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  • Author: Dulce Freire, Shawn Parkhurst
  • Publication Date: 11-2002
  • Content Type: Working Paper
  • Institution: Center for German and European Studies, University of California, Berkeley
  • Abstract: In the first part of this paper we analyze the conditions in of a shifting emphasis from the politics of prices to a social-structural policy. We also ask how well the CAP has adjusted to the ecological and social characteristics of the countries of southern Europe and whether it has actually supported the agriculture and rural citizens of these countries. In the second part of the paper, we present some of the results of the application of the CAP in Portugal, and discuss what role agriculture might have in developing the rural sections of the country. Broadly, our goal is to determine to what extent attempts to shift the CAP's focus from agriculture to the rural world and from productivity to quality can benefit Portugal and the other countries of southern Europe. Different countries and interest groups received the intercalary revision with a varying mixture of fear, caution and hope, and have opened a serious debate.
  • Topic: Environment, Science and Technology
  • Political Geography: Europe, Portugal
  • Author: Pedro C. Magalhães
  • Publication Date: 11-2002
  • Content Type: Working Paper
  • Institution: Center for German and European Studies, University of California, Berkeley
  • Abstract: In the following sections, I will argue that although opinions about Portuguese membership in the EU have ceased to play a crucial role both in party appeals and electoral behavior, that is not the case in what concerns their impact on other forms of political behavior and attitudes. More specifically, I will suggest that the decline in electoral turnout currently experienced in Portugal, particularly since 1995, cannot be fully understood with exploring the combination between resilient Euroscepticism among a minority of the population and the depoliticization of Europe at the level of political élites. Furthermore, I will also suggest that, under the present conditions, anti-Europeanism may have developed into a more permanent and disturbing set of political attitudes of mistrust in, and disengagement from, domestic political institutions.
  • Topic: Political Economy, Politics
  • Political Geography: Europe, Portugal
  • Author: Jörg Faust
  • Publication Date: 11-2002
  • Content Type: Working Paper
  • Institution: Center for German and European Studies, University of California, Berkeley
  • Abstract: Interregional relations between the European Union and MERCOSUR reflect a general trend of governments and firms to institutionalise their relations not only within but also across regions. As the global liberalization process within the WTO has been stagnating in recent years, transregional strategies have become attractive as next-best strategies. Against this background, the following analysis focuses on the institutional development of EU-MERCOSUR relations and the driving forces behind this development from a European perspective. This, because shedding some light on the political economy of relations between two of the most ambitious integration mechanisms of the 1990s should deepen our understanding of the forces shaping the growing importance of transregional and interregional trade relations. Rather than trying to explain the course of EU-MERCOSUR relations by one dominant hypothesis, I make an appeal for a multi-causal framework, highlighting three aspects of particular importance from a bottom up perspective. Firstly, one can observe that the interplay of economic interest groups has strongly influenced the course of interregional institutionalisation between the EU and MERCOSUR.) Secondly, political actors have not acted as mere agents of private interest but also have followed their own political agendas. Thirdly, the European Union's interregional trade strategy towards MERCOSUR has not been independent of the international context.
  • Topic: International Political Economy
  • Political Geography: Europe, South America, Latin America
  • Author: Lloyd Ulman, Knut Gerlach
  • Publication Date: 11-2002
  • Content Type: Working Paper
  • Institution: Center for German and European Studies, University of California, Berkeley
  • Abstract: ". . . It is impossible for any community to have very full employment and completely free collective bargaining and stable prices. Either one of the three will be completely sacrificed, or else all three will have to be modified. ". . . In the last resort the answer will be given not by economists or by administrators but by the public opinion. At each corner of the triangle, the limiting factor is what public opinion will stand, and the degree of comprehension that public opinion will show for an economic policy that tries to preserve balance between competing objectives.
  • Topic: Government, Political Economy
  • Political Geography: Europe
  • Author: Edward A. Fogarty
  • Publication Date: 10-2002
  • Content Type: Working Paper
  • Institution: Center for German and European Studies, University of California, Berkeley
  • Abstract: This paper assesses the past, present, and future of transatlantic commercial relations in terms of EU trade strategies. After surveying the medium-term trajectories of the relationships with the United States, Mexico, and Canada-both separately and as a group-it will consider several possible sources of European Union trade preferences vis-à-vis NAFTA, including interest groups' incentives to seek to capture national and European governing institutions, the balance between the European Commission and the Council of Ministers, European leaders' desire to balance against overweening American power, and possible attempts to construct either a common Western identity or, alternatively, a European identity in contradistinction what the United States seems to represent. The hope is that these different approaches provide a contrasting set of interpretations whose comparison side-by-side allows new insights into the dynamics governing EU-North American trade relations.
  • Topic: International Trade and Finance
  • Political Geography: United States, Europe, Canada, North America, Mexico
  • Author: Philip L. Martin
  • Publication Date: 05-2002
  • Content Type: Working Paper
  • Institution: Center for German and European Studies, University of California, Berkeley
  • Abstract: This monograph reviews Germany's evolution from a country of emigration to a reluctant land of immigration between the 1960s and 1980s, as guest workers settled and asylum seekers arrived. During the 1990s, Germany became a magnet for diverse foreigners, including the families of settled guest workers, newly mobile Eastern Europeans and ethnic Germans, and asylum seekers from throughout the world. Germany, with a relatively structured and rigid labor market and economy, finds it easier to integrate especially unskilled newcomers into generous social welfare programs than into the labor market. Since immigration means change as immigrants and Germans adjust to each other, an aging German populace may resist the changes in the economy and labor market that could facilitate immigrant integration as well as the changes in culture and society that invariably accompany immigrants.
  • Topic: Government, Migration
  • Political Geography: Europe, Germany
  • Author: John W. Cioffi
  • Publication Date: 04-2002
  • Content Type: Working Paper
  • Institution: Center for German and European Studies, University of California, Berkeley
  • Abstract: The reform of German company law by the Control and Transparency Law ("KonTraG") of 1998 reveals politics of corporate governance liberalization. The reforms strengthened the supervisory board, shareholder rights, and shareholder equality, but left intra-corporate power relations largely intact. Major German financial institutions supported the reform's contribution to the modernization of German finance, but blocked mandatory divestment of equity stakes and cross-shareholding. Conversely, organized labor prevented any erosion of supervisory board codetermination. Paradoxically, by eliminating traditional takeover defenses, the KonTraG's liberalization of company law mobilized German political opposition to the EU's draft Takeover Directive and limited further legal liberalization.
  • Topic: Government, Industrial Policy
  • Political Geography: Europe, Germany
  • Author: Barry Eichengreen
  • Publication Date: 02-2002
  • Content Type: Working Paper
  • Institution: Center for German and European Studies, University of California, Berkeley
  • Abstract: This lecture considers how Europe's monetary union will evolve in the next five to ten years. It concentrates on what is likely to be the most important change in that period, namely, the increasing number and heterogeneity of participating states. By 2006, less than four years from now, it is virtually certain that EMU will be enlarged to include a number of Eastern European countries that have not yet been admitted to the EU itself. These new members will differ sharply from the incumbents in terms of their economic structures, their per capita incomes, and their growth rates. The analysis focuses on the implications of this momentous change for the structure, organization and operation of EMU.
  • Topic: Economics, Political Economy
  • Political Geography: Europe
  • Author: Christoph Strünck
  • Publication Date: 12-2001
  • Content Type: Working Paper
  • Institution: Center for German and European Studies, University of California, Berkeley
  • Abstract: This paper compares approaches towards food safety regulation in Europe and the United States. It focuses on mad cow disease and examines how the British Government and the European Union handled the first big crisis in the nineties, juxtaposed to the American response. This worst public health disaster in Europe has led to new agencies and policies. However, these institutional changes do not abolish fragmentation, but extend the existing landscape regulatory bodies. The paper emphasizes that fragmentation-as the American case shows despite its shortcomings-prevents science from being captured by the state, allows interest groups broader access and ensures a distinct pattern of checks and balances.
  • Topic: Science and Technology
  • Political Geography: United States, America, Europe
  • Author: George Tsebelis, Anastassios Kalandrakis
  • Publication Date: 07-1998
  • Content Type: Working Paper
  • Institution: Center for German and European Studies, University of California, Berkeley
  • Abstract: The paper studies the impact of the EP on legislation on chemical pollutants introduced under the Cooperation procedure. A series of formal and informal analyses have predicted from significant impact of the EP, to limited impact (only in the second round) to no impact at all. Through the analysis of Parliamentary debates as well as Commission and Parliamentary committee documents, we are able to assess the significance of different amendments, as well as the degree to which they were introduced in the final decision of the Council. Our analysis indicates first that less than 30% of EP amendments are insignificant, while 15% are important or very important; second, that the probability of acceptance of an amendment is the same regardless of its significance. Further analysis indicates two sources of bias of aggregate EP statistics: several amendments are complementary (deal with the same issue in different places of the legal document), and a series of amendments that are rejected as inadmissible because they violate the legal basis of the document or the germainess requirement) are included in subsequent pieces of legislation. We calculate the effect of these biases in our sample, and find that official statistics underestimate Parliamentary influence by more that 6 percentage points (49% instead of 56% in our sample). Finally, we compare a series of observed strategic behaviors of different actors (rapporteurs, committees, floor, Commission) to different expectations generated by the literature.
  • Topic: Environment, Industrial Policy, Political Economy
  • Political Geography: Europe
  • Author: Peter A. Hall, Robert J. Franzese Jr.
  • Publication Date: 09-1997
  • Content Type: Working Paper
  • Institution: Center for German and European Studies, University of California, Berkeley
  • Abstract: Plans for European Monetary Union are based on the conventional postulate that increasing the independence of the central bank can reduce inflation without any real economic effects. However, the theoretical and empirical bases for this claim rest on models of the economy that make unrealistic information assumptions and omit institutional variables other than the central bank. When the signaling problems between the central bank or other actors in the political economy are considered, we find that the character of wage bargaining conditions the impact of central bank independence by rendering the signals between the bank and the bargainers more or less effective. Greater independence can reduce inflation without major employment effects where bargaining is coordinated, but it brings higher levels of unemployment where bargaining is uncoordinated. Thus, currency unions like the EMU may require higher levels of unemployment to control inflation than their proponents envisage; they will have costs as well as benefits, costs which will be distributed unevenly among and within the member nations based on the changes induced in the status of the bank and of wage coordination.
  • Topic: Economics, Government, International Trade and Finance, Political Economy
  • Political Geography: Europe
  • Author: Jeffrey Johnson
  • Publication Date: 05-1997
  • Content Type: Working Paper
  • Institution: Center for German and European Studies, University of California, Berkeley
  • Abstract: This paper discusses academic-industrial relations in German chemical research from 1905 to the eve of World War II, considering four periods: the decade before World War I, the years of total war and postwar crisis (1916-1923), the renewed crisis (1929-1933), and finally the Nazi years. These periods saw, respectively, the creation of academic-style research laboratories with substantial industrial support; the emergence of industrially-funded organizations to subsidize chemical literature and educational institutions (as well as research); reductions in support for these organizations and in subsidies for contracted academic collaborators, but the expansion of postdoctoral fellowships funded by I.G. Farben; and finally the politicization and militarization of the academic-industrial symbiosis under National Socialism.
  • Topic: Industrial Policy, International Political Economy, Science and Technology
  • Political Geography: Europe, Germany
  • Author: Rainer Karlsch
  • Publication Date: 03-1997
  • Content Type: Working Paper
  • Institution: Center for German and European Studies, University of California, Berkeley
  • Abstract: Between the two World Wars, central Germany (the later GDR) was a preferred region for the foundation of new chemical plants. But after World War II, Soviet occupying troops dismantled 116 chemical plants in the Soviet Zone of Occupation. After the division of Germany became apparent, the Soviet Zone began a policy of self-sufficiency, but the chemical industry of the GDR dropped behind the West German chemical industry in the first postwar decade. After the "Sputnik shock" in 1957 and Khruschev's proclamation of an "economic race," the chemical industry in the Eastern Bloc moved into the center of the economic policy. In November 1958, the GDR enacted, as did the Soviet Union, a special chemical program. The main points of the program were the doubling of the chemical production within seven years, and an even greater increase in production of synthetic fibers and plastic. But the program failed. Decisive for the backsliding of the GDR's chemical industry was the uncoupling from the international division of labor and the integration into the East European economic zone. The GDR's Chemical Industry could find no real equivalent partner in Eastern Europe, and cooperation with the West was restricted for political reasons. The "opting for oil" of the Ulbricht-era became in the Honecker-era a policy of moving "back to coal." The maintaining of carbide chemistry finally ended in an energy crisis and an ecological fiasco.
  • Topic: Cold War, Industrial Policy, International Political Economy
  • Political Geography: Europe, Germany
  • Author: Akira Kudo
  • Publication Date: 03-1997
  • Content Type: Working Paper
  • Institution: Center for German and European Studies, University of California, Berkeley
  • Abstract: This paper analyzes the Japan strategy of I.G. Farben in the inter-war period. It deals with export strategy as well as the licensing of technologies. It concludes that I.G. Farben suffered from a variety of difficulties in its Japan business, especially in the area of direct investment, and that, in spite of this, it succeeded in developing active business operations in Japan, especially in its exports of dyestuffs and nitrogenous fertilizer and in its licensing of the Haber-Bosch process for synthetic ammonia.
  • Topic: Industrial Policy, International Political Economy
  • Political Geography: Japan, Europe, Israel, East Asia
  • Author: Ashish Arora, Alfonso Gambardella
  • Publication Date: 03-1997
  • Content Type: Working Paper
  • Institution: Center for German and European Studies, University of California, Berkeley
  • Abstract: This paper analyzes the evolution of the structure of the chemical industry in the US, Europe, and Japan. Differences in institutions, historical conditions, and resource endowments across the three regions reinforce differences in initial conditions. However, technological innovation, the internationalization of the industry, and the development and operation of markets, especially markets for technology, capital, raw materials, and corporate control, are powerful forces encouraging convergence. Convergence is less marked at the level of the firm than at the level of the industry, and is more marked between the industries of Western Europe and the United States.
  • Topic: Globalization, Industrial Policy
  • Political Geography: United States, Japan, Europe
  • Author: Mark Hallenberg, Jürgen. von Hagen
  • Publication Date: 02-1997
  • Content Type: Working Paper
  • Institution: Center for German and European Studies, University of California, Berkeley
  • Abstract: Large government budget deficits are a concern in most industrialized countries. Two literatures in political economy argue that differences in political institutions explain much of the variation in the success of counties in their efforts to run small deficits. One group of authors considers how differences among electoral systems affect the size of budget deficits, while the second group concentrates on the governmental institutions which structure the formation of the yearly budget. Among the "electoral institutionalists", a consensus is beginning to emerge which treats proportional representation systems as a cause of high levels of public debt. In contrast, "fiscal institutionalists" argue that the presence of certain institutions in the decision-making process at the cabinet level, such as a strong finance minister or negotiated spending targets, lead to smaller deficits than in cases where such institutions are missing. We indicate that these two literatures complement one another. Electoral institutions matter because they restrict the type of budgetary institution at the governmental phase which a state has at its disposal. A strong finance minister is feasible in states where one-party governments are the norm, and such states usually have plurality electoral systems, while negotiated targets provide an alternative in multi-party governments. In multi-party governments, which are common in states with proportional representation, the coalition members are not willing to delegate to one actor the ability to monitor and punish the others for "defections" on the budget. The empirical section of the paper indicates a strong relationship between one-party governments and strong finance minister solutions within the European Union states on the one hand and multi-party or minority governments and targets on the other. Pooled time series regression results also support our contention that it is the presence or absence of one of these budgetary institutions, rather than the plurality/proportional representation dishotomy, which has the greatest impact on debt levels.
  • Topic: International Organization, International Political Economy
  • Political Geography: Europe
  • Author: Maurice Obstfeld
  • Publication Date: 02-1997
  • Content Type: Working Paper
  • Institution: Center for German and European Studies, University of California, Berkeley
  • Abstract: This paper studies the constraints placed by the Maastricht Treaty on the rates at which member currencies will exchange against the Euro at the start of stage 3 of economic and monetary union (EMU). The paper shows that the stage 3 bilateral conversion factors for EMU member currencies must correspond to closing market exchange rates as of December 31, 1998; furthermore, currency conversion rates into the Euro cannot be determined until that date. Moreover, official announcements about intended conversion factors will carry no credibility with markets, as market rates must be chosen over any prennounced rates according to the Treaty. Unless there is heavy official intervention in the runup to stage 3, EMU members' bilateral market rates will exhibit excessive volatility and may induce beggar-thy-neighbor policy behavior. On the other, hand, exchange-rate targeting may open the door to speculative currency crises. The only feasible solution appears a widely-publicized institutional reform to subjugate national central banks' policies entirely to the goal of intra-EMU exchange stability in the final months of stage 2.
  • Topic: International Political Economy, International Trade and Finance
  • Political Geography: Europe
  • Author: Lars Tragardh
  • Publication Date: 01-1997
  • Content Type: Working Paper
  • Institution: Center for German and European Studies, University of California, Berkeley
  • Abstract: According to Ole Wæver, a leading student of the travails of the "New Europe," Western Europe is probably the part of the world that currently exhibits "the most advanced case of border fluidity and transgression of sovereignty." So dramatic are the processes underway that they have led otherwise prudent political scientists to turn to the trendy idiom of "postmodernity," meaning in the context of IR theory first and foremost "post-sovereignty." Thus John Ruggie has argued that what he sees as "the unbundling of territoriality" - i.e. the incipient decoupling of sovereignty and (nation)state - constitutes "nothing less than the emergence of the first truly postmodern international form." Similarly, Saskia Sassen notes that in the process of globalization the notion of a "national economy" has come to be replaced with that of a "global economy." As a consequence, she argues that while sovereignty and territory very much "remain key features of the international system," they have been "reconstituted and partly displaced onto other institutional areas outside the state." Thus, she concludes, "sovereignty has been decentered and territory partly de-nationalized."
  • Topic: International Cooperation, Sovereignty
  • Political Geography: Europe
  • Author: Monique Borrel, Stephen Bornstein, Pierre-Eric Tixier, Chris Benner, Julia E. Kopich, W. Norton Grubb
  • Publication Date: 02-1996
  • Content Type: Working Paper
  • Institution: Center for German and European Studies, University of California, Berkeley
  • Abstract: From the beginning of the industrial era to the present time, French social history has been characterized by recurrent strikes of great magnitude. Contrary to most postwar industrialized countries where large strikes ceased to play a key role in sociopolitical changes, the French case presents an important anomaly. This research demonstrates that strikes have been instrumental in reshaping French society since the early 1950s. First, strike waves and generalized disputes supported the rapid expansion of the Welfare State throughout the postwar period. They also prompted leftist parties and unions to achieve coordination in their strategies and to orchestrate national demonstration strikes, which resulted in the emergence of a leftist electoral majority. Besides, the 1968 strike waves and the leftist strategy to achieve political power supported the upward trend in unionization in the 1970s. Beginning in the early 1980s, this French pattern of strikes has resulted in a number of perverse effects that account for the crisis of the mid1990s. In that respect, the French experience supports the idea that advanced industrial societies cannot afford recurrent general strikes without damaging the very fabric of democracy and without jeopardizing their economic future.
  • Topic: Education, Industrial Policy
  • Political Geography: America, Europe, France
  • Author: Wolfgang Seibel, Christopher S. Allen, Hans-Georg Betz, Henry Kreikenbaum, John Leslie, Andrei S. Markovitz, Ann L. Phillips, Michaela W. Richter
  • Publication Date: 03-1996
  • Content Type: Working Paper
  • Institution: Center for German and European Studies, University of California, Berkeley
  • Abstract: According to West German standards, there is only a weak nonprofit sector in East Germany today. The East German quasi-nonprofit sector nonetheless is an indispensable institutional ingredient of political integration. It is characterized by an amazing degree of structural and ideological continuity. Much of its organizational setting dates back to the pre-1989 era. Both funding and managerial attitudes are shaped by state-centeredness. Nonprofit institutions are heavily engaged in mitigating the social costs of economic transformation. Many of them, especially at the local level, are controlled by members of the former-communist PDS (Party of Democratic Socialism). Thus, the East German quasinonprofit sector presumably integrates two important societal groups more effectively than the regular polity: those alienated from the new democracy due to economic disappointment or deprivation and those alienated from the new democracy due to ideological reasons (former communists in particular). This indicates a remarkable institutional elasticity whose main function is to "synchronize" the dramatically accelerated pace of political change and the much slower pace of societal change.
  • Topic: Cold War, Democratization
  • Political Geography: Europe