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This book uses data from 21 OECD countries for the period 1980 to 1998 to test a variety of hypotheses suggesting that contemporary welfare states are in crisis and to establish the factors shaping the trajectory of welfare state development during these years. It assesses the validity of arguments that globalization leads to a ‘race to the bottom’ in social spending and that population ageing poses a threat to public budgets. It finds both of these arguments wanting and, instead, suggests that contemporary welfare states have been converging to a steady state over recent decades. The book also examines the extent to which welfare states across the OECD have been restructured in recent years and whether there are signs of the emergence of a distinctive European ‘social model’. Again, it finds that accounts of substantial welfare state restructuring and of the Europeanization of the welfare state are much exaggerated. Finally, the book identifies a potential threat to the viability of existing societies in a trend to declining fertility throughout the advanced world, but argues that the welfare state in the form of family-friendly policy is actually our best protection against this trend.

This book focuses on the interaction between equilibrium real exchange rates, optimal external debt, endogenous optimal growth, and current account balances in a world of uncertainty. The theoretical parts result from interdisciplinary research between economics and state of the art applied mathematics. From the economic theory and the mathematics of stochastic optimal control, benchmarks are derived for the optimal debt and equilibrium real exchange rate in an environment where both the return on capital and the real rate of interest are stochastic variables. The theoretically derived equilibrium real exchange rate — the natural real exchange rate (NATREX) — is where the real exchange rate is heading. These benchmarks are applied to answer the following questions: What is a theoretically based empirical measure of a “misaligned” exchange rate that increases the probability of a significant depreciation or a currency crisis? What is a theoretically based empirical measure of an “excess” debt that increases the probability of a debt crisis? What is the interaction between an excess debt and a misaligned exchange rate? The theory is applied to evaluate the Euro exchange rate, the exchange rates of the transition economies of Eastern Europe, the sustainability of U.S. current account deficits, and derives warning signals of the Asian crises, defaults, and debt crises in emerging markets.

The past fifteen years have seen declining public support for European integration, and widespread suggestions that a legitimacy crisis faces the European Union (EU). Many in the EU have believed that this problem could be effectively tackled by vesting greater powers in the European Parliament (EP), the Union's only directly-elected institution. The central argument of this book is that, while considerable efforts have been made to increase the status of the EP, it is in crucial respects a failure as a representative body. This failure is grounded in the manner in which the parliament is elected. The electoral systems used for EP elections in many EU countries are, the book argues, actively obstructive of Europe's voters being represented in the way that they are most likely to respond positively towards. While the behaviour of EP members is shaped strongly by the electoral systems under which they are elected (which vary across the twenty-five member states of the EU), the electoral systems currently in place push most of them to behave in ways contrary to what citizens desire. Drawing on public opinion data, surveys of MEPs and considerable qualitative interview evidence, this book that the failure of parliamentary representation in the EU has a strong foundation in electoral institutions.

This study focuses on the historical configuration of territorial borders and functional boundaries of the European nation states, and interprets integration as a process of transcendence, redefinition, and shift of those same boundaries that alters the nature of the nation states’ domestic political structures. The core of the argument concerns the relationship between the institutional design of the new Brussels centre, the boundary redefinitions that result from its political production, and the consequences of both these processes on the established national and emerging European political structures. The EU is interpreted through three key conceptual tools: ‘centre formation’, ‘system building’, and ‘political structuring’. The ‘centre formation’ — with limited administrative and fiscal capabilities and strong regulatory and judicial capabilities — is not accompanied by ‘system building’ in the field of cultural integration, social sharing institutions, and participation rights, that is, by institutions forcing its components to stay within it beyond the mere instrumental calculations. Given that for any new centre a balance must exist between its system building capacity and the scope and reach of its political production, the argument is that the ambitious political production of the EU is clearly out of balance with its weak system building capacity. As far as the ‘political structuring’ is concerned, this work argues that the institutional design of the Union and its weak system building militate to date against any stable form of political structuring for its representative actors, while its growing political production tends to undermine national mechanisms of political representation and legitimation. Under these conditions, any institutional democratization without political structuring may turn into facade electioneering, at best, or dangerous experiments, at worst. In the view of classical sociology — that takes the existence of a certain overlap between social identities, political boundaries, and social practices as a precondition for establishing political agency and a ‘rational’ political order — the EU is both a source of problems but also a possible solution to them. It can be seen as a project for regaining some degree of coherence between extended social practices, social identities, solidarity ties, and rules of deliberation at the European level. Most of the ideas expressed in this book show how problematic this project is believed to be.

Recent reforms in welfare states generate new challenges to social citizenship. Social citizenship depends on the readiness of voters to support reciprocity and social inclusion and their trust in welfare state institutions as services that will meet their needs. Reform programmes in most western countries combine New Public Management, linking market competition and regulation by targets to achieve greater efficiency and responsiveness to service-users, and welfare-to-work and make-work-pay activation policies to manage labour market change. Both developments rest on a rational actor approach to human motivation. The UK has pursued the reform programme with more vigour than any other major European country and provides a useful object less of its strengths and limitations. The book provides a detailed analytic account of social science approaches to agency. It shows that the rational actor approach has difficulties in explaining how social inclusion and social trust arise. Policies based on it provide weak support for these aspects of citizenship. It is attractive to policy-makers seeking solutions to the problem of improving the efficiency and responsiveness of welfare systems in a more globalised world, in which citizens are more critical and the authority of national governments is in decline. Recent reform programmes were undertaken to meet real pressures on existing patterns of provision. They have been largely successful in maintaining mass services but risk undermining social inclusion and eroding trust in public welfare institutions. In the longer term, they may destroy the social citizenship essential to sustain welfare states.

Does globalization erode the nation state's capacity to act? Are nation states forced to change their policies even if this goes against the democratic will of their electorates? How does government action change under conditions of globalization? Questions like these have not only featured highly in political debates in recent years, but also in academic discourse. This book contributes to that debate. The general question it addresses is whether globalization leads to policy convergence — a central, but contested topic in the debate, as theoretical arguments can be advanced both in favour of and against the likelihood of such a development. More specifically, the book contains detailed empirical case studies of four countries (the United States, the United Kingdom, Germany, and Switzerland) in a policy area where state action has been particularly challenged by the emergence of world-wide, around-the-clock financial markets in the last few decades, namely that of the regulation and supervision of the banking industry. Based on careful analysis of historical developments, specific challenges, the character of policy networks and institutions, and their interaction in the political process, this book argues that nation states still possess considerable room for manoeuvre in pursuing their policies. Even if they choose supranational coordination and cooperation, their national institutional configurations still function as filters in the globalization process.

Why does public management—the art of the state—so often go wrong, producing failure and fiasco instead of public service, and what are the different ways in which control or regulation can be applied to government? Why do we find contradictory recipes for the improvement of public services, and are the forces of modernity set to produce worldwide convergence in ways of organizing government? This study aims to explore such questions, which are central to debates over public management. It combines contemporary and historical experience, and employs grid/group cultural theory as an organizing frame and method of exploration. Using examples from different places and eras, the study seeks to identify the recurring variety of ideas about how to organize public services—and contrary to widespread claims that modernization will bring a new global uniformity, it argues that variety is unlikely to disappear from doctrine and practice in public management. The book has three parts. Part I, Introductory, has three chapters that discuss various aspects of public management. Part II, Classic and Recurring Ideas in Public Management, has four chapters that discuss various ways of doing public management. Part III, Rhetoric, Modernity, and Science in Public Management, has three chapters that discuss the rhetoric, and culture of public management, contemporary public management, and the state of the art of the state.

The Golden Age of post‐war capitalism has been eclipsed, and with it seemingly also the possibility of harmonizing equality and welfare with efficiency and jobs. Most analyses believe that the emerging post‐industrial society is overdetermined by massive, convergent forces, such as tertiarization, new technologies, or globalization, all conspiring to make welfare states unsustainable in the future. This book takes a second, more sociological and institutional look at the driving forces of economic transformation. What stands out as a result is that there is post‐industrial diversity rather than convergence. Macroscopic, global trends are undoubtedly powerful, yet their influence is easily rivalled by domestic institutional traditions, by the kind of welfare regime that, some generations ago, was put in place. It is, however, especially the family economy that holds the key as to what kind of post‐industrial model will emerge, and to how evolving trade‐offs will be managed. Twentieth‐century economic analysis depended on a set of sociological assumptions that now are invalid. Hence, to grasp better what drives today's economy, it is necessary to begin with its social foundations. After an Introduction, the book is arranged in three parts: I, Varieties of Welfare Capitalism (four chapters); II, The New Political Economy (two chapters); and III, Welfare Capitalism Recast? (two chapters).