Political economy of Lisbon strategy

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Information about Political economy of Lisbon strategy

Published on October 8, 2007

Author: gogrowth

Source: slideshare.net

Description

Towards Lisbon 2.1, Dr Janez Šušteršič, Faculty of Management Koper, University of Primorska, Slovenia

Political economy of the Lisbon strategy Janez Šušteršič University of Primorska – Faculty of Management

Purpose Political economy (PE) issues behind the weak implementation of the LS at national level at the EU level

(1) Issues in political tactics Uneven and uncertain distribution of cost: spreading the costs over time, compensating the losers (fiscal capacity?) Psychology: good times or bad times; creating positive expectations; using myopia Using economic interdependecies: first implement reforms with immediate positive effects

Uneven and uncertain distribution of cost:

spreading the costs over time, compensating the losers (fiscal capacity?)

Psychology:

good times or bad times; creating positive expectations; using myopia

Using economic interdependecies:

first implement reforms with immediate positive effects

Recommendations: Complicated sequencing schemes Complicated compensation schemes Problem: Gvt still assumed to be well-intended and to have perfect knowledge

Recommendations:

Complicated sequencing schemes

Complicated compensation schemes

Problem:

Gvt still assumed to be well-intended and to have perfect knowledge

(2) What do governments really want? To be reelected: policies depend on the electoral cycle and on the size and broadness of the coalition To carry out their program: but, usually, subject to election concerns

To be reelected:

policies depend on the electoral cycle and on the size and broadness of the coalition

To carry out their program:

but, usually, subject to election concerns

Recommendations: Create incentives for “good policy-making” Institutional solutions External pressure Provide information and knowledge Problem: Whom do we address with the recommendations?

Recommendations:

Create incentives for “good policy-making”

Institutional solutions

External pressure

Provide information and knowledge

Problem:

Whom do we address with the recommendations?

(3) EU level: conceptual background National PE reflected at the EU level LS as a moving programme: From sustainable development to growth&jobs From “the best” to “facing challenges” From “development” to “reforms” From left to right

National PE reflected at the EU level

LS as a moving programme:

From sustainable development to growth&jobs

From “the best” to “facing challenges”

From “development” to “reforms”

From left to right

(4) EU level: ability to act? Intergovernmental policy making: IGs – not a policy instrument OMC – soft and complicated CLP – without a real budget, no “peer-review”

Intergovernmental policy making:

IGs – not a policy instrument

OMC – soft and complicated

CLP – without a real budget, no “peer-review”

(5) EU level: external pressures Negotiated pressure: NRP – problem of self reporting Benchmarking – negotiated methodologies Recommendations – a political document Partnership approach of the commission – the only possibility Works when wanted by national politicians (national ownership)

Negotiated pressure:

NRP – problem of self reporting

Benchmarking – negotiated methodologies

Recommendations – a political document

Partnership approach of the commission – the only possibility

Works when wanted by national politicians (national ownership)

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