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281. 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

282. 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

283. 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

284. Taiwan's Rising Rationalism: Generations, Politics, and "Taiwanese Nationalism"

Author:
Shelley Rigger
Publication Date:
01-2006
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies
Abstract:
A peaceful, amicable relationship between Taiwan and the People's Republic of China (PRC) is essential to prosperity and security in and beyond the Taiwan Strait. Anticipating the future direction of cross­strait relations is thus very important. But it is also very difficult, not least because key trends in the Strait seem to be headed in opposite directions. On the one hand, the scope and intensity of cross­strait interactions are expanding rapidly, creating shared interests on the two sides and eroding resistance to closer cross­strait ties. On the other hand, popular support for political unification within Taiwan is declining, and the percentage of Taiwan residents who think of themselves as Taiwanese, not Chinese, is rising.
Topic:
Development, Energy Policy, and Environment
Political Geography:
Europe and Taiwan

285. 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

286. The United States Needs German Economic Leadership

Author:
Adam S. Posen
Publication Date:
01-2006
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
On January 13, Germany's new chancellor, Angela Merkel, will have her first official visit with US President George W. Bush. Washington, or at least the part of Washington that still pays attention to transatlantic issues, not just the Bush administration, will be glad to see her given that she is not her US-bashing predecessor Gerhard Schroeder. Though this change in atmosphere is welcome, no one should make too much of it. It is unlikely to make much difference on security issues, where Iran's own actions are forcing the United States and Germany to come together, where German public opinion will keep the governments apart on Iraq, and where neither country is prepared to make major changes to defense budgets and approaches. The Masri case will certainly limit Merkel's interest in appearing too chummy with Bush on security matters.
Topic:
Development and Economics
Political Geography:
United States, Iraq, Europe, Iran, Washington, and Germany

287. The West at War: Transatlantic Cooperation in the Fight against Terrorism (Part II)

Author:
Michael Jacobson
Publication Date:
09-2006
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
The West at War focuses on both U.S. and European counterterrorism efforts from the September 11 attacks until June 2005, specifically the role of law enforcement and prosecutors in the United States and Europe. The 9-11 Commission's examination of the counterterrorism policies of Britain and especially Germany made clear that Europe did not posses the adequate tools to counter the terrorist threat prior to the September 11 attacks. Al-Qaeda's Hamburg cell produced the leaders of the September 11 hijacking teams. Prior to the September 11 attacks, German authorities were constrained by domestic factors that inhibited their ability to investigate terrorist organizations. While Europe's approach to terrorism suffered from many problems, there are also were some potential lessons for the United States. In particular, the experience of Britain's domestic intelligence agency MI-5 may have possible implications for strengthening the counterterrorism capabilities of U.S. authorities.
Topic:
Development, International Cooperation, and Terrorism
Political Geography:
United States, Europe, and Germany

288. The West at War: Transatlantic Cooperation in the Fight against Terrorism (Part I)

Author:
Jeremy Shapiro and Telmo Baltazar
Publication Date:
09-2006
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
In the past ten years, the European Union's (EU) counterterrorism capabilities have changed dramatically. Two of the most evident changes have been the emergence of an increasingly unified European approach to terrorism and the virtual elimination of internal border controls on the Continent. As the EU begins to act decisively in the fight against terror, trans-Atlantic cooperation has become vital for mutual security.
Topic:
Development, International Cooperation, and Terrorism
Political Geography:
United States and Europe

289. Institutions and Economic Growth: The Successful Experience of Switzerland (1870-1950)

Author:
André Mach and Thomas David
Publication Date:
09-2006
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This research paper discusses the role of institutions in the rapid growth and successful international integration of Switzerland during the late nineteenth and early twentieth century. In analysing the emergence and consolidation of the institutions whose existence was crucial, the paper looks both at the political institutions that managed conflicts and promoted cooperation between private and public actors and the economic institutions that, on the one hand, compensated the groups that fell behind in the developmental process (e.g., agricultural subsidies, high tolerance for domestic cartels, tariffs for some industries, institutions for labour representation) and, on the other hand, enhanced productivity. In addition, the absence of some institutions such as a patent law and an independent central bank was also crucial in the Swiss case, even though these two institutions are regarded as pre-requisites of development by today's economic orthodoxy. The paper concludes by drawing lessons for today's developing countries.
Topic:
International Relations, Development, and Economics
Political Geography:
Europe and Switzerland

290. The Formation of a Mercantilist State and the Economic Growth of the United Kingdom 1453-1815

Author:
Patrick Karl O'Brien
Publication Date:
07-2006
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
New institutional economics lacks a theory of state formation which could help us to deal with the mega question of why some states became more efficient than others at establishing and and sustaining institutions. Some kind of middle range theory could be formulated based upon historical case studies. This paper considers the case of Britain and as its title suggests degrades the myth of the United Kingdom as the paradigmn example of liberalism and laisser faire. In making its precocious transition to and industrial market economy the kingom's history is best represented as a case of successful mercantilism.
Topic:
Development, Economics, and Sovereignty
Political Geography:
Britain, United Kingdom, and Europe