Modi's Reform Agenda: Change You Can Believe In? Asia Policy Brief 2015/04, November 2015

Indian Prime Minister Narendra Modi entered office with a historic political mandate. For the first time in thirty years, a single party won a majority of seats in the lower house of Parliament (Lok Sabha). However, Modi faces skyhigh expectations to fulfill his campaign promises of getting India’s economy back on track. Eighteen months into his government’s term and in the wake of electoral defeats in the states of Delhi and Bihar, questions are being raised about its economic performance. While the Modi government has stabilized India’s macroeconomy and announced a series of incremental economic reforms, more sweeping changes have fallen victim to India’s nettlesome domestic politics, including roadblocks within the ruling alliance.

Japan Again under Abe – Fresh Start or More of the (not so Great) Same? Bertelsmann Asia Policy Brief 2015/01, February 2015

After Japan’s snap Lower House elections called on December 14 by old – and now new – Prime Minister Shinzo Abe, it will hopefully be the former, but probably the latter. This is the very opposite of what Abe promised would happen after his two-year tenure, which included many missed opportunities to adopt badly needed economic reforms capable of leading the country back onto a path of sustainable economic growth. While the jury is still out on whether Abe will focus this time around on economic reforms as opposed to attempts to boost the country’s defense profile and get rid of Japan’s constitutionally prescribed pacifism, his (very) nationalist and at times revisionist political track record suggests that it could be the latter yet again.

Market reform and state paternalism in Hungary: a path-dependent approach

Hungary is one of the worst-hit countries of the current financial crisis in Central and Eastern Europe. The deteriorating economic performance of the country is, however, not a recent phenomenon. A relatively high ratio of redistribution, a high and persistent public deficit and accelerated indebtedness characterised the country not just in the last couple of years but also well before the transformation, which also continued in the postsocialist years. The gradualist success of the country – which dates back to at least 1968 – in the field of liberalisation, marketisation and privatisation was accompanied by a constant overspending in the general government. The paper attempts to explore the reasons behind policymakers’ impotence to reform public finances. By providing a path-dependent explanation, it argues that both communist and postcommunist governments used the general budget as a buffer to compensate losers of economic reforms, especially microeconomic restructuring. The ever-widening circle of net benefiters of welfare provisions paid from the general budget, however, has made it simply unrealistic to implement sizeable fiscal adjustment, putting the country onto a deteriorating path of economic development.

Market reform and fiscal laxity in Communist and post-Communist Hungary: A path-dependent approach

Purpose – The purpose of this paper is to present a conceptual framework in order to analyse and understand the twin developments of successful microeconomic reform on the one hand and failed macroeconomic stabilisation attempts on the other hand in Hungary. The case study also attempts to explore the reasons why Hungarian policymakers were willing to initiate reforms in the micro sphere, but were reluctant to initiate major changes in public finances both before and after the regime change of 1989/1990. Design/methodology/approach – The paper applies a path-dependent approach by carefully analysing Hungary's Communist and post-Communist economic development. The study restricts itself to a positive analysis but normative statements can also be drawn accordingly. Findings – The study demonstrates that the recent deteriorating economic performance of Hungary is not a recent phenomenon. By providing a path-dependent explanation, it argues that both Communist and post-Communist governments used the general budget as a buffer to compensate the losers of economic reforms, especially microeconomic restructuring. The gradualist success of the country – which dates back to at least 1968 – in the field of liberalisation, marketisation and privatisation was accompanied by a constant overspending in the general government. Practical implications – Hungary has been one of the worst-hit countries of the 2008/2009 financial crisis, not just in Central and Eastern Europe but in the whole world. The capacity and opportunity for strengthening international investors' confidence is, however, not without doubts. The current deterioration is deeply rooted in failed past macroeconomic management. The dissolution of fiscal laxity and state paternalism in a broader context requires, therefore, an all-encompassing reform of the general government, which may trigger serious challenges to the political regime as well. Originality/value – The study aims to show that a relatively high ratio of redistribution, a high and persistent public deficit and an accelerated indebtedness are not recent phenomena in Hungary. In fact, these trends characterised the country well before the transformation of 1989/1990, and have continued in the post-socialist years, too. To explain such a phenomenon, the study argues that in the last couple of decades the hardening of the budget constraint of firms have come at the cost of maintaining the soft budget constraint of the state.

Is social partnership the way forward for Indian trade unions? Evidence from public services in India

Trade unions in India find themselves excluded from the political process and marginalized in collective bargaining in the post economic reforms period since 1991. Influential policy analysts and academics alike have called upon Indian trade unions to engage in social partnership with employers as a route to regain influence and protect workers’ interests. Using survey and interview data from two large national trade union federations in Maharashtra India, this article examines whether social partnership is a viable option for Indian trade unions as an industrial relations approach. Findings indicate that despite a supportive labour regulatory framework which in theory should facilitate cooperative industrial relations, the ground realities of workplace employment relations coupled with state indifference and judicial interventions weakens labour’s prospects for meaningful social partnership.

Where do e-Government strategies take the Nordic nations?

An effective strategy is critical for the successful development of e-Government. The leading nations in the e-Government rankings include Sweden, Norway, Denmark and Finland. Their leading role makes them interesting to study when looking for reasons to successful e-Government. The purpose of this research paper is to describe the e-Government development strategies of Nordic countries, which rank highly on the international stage. In particular it aims to study the foci of these strategies. The approach is a document study of the e-Government development strategies of Sweden, Denmark, Norway and Finland was carried out using a qualitative content analysis inductive method. The results show that the major focus of Nordic e-Government strategies is on public sector reforms. Other focus areas include economic reforms and, to a lesser extent, e-Democracy efforts. Sweden, Finland and Norway have set ambitious policy goals in order to achieve global leadership in e-Government development. In response to the question posed by this paper’s title, we can say that Nordic e-Government strategies, except for Norway, focus more on reforming public sector services than on economic reforms.  E-Democracy reforms are hardly focused on at all. Practical implications: Public sector policy makers can relate their policy foci to some of the more successful e-Government countries in the world. Research implications/originality is that this paper can apart from the findings also provide a means on how to identify the actual foci of a country’s e-Government policy.

"Policy externalisation" inherent failure : international financial institutions' conditionality in developing countries

Conditionalities – i.e. ‘exchanging finance for policy reform’ in an asymmetrical relationship between the ‘donor’ and the ‘recipient’ – are central mechanisms of the reform programmes of international financial institutions (IFIs). As they are imposed by outside entities, they can also be viewed as ‘policy externalisation’, which is paradoxically a massive intrusion in the shaping of a country’s domestic policies. The resilience of such devices is remarkable, however. Indeed, in the early 1980s, many developing countries were facing balance of payments difficulties and called upon these international financial institutions for financial relief. In exchange for this relief, they devised economic reforms (fiscal, financial, monetary), which were the conditions for their lending. These reforms were not associated with better economic performance, and this led the IFIs to devise in the 1990s different reforms, which this time targeted the functioning of the government and its ‘governance’, economic problems being explained by governments’ characteristics (e.g., rent-seekers). The paper demonstrates the limitations of the device of conditionality, which is a crucial theoretical and policy issue given its stability across time and countries. These limitations stem from: i) the concept of conditionality per se - the mechanism of exchanging finance for reform; ii) the contents of the prescribed reforms given developing countries economic structure (typically commodity-based export structures) and the weakness of the concept of ‘governance’ in view of these countries’ political economies; and iii) the intrinsic linkages between economic and political conditionalities, whose limitations thus retroact on each other, in particular regarding effectiveness and credibility.

Policy Change and the Politics of Expertise. Economic Ideas and immigration Control Reforms in switzerland

This article analyses the varying influence across time of the "epistemic community" of free-market economists on immigration policy making in Switzerland. To this end, a framework for the analysis of the impact of economic expertise is provided, and then used in an historical analysis comparing the 1960s with the 1990s. Whereas this influence can be considered to have been weak in the 1960s, it gained significantly in importance in the 1990s, when a period of economic unrest seriously challenged previous immigration policies. It is argued that economic experts played an important role in framing the reforms undertaken during this latter period, notably by providing a "credible causal story" about the links between the existing immigration policy and the social problems which arose in the country in the 1990s. As compared to the 1960s, economic expertise in the 1990s enjoyed more credibility, more political support and took full advantage of a more uncertain social and economic context

New Standards of Justice: Uncovering Motivations for Mexico’s Recent Judicial Reforms amid a Security Crisis

From the introduction: Mexico is in a state of siege. In recent years, organized crime and drug-related violence have escalated dramatically, taking innocent lives and leaving the country mired in bloodshed. The Mexican government, under the leadership of President Felipe Calderón, has responded in part by significantly extending the reach of its security operations, deploying thousands of federal police officers and military troops to combat the activities of drug cartels, and collaborating with the United States on an extensive regional security plan known as the Mérida Initiative. In the midst of the security crisis, however, the government has somewhat paradoxically adopted judicial reforms that protect human rights and civil liberties rather than erode them, specifically the presumption of innocence standard in criminal proceedings and the implementation of oral trials. Assuming that the new laws on the books will be applied in practice, these reforms represent an important commitment on the part of the government to uphold human rights and civil liberties. This is in stark contrast to the infamous judicial reforms in Colombia—the institutionalization of anonymous or “faceless” prosecutions in special courts—implemented after a surge in leftist and cartel brutality, and the murders of several prominent public and judicial officials in the 1980s.

Economic Impact of Land Reforms in Kerala

The main aim of the present thesis is to dig deep into the once existed tenurial conditions and legislations that were passed to remedy the evils connected with the tenurial Conditions and to highlight ace of the economic impacts of the land reform legislation introduced since 1956.The thesis states that although the misery and exploitation which afflict the rural people and injustice inherent in the social structure can be removed by the strict implementation of land reforms. it is not the single and definite way or liberating the peasantry from its fate. Reform in not an Utopia: it is only the product of a constellation of political and social forces. ‘This study covers a period of twenty four years - ie...1956-1980.

Structural reforms, technological gaps and economic development: a Latin American perspective

Includes bibliography