Throwing the rascals out? The electoral effects of corruption allegations and corruption scandals in Europe 1981–2011

Corrupt politicians have to a surprisingly great extent been found to go unpunished by the electorate. These findings are, however, drawn from case studies on a limited number of countries. This study, on the contrary, is based on a unique dataset from 215 parliamentary election campaigns in 32 European countries between 1981 and 2011, from which the electoral effects of corruption allegations and corruption scandals are analyzed. Information about the extent to which corruption allegations and scandals have occurred is gathered from election reports in several political science journals, and the electoral effects are measured in terms of the electoral performances—the difference in the share of votes between two elections—of all parties in government, as well as the main incumbent party, and the extent to which the governments survive the election. The control variables are GDP growth and unemployment rate the year preceding the election, the effective number of parliamentary and electoral parties, and the level of corruption. The results show that both corruption allegation and corruption scandals are significantly correlated with governmental performances on a bivariate basis; however, not with governmental change. When controlling for other factors, only corruption allegation has an independent effect on government performances. The study thus concludes—in line with previous research—that voters actually punish corrupt politicians, but to a quite limited extent.     

Employment Effects of FDI in Mexico's Non-Maquiladora Manufacturing

This paper analyses whether foreign direct investment (FDI) has contributed to employment generation in Mexico's non-maquiladora manufacturing sector. Drawing on highly disaggregated FDI and employment data, we estimate dynamic labour demand functions for blue and white collar workers, including FDI as well as its interaction with major industry characteristics. FDI has a significantly positive, though quantitatively modest impact on manufacturing employment in Mexico. This applies to both white collar and blue collar employment. The employment enhancing effects of FDI are larger in export oriented industries. In more capital-intensive industries, the employment effect of FDI remains positive for blue collar workers but not white collar ones.     

Minimum Wages and their Alternatives: A Critical Assessment

Do minimum wages reduce in-work poverty and wage inequality? Or can alternative policies do better? Germany suffers from high unemployment among low-skilled workers and rising wage dispersion at the lower end of the wage distribution. We analyse the impact on employment, wage inequality, public expenditure, and incomes of poor households of three different policy options currently being discussed in Germany: a statutory minimum wage, a combination of minimum wages and wage subsidies, and pure wage subsidies to low-paid workers. In doing so, we distinguish between perfectly competitive and monopsonistic labour markets. We find that a minimum wage of EUR 7.50 would cost between 410,000 and 840,000 low-paid jobs, increasing the fiscal burden, while only moderately raising the income of poor households. With pure wage subsidies, the government can always ensure more favourable employment effects. Combining a minimum wage with a wage subsidy turns out to be extremely costly and inferior to wage subsidies in all respects.     

Reevaluating the Taiwanese Democracy Movement: A Comparative Analysis of Opposition Organizations under Japanese and KMT Rule

This article reevaluates the first phase of Taiwan's democratization process (1914-1986) by exploring the similarities and differences between oppositional political organizations under Japanese and Kuomintang (KMT) rule. Employing a parallel structure, the article compares two distinct periods of time, 1914-1937 and 1977-1986. Including the Japanese colonial era in the evaluation of Taiwan's democratization process makes it possible to examine long-overlooked issues in Taiwan's political development such as the question of continuity and disjuncture. The author argues that the Japanese colonial era should be recognized as the starting point of Taiwanese political activities and the era of KMT one-party rule that followed as a re-colonization of Taiwan (lasting from 1947 until the early 1980s). The author's analysis reveals that (1) Taiwanese political opposition during both eras originated within rather than outside repressive political frameworks and that moderate opposition organizations emerged as the best possible reaction given those circumstances; (2) domestic organizations had a greater impact on the Taiwanese polity and society than those in exile; and (3) peaceful approaches were an important alternative to revolutionary movements. The author recounts the story of Taiwan's democratization process (until 1986) through the careers of two long-neglected moderate political activists, Lin Xiantang (1881-1956) and Kang Ningxiang (1938-).     

Notes on Contributors

In the 1990s, several public corruption scandals were uncovered in Sweden. This article focuses specifically on local corruption, and our purpose is to examine whether a case can be made that problems of public corruption in Swedish municipalities have increased. By applying instruments from the institutional rational choice framework, we reach the conclusion that there are indeed reasons to suspect that retrenchment initiatives and organisational reforms over the last two decades, often labelled ‘new public management’, have increased the risk of corruption. Although hard empirical data do not yet exist, the suspicion that public corruption in Swedish municipalities may have become an increasing problem cannot be disregarded. Hence, we conclude by calling for further empirical research in this field.     

The German Presidency and the EU's Constitutional Malaise

The “pause for thought” decreed by the heads of state and government for themselves and their citizens after the voters in France and the Netherlands rejected the Treaty Establishing a Constitution for Europe has been extended for at least another year. By the end of 2008, decisions will have to be taken on how to continue the reform process, yet a concrete strategy for implementing the Constitutional Treaty or an alternative treaty still appears out of reach. Before even beginning to agree on how to move forward, all 27 European Union member states will have to state clearly what goals they are pursuing in the process of institutional reform (a process which all sides agree is necessary) and what steps they believe are required for achieving these goals. In this context, clear statements on the importance of the Treaty and its fate are needed. Consensus on these issues among all 27 member states is unlikely to be achieved. In order to foster a constructive discussion, the German EU Presidency could move member states to agree on shared criteria for assessing the reform proposals that are on the table, and on the options for resolving the constitutional crisis.     

The Return of ‘Social Europe’: Ideas and Positions of German Parties towards the Future of European Integration

Politics in Eastern Europe. By George Schöpflin. Oxford: Blackwell, 1993. £12.99 pb.

Eastern Europe since 1945. By Geoffrey Swain and Nigel Swain. Basingstoke and London: Macmillan, 1993. £10 pb.

Revolution in East‐Central Europe. The Rise and Fall of Communism and the Cold War. By David S. Mason. Boulder, San Francisco and Oxford: Westview Press, 1992. £9.50 pb.

Surge to Freedom: The End of Communist Rule in Eastern Europe. By J.F. Brown. Twickenham: Adamantine Press, 1991. £18.40 pb.

The New Democracies in Eastern Europe. Party Systems and Political Cleavages. Edited by Sten Berglund and Jan Åke Dellenbrant. Aldershot: Edward Elgar, 1991. £39.95 hb.

Developments in Eastern European Politics. Edited by Stephen White, Judy Batt and Paul G. Lewis. Basingstoke and London: Macmillan, 1993. £11.99 pb.     

How to change other people's institutions: discursive entrepreneurship and the boundary object of competition/competitiveness in the German banking sector

Abstract

The paper explores recent public debates about the structure of the financial system in Germany. It pays particular attention to their symbolic-strategic dimension, that is, to attempts by several institutional entrepreneurs to reformulate the criteria of organizational legitimacy, concentrating on the sense-making and legitimization processes involved in institutional persistence or change. The paper discourse-analyses a campaign by institutional entrepreneurs – mainly representatives of commercial banks – who attempted to homogenize the criteria of organizational legitimacy in the German banking sector by questioning the fundamentals of the three-pillar system and the non-commercial banks. Institutional entrepreneurs are understood as discursive entrepreneurs whose actions refer to institutionalized generalizations of value. In the case of the financial sector in Germany, it was the generalized value of competition/competitiveness that served as a discursive device to legitimize the attempts of commercial banks to alter the institutional structure.     

The European Parliament in Treaty Reform: Predefining IGCs through Interinstitutional Agreements

Abstract:  Despite the fact that Interinstitutional Agreements (IIAs) are an established part of the mass of informal and formal rules structuring EU decision-making and interinstitutional relations, there is as yet no common understanding of their role and functions in the institutional and legal system of the EU—neither in political science nor legal studies. Tracking the evolution of the European Parliament's competencies in three areas where IIAs figure prominently—comitology, legislative planning, and the establishment of procedures to hold the Commission accountable—this article seeks to show that the European Parliament strategically uses IIAs as instruments to wrest competencies from the Council and the Commission. Having no formal say in treaty reform, the European Parliament 'creates facts' through informal but politically binding IIAs hoping that, once established, it can achieve a later codification of its new rights at IGCs. Viewed this way, the analysis of the role of IIAs in Treaty Reform could help to explain a still under-researched puzzle in European integration theory, namely the incremental parliamentarisation of the institutional system of the EU over the last two decades.