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431. Big Cuts, Little Time: Welfare State Retrenchment in Sweden

Author:
Carl Dahlström
Publication Date:
02-2006
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
When harsh cuts were introduced in the Swedish welfare state in an agreement between the centre-right government and the opposition Social Democrats in 1992, there were astonishingly few disagreements between the political parties as to which social groups should carry the burdens of the cuts. The conventional wisdom on welfare state retrenchment would lead us to expect a clash of interests, especially considering the strength of interest groups in Sweden and the different constituencies of the five parties included in the agreement. This paper explains why that did not happen. It argues that the role that key officials played in shaping the 1992 retrenchment agreement in Sweden was decisive in averting potential political conflicts. In a crisis, politicians depend on advice from officials as politicians need complex information, often under pressure of time. This paper argues that key state officials, through their advice, defined both the character of the crisis and the range of possible solutions. As the number of options was restricted, key officials were able to define what cuts were reasonable. Within this framework, politicians looked for practical solutions and, to a large extent, disregarded conflicts of interest. This paper also suggests that the content of such advice depends on what is called the loyalty of key officials, which depends on the terms of their employment.
Topic:
Development, Economics, and Human Welfare
Political Geography:
Europe

432. Institutional Change in Industrial Relations: Coordination and Common Knowledge in Ireland, Italy and Australia

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 and Economics
Political Geography:
Europe, Australia/Pacific, and Ireland

433. Skill formation in Britain and Germany: Recent developments in the context of traditional differences

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 and Economics
Political Geography:
United Kingdom, Europe, and Germany

434. What can European leaders learn from Koizumi?

Author:
Ángel Ubide
Publication Date:
03-2006
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
Following a long period of stagnation, Japan is growing again. The key to this success story is Koizumi's relentless focus on structural reform, with two objectives: breaking the structural trap of political constituencies defending old and unproductive economic sectors; and adopting a two-pronged macromicro approach to make reform unavoidable. This paper argues that Europe should follow a similar strategy whereby financial market integration, and not the EU bureaucracy and grandiose political declarations, should become the main driving force of national economic reforms, pressuring liberalisation in goods and services markets and making labour market reforms unavoidable.
Topic:
Development, Government, and Politics
Political Geography:
Japan and Europe

435. From Neighbourhood to Integration Policy: Are there concrete alternatives to enlargement?

Author:
Eneko Landaburu
Publication Date:
03-2006
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
The answer to the question posed in the subtitle is yes, indeed, there are concrete alternatives to enlargement. As there must be. Enlargement has been a key tool in projecting stability across our continent. But it is a reality that the EU cannot expand ad infinitum – everything has its limits. We must honour our present basic commitments, while strictly insisting on the criteria. One of these criteria is our own absorption capacity – it is clear that in some member states the pace and scale of enlargement is approaching the limits of what public opinion will accept. To overstretch, rather than consolidate, the Union would be detrimental not only for us but also our partners. These are all issues with which our leaders will struggle in Vienna in a few months time.
Topic:
International Relations, Security, and Development
Political Geography:
Europe and Vienna

436. Employment and Competitiveness: The Key Role of Education

Author:
Daniel Gros
Publication Date:
02-2006
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
More than half way into the decade, it is clear that the ambitious goal to make the EU the 'most competitive economy' by 2010 will be missed. This contribution shows that investing more in education would be the key in terms of employment, a central element in the Lisbon goal. Improving the skills of the EU's population would have, inter alia, a direct impact on the employment rate. Reaching the Lisbon goal of an employment rate of 70% would be possible even without labour market reforms if the average level of qualification of the EU were to reach the benchmarks in this area (which in turn are very close to the values reached by the best performing member states).
Topic:
Development, Economics, and Human Welfare
Political Geography:
Europe and Lisbon

437. EU Civilian Rapid Reaction - trouble ahead!

Author:
Peter Viggo Jakobsen
Publication Date:
12-2006
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
This brief takes issue with the prevailing view that the ESDP capacity building process is easier and has been more successful in the civilian than in the military field. It argues that civilian capacity building is harder than military capacity building, demonstrates that the EU's civilian rapid reaction capacity is considerably smaller and less integrated than it is generally assumed, and that the capacity goals set for 2008 are unattainable. Yet another major EU expectations-capability gap has been created and there is now a real danger that this gap will seriously damage the EU's reputation as the global leader in civilian crisis management.
Topic:
Conflict Resolution, Civil Society, and Development
Political Geography:
Europe

438. After Enlargement: Europe's New Migration System

Author:
Adrian Favell
Publication Date:
12-2006
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
Policy makers underestimate the importance of underlying demographics and labour market dynamics on future East-West migration in Europe. Flows have generally been demand driven, and have therefore been drawn by European nations with the most open and informal labour markets – such as Britain, Ireland, Italy and Spain –rather than more highly regulated welfare states such as Denmark. They are also more likely to be circular and temporary than one way immigration. I discuss the desirability of the apparently inevitable trend in Europe towards a more US style international labour market that strongly parallels the migration system between the US and Mexico. The underlying trend in Europe is towards the emergence of a more regionalised system, in which West European societies come to rely on East European movers to fill secondary labour market needs in the service economy, rather than more racially or ethnically distinct non-European immigrants.
Topic:
Development, Migration, and Politics
Political Geography:
Europe

439. Hydrogen Fuel Cells and Transport Alternatives: Issues for Developing Countries

Author:
Grant Boyle and Lynn Mytelka
Publication Date:
05-2006
Content Type:
Policy Brief
Institution:
United Nations University
Abstract:
Recent technological advances in the application of hydrogen fuel cells in the transport sector have drawn considerable attention and increased funding from both public and private sources over the past ten years. The International Energy Agency estimates that about US$1billion per year is currently being invested in public hydrogen and fuel cell research, development, test vehicles, prototype refuelling stations and demonstration projects, as compared to the total annual public budget for energy research, development and demonstration of around US$8billion. While still in the early stages of development and costly in comparison to conventional vehicle propulsion and fuel technologies, fuel cells and hydrogen offer a promising solution to address growing concerns over the transport sector's dependence on oil and its impact on climate change.
Topic:
Development, Energy Policy, Science and Technology, and Third World
Political Geography:
United States and Europe

440. Post Conflict Rehabilitation: Lessons from South East Europe and Strategic Consequences for the Euro-Atlantic Community

Author:
Gustav E. Gustenau, Jean-Jacques de Dardel, and Plamen Pantev
Publication Date:
04-2006
Content Type:
Working Paper
Institution:
Austrian National Defence Academy
Abstract:
The purposeful efforts to explain and define the changes of the Cold War system of international relations continue for a second decade. Certain referent studies stimulate the thinking on these topics, including in the post-9/11 period. Understanding better the transformation of the international system would provide us with a better view on the changes in its regulative sub-system, including the international legal component of the latter.
Topic:
Conflict Resolution, Conflict Prevention, NATO, Development, Human Rights, and International Cooperation
Political Geography:
Europe and Balkans