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  • Author: Pepper D. Culpepper
  • Publication Date: 01-2006
  • Content Type: Working Paper
  • Institution: Minda de Gunzburg Center for European Studies, Harvard University
  • Abstract: When should we ever expect to see durable moves toward greater wage bargaining coordination? Moving to sustained coordinated wage bargaining presupposes that unions and employers can both be convinced that wage bargaining is in fact a game in which both actors prefer coordination. This can only happen when these social actors come to accept as true an idea of the economy in which their coordination through wage bargaining institutions will give them better outcomes than would bargaining through decentralized institutions. This paper argues that the process of developing common knowledge changes institutional preferences among employers. It was the development of common knowledge that changed employer preferences about the attractiveness of institutions for wage coordination in Ireland in Italy. In both cases, the development of common expectations required the emergence and joint ratification of a common set of references, in what I call common knowledge events. These events led organized employers to change their previous position about acceptable institutions of wage bargaining. This change made possible the institutionalization of coordinated wage bargaining in both countries. As demonstrated through counterfactual analysis of the Australian case, the emergence and ratification of such a common view is the necessary condition for the emergence and survival of coordinated wage bargaining institutions.
  • Topic: Development, Economics
  • Political Geography: Europe, Australia/Pacific, Ireland
  • Author: Annette Elisabeth Töller
  • Publication Date: 02-2006
  • Content Type: Working Paper
  • Institution: Minda de Gunzburg Center for European Studies, Harvard University
  • Abstract: In looking at the Europeanization of the German Bundestag, the paper brings together two different debates: the well-established debate on the democratic legitimacy of the European Union sees national Parliaments as guarantor of one branch of a “dual” legitimacy. The more recent debate on “Europeanization” addresses the impacts that European integration has had on its Member States. Analyzing the Europeanization of the German Bundestag, the paper identifies and analyzes three dimensions: legislative Europeanization – the extent to which legislative decision making by the German Bundestag has been influenced by European stipulations over the last twenty years; institutional Europeanization – how the Bundestag as an institution reacted to this loss of function by establishing institutional and procedural provisions for influencing the government's Euro-politics; and strategic Europeanization – the ways in which individual MPs started more recently to develop euro-political strategies that go beyond controlling the national government. The paper shows that the Bundestag only hesitantly reacted to the increasing loss of function s through legislative Europeanization by establishing effective institutional and procedural provisions for controlling the government's Euro-political activities. What is more, the establishment of institutions does not guarantee their effective use. All in all, Euro- politics continues to remain the activity of few MPs. These few, however, have more recently started to europeanize their strategies. The empirical findings support the claim that the traditional concept of chains of legitimacy is inadequate, both in conceptual and in empirical terms. With regard to the democratic legitimacy of EU governance, this indicates that, apart from major reform projects, especially with regard to everyday legislation, not too great a burden should be placed on national Parliaments.
  • Topic: International Relations, Economics
  • Political Geography: Europe
  • Author: Steffen Hillmert
  • Publication Date: 01-2006
  • Content Type: Working Paper
  • Institution: Minda de Gunzburg Center for European Studies, Harvard University
  • Abstract: This paper proposes a comparison of skill formation in Germany and Britain over the last decades. Taking historical trends into account, the two cases can be regarded as representing different types of skill production regimes. Institutional features include a relatively low degree of standardization of training and a larger amount of on-the-job training in Britain. In Germany, post-compulsory training has been conducted predominantly within the dual system of vocational training, underlining the vocational specificity of a large part of the labor market. As a consequence, international differences in individual skill investments, transitions from school to work and other life-course patterns can be observed. At least in Britain, however, the situation seems to have changed considerably during the 1990s. The paper argues that the divergence in more recent developments can still be understood as an expression of historical path dependency given the traditional connections between the post-compulsory training system and the broader societal context in which it is embedded. These concern, in particular, links with the system of general and academic education as the basis for – and also a possible competitor with – vocational training; links with the labor market as they are indicated by specific skill requirements and returns to qualifications; and, links with the order of social stratification in the form of the selective acquisition and the social consequences of these qualifications. The links manifest themselves as typical individual-level consequences and decisions. Founded on the basis of these distinctions, the aim of this paper is to investigate the preceding conditions for recent developments in the qualification systems of Britain and Germany, which have adapted to specific challenges during the last decades.
  • Topic: Development, Economics
  • Political Geography: United Kingdom, Europe, Germany
  • Author: Daniel Béland
  • Publication Date: 10-2005
  • Content Type: Working Paper
  • Institution: Minda de Gunzburg Center for European Studies, Harvard University
  • Abstract: This theoretical contribution explores the role of political actors in the social construction of collective insecurity. Two parts comprise the article. The first one briefly defines the concept of collective insecurity and the second one bridges existing sociological and political science literatures relevant for the analysis of the politics of insecurity. This theoretical framework articulates five main claims. First, although interesting, the concept of moral panic applies only to a limited range of insecurity episodes. Second, citizens of contemporary societies exhibit acute risk awareness and, when new collective threats emerge, the logic of "organized irresponsibility" often leads citizens and interest groups alike to blame elected officials. Third, political actors mobilize credit claiming and blame avoidance strategies to respond to these threats in a way that enhances their This theoretical contribution explores the role of political actors in the social construction of collective insecurity. Two part s comprise the article. The first one briefly defines the concept of collective insecurity and the second one bridges existing sociological and political science literatures relevant for the analysis of the politics of insecurity. This theoretical framework articulates five main claims. First, although interesting, the concept of moral panic applies only to a limited range of insecurity episodes. Second, citizens of contemporary societies exhibit acute risk awareness and, when new collective threats emerge, the logic of “organized irresponsibility” often leads citizens and interest groups alike to blame elected officials. Third, political actors mobilize credit claiming and blame avoidance strategies to respond to these threats in a way that enhances their position within the political field. Fourth, powerful interests and institutional forces as well as the “threat infrastructure” specific to a policy area create constraints and opportunities for these strategic actors. Finally, their behavior is proactive or reactive, as political actors can either help push a threat onto the agenda early, or, at a later stage, simply attempt to shape the perception of this threat after other forces have transformed it into a major political issue.
  • Topic: Security, Civil Society, Politics
  • Political Geography: Europe
  • Author: Wolfgang Schroeder, Stephen J. Silvia
  • Publication Date: 09-2005
  • Content Type: Working Paper
  • Institution: Minda de Gunzburg Center for European Studies, Harvard University
  • Abstract: This paper challenges the conventional explanation for declining density of German employers associations. The dominant account asserts that German trade unions have taken advantage of increased globalization since the 1980s – which has made internationally active enterprises more vulnerable to production disruptions – to extract additional monopoly rents from multinational employers via aggressive collective bargaining. Small firms have responded to the increased union pressures by avoiding member ship employers associations, which has produced the density declines. Data, however, disconfirm the conventional explanation; compensation increases have actually become increasingly smaller over the decades. This paper presents an alternative explanation that is consistent with the data. We argue that it is the large product manufacturers rather than the trade unions that have greatly increased price pressures on parts suppliers, which has led to a disproportionate number of suppliers to quit employers associations. The paper also discusses these findings in light of the “varieties of capitalism” literature. It points out that this literature has depicted national models as too homogeneous. The decision of several German employers associations to offer different classes of membership represents an accentuation of variety within national varieties of capitalism.
  • Topic: Civil Society, Economics, Politics
  • Political Geography: Europe
  • Author: Reimut Zohlnhöfer
  • Publication Date: 07-2005
  • Content Type: Working Paper
  • Institution: Minda de Gunzburg Center for European Studies, Harvard University
  • Abstract: According to parts of the literature, blame avoidance opportunities, i.e. the necessity and applicability of blame avoidance strategies, may differ among countries according to the respective institutional set-ups and between governing parties according to their programmatic orientation. In countries with many veto actors, a strategy of "Institutional Cooperation" among these actors is expected to diffuse blame sufficiently to render other blame avoidance strategies obsolete. In contrast, governments in Westminster democracies should resort to the more unilateral strategies of presentation, policy design and timing. At the same time, parties of the left are expected to have an easier time implementing spending cuts while right parties are less vulnerable when proposing tax increases. Evidence from the politics of budget consolidation in Britain and Germany does not corroborate these hypotheses. Instead, it seems that party competition conditions the effects institutions and the partisan complexion of governments have on the politics of blame avoidance.
  • Topic: International Relations, Economics, Politics
  • Political Geography: Europe
  • Author: Hubert P. Janicki, Thierry Warin, Phanindra Wunnava
  • Publication Date: 06-2005
  • Content Type: Working Paper
  • Institution: Minda de Gunzburg Center for European Studies, Harvard University
  • Abstract: This paper presents an empirical assessment of the endogenous optimum currency area theory. This study relies on the original intuition developed by Mundell in 1973. The gravity model is used to empirically assess the effectiveness of the convergence criteria by examining location specific advantages that guide multinational investment within the European Union. A fixed effects model based on a panel data of foreign direct investment (FDI) flows within the EU-15 shows that horizontal investment promotes the diffusion of the production process across the national border. Specifically, the examined Maastricht criteria suggest convergence in interest rate, government fiscal policy, and debt play a significant role in attracting multinational investment.
  • Topic: Economics, International Political Economy, International Trade and Finance
  • Political Geography: Europe
  • Author: Thierry Warin
  • Publication Date: 06-2005
  • Content Type: Working Paper
  • Institution: Minda de Gunzburg Center for European Studies, Harvard University
  • Abstract: The paper addresses the question of the fiscal perspectives within the Economic and Monetary Union (EMU). By using a panel data analysis associated with an interpretation in terms of differences instead of levels, the results show a steady convergence of public deficits across the EMU, and that the EMU needs either to comply with the Lisbon agenda, or some kind of a growth strategy, or reduce the interest of the debt in order to regain some fiscal flexibility while abiding by the Stability and Growth Pact (SGP).
  • Topic: International Relations, Debt, Economics
  • Political Geography: Europe
  • Author: David Coates
  • Publication Date: 04-2005
  • Content Type: Working Paper
  • Institution: Minda de Gunzburg Center for European Studies, Harvard University
  • Abstract: New Labour's performance in office–as an orchestrator of economic and social change–is situated against, and evaluated by reference to, two sets of legacies: legacies inherited from the years of Conservative political dominance after 1979; and legacies brought to power by New Labour. The paper argues that the first se t of legacies was deep and enduring, and threw a long shadow forward. It argues that the second set of legacies were highly coherent and intellectually informed, but cumulatively involved a diminution in the capacity of the state. The result has been a two-term government that is sufficiently superficially successful to win a third term; but which has yet seriously to transform the legacies it inherited: to our misfortune, and ultimately–in electoral terms–also probably to its own. This paper is based on my study of New Labour's domestic policy–Prolonged Labour: The Slow Birth of New Labour Britain; I have also co-authored a study of New Labour's policy towards Iraq–Blair's War–which was published by Polity Press in 2004.
  • Topic: Civil Society, Economics, Politics
  • Political Geography: Europe
  • Author: Sebastián Royo
  • Publication Date: 04-2005
  • Content Type: Working Paper
  • Institution: Minda de Gunzburg Center for European Studies, Harvard University
  • Abstract: The proponents of globalization contend that European countries are now converging on an Anglo-American model of capitalism. Contrary to this prediction, this paper will show that in Spain globalization and EMU have promoted rather than undermined coordination among economic actors. Unable to escape from economic interdependence the Spanish economic actors have developed coordinating capacities at the macro and micro levels to address and resolve tensions between economic interdependence and political sovereignty. In this paper I show that there is at least one more variety than the two–LME and CME–that Hall and Soskice cite and also that it is possible to develop coordination capacities in countries that lack a strong tradition of such capacities. In particular, this paper analyzes the resurgence of national-level social bargaining in Spain in the 1990s. This development was the result of the reorientation of the strategies of the social actors. In a new economic and political context, marked by a process of institutional learning, trade unions have supported social bargaining as a defensive strategy to retake the initiative and influence policy outcomes.
  • Topic: Economics, Globalization, Politics
  • Political Geography: Europe
  • Author: Gerald A. McDermott
  • Publication Date: 04-2005
  • Content Type: Working Paper
  • Institution: Minda de Gunzburg Center for European Studies, Harvard University
  • Abstract: This article examines the political conditions shaping the creation of new institutional capabilities. It analyzes bank sector reforms in the 1990s in three leading postcommunist democracies–Hungary, Poland, and the Czech Republic. It shows how different political approaches to economic transformation can facilitate or hinder the ability of relevant public and private actors to experiment and learn their new roles. With its emphasis on insulating power and rapidly implementing self-enforcing economic incentives, the “depoliticization” approach creates few changes in bank behavior and, indeed, impedes investment in new capabilities at the bank and supervisory levels. The “deliberativ e restructuring” approach fostered innovative, cost-effective monitoring structures for recapitalization, a strong supervisory system, and a stable, expanding bank sector.
  • Topic: International Relations, Economics, Politics
  • Political Geography: Europe, Eastern Europe, Poland, Hungary
  • Author: Stanislav Markus
  • Publication Date: 03-2005
  • Content Type: Working Paper
  • Institution: Minda de Gunzburg Center for European Studies, Harvard University
  • Abstract: The literature on corporate governance in Russia stresses the abuse of shareholder rights in the face of various asset-diversion tactics by the management. Attributing this fiasco to a number of structural obstacles and the privatization legacy, the orthodox account fails to incorporate–let alone explain–the recent data demonstrating a qualitative improvement of corporate governance in crucial segments of the Russian economy. This paper disaggregates “corporate governance” into specific institutions and examines their quality at the firm level as well as by sector. The data supporting the analysis is drawn from recent studies by the OECD, UBS Warburg, CEFIR, and other organizations. The causal inference presented in this paper critically evaluates the impact of foreign capital on the improved corporate governance in Russia's blue-chip firms. The paper presents two alternative state-centered scenarios to explain the implementation of internationally accepted standards of corporate governance by Russia's big business.
  • Topic: Economics, International Trade and Finance, Politics
  • Political Geography: Russia, Europe, Asia
  • Author: Cas Mudde
  • Publication Date: 03-2005
  • Content Type: Working Paper
  • Institution: Minda de Gunzburg Center for European Studies, Harvard University
  • Abstract: The finalized "Return to Europe" of the new EU members states of Central and Eastern Europe (CEE) has created a whole new ballgame for Eurosceptic political actors. In rational choice terms, the costs of Euroscepticism (and even Eurorejection) have gone down dramatically, while the benefits will most probably go even further up. While the effects of EU accession on the party systems of CEE are multifold, this paper develops one possible effect: the transformation of the already present regional divide within CEE countries into a populist, anti-EU center-periphery leavage.
  • Topic: Politics, Regional Cooperation
  • Political Geography: Europe, Eastern Europe
  • Author: Frank Schimmelfennig
  • Publication Date: 03-2005
  • Content Type: Working Paper
  • Institution: Minda de Gunzburg Center for European Studies, Harvard University
  • Abstract: Since the end of the Cold War, European regional organizations have been engaged in promoting the core norms of the emerging pan-European liberal international community in Eastern Europe: democracy and human rights (including minority rights) and the peaceful and integrative settlement of international and interethnic conflicts. When were these efforts effective? Starting from the two most prominent models in the literature on international norm promotion–the social learning model and the external incentives model–the paper uses Qualitative Comparative Analysis (QCA) to examine the conditions under which governments in eastern Europe have complied with the political demands of European regional organizations. It shows that a credible perspective of EU and/or NATO accession combined with low political adaptation costs for the target governments was a sufficient condition for compliance; it thus corroborates the external incentives model. However, in the final phase of accession negotiations, a positive identification with the West proved sufficient as well–even when compliance threatened the survival of the government. By contrast, the other conditions of the social learning model (legitimacy and resonance) were irrelevant to the effectiveness of international norm promotion.
  • Topic: International Relations, Cold War, Human Rights
  • Political Geography: Europe
  • Author: Reimut Zohlnhöfer, Herbert Obinger
  • Publication Date: 03-2005
  • Content Type: Working Paper
  • Institution: Minda de Gunzburg Center for European Studies, Harvard University
  • Abstract: The 1990s have witnessed unprecedented attempts at privatizing state owned enterprises in virtually all OECD democracies. This contribution analyzes the differences in the privatization proceeds raised by EU and OECD countries between 1990 and 2000. It turns out that privatizations are part of a process of economic liberalization in previously highly regulated economies, as well as a reaction to the fiscal policy challenges imposed by European integration and the globalization of financial markets. In addition, institutional pluralism and union militancy yield significant and negative effects on privatization proceeds. Partisan differences only emerge if economic problems are moderate, while intense economic, particularly fiscal, problems foreclose differing partisan strategies.
  • Topic: Economics, Globalization, Politics
  • Political Geography: Europe
  • Author: Duane Swank
  • Publication Date: 03-2005
  • Content Type: Working Paper
  • Institution: Minda de Gunzburg Center for European Studies, Harvard University
  • Abstract: I offer an explanation for the widespread diffusion of neoliberal tax policies in the developed democracies. Specifically, I argue that the highly visible 1980s market-conforming tax reform in the United States, the late twentieth century's dominant political economy, creates significant incentives for adoption of neoliberal tax policies by decision makers in other polities. As such, I stress a dominant actor model of the diffusion of neoliberalism that is grounded in asymmetric competition for mobile assets and policy learning. However, while the incentives to follow U.S. tax policy are substantial, the relative weight assigned the costs and benefits of reform and, in turn, the pace and degree of neoliberal policy adoption by other nations is fundamentally contingent on features of domestic political and economic environments. I assess these arguments with empirical models of 1981-to-1998 tax rates on capital in sixteen nations. I find that changes in U.S. tax policy influence subsequent reforms in other polities; in the long-term, all nations move toward the U.S. neoliberal tax structure. Analysis also shows, however, that the responsiveness to US tax reforms is notably greater where linkages with U.S. markets are stronger, where domestic economic stress is deeper, and where uncoordinated market institutions are dominant. I conclude with a discussion of the implications of the present analysis for the volume's central questions: are dominant. I conclude with a discussion of the implications of the present analysis for the volume's central questions: of international policy interdependence and domestic political economic forces in shaping policy change?
  • Topic: Economics, Politics
  • Political Geography: United States, Europe
  • Author: Daniele Archibugi, Alberto Coco
  • Publication Date: 01-2005
  • Content Type: Working Paper
  • Institution: Minda de Gunzburg Center for European Studies, Harvard University
  • Abstract: The paper discusses the condition and perspective of the European Union in the knowledge economy and the feasibility of the goal given by the European Council at the Summits held in Lisbon (March 2000) and Barcelona (March 2002), that is, to increase European R expenditure up to 3 percent of GDP by 2010. The paper focuses on two aspects: comparative performance with its direct counterparts, in particular the US..; and intra-European distribution of resources and capabilities. A set of technological indicators is presented to show that Europe is still in a consistent delay when compared to Japan and the U.S., especially in R investment and in the generation of innovations. A small convergence occurs in the diffusion of Information and Communication Technologies (ICTs), the sector most directly linked to the concept of the "new economy." In the field of knowledge collaboration, Europe reveals opposing paths in the business and in the academic worlds. Within Europe, the level of investment in scientific and technological activities is so different across countries that it does not merge into a single continental innovation system.
  • Topic: International Relations, Economics, Science and Technology
  • Political Geography: Europe, Lisbon
  • Author: Justin J.W. Powell
  • Publication Date: 02-2005
  • Content Type: Working Paper
  • Institution: Minda de Gunzburg Center for European Studies, Harvard University
  • Abstract: Over the twentieth century, a growing group of students has been transferred into considerably expanded special education systems. These programs serve children with diagnosed impairments and disabilities and students with a variety of learning difficulties. Children and youth “with special educational needs” constitute a heterogeneous group with social, ethnic, linguistic, and physical disadvantages. An increasingly large percentage of those students at risk of leaving school without credentials participate in special education, a highly legitimated low status (and stigmatizing) school form. While most countries commit themselves to school integration or inclusive education to replace segregated schools and separate classes, cross-national and regional comparisons of special education's diverse student bodies show considerable disparities in their (1) rates of classification, (2) provided learning opportunities, and (3) educational attainments. Analyzing special education demographics and organizational structures indicates which children and youth are most likely to grow up less educated and how educational systems distribute educational success and failure. Findings from a German-American comparison show that which students bear the greatest risk of becoming less educated depends largely on definitions of “special educational needs” and the institutionalization of special education systems.
  • Topic: Development, Education
  • Political Geography: United States, Europe, Germany
  • Author: David R. Cameron
  • Publication Date: 02-2005
  • Content Type: Working Paper
  • Institution: Minda de Gunzburg Center for European Studies, Harvard University
  • Abstract: The accession of ten new member states in May 2004 and the prospective accession of several more in the near future will pose severe budgetary, administrative, and operational challenges for the European Union. But however great, the challenges of enlargement pale in comparison with the challenges of accession that will be faced by the new member states, especially those which until a decade ago were governed by Communist parties that presided over centrally-planned and predominantly-collectivized economies. This paper explores five of the most critical challenges that will face the new member states of post-Communist Europe: 1) administering the acquis; 2) deepening and extending the reform and transformation of the economy; 3) reducing the high levels of unemployment and large government, trade, and current account deficits; 4) financing accession in the face of the EU’s budgetary constraints and financial provisions; and 5) coping with all of those challenges in the face of low levels of support for enlargement in many of the member states and high levels of ambivalence and skepticism about membership in most of the new member states. The chapter concludes by noting the low levels of trust in the national government and satisfaction with the way democracy works that exist in most of the new member states and suggests that those low levels of trust and satisfaction will make it difficult for the governments in the new member states to address these challenges while also maintaining sufficient public support to retain office.
  • Topic: Economics, Government
  • Political Geography: Europe
  • Author: Anna Grzymala-Busse
  • Publication Date: 12-2004
  • Content Type: Working Paper
  • Institution: Minda de Gunzburg Center for European Studies, Harvard University
  • Abstract: Theories of institutional development have tended to view discretion, or the leeway to act within institutional bounds, as an often unintended consequence of agency design and institutional specification. Yet the post-communist states show that discretion is a fundamental goal of institutional creation among competing elites. In turn, while political competition has been identified as a key constraint on discretion in institutional creation, widely-used indicators of political competition are inadequate. As post-communist democracies show, the number or seat share of political parties matters far less than what parties do in parliament. The key factor is a robust opposition: a clear, credible, and contentious threat to governing parties. Such opposition leads to the rise of formal institutions that both minimize the discretion necessary for rent-seeking, and favor equitable distributional outcomes.
  • Topic: Economics, Government
  • Political Geography: Europe