Hedge Funds, the Deutsche Börse Affair and Predatory Anglo-American Capitalism

Boardroom trouble at Deutsche Börse, the company that operates Germany's main stock market, has recently provoked an important debate about competing capitalist models. Werner Seifert, Deutsche Börse's ousted Chief Executive, was eager to portray himself as the innocent victim of aggressive Anglo-American investors who had bought into his company but failed to understand its traditional operating ethos. In this, he was ably supported by key figures within the ruling Social Democratic Party, who, in order to shore up the party's core support, had increasingly come to blame overseas hedge funds for the development of German corporate governance models which prioritised profits over jobs. I review the SPD's structural reading of the Deutsche Börse affair, whilst comparing it to an alternative interest-based reading. The latter allows me to focus more closely on the issue which, more than any other, led to Seifert's downfall: his refusal to bow to the expressed interests of his own shareholders by pressing ahead, against their wishes, with a hostile bid for the London Stock Exchange. Seifert's eventual removal foreclosed the possibility of an integrated London-Frankfurt stock market and, somewhat ironically given the SPD's response to the affair, as a consequence it also prevented the entry of London's highly capitalised institutional investors into the German market for corporate control. The actions of Deutsche Börse's overseas shareholders might still be seen as evidence of a predatory Anglo-American capitalism. However, their successful removal of Werner Seifert may well have been responsible for temporarily keeping other financial predators at bay.     

Ethnic Cleansing in Silesia 1950-89 and the Ennationalizing Policies of Poland and Germany

The rise of nationalism in Central Europe in the nineteenth century had dire consequences for Silesia, the far-flung, multi-ethnic frontier region of Prussia/Germany, bordering on Austria-Hungary and Russia. The dividing up in 1921 of Upper Silesia between Germany and the newly established Polish nation-state, and the ensuing ennationalization of both regions, triggered off population movements of 300,000 persons before 1939, when Berlin seized the whole of Upper Silesia and embarked on a policy of thorough Germanization. After 1945 this was succeeded by Polonization as Moscow granted most of the German territories east of the Oder-Neisse line (including almost the whole of Silesia) to Poland. In consequence, almost the entire Lower Silesian population either fled, was evacuated in 1944-5 or expelled by 1948, and the region was repopulated by Poles. The same was true in Upper Silesia but to a more limited degree as Warsaw decided to retain most of the local population: as 'Poles', they would 'justify' incorporation of the region into Poland, and they would continue to run the Upper Silesian industries so badly needed for the country's reconstruction. Although officially recognized as Poles, Upper Silesians were treated as second-class citizens. Whereas, by 1960, almost all of the remaining Lower Silesian Germans had been allowed to leave, this option was not available to Upper Silesians who, as a result, became more alienated, more German-orientated and even more deeply identified with their specific ethnic groups. Consequently, although Warsaw could not recognize them as non-Poles as it would contradict the offical myth of the state's ethnic homogeneity, an increasing number were allowed to leave for West Germany, especially after Bonn's major concessions to the Polish Communist regime in 1970 which had the dual effect of making hard-to-come-by goods more available for 'real' Poles, and of replenishing the conservative electorate in West Germany. On the other hand, those who stayed successfully defied Poland's ennationalizing policies by the establishment of various German organizations. The emigration of 1950-89 was in fact an 'ethnic cleansing' as it was originally set off by discrimination on ethnic grounds; the growing disparity in living standards between West Germany and Poland was accompanied of a similar gap in the granting of civil and human rights.     

Currency devaluations and consolidating democracy: the example of the South African rand

Abstract

In 2001 the South African rand depreciated suddenly and steeply against the dollar and euro. This triggered inflation as the prices of imported products gapped upward. To offset the imminent inflationary effects and attract foreign exchange, the Reserve Bank raised interest rates, resulting in slower domestic growth. The critical question was the cause of the currency depreciation. We argue here that the rand's decline was the result of a concatenation of internal and external factors, specifically the way the operations of the global financial markets magnified and exacerbated the effects of internal financial policy decisions. The article illustrates the heightening connectivity between domestic policy decisions aimed at regulating the national economy and the globalizing financial markets that operate on an altogether different logic. The Reserve Bank's attempt to regulate the local foreign exchange regime in concert with the corporate use of financial instruments to circumvent these exchange controls led to a relatively illiquid currency market that was easily susceptible to attack by speculative capital. The end result was a crippling devaluation that especially hurt the impoverished black South African majority in the process of getting on its feet economically, thereby adding a further constraint on the consolidation of post-apartheid democracy.     

Der Einfluss von Koalitionsaussagen,programmatischen Standpunkten und der Bundespolitik auf die Regierungsbildung in den deutschen Ländern

Party politics at the German state level plays a decisive role for patterns of party competition and for legislative decision-making at the federal level. This article analyses the impact of party politics at the state and the federal level on the formation of coalition governments in the German Laender. The empirical analysis is based on a unique dataset that covers information on the state parties’ programmatic positions, their pre-electoral alliances, and the structure of party competition on the federal level in the time period between 1990 and 2007. The results reveal that the programmatic positions of state parties have a decisive impact on government formation. Other relevant factors are the parties’ relative strength, their coalition preferences and the partisan composition of government and opposition on the federal level.     

„Selbstbewusst“ und „stolz“. Das außenpolitische Vokabular der Berliner Republik als Fährte einer Neuorientierung

The article sketches a newly developed analytical approach (“vocabulary analysis”) inspired by philosophy of language. Without engaging in the debate as to whether Germany’s foreign policy is best characterised either in terms of continuity or change, the article reconstructs the development of the German foreign policy practice between 1986 and 2002 on the basis of the foreign policy elite’s discourse. In an exemplary fashion it illustrates the use of the key concepts Germany, Europe, power, responsibility, self-confidence and pride. We conclude that vocabulary analysis reveals astonishing shifts in the semantic web of which German foreign policy discourse is “woven” — shifts which will also leave traces in Germany’s foreign policy identity.