ECONOMIC DEVELOPMENT, EMPLOYMENT AND TRAINING POLICY AND FEDERALISM

There are widespread misperceptions about the way in which American federalism has worked in the past and is working now. One is the belief that since the 1930s, the federal government has engaged in many new activities. Another misperception is that liberals support centralization and conservatives, decentralization. Actually, most Americans tend to be pragmatic. The vitality of this American pragmatism is seen in state economic development policies. States have provided leadership in initiating new economic development programs in such areas as foreign trade and enterprise zones. Four major patterns in American federalism characterize the emergence and development of most of these programs: responsiveness, elitism, pluralism, and experimentation. Implications for employment and training policy are examined.     

The New Elites in the Baltic States: Recirculation and Change

Regime change is closely connected to elite change. although classical theories of elite rule would predict considerable elite continuity. The basic question is how the downfall of communist regimes and introduction of democracy have affected elite patterns in the three Baltic states. The data indicate a combination of continuity and change: circulation of indigenous elites has taken place, while Russians are excluded from power in important state institutions. Elite continuity is explained by lack of "alternative elites" and a need for competent leaders in the state building process. Elite change is explained by ethnic cleavages which raise the issue of indigenous control over power positions.     

The Future of the European “Social Model” in the Global Economy

This article examines the prospects for European welfare states in the context of globalization. It begins with a critical review of the globalization arguments. While there is some evidence that external constraints make life harder for policymakers seeking positive-sum outcomes, it is the combination of national debt and spending limits, plus domestic tax resistance, that really count in making expenditure-based social and employment policies more difficult in certain countries. In understanding the constraints and opportunities that will shape Europe's welfare future, globalization—crudely understood—is therefore much less influential than many suppose. While EMU has radically diminished national autonomy in exchange rate, monetary policy, and fiscal policy, there are also beneficial consequences for social policy and broader economic management. On the employment and social policy side, initiatives required to match greater flexibility with sustained security are now at the top of the EU agenda, and mechanisms for diffusing best practice across Europe are being put in place. Within this framework, European welfare states must place more emphasis on dynamic equality, being primarily attentive to the worst off, more hospitable to incentive-generating differentiation, and actively vigilant with regard to the openness of opportunity structures.     

The Role of Symmetry between the Revenue and the Expenditure Side of the Government Budget in the Debate about the Potential Negative Effects of Tax Competition

The effects of capital tax competition are reconsidered in this paper incorporating the argument that the expenditure structure of public budget should reflect its revenue structure. The paper offers a small open economy model where capital and labour tax revenues are used exclusively on the provision of public inputs. It is shown that if the revenue side of the government budget exactly matches the expenditure side that is if industrial public goods are financed by both private production factors with the weights reflecting the contributions of public inputs to the private factor productivity then public inputs are provided optimally even in the presence of tax competition.     

The intellectual legacy of J.E. Hodgetts

Abstract: J.E. (Ted) Hodgetts was influenced by both the political economy approach that he learned at the University of Toronto and by the comprehensive historical method developed by Leonard White, under whom he studied at Chicago. His first great project, Pioneer Public Service, convinced him that responsible government was impossible without responsible public administration. The authors examine how his response to management theories and practices evolved following his participation in the Glassco, Lambert and Gomery commissions. Hodgetts consistently refused the complete separation of politics and administration, and he promoted the use of management techniques to strengthen parliamentary supervision of the public service. The two key components of his legacy are thus a commitment to the democratic values of representative government and the comprehensive study of the internal dynamics of public administration in interaction with the relevant environmental factors.     

Institutional exclusion as a destabilizing factor: the mass unrest of 1 July 2008 in Mongolia

The paper discusses the 1 July 2008 mass protest in Mongolia. This event has no precedent in Mongolian history and represents a challenge for the social sciences as neither scholars nor political leaders predicted or even admitted its eventuality. Several forms of exclusion – economic, social and institutional – are considered as its potential source. It is argued that the theory of institutional exclusion allows making better sense of the situation. Institutional exclusion means the alienation of ordinary people from government and their inability to rely on the law and official procedures when being engaged in everyday activities. Two sources of primary data inform the analysis: a series of structured interviews with the protesters (N?=?20) and a collection of visual records made during the unrest (N?=?244). The data were processed using methods of both qualitative and quantitative content analysis.