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111. A Small History of the Homeownership Ideal

Author:
Sebastian Kohl
Publication Date:
10-2018
Content Type:
Commentary and Analysis
Institution:
Max Planck Institute for the Study of Societies
Abstract:
America’s “infatuation with homeownership” has been identified as one cause of the latest financial crisis. Based on codings of 1,809 party manifestos in 19 OECD countries since 1945, this paper addresses the question of where the political ideal to democratize homeownership came from. While conservative parties have defended homeownership across countries and time, center-left parties have oscillated between a pro-homeownership and a pro-rental position. The former occurs in Anglo-Saxon, Northern and Southern European countries, while the latter prevails among German-speaking countries. Beyond partisan effects, once a country has a majority of homeowners and parties defending homeownership, larger parties are more likely to support it. The extent of center-left parties’ support for homeownership is conditionally associated with higher homeownership rates, more encouraging mortgage regimes, and a bigger housing bubble burst after 2007. The ideational origins of the financialization of housing and private Keynesianism are, after all, not only conservative and market-liberal.
Topic:
International Political Economy and Domestic politics
Political Geography:
Global Focus

112. Government of the People, by the Elite, for the Rich Unequal Responsiveness in an Unlikely Case

Author:
Lea Elsässer, Svenja Hense, and Armin Schäfer
Publication Date:
10-2018
Content Type:
Commentary and Analysis
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Empirical studies have shown that US politics is heavily tilted in favor of the better-off, as political decisions tend to reflect the preferences of the rich while largely ignoring those of the poor and the middle classes. These findings have prompted a lively debate about potential mechanisms that cause this pattern of unequal responsiveness. Existing studies suggest that specific characteristics of the political system are a major explanatory factor – in particular, private donations and campaign financing. We build on these studies but focus for the first time on an entirely different case. In this paper, we ask whether similar patterns of unequal responsiveness are discernible in Germany, which not only is a more egalitarian country, but also funds election campaigns entirely differently from the US. We analyze an original dataset of more than 800 survey questions posed between 1980 and 2013. The questions deal with specific political decisions debated at the time and cover a broad range of politically relevant topics. Our results show a notable association between political decisions and the opinions of the rich, but none or even a negative association for the poor. Representational inequality in Germany thus resembles the findings for the US case, despite its different institutional setting. Against this background, we conclude by discussing potential mechanisms of unequal responsiveness
Topic:
International Political Economy and Hegemony
Political Geography:
America

113. Does Pattern Bargaining Explain Wage Restraint in the German Public Sector?

Author:
Donato Di Carlo
Publication Date:
04-2018
Content Type:
Commentary and Analysis
Institution:
Max Planck Institute for the Study of Societies
Abstract:
German public sector wage restraint has been explained through the presence of a specific type of inter-sectoral wage coordination in the industrial relations system – i.e., export sector-led pattern bargaining. This paper has a twofold ambition. First, as a literature assessing exercise, I review the literature in industrial relations and comparative political economy (CPE) and find that (1) the origins and mechanics of inter-sectoral wage coordination through pattern bargaining have never been laid out clearly; (2) the mechanisms of the pattern bargaining thesis have never been tested empirically; and (3) the CPE literature reveals a limiting export-sector bias. Second, as a theory-testing exercise, I perform hoop tests to verify whether the pattern bargaining hypothesis can really account for wage restraint in the German public sector. I find that Germany cannot be considered a case of export sector-driven pattern bargaining. These findings challenge core tenets of a longstanding scholarship in both CPE and industrial relations. Most importantly, they open a new research agenda for the study of public sector wage-setting that should shift its focus to public sector employment relations, public finance, public administrations, and the politics of fiscal policy
Topic:
International Political Economy and International Affairs
Political Geography:
Germany

114. Explaining the Growth of CSR within OECD Countries: The Role of Institutional Legitimacy in Resolving the Institutional Mirror vs. Substitute Debate

Author:
Daniel Kinderman and Mark Lutter
Publication Date:
04-2018
Content Type:
Commentary and Analysis
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Two strands of literature have emerged to explain the rise of a new form of private governance, Corporate Social Responsibility (CSR). One camp argues that CSR expansion is likely during periods of economic liberalization because CSR tends to substitute for growing institutional voids and a lack of social regulation. The other camp argues that CSR is likely to diffuse within coordinated economies because it mirrors these institutional settings. While both camps find empirical support for their arguments, no one has yet managed to combine both perspectives. In our study, we develop three hypotheses based on two (rationalist and constructivist/sociological) strands of institutional theory. Based on a new dataset comprising the corporate membership in business-led CSR organizations in over thirty countries from 1981 to 2008, we show that economic liberalization has a strong effect on CSR expansion when the legitimacy of CSR is low. However, when the practice has achieved substantial cultural acceptance, economic liberalization no longer drives CSR expansion. In this setting, CSR expansion is most likely to occur within socially regulated economic contexts.
Topic:
International Political Economy and International Trade and Finance
Political Geography:
Europe

115. International Monetary Regimes and the German Model

Author:
Fritz W Scharpf
Publication Date:
02-2018
Content Type:
Commentary and Analysis
Institution:
Max Planck Institute for the Study of Societies
Abstract:
The end of the Bretton Woods regime and the fall of the Iron Curtain deepened the export orientation of the German model of the economy. Only after entry into the Monetary Union, however, did rising exports turn into a persistent export–import gap that became a problem for other eurozone economies. This Discussion Paper shows why the present asymmetric euro regime will not be able to enforce their structural transformation on the German model. Neither will German governments be able to respond to demands that would bring the performance of the German economy closer to eurozone averages. Instead, it is more likely that present initiatives for financial and fiscal risk sharing will transform the Monetary Union into a transfer union.
Topic:
International Political Economy and International Affairs
Political Geography:
Germany

116. When the Greek Political System Clashed with Europe: Why the Greek Sovereign-Debt Crisis is Taking so Long to End?

Author:
Constantine A. Papadopoulos
Publication Date:
10-2018
Content Type:
Special Report
Institution:
International Relations Council of Turkey (UİK-IRCT)
Abstract:
The central argument of this essay is that, in order to understand the reasons behind the Greek economy’s inability to recover sooner from its 8-year recession, analysis must focus on the institutional, political and cultural traits of the country rather than take a primarily “economistic” approach and simply blame “excessive austerity” and/or the euro. In fact, it will be argued that Greece’s positive performance under the euro (until government actions derailed the economy) is generally underappreciated, suggesting that if the country’s institutional weaknesses are addressed, the economy will grow. If they are not, the country’s long-term economic potential will almost certainly remain unfulfilled
Topic:
International Political Economy and International Affairs
Political Geography:
Greece

117. Sisyphean Tactics and Manoeuvring of the Greek Debt Crisis Post-2015: A Dead-end Crisis Management Paradigm

Author:
Nicolas Papanastasopoulos
Publication Date:
10-2018
Content Type:
Special Report
Institution:
International Relations Council of Turkey (UİK-IRCT)
Abstract:
The field of crisis management in public policy (both in its internal and external aspect) is currently facing a number of essential and important challenges with theoretical, institutional and political dimensions. This paper aims at deconstructing existing limitations by bringing together the necessary inter-disciplinary elements. The paper attempts to analyze Greek public policy and the government’s capacities to cope with a turbulent (geo)political environment. At the same time, an effort is made to analyze the way the Greek political personnel managed the debt crisis. In this context, the discussion combines both theoretical and empirical approaches.
Topic:
International Political Economy and Domestic politics
Political Geography:
Greece

118. The Greek Crisis and Its Repercussions on the Balkan Neighbourhood: The End of the Myth

Author:
Marilena Koppa
Publication Date:
10-2018
Content Type:
Working Paper
Institution:
International Relations Council of Turkey (UİK-IRCT)
Abstract:
This article explores the role of Greece in the Balkans since the end of Communism and the impact of the sovereign debt crisis that followed. Since the beginning of the 1990s, while Greece failed to accomplish its vocation at the political level, at the level of the economy the country acted as an important regional actor. The article examines the dynamics of the Greek crisis on the Balkan economies and analyses the major challenges for Greece in this new reality. At the same times, it tries to identify the triple crisis faced currently by Greece: at the level of credibility and status, at the level of mediation between the region and the EU and, finally, at the level of the gradual peripherisation of the country.
Topic:
International Political Economy and Financial Crisis
Political Geography:
Greece

119. The new dynamics of global energy and climate

Author:
Rachel Kyte
Publication Date:
11-2018
Content Type:
Video
Institution:
The Brookings Institution
Abstract:
On the heels of a major new report from the Intergovernmental Panel on Climate Change on the rising risks of climate impacts, on November 19th Brookings hosted Rachel Kyte, CEO of Sustainable Energy for All, in conversation with David G. Victor.
Topic:
Climate Change, International Political Economy, and Climate Finance
Political Geography:
Global Focus

120. Responding to the Global Financial Crisis

Author:
Brookings Institute
Publication Date:
09-2018
Content Type:
Video
Institution:
The Brookings Institution
Abstract:
Ten years after the lowest moments of the worst financial crisis and deepest recession in generations, former Federal Reserve Chairman Ben Bernanke and former Treasury Secretaries Tim Geithner and Hank Paulson—chief architects of the rescue that prevented a repeat of the Great Depression—look back and look ahead in an interview conducted by Andrew Ross Sorkin of the New York Times and CNBC.
Topic:
International Political Economy
Political Geography:
Global Focus