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54971. Business Interest Representation and European Commission Fora: A Game Theoretic Investigation

Author:
Andreas Broscheid and David Coen
Publication Date:
07-2002
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
The relationship between business and the EU institutions has evolved from its corporatist origins into a complex elite pluralist arrangement centered around industrial fora and policy committees. We view the growth of forum politics as the direct consequence of the unprecedented boom in economic and public interest lobbying in the early 1990s: While the increase in European interest representation provided greater legitimacy for the European integration program, it put a strain on the existing open pluralist European business-government relationship. One of the European Commission's (EC) informal solutions was to create restricted-entry policy fora and select committees, which it hoped would provide fast and reliable decision-making. Employing a formal model of industrial fora and committees, we specify the mechanisms that we believe caused the establishment of the current elite pluralist system of interest representation in the EU. We argue that in the process of establishing selective-entry fora for interest representation, the European Commission acted not only as policy entrepreneur, but also as a political entrepreneur, fostering collective action.
Topic:
Government, International Trade and Finance, and Political Economy
Political Geography:
Europe

54972. The European Social Model: Coping with the Challenges of Diversity

Author:
Fritz W. Scharpf
Publication Date:
07-2002
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
European integration has created a constitutional asymmetry between policies promoting market efficiencies and policies promoting social protection and equality. National welfare states are legally and economically constrained by European rules of economic integration, liberalization, and competition law, whereas efforts to adopt European social policies are politically impeded by the diversity of national welfare states, differing not only in levels of economic development and hence in their ability to pay for social transfers and services but, even more significantly, in their normative aspirations and institutional structures. In response, the "Open Method of Coordination" is now applied being in the social-policy field. It leaves effective policy choices at the national level, but tries to improve these through promoting common objectives and common indicators and through comparative evaluations of national policy performance. These efforts are useful but cannot overcome the constitutional asymmetry. Hence there is reason to search for solutions which must have the character of European law in order to establish constitutional parity with the rules of European economic integration, but which also must be sufficiently differentiated to accommodate the existing diversity of national welfare regimes. The article discusses two such options, "Closer Cooperation" and a combination of differentiated "framework directives" with the Open Method of Coordination.
Topic:
Civil Society, Economics, and Political Economy
Political Geography:
Europe

54973. Breaking the Path of Institutional Development? Alternatives to the New Determinism

Author:
Colin Crouch and Henry Farrell
Publication Date:
06-2002
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
The concept of path dependence is being used in highly deterministic ways in neo-institutionalist analysis, so that studies using this framework have difficulty in accounting for, or predicting, change. However, the original Polya urn model from which path dependence theory draws predicts that alternative paths will be possible. It can be argued that actors will be able to use these when they perceive a need to change. This article seeks to capture this possibility through accommodating a Bayesian parametric decision maker, interacting with an environment. This makes it possible to examine how change may involve such processes as: the use of past or redundant institutional repertoires; transfer of experience across action spaces; or from other agents, through networks of structured relationships; the emergence of perceived “one best” solutions. This approach points to the need to change how typologies are used in neo-institutionalist research, so that those features of cases which do not fit the pre-conceived framework of a type are not disregarded as “noise”, but properly evaluated as potential resources for change.
Topic:
Economics, Emerging Markets, and International Trade and Finance

54974. How Reliable is Pooled Analysis in Political Economy? The Globalization-Welfare State Nexus Revisited

Author:
Bernhard Kittel and Hannes Winner
Publication Date:
05-2002
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
Panel data analysis has become very popular in comparative political economy. However, in order to draw meaningful inferences from such data, one has to address specification and estimation issues carefully. This paper aims to demonstrate various pitfalls that typically occur in applied empirical work. To illustrate this, we refer to the debate on the globalization-welfare state nexus. We reexamine a model by Garrett and Mitchell (2001), a leading study in this regard. Utilizing a data set of 17 OECD countries and the time period 1961 to 1993, they find evidence that globalization and partisan composition have a significant impact on the extent of public activity. However, because they apply a dynamic specification in levels, they do not adequately take into account both the dynamic and spherical nature of the data. In contrast, we propose an autoregressive model in first differences that is shown to perform well in statistical terms. Further, we explicitly pay attention to the time pattern of the globalization-welfare state nexus. Substantively, we find evidence that government spending is primarily driven by the state of the domestic economy. Neither partisan effects nor the international economic environment have affected public expenditure considerably.
Topic:
Economics, Globalization, International Trade and Finance, and Political Economy

54975. Political Parties, Institutions, and the Dynamics of Social Expenditure in Times of Austerity

Author:
Herbert Obinger and Bernhard Kittel
Publication Date:
01-2002
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
The containment of social expenditure growth has been (and still is) a core issue of public policy in advanced industrial countries since the 1980s and has received much academic attention during that period. Among the most extensively discussed explanatory factors of social expenditure are partisan politics and political institutions, as well as the dependency of the real impact of the former on the latter. The paper distinguishes five competing theoretical perspectives and explores their power to explain the empirical variation in the period 1982–1997 in 21 OECD countries. The empirical analysis of short-term dynamics is performed in a time-series cross-section framework while long-term level effects are explored in a cross-sectional setting. By using an interactive model specification the authors show that there is empirical evidence for this conditional effect, albeit it is neither thoroughly convincing nor leading to lasting long-term level effects. Extensive specification tests show that the 1990s witnessed a weakening of partisan effects which were still present in the 1980s. In total, the evidence tends to give most support to the “growth-to-limits” and the “new politics” perspectives.
Topic:
Economics, Government, International Trade and Finance, and Political Economy

54976. Missiles and Diplomacy: The Middle East's Dangerous Mix

Author:
Simon Henderson
Publication Date:
12-2002
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
The temporary seizure by the Spanish navy last week of a ship carrying Scud missiles from North Korea to Yemen was a reminder of the extent of missile proliferation in the Middle East. Similarly, Yemen's insistence on receiving the missiles, despite U.S. pressure, is a reminder of how much priority Middle Eastern states place on missile arsenals.
Topic:
Security and Religion
Political Geography:
Middle East, North Korea, and Yemen

54977. Iran's Nuclear Activities: What Might the IAEA Learn?

Author:
Chen Zak
Publication Date:
12-2002
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
Satellite photos published last week showed two sites in Iran that might house a civilian energy program and/or a nuclear weapons program. To determine exactly what purpose these sites serve would require an on-site inspection. Yet, inspections performed by international regulatory agencies are bound by certain limitations. What are the chances that the International Atomic Energy Agency (IAEA), the organization responsible for verifying compliance to the Nuclear Nonproliferation Treaty (NPT), will detect clandestine nuclear activities in these two sites or elsewhere in Iran?
Topic:
Security and Religion
Political Geography:
Iran and Middle East

54978. Special Policy Forum Report: Iraq's WMD Declaration – How Important? How to Respond?

Author:
David Kay
Publication Date:
12-2002
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
On December 6, 2002, David Kay addressed the Washington Institute's Special Policy Forum. David Kay is a senior fellow at the Potomac Institute. He previously served as the UN's chief nuclear weapons inspector in Iraq, where he led teams that uncovered the scope and extent of Iraq's nuclear program. He has also served as corporate vice president of Science Applications International Corporation. UN Security Council Resolution 1441 required Iraq to submit a full and complete declaration of all weapons of mass destruction (WMD) programs and associated delivery systems by December 8. Given the stakes, and the fact that Iraq's previous declarations have been incomplete and misleading, the international community remains concerned, and the United States wary, of the Iraqi declaration.
Topic:
Security and Religion
Political Geography:
United States, Iraq, Washington, Middle East, and Arab Countries

54979. Fatah-Hamas Relations: Rapprochement or Ready to Rumble?

Author:
Jonathan Schanzer and Gal Luft
Publication Date:
12-2002
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
Parallel to the Palestinian armed struggle against Israel is a power struggle between Hamas and Fatah. Years of tensions have culminated in Gaza street clashes between the two organizations in recent weeks. An Egyptian-sponsored summit designed to achieve rapprochement between the two groups sputtered in Cairo last month, but talks are scheduled to resume on December 22. Against the backdrop of a floundering economy, weak public security, and a disintegrating central authority, Fatah's attempts to rein in Hamas are crucial if the Palestinian Authority (PA) is to remain the ruling institution in the territories.
Topic:
Security and Religion
Political Geography:
Middle East, Palestine, Gaza, and Egypt

54980. Powell on Democracy in the Muslim World: Assessing the Latest Exposition of U.S. Policy

Author:
Robert Satloff
Publication Date:
12-2002
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
U.S. policy on promoting democracy in Muslim-majority countries took two steps forward and one step back last week with Secretary of State Colin Powell's major address unveiling the new Middle East Partnership Initiative (MEPI). On the positive side was the simple fact that democratization merited such cabinet-level focus, along with the details of MEPI itself – a promising set of small-scale, big-bang-for-the-buck, incubator-style projects targeted at critical groups (women, youths, educators) that deserve attention and support. On the negative side were a series of political messages within the speech – both explicit and implicit – suggesting that the active promotion of democratic change in Muslim countries, especially U.S. allies in the Arab world, may not be such a priority after all.
Topic:
Security and Religion
Political Geography:
United States, Middle East, and Arabia