life quality, the size and effectiveness of the public sector and much more. The purpose of this special issue – one that goes to the heart of the comparative policy ethos which is central to the journal's mission – is to draw on a number of country examples to shed light on the state of the literature on the connection between corruption and trust. The aim is to show that these two concepts are highly relevant to each other, and that their interconnections are important to understand the public sector consequences of corruption and trust. By focusing on these concepts, we hope that this special issue can pave the road for further comparative research.     

Anarchy,self-governance,and legal titling

Scholars and policymakers prescribe legal titling to improve prospects for economic development and political order. However, a public choice literature exists that has long recognized that self-governance often works well and that the state may not be able to improve upon local economic institutions at reasonable cost. Although the implication that legal titling should proceed with caution is seemingly straightforward, the literature on legal titling does not take anarchy seriously as a policy option. In addition, there is a public choice literature that presumes the state is the most important source of property rights. This essay fills this gap in the property rights literature by applying the concept of “efficient anarchy” to legal titling in Afghanistan. Original fieldwork evidence from rural Afghanistan suggests that anarchy of land governance is a better option than legal titling. The essay concludes by opening up the black box of state building by explaining why it often makes sense to sequence improvements in political capacity and political constraints prior to investing in legal titling.     

Local interests,central leadership,and the passage of TRA86

The U.S. federalist public economy is an ever-evolving system of financing and expenditure responsibilities between local, state, and federal governments. The past decades have seen a significant centralization of responsibility for the financing of state and local public services through grants-in-aid and federal tax subsidies. This article advances a model of local constituent influence in central government fiscal policies which seeks to explain this trend, and then examines how strong executive branch and congressional leadership might begin to control the local pressures for central government financing. TRA86 is offered as one example in which this leaedership proved effective. The general lesson is that good fiscal policy in federalist public economies requires not only capable local governments, but central government political institutions with the strength to meet national needs as well.     

The Civil Society,the Uncivil Society,and the Difficulty Israel Has Making Peace with the Palestinians

Abstract

The difficulty Israel has making peace with the Palestinians, which became evident with the failure of the 1993 Oslo Agreements, can be explained through the internal relationships and historical dynamics within the Israeli public sphere, and the relations between the public sphere and the state. Using the terms ‘civil society’ and ‘uncivil society’ as a theoretical framework, the article examines both the relations between these two binary representations within the public sphere and the ability of each of them to influence state policy through two analytical tools: cultural politics and instrumental politics. The contention is that the Oslo Agreements failed in part because while both the civil and uncivil societies arose as a cultural innovation and alternative collective identities in neo-liberal Israel, the uncivil society succeeded in translating its collective representations into effective instrumental politics that influenced the Israeli state, while the civil society failed to do so.     

Fragmented Welfare States: Federal Institutions and the Development of Social Policy

Despite political scientists' growing appreciation of the ways in which institutions influence political processes, the “new institutionalism” has so far had a limited impact on the comparative study of welfare state development. This article discusses some broad issues concerning institutions and public policy by exploring the implications of one set of institutions — those associated with federalism — for the politics of social policy. Federal institutions encourage three distinctive dynamics: they influence the policy preferences, strategies, and influence of social actors; they create important new institutional actors (the constituent units of the federation); and they generate predictable policymaking dilemmas associated with shared decision-making. Comparisons between social policy development in Canada and the United States are used to demonstrate that while federalism clearly matters, how it matters will depend on the characteristics of a particular federal system and the ways in which federal institutions interact with other important variables.     

Democratic Order,Autonomy, and Accountability

Accountability is a principle for organizing relations between rulers and ruled, and making public officials accountable is a democratic achievement. There are, however, competing claims about what is involved in demanding, rendering, assessing, and responding to accounts; what are effective accountability institutions; and how accountability regimes emerge and change. This article provides a frame for thinking about institutional aspects of accountability regimes and their cognitive, normative, and power foundations. A distinction is made between accountability within an established regime with stable power relations and role expectations and accountability as (re)structuring processes in less institutionalized contexts and in transformation periods. A huge literature is concerned with the first issue. There is less attention to accountability as (re)structuring processes. The article, therefore, calls attention to how democracies search for, and struggle over, what are legitimate accountability regimes and political orders.     

Is ‘good enough’ peacebuilding good enough? The potential and pitfalls of the local turn in peacebuilding in Timor-Leste

There is a palpable sense of humility within the United Nations and other international institutions regarding peacebuilding. Rather than seeking to implement the liberal peace, they now pursue the more modest goal of ‘good enough’ outcomes. This shift reflects a growing consensus in the critical literature that space needs to be provided for the local agency that will ultimately determine the outcomes of peacebuilding. At first blush this emphasis on local agency is positive; it offers an important correction to the technocratic and generally top-down nature of liberal peacebuilding. But, is the ‘good enough’ approach to peacebuilding good enough? What are the pitfalls and potential of the local turn? This article uses a case study of Timor-Leste to answer these questions. It finds that the local turn can help lend legitimacy to the state and increase opportunities for political participation and the delivery of public goods at the local level. However, the emerging evidence from Timor-Leste also highlights the pitfalls of the local turn. Most significantly, the state can transfer responsibility for public goods provision to the local level in order to lessen the burden on the state and to divert attention from ineffective or illegitimate central institutions.     

Two Models of Contemporary Public Service Wage Determination in Australia

There has been substantial change in industrial relations systems at federal and state level in Australia and this has had dramatic implications for public sector wage-fixing arrangements. This article outlines the main features of current systems for wage determination in the Australian public service and the public services of each state. While a complex and diverse set of regulations and wage-fixing mechanisms are in place in these seven jurisdictions, two models are emerging: one a collectivist two-tiered model and the other a de-collectivist model which includes provision for individual agreements. The authors discuss the implications of the current wage-fixing systems and the two emerging models.