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221. From Competition to Constitution: Races to Bottoms and the Rise of "Shadow" Social Europe

Author:
Éloi Laurent
Publication Date:
08-2006
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
In this paper, I examine how the specific nature of economic integration in the European Union has affected member states' redistribution policies over the last two decades. More precisely, I attempt to detail the effect of social-tax competition between member states within social models, processes that I label “races to bottoms.” In this framework, I identify the emergence of an informal set of rules effectively constraining national redistribution policies in different ways, given the diversity of tax-social compacts in the EU. Because these rules are implicit and their effect generally underestimated, I gather them under the notion of “shadow” social Europe. Having empirically assessed the impact of this dynamic on the “continental,” the “Nordic,” the “eastern” and the “liberal” social-tax compact, I finally try to present a normative perspective and some policy options on this matter.
Topic:
Development, Economics, and Government
Political Geography:
Europe

222. Recent Commentary: Viktor's Choice - Who Will Form Ukraine's Parliamentary Majority?

Author:
Steve Pifer
Publication Date:
04-2006
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
What a difference a year makes. The 2004 Ukrainian presidential election entailed massive fraud, sent hundreds of thousands of protesters into the streets, and sparked a revolution. The March 26 parliamentary elections, by contrast, were strikingly calm and ordinary. The Orange Revolution's main hero, President Viktor Yushchenko, saw his party, Our Ukraine, come in a disappointing third. He nevertheless remains in the driver's seat in deciding who will make up the ruling coalition in the next Rada (parliament).
Topic:
Civil Society and Government
Political Geography:
Russia, Europe, Ukraine, Eastern Europe, and Asia

223. Le débat russe sur l'informel

Author:
Myriam Désert
Publication Date:
05-2006
Content Type:
Working Paper
Institution:
Centre d'Etudes et de Recherches Internationales
Abstract:
What are the roots of the informal sector and what effects does it have? Is it a blessing or a curse? Changes in post-Soviet Russia contribute new food for thought to a debate that had previously been nourished primarily by considerations on the situation in developing countries. In Russia can be observed processes of formalization – and “deformalization” – of the rules governing not only the practices of economic actors, but also in the rarified distribution of public services publics. The analysis of actual informal practices feeds thinking about the relations between economic and political changes: what impact do they have in setting up a market economy and the rule of law, and in the reconfiguration of both the economic and social arena? An investigation into the way Russian academic circles and social actors view the informal sector sheds light on the various behavioral determinant: reaction to the economic context, cultural roots, social beliefs, and so on. The case of Russia illustrates how the informal sector is not only a mode of action that circumvents legal guidelines, but also a mode of sociability that rejects anonymous social relations. It helps examine ways to reinject the social aspect into economics.
Topic:
Government, Political Economy, and Privatization
Political Geography:
Russia, Europe, and Asia

224. Chechnya Weekly: Volume 7, Issue 4

Publication Date:
01-2006
Content Type:
Policy Brief
Institution:
North Caucasus Weekly (formerly Chechnya Weekly), The Jamestown Foundation
Abstract:
On January 25, the Parliamentary Assembly of the Council of Europe (PACE) passed a resolution on the human rights situation in Chechnya. According to PACE's website (assembly.coe.int), the resolution, which passed by a vote of 117 to 24, stated that the Strasbourg-based assembly "is deeply concerned that a fair number of governments, member states and the Committee of Ministers of the Council of Europe have failed to address the ongoing serious human rights violations in a regular, serious and intensive manner, despite the fact that such violations still occur on a massive scale in the Chechen Republic and, in some cases, neighboring regions in a climate of impunity." The assembly also reiterated its "unambiguous condemnation of all acts of terrorism" and expressed "its understanding of the difficulties the Russian Federation faces in combating terrorism."
Topic:
Security, Ethnic Conflict, Government, Human Rights, and Terrorism
Political Geography:
Russia, Europe, Asia, and Chechnya

225. Serbia's New Constitution: Democracy Going Backwards

Publication Date:
11-2006
Content Type:
Policy Brief
Institution:
International Crisis Group
Abstract:
Premier Vojislav Kostunica won a high stakes gamble with passage of Serbia's draft constitution in the 28-29 October referendum. However, numerous credible reports indicate the process was deeply flawed and the result falsified. The referendum cannot be characterised as either free or fair. The new constitution could prove a step away from European values. It opens the door to increased centralisation of the state, curtailment of human and minority rights, destruction of judicial independence and potentially even a parliamentary dictatorship. The process used to pass the constitution illustrates how Kostunica continues to transform Serbia into something closer to illiberal authoritarianism than liberal democracy; yet, the referendum was welcomed by the Council of Europe, the European Union and the United States.
Topic:
Democratization, Development, and Government
Political Geography:
United States, Europe, Eastern Europe, and Serbia

226. Uzbekistan: Europe's Sanctions Matter

Publication Date:
11-2006
Content Type:
Policy Brief
Institution:
International Crisis Group
Abstract:
After the indiscriminate killing of civilians by Uzbek security forces in the city of Andijon in 2005, the European Union imposed targeted sanctions on the government of President Islam Karimov. EU leaders called for Uzbekistan to allow an international investigation into the massacre, stop show trials and improve its human rights record. Now a number of EU member states, principally Germany, are pressing to lift or weaken the sanctions, as early as this month. The Karimov government has done nothing to justify such an approach. Normalisation of relations should come on EU terms, not those of Karimov. Moreover, his dictatorship is looking increasingly fragile, and serious thought should be given to facing the consequences of its ultimate collapse, including the impact on other fragile states in Central Asia such as Kyrgyzstan.
Topic:
Security and Government
Political Geography:
Europe, Asia, Kyrgyzstan, Uzbekistan, and Germany

227. Moldova's Uncertain Future

Publication Date:
08-2006
Content Type:
Policy Brief
Institution:
International Crisis Group
Abstract:
With Romania's expected entry into the European Union in 2007, the EU will share a border with Moldova, a weak state divided by conflict and plagued by corruption and organised crime. Moldova's leadership has declared its desire to join the EU, but its commitment to European values is suspect, and efforts to resolve its dispute with the breakaway region of Transdniestria have failed to end a damaging stalemate that has persisted for fifteen years. Young people have little confidence in the country's future and are leaving at an alarming rate. If Moldova is to become a stable part of the EU's neighbourhood, there will need to be much greater international engagement, not only in conflict resolution but in spurring domestic reforms to help make the country more attractive to its citizens.
Topic:
International Relations, Government, and International Organization
Political Geography:
Europe, Moldova, Eastern Europe, and Romania

228. Bond Market Bubble?

Author:
John H. Makin
Publication Date:
01-2006
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
On Tuesday, January 18, the yield on fifty-year inflation-protected U.K. government bonds (what the British call "indexed-linked gilts") dropped to 0.38 percent, about one-seventh the historical average of just over 2.6 percent for such debt instruments. Just a few months earlier, that yield had been over 1 percent, still extraordinarily low by historical standards, and especially low in an economy that has experienced fifty-three consecutive quarters of positive growth. A yield drop from 1 percent to 0.38 percent on a fifty-year bond corresponds to a 30 percent rise in its price over a period of just three months. That is an annual return of over 100 percent, much higher than the 13 percent annual increase in U.S. house prices at midyear and the 20 to 30 percent gains seen in the stock market before the March 2000 crash. The asset bubble has spread to long-term government bonds, especially those with inflation protection. What is going on here?
Topic:
Economics, Government, and International Trade and Finance
Political Geography:
United States, United Kingdom, and Europe

229. Bad Riddance: The Dangers of Deportation as a Counterterror Policy

Author:
Emily Hunt
Publication Date:
04-2006
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
Sami al-Arians plea agreement, unsealed last week in Tampa, Florida, has been almost universally billed as a domestic counterterrorism victory. Al-Arian pleaded guilty to providing financial and material support to Palestinian Islamic Jihad, a U.S. specially designated terrorist group, and agreed to be deported. He is one of a small but important number of U.S. deportees (out of approximately 200,000 annually) who have connections to international terrorism.Many in the United States will say good riddance to people like al-Arian, a sentiment shared by a substantial portion of Europeans whose governments are increasing their own efforts to send terrorist suspects back to their countries of origin. Since the July 7 London transit bombings, Britain has signed deportation agreements with Jordan, Libya, and Lebanon, and is negotiating a similar one with Algeria. Spain, Germany, Italy, and the Netherlands have all recently introduced or passed legislation that will facilitate deportation on national security grounds, while the French for their part wonder why other Western democracies have been so slow to catch on. France has been deporting terrorist suspects and other extremists for more than a decade, including more than a dozen radical imams in 2005 alone. American and European deportation policies differ in key areas. U.S. policy is aimed at lawbreakers generally, whereas Europe, because of its more ingrained challenge of domestic radicalism, targets extremist imams and other purveyors of jihadist ideology who can have a pervasive radicalizing effect on a community. Nevertheless, the same rationale underpins deportation on both sides of the Atlantic, and enthusiasm for the policy seems almost universal. Sending problem immigrants back to their native countries allows Western governments to deal with extremists outside the framework of domestic legal codes that remain woefully ill-equipped to address the threat of terrorism. Deportation minimizes the need to adopt draconian measures such as indefinite detention. It is counterterrorism on the cheap, and has become the policy of first choice for domestic law enforcement agencies that lack the personnel and resources to conduct adequate surveillance on all potential terrorists. But although deportation of terrorist suspects may be the most appealing of several bad policy options, it is by no means a perfect solution. Deportation is designed to displace the threat, but it may ultimately create a host of other challenges for the West in Muslim countries and ultimately on its own territory.
Topic:
Government and Terrorism
Political Geography:
Britain, United States, America, Europe, Middle East, France, Libya, London, Palestine, Germany, Algeria, Spain, Lebanon, Italy, Jordan, and Netherlands

230. Corruption and Inequality

Author:
Eric M. Uslaner
Publication Date:
04-2006
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Economic inequality provides a fertile breeding ground for corruption and, in turn, leads to further inequalities. Most corruption models focus on the institutional determinants of government dishonesty. However, such accounts are problematic. Corruption is remarkably sticky over time. There is a very powerful correlation between crossnational measures corruption in 1980 and in 2004. In contrast, measures of democracy such as the Freedom House scores are not so strongly correlated over time, and changes in corruption are unrelated to changes in institutional design. On the other hand, inequality and trust-like corruption are also sticky over time. The connection between inequality and the quality of government is not necessarily so simple. The aggregate relationships between inequality and corruption are not strong. The path from inequality to corruption may be indirect, through generalized trust, but the connection is key to understanding why some societies are more corrupt than others. This study estimates a simultaneous equation model of trust, corruption, perceptions of inequality, confidence in government, and demands for redistribution in Romania, and shows that perceptions of rising inequality and corruption lead to lower levels of trust and demands for redistribution.
Topic:
Corruption, Economics, and Government
Political Geography:
Europe