ADMINISTERING BRITAIN'S ARMS TRADE

This article examines the administration of Britain's overseas arms trade through a consideration of the role of the main government departments concerned with its control and regulation - the Department of Trade and Industry, the Foreign and Commonwealth Office and the Ministry of Defence. Additionally it examines the activities of 'arms-length' public agencies such as the Defence Export Services Organisation and International Military Services whose job it is to promote arms sales. It concludes that while the promotion function may (but does not have to) run counter to that of control, the latter is comprehensively and competently administered. If it fails - and it has done so recently - it is because of political intervention and not administrative shortcomings.     

From 'welfare without work' to 'buttressed liberalization': The shifting dynamics of labor market adjustment in France and Germany

Abstract.  During the past decade, prevailing scholarship has portrayed France and Germany as suffering from a persistent syndrome of 'welfare without work' entailing a vicious circle between stubbornly high rates of unemployment and non-wage labor costs. Scholars blame this disease on dysfunctional political arrangements, deep insider-outsider cleavages and failed systems of social partnership. As a result, the two countries are said to be more or less permanently mired in a context of high unemployment that is highly resistant to remediation. This article departs from this conventional wisdom in two important respects. First, it argues that France and Germany have undertaken major reforms of their labor market policies and institutions during the past decade and remediated many of their longstanding employment traps. Second, it shows that the political arrangements that adherents of the 'welfare without work' thesis identify as reasons for sclerosis have evolved quite dramatically. The article supports these arguments by exploring some of the most significant recent labor market reforms in the two countries, as well as the shifting political relationships that have driven these changes. In both countries, recent labor market reforms have followed a trajectory of 'buttressed liberalization'. This has involved, on the one hand, significant liberalization of labor market regulations such as limits on overtime and worker protections such as unemployment insurance. On the other hand, it has entailed a set of supportive, 'buttressing' reforms involving an expansion of active labor market policies and support for workers' efforts to find jobs. The article concludes that these developments provide reasons for optimism about the countries' economic futures and offer important lessons about how public policy can confront problems of labor market stagnation.