The Impact of Foreign Direct Investment on Economic Growth

Over the past four decades, the number of democracies in the world has increased exponentially. This project considers how democracy and FDI affect economic growth as well as whether the impact of FDI depends on the level of democracy in a country. Thus, I explore two major research questions: 1) Whether increased FDI speeds up economic growth, controlling for political regime type, urbanization and other developmental indicators; and 2) Whether an increase in political freedom helps or hinders economic growth, and specifically whether the impact of FDI varies depending on the political regime in the recipient country. To examine these questions, this paper used data from 150 countries over a period between 1980 and 2010 and utilized several models, testing variables such as institutions, agglomerations, urbanization, FDI and type of political regime, among others, for their impact on economic growth. I found that FDI does have a positive impact on economic growth, and that this impact is often magnified when it interacts with other relevant factors. I also found that, after controlling for other variables, FDI inflows do not have a different impact on economic growth in autocracies than they do in democracies. This may be partially explained by autocratic outliers such as China and the OPEC states, which have recently experienced rapid export-led growth. This suggests that factors such as education could have a greater impact on a country¿s economic growth than does its political system.

Marginalization of the Youth – a Current Societal Development?

The last two years a discussion on reforming the public sector has emerged. At its very heart we find important concepts like ‘quality reform’, ‘democracy’, and ‘development’. Recently I have presented an example of the ‘quality reform’ in SocMag, and this leads me to prolong that discussion on central themes on welfare state and democracy. Much energy is invested in arguing about management of the public sector: Do we need more competition from private companies? Do we need more control? Are more contracts concerning outcome needed? Can we be sure about the accountability needed from politicians? How much documentation, effectiveness measurement, bureaucracy, and evidence-based policy and practice are we looking for? A number of interesting questions – but strange enough we do not discuss the purpose of ‘keeping a welfare state’. What sort of understanding is lying behind the welfare state, and what kind of democracy are we drawing upon?

The Beauty and the Beast. A Tale of Democratic Crises and Globalization

There are two competing hypotheses concerning the connection between democracy and globalization. The critics hold globalization responsible for an ongoing crisis of democracy. The enthusiasts highlight the positive contributions of financial openness and international political cooperation on the development of democracy. In this contribution the author investigates the interrelation between globalization and the quality of established democracies. He introduces the Democracy Barometer, a new instrument that measures the quality of democracy in 30 established democratic regimes between 1995 and 2005 and that explicitly does not measure sustainable government because it aims at serving as dependent as well as independent variable to explain different economic, societal and natural environment, i.e. sustainable development. Based on this instrument, the author first shows that one cannot speak of an ongoing crisis of (established) democracies. Second, he also conducts several multilevel analyses to model the different developments of the quality of democracy in the different countries. The author then shows that economy, i.e. economic globalization indeed has a positive impact on the quality of democracy. However, this impact is stronger in stable, i.e. older than in younger established democracies. Further investigations show that a high quality of democracy also goes hand in hand with societal and environmental performance.

A Global Trend towards Democratic Convergence? A Lijphartian Analysis of Advanced Democracies.

The article offers a systematic analysis of the comparative trajectory of international democratic change. In particular, it focuses on the resulting convergence or divergence of political systems, borrowing from the literatures on institutional change and policy convergence. To this end, political-institutional data in line with Arend Lijphart’s (1999, 2012) empirical theory of democracy for 24 developed democracies between 1945 and 2010 are analyzed. Heteroscedastic multilevel models allow for directly modeling the development of the variance of types of democracy over time, revealing information about convergence, and adding substantial explanations. The findings indicate that there has been a trend away from extreme types of democracy in single cases, but no unconditional trend of convergence can be observed. However, there are conditional processes of convergence. In particular, economic globalization and the domestic veto structure interactively influence democratic convergence.

How exclusive is assembly democracy? Citizens assembly and ballot participation compared

This paper analyses the difference between two specific forms of citizens’ involvements, namely whether a vote is cast by ballot or in a citizens’ assembly in which people gather in town halls to decide legislative questions in a deliberative manner. We show both theoretically and empirically how citizens’ assemblies and decisions at the ballot box substantially differ not only in terms of their underlying model of democracy, but also in their structural conditions and, thus, with respect to the social inequality of participation. We test our hypotheses in a Bayesian multilevel framework using real participation data collected from 15 political decisions made in a Swiss commune. Our results show that citizens’ assemblies are not only characterised by lower participation rates, but also by a particular composition of the electorate. While citizens’ assemblies are more equal regarding income groups, ballots favour a more equitable participation in terms of gender and age.

Representing Afghanistan: The United States and Democracy's Imposition

There is an ongoing mission in Afghanistan; a mission driven by external political forces. At its core this mission hopes to establish peace, to protect the populace, and to install democracy. Each of these goals has remained just that, a goal, for the past eight years as the American and international mission in Afghanistan has enjoyed varied levels of commitment. Currently, the stagnant progress in Afghanistan has led the international community to become increasingly concerned about the viability of a future Afghan state. Most of these questions take root in the question over whether or not an Afghan state can function without the auspices of international terrorism. Inevitably, the normative question of what exactly that government should be arises from this base concern. In formulating a response to this question, the consensus of western society has been to install representative democracy. This answer has been a recurring theme in the post Cold War era as states such as Bosnia and Somalia bear witness to the ill effects of external democratic imposition. I hypothesize that the current mold of externally driven state-building is unlikely to result in what western actors seek it to establish: representative democracy. By primarily examining the current situation in Afghanistan, I claim that external installation of representative democracy is modally flawed in that its process mandates choice. Representative democracy by definition constitutes a government reflective of its people, or electorate. Thus, freedom of choice is necessary for a functional representative democracy. From this, one can deduce that because an essential function of democracy is choice, its implementation lies with the presence of choice. State-building is an imposition that eliminates that necessary ingredient. The two stand as polar opposites that cannot effectively collaborate. Security, governing capacity, and development have all been targeted as measurements of success in Afghanistan. The three factors are generally seen as mutually constitutive; so improved security is seen as improving governing capacity. Thus, the recent resurgence of the Taliban in Afghanistan and a deteriorating security environment moving forward has demonstrated the inability of the Afghan government to govern. The primary reason for the Afghan government’s deficiencies is its lack of legitimacy among its constituency. Even the use of the term ‘constituency’ must be qualified because the Afghan government has often oscillated between serving the people within its territorial borders and the international community. The existence of the Afghan state is so dependent on foreign aid and intervention that it has lost policy-making and enforcing power. This is evident by the inability of Afghanistan to engage in basic sovereign state activities as maintaining a national budget, conducting elections, providing for its own national security, and deterring criminality. The Afghan state is nothing more than a shell of a government, and indicative of the failings that external state-building has with establishing democracy.

Understanding HCI policy in Spain in the context of acces

Spain pioneered policies related to disability and accessibility, especially in the physical environment. The first major piece of legislation was Act 13/1982 on the Social Integration of People with Disabilities. The law was published just a few years after the reinstitution of democracy in Spain in 1977 and the approval of the Spanish Constitution in 1978. Act 13/1982 is a general law that applies accessibility to social services and education, as well as to workplace and physical accessibility. This law targeted first and foremost the social integration of people with disabilities, and it was a significant success, especially in the field of employment, as it made it mandatory for private companies and public administrations to employ a certain percentage of persons with disabilities. This greatly increased the employability of people with disabilities, as highlighted in a document celebrating 30 years of Act 13/1982. Over the past 20 years, policy makers have also focused on accessibility to information and communication technologies (ICT), developing first the national computing accessibility standards and then specialized legislation. Initially, Spanish activities were mostly national but have now gained an international dimension. All these initiatives are strongly related to the discipline of human-computer interaction, as the key component of an accessible system is its user interface.

The Sound of the Digital Global City

Madrid has been the center of Spanish musical scene and industry since the 80s, when “la movida” becomes the metaphor for the new colorful, young and cosmopolitan country established with the arrival of democracy. The city, in this way, is basically a place. But this sense of place started to crash with the arrival of digital music. In the new paradigm, intermediaries were supposed to disappear and music was something contained in networks and computers. The question now is how to integrate digital music, a nonphysical, individual experience, with the way in which the city of Madrid is lived through in musical terms. With the advent of digital music, concerts became the primary source of income for musicians. The centrality of the gig can be understood as the confirmation that we are living in an economy of experience. This centrality also reorganized the way in which music is produced and consumed: now, records are produced in order to create the opportunity of a musical event (band promote their tour as presentation of their latest recordings) that can be promoted in social networks and media; concerts are the places where musicians construct their fans’ communities and are the places were records are sold, not a way to know the band but to demonstrate both the support for the band and the status of the listeners. To study the place of music in the process of metropolization in Madrid we need to understand music as a field of tension

The relevance of harmonising the technical level of social housing with the urban level of the neighbourhood through the example of the 500 dwellings in Albacete

The Architecture and Household Trade Union built nearly 2,000 subsidized dwellings in Albacete from 1941 to 1971. It was the responsible entity from the end of the Civil War until the beginning of Democracy of the social policy programs in Spain. Later on, and together with the National Housing Institute, were responsible for the construction activity. Its limited budget, scarcity of technical and human resources and an urgent need for new housing developments, constituted the basis for producing a vast housing market of low construction qualities. However, thanks to the true architectonic expertise of some of the professionals, some of the developments were designed with a clear urban strategy and in direct relation with the city, which characterizes them to be studied and conserved. This is the case for the selected development for the analysis, the urban complex of the 500 dwellings in Albacete, the Hermanos Falcó Neighborhood. Designed and built between 1963, Alfonso Crespo and Adolfo Gil architects, and 1977 second reformed project by the architect Fernando Rodríguez. It is characterized by its layout on the territory, its controlled relation with the city and its different types of open blocks. Above all, its spatial and human scale strengths, directly related to the European post-war proposals, have to be emphasized; although its technical deficiencies affect the interior quality of the houses. This paper examines its virtues and failures and proposes, using current tools, its renovation. This proposal main aims are to extend its lifetime and develop the particular and urban sustainability levels.

The future of the Eurozone and the role of the German Constitutional Court. Research Papers in Law, 05/2012

[Introduction.] Necessary reforms towards a deepened and increased European shaped economic, financial and budgetary policy, paraphrased with the term “fiscal union”, could possibly reach constitutional limits. In its EFSF judgment1, the German Constitutional Court, following the Lisbon judgment in which certain government tasks were determined as being part of the “constitutional identity”2, connected the budget right of the parliament via the principle of democracy to the eternity clause of Art. 79 para 3 Basic Law. A transfer of essential parts of the budget right of the German Bundestag, which would be in conflict with the German constitution, is said to exist when the determination of the nature and amount of the tax affecting the citizens is largely regulated on the supranational level and thereby deprived of the Bundestag’s right to disposition. A reform of the Economic and Monetary Union that touches the core of the budget right can, according to the German Federal Court, with regard to Art. 79 (3) of the Basic Law only be realized by way of Art. 146 of the Basic Law, thus with a new constitution given by the people that replaces the Basic Law.3

spotlight europe #2013/04, May 2013: The Changing Face of North Africa. An Opportunity for and with Europe.

North Africa is changing fast, and its youthful societies look back with pride at their recent uprisings. However, they are also getting frustrated by the fact that the economic outlook is not improving. Europe’s role in the strategically important southern Mediterranean area needs to be realigned in order to promote the development of democracy, employment opportunities, and security. There is a great deal of potential for cooperation with Morocco, Algeria, Tunisia, Libya and Egypt.

"Viewers should not try this at home". Die Verfassungsgerichte Bosnien-Herzegowinas und Kosovos in deren Rolle als Schlichtungsinstanzen in ethnopolitischen Konflikten = The constitutional courts of Bosnia-Herzegovina and Kosovo in their role as arbitration bodies in ethno-political conflicts. EDAP 01/2014

The article analyzes the role of constitutional courts in Bosnia and Kosovo, both characterized by their partly internationalized membership, in the adjudication of cases that are highly controversial between the different ethno-political factions. The main focus is on the Constitutional Court of Bosnia, which presents one of the richest and most interesting examples of “lawfare” in divided societies. The concept of lawfare has been adapted to refer to the continuation of political battles by ethno-political actors through legal means, in this case, constitutional adjudication. In Kosovo, the Constitutional Court has been an important defender of diversity, albeit its primary focus and merit are to have contributed to the establishment of a concept of democracy close to the people of Kosovo. The article concludes that constitutional courts represent important institutions of internal conflict resolution in divided societies, which have been instrumental in shaping multiculturalism in these post-conflict societies divided by deep ethnic cleavages.

In a state of necessity. How has Orban changed Hungary. OSW Point of View Number 41, April 2014

Viktor Orban’s sweeping victory in the 2010 election ensured his party, Fidesz, a constitutional two-thirds majority in parliament. The party took over the rule of the country from the discredited political left when Hungary was plunged in political and economic crisis. Claiming that the circumstances were unusual and that it had a strong electoral mandate, Fidesz introduced radical changes in the country and thus challenged the previous economic and political order. These changes have led to an unprecedented concentration of power and provoked a discussion on the limits of democracy and the rule of law in the European Union. The state’s economic role has strengthened. The Orban government has been unable to overcome economic stagnation but it has managed to stabilise Hungary’s budget situation, which needs to deal with the high debt. Hungary’s relations with most partners in the EU and NATO have cooled due to controversial moves made by its government. As regards foreign policy and economic co-operation, Orban has granted high priority to the ‘Eastern opening’, where Russia has assumed the leading role.

The History and Challenges of Cohesion Policies. Jean Monnet/Robert Schuman Paper Series Vol. 14 No. 2, February 2014

From Introduction. Regional economic disequilibria was viewed as both an obstacle to and result of integration (European Commission 1965; European Commission 1962; European Commission 1969). Even within the Treaty of Rome, the Community tried to establish mechanisms to alleviate regional inequality. However, it was not until 1975 that the main mechanism of regional policy was established as a result of British and Irish enlargement: the European Regional Development Fund (ERDF). Since then, cohesion policy has become a significant EU expenditure accounting for €347bn, or 35.7% of the total EU budget for 2007-13(European Commission Regional Policy-Info Regio 2012). It has also become a key policy linked to enlargement. The underlying principle of cohesion policy assumes that the market alone cannot solve development problems and therefore government intervention is needed. This notion is in direct contrast to the underlying principle of EU competition policy, which asserts that the free market can solve economic development problems (Meadows, interview by author, 2003). The logic underlying cohesion policy is not only counter to EU competition policy, but also regulatory policies. Unlike other EU policies, cohesion policy is not a sectoral policy, but rather territorial in nature (Leonardi, 2006). Thus at times EU regulatory policy has also unintentionally worked counter to the goals of regional policy, sometimes disadvantaging poorer regions (Dudek, 2005). As the Community has sought to ameliorate regional disparities, it meant that all levels of government: local, regional, national and supranational would need to be involved, however, member states have different territorial governance and European regional development programs have to varying degrees impacted the relationship and policy responsibility of different levels of government (Leonardi, 2006; Bachtler and Michie 1993; Marks, 1993). The very nature of regional development policy has provoked a re-examination of subsidiarity, or which level of government is the lowest and most appropriate level. The discussion of policy formulation and implementation at the lowest level possible also addresses the issue of the democratic deficit. Some argue that the closer government is to the people the more responsive and representative it is. Democracy, however, also implies that public funds are used in a transparent way and for public rather than private good. Yet, as we examine the history and current situation of EU regional funds we find that corruption and misuse still abound. Thus, to understand the history of regional policy it is imperative to look at the major transformations of the policy, how regional policy has impacted subsidiarity and the quality of democracy, become an important instrument of enlargement and contradicted or conflicted with other EU policies.

The challenge of freedom in the Southeastern Europe. OSW Report, July 2015

Over the past few decades substantial progress has been achieved in the democratisation and modernisation of the countries of Southeastern Europe. The formal democratic institutions were introduced, a liberalisation of trade resulted in the reintegration of the region into the global economy and some of them successfully applied to join the EU and NATO. But the transformation process is far from over. In the past years the achievements of the political and economic transformation have been rolled back and the quality of governance has declined in many countries. To avoid a further deterioration of the situation in the region the new impulse for institutional transformation and a change of the development model are needed. This report is the outcome of a discussion held during the conference “The Freedom Challenge in Southeastern Europe – Implications for Poland”. This joint event was developed by the Centre for Eastern Studies and Ideas Lab – the President’s Expert Programme at the Chancellery of the President of the Republic of Poland. The chapters of the report reflect the main three subjects debated during the conference. In the first chapter Spasimir Domaradzki assesses the rule of law and its influence on the consolidation of democracy in the region. In the second chapter Marta Szpala focuses on economic development in Southeastern Europe. The third chapter is written by Adam Balcer and analyses the key instruments Russia is using to build influence in this region.