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Begin New Search Topic Development Content Type Working Paper Publishing Institution Max Planck Institute for the Study of Societies

1. Private Insurance, Public Welfare, and Financial Markets: Alpine and Maritime Countries in Comparative-Historical Perspective

Author:
A. van der Heide and S. Kohl
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Contemporary capitalist societies use different institutions to manage economic risks. While different public welfare state and financial institutions (banks, capital markets) have been studied across coordinated and liberal market economies, this paper adds the private insurance sector to the study of countries’ security arrangements, following up on Michel Albert’s classical distinction between Alpine and Maritime insurance cultures. Building on extensive new insurance data collections (1880–2017) and institutional analysis, this paper corroborates the long-run historical existence of two worlds of private insurance. Maritime countries (USA, GBR, CAN) developed much bigger life and non-life insurance earlier, with no state-associated insurance enterprises and riskier investments steered towards financial markets. Alpine insurance (AUT, DEU, CHE), by contrast, was initially smaller, with strong state involvement, a significant reinsurance tradition and relatively heavy investments in mortgages and property, due to economic and financial backwardness. We argue that the larger and more “Maritime” the insurance sector, the more it made welfare states liberal and securities markets large. Insurance is thus a hidden factor for countries’ varieties of capitalism and world of welfare. The recent convergence on the Maritime model, however, implies that the riskier and risk-individualizing type of private insurance has added to privatization and securitization trends everywhere.
Topic:
Development, Capitalism, Finance, and Welfare
Political Geography:
Global Focus

2. The Political Economy of Industrial Policy in the European Union.

Author:
Fabio Bulfone
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
The Great Recession renewed calls for a return of state activism in support of the European economy. The widespread nationalization of ailing companies and the growing activism of national development banks led many to celebrate the reappearance of industrial policy. By reviewing the evolution of the goals, protagonists, and policy instru- ments of industrial policy since the postwar period, this paper shows how state intervention never ceased to be a crucial engine of growth across the EU. It argues that the decline of the Fordist wage-led production regime marked a turning point in the political economy of industrial policy with the transition from inward-looking to open-market forms of state in- tervention. The main features of open-market industrial policy are then discussed referring to the cases of the internationalization of national champions in public service sectors and the proliferation across the EU of industrial clusters. Finally, the paper reviews postcrisis in- stances of state intervention and highlights how, rather than breaking with past tendencies, the Great Recession further accelerated the shift towards open-market industrial policy.
Topic:
Development, Economics, Political Economy, Regional Cooperation, European Union, Integration, and Industry
Political Geography:
Europe

3. Neoliberalism without Neoliberals Evidence from the Rise of 401(k) Retirement Plans

Author:
Michael A. McCarthy
Publication Date:
07-2014
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
This paper considers the rise of defined-contribution (DC) pensions – such as 401(k) plans – in order to contribute to the debate about neoliberalism. It challenges the generalizability of two common accounts: the weak state intervention thesis, which argues that neoliberal policy change is driven by state retreat and deregulation, and the state-managed transition thesis, which argues that neoliberal policies are both enacted and managed through new regulations. In contrast, this paper argues that the development of the employer-based pension system between 1970 and 1995 is an instance of “neoliberalism without neoliberals.” A battery of regulations was passed between 1974 and the late 1980s that were intended to make the traditional system of defined- benefit (DB) pensioning more secure. However, this legislation triggered a business shift to 401(k)s. The legislation worked in such a counterintuitive way because of three factors related to changes in “the balance of class forces” in American society: (1) new laws increased costs for firms, with small businesses being hit the heaviest, (2) employment in the manufacturing sector, labor's traditional stronghold, declined as a share of total employment, and (3) because unions were unable or unwilling to unionize emergent sectors of the economy, new businesses in them were not compelled to negotiate DB plans. In such a context, growing regulatory costs pushed many firms to adopt DC pensions for their employees. The outcome was a major policy shift, considered by many to be a defining feature of the neoliberal era.
Topic:
Development
Political Geography:
America

4. The Return of Religion? The Paradox of Faith-Based Welfare Provision in a Secular Age

Author:
Josef Hien
Publication Date:
05-2014
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
For centuries, churches were the main institutional providers of welfare in Europe before the state took over this role in the late 19th century. The influence of modernization theory meant that modern welfare state theorists increasingly regarded religion and its impact on welfare as a relic from the distant past. It was anticipated that modern, differentiated, and industrialized societies would see the decline and inevitable disappearance of religious welfare provision along with religiosity. Surprisingly, however, at the beginning of the 21st century in many modern industrialized societies, religious institutions are increasingly becoming involved in welfare provision again. The religion blind classic welfare state literature offers no explanation for this phenomenon. This present paper argues that the resurgence of faith-based welfare providers is the reversal of a phenomenon that occurred in the late 19th century when modern states started to strip religious providers of their prerogatives in welfare provision. The result was the ascendance of the modern state and the demise of religion in the late 19th century. The return of welfare to religious providers can therefore be interpreted as the beginning of the demise of the modern state.
Topic:
Development, Human Welfare, Non-Governmental Organization, Religion, and Social Movement
Political Geography:
United States of America

5. Pathways of Transnational Activism: A Conceptual Framework

Author:
Sabrina Zajak
Publication Date:
04-2014
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
This paper presents a novel analytical framework to study transnational activism in the context of today’s international governance architecture. While there is a considerable amount of literature on the emergence, development, and effects of transnational activism in specific transnational governance arrangements or within a specific local context, an integrated framework that analyzes the dynamic interplay between activism, transnational institutions, and domestic contexts is still lacking. The framework of transnational pathways of influence intends to help close this gap. It integrates insights from social movement research on transnational collective action and insights from institutional theorists on institutional interactions. The framework consists of three major concepts: the concept of intra-pathway dynamics captures the relationship of mobilization and institutional chance within one path; the concept of inter-pathway dynamics encompasses institutional interactions and interdependencies between activism across paths; and the concept of the global–local link characterizes the relationship of activism within each path to local actors, the domestic context, and the political regime. The paper outlines this framework and exemplifies it by taking the case of transnational labor-rights activism targeting labor-rights violations in a strong and nondemocratic state: the People’s Republic of China. It shows that the study of activism across different transnational pathways over time is necessary to understand the combined effects of activist interventions, institutional co-evolution and interaction as an explanation of the process of selective convergence between global norms and local practices.
Topic:
Development, Politics, Labor Issues, Governance, and Social Movement
Political Geography:
China

6. Post-2015 Means of Implementation: What Sort of Global Partnership?

Author:
Alex Evans
Publication Date:
12-2014
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Until recently, 95% of the bandwidth for talking and thinking about the post-2015 agenda was focused on goals and targets. Now that the Open Working Group (OWG) on the post- 2015 agenda has reported, though, policymakers and opinion formers are starting to think more seriously about the ‘how’ as opposed to the ‘what’ – and what a new Global Partnership on development, as well as the overall political outcome on means of implementation (MOI) more broadly, might look like by the end of next year.
Topic:
Development, Economics, Politics, and Sustainable Development Goals
Political Geography:
Global Focus

7. Lobbying Systems in the European Union: A Quantitative Study

Author:
Andreas Broscheid and David Coen
Publication Date:
05-2006
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
This paper presents and tests a micro-theoretical model of EU lobbying across policy domains. In particular, we focus on two questions: first, we want to know why the number of interest representatives differs across policy domains and, second, we investigate why we find institutionalized fora for interest representation in some policy domains but not in others. Our argument focuses on the Commission's need for expert information and its costs of managing contacts with a large number of interest representatives. Both factors provide incentives for the Commission to create restricted-access fora as the number of interest representatives increases. Using cross-sectional data on interest representation in a wide range of policy domains, we find some support for our hypotheses.
Topic:
Development, Government, and Political Economy
Political Geography:
Europe

8. The Politics of Tax Structure

Author:
Steffen Ganghof
Publication Date:
01-2006
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Governments that wish to redistribute through budgetary policy do so mostly on the spending side, not on the taxation side of the budget. The taxation side is nevertheless important, partly because less efficient tax structures seem to be associated with lower taxation and spending levels. Hence political conflicts over spending levels may partly be fought as conflicts over tax structure. The paper provides a coherent perspective on the politics of tax structure. Specific topics include the (ir-)relevance of tax mixes, policy change in income taxation, the importance of tax competition, and the role of political institutions.
Topic:
Development, Economics, Government, and Political Economy