Ideas and Coordination in Policymaking: The Financial Crisis of 2007–2009

Policy change occurs because coalitions of actors are able to take advantage of political conditions to translate their strong beliefs about policy into ideas, which are turned into policy. A coalition's ability to define a problem helps to keep policies in place, but it can also cause coalitions to develop blind spots. For example, policy subsystem actors will often neglect the need for coordination between governmental actors. We examine the financial crisis of 2007–2009 to show how entrenched policy ideas can cause subsystem actors to overlook the need for policy coordination. We first analyze the prevalent idea that policymakers should aim to keep inflation low and stable while employing light touch regulation to financial markets. We then demonstrate how this philosophy led to a lack of coordination between monetary and regulatory policy in the subprime mortgage market. We conclude with thoughts about the need for coordination in future economic policy.     

China- the World＇s Trade Locomotive

CHINA has overtaken the United States to become the world＇s largest goods trading na- tion. Indeed, since the beginning of the inter- national financial crisis, increases in China＇sforeign trade have been larger than those of the Unit- ed States, EU and Japan combined.     

‘RENEWING DEFRA’: EXPLORING THE EMERGENCE OF RISK‐BASED POLICYMAKING IN UK CENTRAL GOVERNMENT

Risk‐based policymaking is a form of reflexive policymaking that uses risk analysis to address both the primary objects of policy interventions and their secondary adverse consequences. As such, it has become central to debates about efficiency, control and accountability in UK government. To better understand the factors shaping its emergence, this article studies the UK Department for Environment, Food and Rural Affairs' (Defra) adoption of risk‐based policymaking. In‐depth interviews with Defra staff suggest that risk‐based policymaking serves conflicting objectives and struggles to perform its ostensive functions. The article concludes, first, that risk understandings can be organizationally filtered in ways that reinforce rather than challenge entrenched policy practices. Second, that using risk‐based policymaking for audit purposes can undermine policymaking reflexivity. Third, that the value of risk ideas in reconciling competing accountability and blame‐avoidance pressures leads to risk ‘colonizing’ increasing dimensions of policymaking.     

Why China’s Economy Will Grow Strongly in 2012

THE start of 2012 is a suitable moment to look at China’s economic prospects for the New Year. The overall outlook is clear-China’s economy will continue to grow strongly,remaining the world’s fastest growing major economy and outperforming Western pessimists’ predictions.