The Return of Institutions. On the Latest Change in the Research on Social and Economic Development

The paper describes the latest change in the research on social and economic development of states. This change is characterized mainly by a strong emphasis put on the role of institutions as key instruments of reducing the development gap between countries. It is argued that in the years after 1989 institutions have disappeared from mainstream academia and major intellectual debates because of: (1) the widespread belief in global convergence of capitalism and (2) the modernization theory which prevailed in the social science in the 1990s. The article indicates that institutions were once again brought into focus as a result of (1) a wider debate about the institutional sources of growth and development sparked by Acemoglu and Robinson’s Why Nations Fail, (2) the beginning of the global economic crisis of 2008 triggered by the fall of American investment bank Lehman Brothers (3) diversified consequences of the economic crisis seen all over Europe and the USA which illustrate (4) the institutional varieties of capitalism.

In Search of Social Justice: Current Developments in Higher Education and the Labour Market in Bulgaria

The discussions about social justice date from ancient times, but despite the enduring interest in the topic and the progress made, we are still witnessing injustices throughout the world. Thus, the search for social justice, under some form, is an inseparable part of our lives. In general, social justice may be considered as a critical idea that challenges us to reform our institutions and practices in the name of greater fairness (Miller 1999, p. x). In political and policy debates, social justice is often related to fair access (Brown, 2013) but at the same time its meanings seem to vary when we consider different definitions, perspectives and social theories (Zajda, Majhanovich, & Rust, 2006). When seen in the context of higher education, social justice appears in relevant literature as a buzzword (Patton, Shahjahan, Riyad, & Osei-Kofi, 2010). Within the recent studies of higher education and public debates related to the development of higher education, more emphasis is placed on the link between higher education and the economic growth and how higher education could be more responsive to the labour market demands, and little emphasis has been put on social justice. Given this, the present study attempts to at least partially fill the gap with regard to this apparently very topical issue, especially in the context of the unprecedented worldwide expansion of higher education in the last century (Schofer & Meyer, 2005), an expansion that is expected to continue in the next decades. More specifically, the expansion of higher education intensified in the second part of the 20th century, especially after World War II. It was seen as a result of the intertwined dynamics related to demographic, economic and political pressures (Goastellec, 2008a). This trend undoubtedly contributed to the increase of the size of the student body. To illustrate this trend, we may point out that in the period between 2000 and 2007, the number of tertiary students in the world increased from 98,303,539 to 150,656,459 (UNESCO, 2009, p. 205). This growth occurred in all regions of the world, including Central and Eastern Europe, North America and Western Europe, and contributed to raising the number of tertiary graduates. Thus, in the period between 2000 and 2008, the total number of tertiary graduates in the European Union (EU) 27 increased by a total of 35 percent (or 4.5 percent per year). However, this growth was very uneven, ranging from 21.1 percent in Romania to 0.7 percent in Hungary (European Commission working staff document, 2011). The increase of the number of students and graduates was seen as enhancing the social justice in higher education, since it is assumed that expansion “extends a valued good to a broader spectrum of the population” (Arum, Gamoran, & Shavit, 2007, p. 29). However, concerns for a deep contradiction for 21st-century higher education also emerged with regard to its expansion.

Universities and Welfare States Coping with Permanent Financial Austerity: Pressures on (Competing) Public Institutions

A chapter linking universities and welfare states to permanent financial austerity can take a shorter or a longer historical perspective. This chapter looks further back (to the postwar expansion of European welfare states) to better understand future transformations of both public institutions. Their long-term sustainability problems did not start with the financial crisis of 2008 but have been growing since the 1970s (Schäfer and Streeck 2013; Bonoli and Natali 2012; Hay and Wincott 2012). Financial austerity is not a post-crisis phenomenon. As a concept, it was used in welfare state research at least a decade earlier, although it does not seem to have been used in higher education studies until recently. Two quotations bring us to the heart of the matter: welfare states and universities are currently changing under adverse financial conditions caused by an array of interrelating and mutually reinforcing forces and their long-term financial sustainability is at stake across Europe. The welfare state is a “particular trademark of the European social model” (Svallfors 2012: 1), “the jewel in the crown” and a “fundamental part of what Europe stands for” (Giddens 2006: 14), as are tuition-free universities, the cornerstone of intergenerational social mobility in Continental Europe. The past trajectories of major types of welfare states and of universities in Europe tend to go hand in hand: first vastly expanding following the Second World War, and especially in the 1960s and 1970s, and then being in the state of permanent resource-driven and legitimacy-based “crisis” in the last two decades. Welfare states and universities, two critically important public institutions, seem to be under heavy attacks from the public, the media and politicians. Their long-term sustainability is being questioned, and solutions to their (real and perceived) problems are being sought at global, European, and national levels.