The causes of welfare state expansion: deindustrialization or globalization?

An influential line of argument holds that trade exposure causes economic uncertainty and spurs popular demands for compensatory and risk-sharing welfare state spending. The argument has gained renewed prominence through the recent work of Garrett (1998) and Rodrik (1997; 1998). This paper argues that the relationship between trade openness and welfare state expansion is spurious, and that the engine of welfare state expansion since the 1960s has been deindustrialization. Based on cross-sectional time-series data for 15 OECD countries we show that there is no relationship between trade exposure and the level of labor market risks (in terms of employment and wages), whereas the uncertainty and dislocations caused by deindustrialization have spurred electoral demands for compensating welfare state policies. Yet, while differential rates of deindustrialization explain differences in the overall size of the welfare state, its particular character -- in terms of the share of direct government provision and the equality of transfer payments -- is shaped by government partisanship. The argument has implications for the study, and the future, of the welfare state that are very different from those suggestedin the trade openness literature. -- In vielen einflußreichen Diskussionsbeiträgen wird die Meinung vertreten, daß die Liberalisierung des Handels ökonomische Verunsicherung zur Folge habe und damit zu Forderungen nach ausgleichenden wohlfahrtsstaatlichen Ausgaben führe. Die Arbeiten von Garrett (1998) und Rodrik (1997;1998) verliehen diesem Argument zusätzliche Relevanz. Gegenstand dieser Untersuchung ist die Beziehung zwischen Ausmaß an Offenheit einer Volkswirtschaft und der Ausdehnung des Wohlfahrtsstaates, dessen großzügige Entwicklung seit den 1960er Jahren durch zunehmende Deindustrialisierung ermöglicht wurde. Auf der Grundlage von Analysen länderübergreifender Zeitreihen und von 15 OECD-Ländern wird gezeigt, daß kein Zusammenhang zwischen einer Handelsliberalisierung und dem Grad der Arbeitsmarktrisiken (bezogen auf Löhne und Beschäftigung) besteht. Angesichts der durch die Deindustrialisierung verursachten Unsicherheit kommt es jedoch von seiten der Wähler zu Forderungen nach einer ausgleichenden Sozialpolitik. Während das Ausmaß der Deindustrialisierung die Größe und Ausstattung des Wohlfahrsstaates determiniert, wird sein spezifischer Charakter - hinsichtlich der direkten Regierungsdienstleistungen und der ausgleichenden Transferzahlungen - von den Regierungsparteien geprägt. Diese Argumentation ist von großer Tragweite für die Analyse und Zukunft des Wohlfahrtsstaates; sie weicht gravierend von der Literatur über offene Volkswirtschaften ab.

Defense R&D and information technology in a long-term perspective la rd militaire et les technologies de l'information en longue période

Defense R&D is usually considered as an economic burden, implying an eviction effect on civilian R&D and perverting the national systems of innovation. If arms production benefits nowadays from advanced civilian R&D, the flow of technology was not always in the same direction–especially in the 1950s and 1960s. Moreover, since the beginning of the 1990s, some technologies, classified for a long time as purely defense ones (GaAs, GPS, computer networking, etc.), have found new civilian applications. Why technological opportunities created by defense R&D are not systematically seized by commercial firms? First, technology transfers come true only when a legal framework exists and allows commercial firms to get access to the « military technological fund ». Second, the global economic context appears as the greatest incentive to engage civilian firms in exploiting defense technologies, as an investment opportunity. In a long-term perspective, when specific conditions are set up or exist, defense R&D can become a means of strengthening the international competitiveness of national economies. La RD de défense est souvent considérée comme un fardeau pour l'économie, impliquant un effet d'éviction sur la RD civile et pervertissant le système national d'innovation. Si la production d'armements profite aujourd'hui des avancées de la RD civile, le flot de technologies n'a pas toujours été dans la même direction – tout particulièrement dans les années 1950 et 1960. De plus, depuis le début des années 1990, quelques technologies, longtemps classées comme purement militaires (GaAs, GPS, réseaux informatiques, etc.), ont trouvé de nouvelles applications civiles. Pour quelles raisons les opportunités technologiques créées par la R&D de défense ne sont-elles pas systématiquement saisies par les firmes commerciales ? Premièrement, les transferts de technologies se concrétisent seulement quand un cadre légal existe et autorise les firmes commerciales à avoir accès au « fonds technologique militaire ». Deuxièmement, le contexte économique global constitue une incitation importante pour engager les firmes civiles à exploiter les technologies de défense. Dans une perspective de longue période, quand les conditions idoines sont mises en place ou existent, la RD de défense peut ainsi devenir un moyen de renforcer la compétitivité internationale des économies nationales.Defense R&D, Information Technology, international Competitiveness, Global Positioning System, Networking

Effective Foreign Aid, Economic Integration and Subsidiarity: Lessons from Europe

An importance source of finance for poorer economies, is foreign aid; this paper examines some controversies surrounding its provision. The advanced economies have provided hundreds of billions of dollars in aid to the developing world over the last several decades; although this has done much good in some cases, many of these countries have grown very little, especially during the last two decades of the twentieth century. In fact some have argued that this aid has actually hindered development by creating perverse incentives and hindering democratic governance. Thus it would appear that much of this money has been wasted, but whose fault has it been and what can be done to improve the situation in the coming decades? This paper analyze these aid issues and propose that the answer to these questions can be partially found by examining the European experience in proving assistance to its disadvantaged regions. Of particular importance in this regard has been the way aid has been used to promote economic integration and how it has been distributed using the subsidiary principle.Development aid, economic integration, Europe, subsidiarity, aid for trade

Precision Targets: GPS and the Militarization of U.S. Consumer Identity

For most people in the United States, war is almost always elsewhere. Since the Civil War, declared wars have been engaged on terrains at a distance from the continental space of the nation. Until the attacks on the World Trade towers and the Pentagon in September 2001, many people in the United States perceived war to be conflicts between the standing armies of nation-states conducted at least a border—if not oceans and continents—away. Even the attacks of September 11 were localized in such a way as to feel as remote as they were immediate—watching cable news from elsewhere in the country, most U.S. residents were brought close to scenes of destruction and death by the media rather than by direct experience. Thus, in the United States, we could be said to be "consumers" of war, since our gaze is almost always fixed on representations of war that come from places perceived to be remote from the heartland

An Evaluation Schema for the Ethical Use of Autonomous Robotic Systems in Security Applications

We propose a multi-step evaluation schema designed to help procurement agencies and others to examine the ethical dimensions of autonomous systems to be applied in the security sector, including autonomous weapons systems

Blending the Battlefield: An Analysis of Using Private Military Companies to Support Military Operations in Iraq

Over the past fifteen years, the Department of Defense has experienced an increasing trend in the outsourcing and privatization of military operations. Key factors contributing to the growth include declines in military budgets, reductions in active duty end-strength, increases in operational deployments, advancements in weapon system technology, and evolutions in the nature of warfare. However, the continued escalation of incorporating Private Military Companies (PMCs) on the battlefield creates unique challenges. The purpose of this exploratory and descriptive research is to identify utilization rates, describe the types of roles being fulfilled, and synthesize the challenges of augmenting military manpower with civilian contractors. For this effort, the research scope is primarily focused on exploring the use of PMCs to support battlefield operations in Iraq. The research strategy involves the collection, reduction, and analysis of existing census data and secondary archival data from multiple sources. To add flexibility to the study, interactive data analysis techniques are employed using a combination of several qualitative methodologies. The conclusions drawn from the resulting data analysis framework are intended to facilitate a better understanding of the complexities of using civilian contractors in a war zone as well as outline key focus areas for improving the planning, management, and oversight of PMC operations. In addition, this research expands the existing body of knowledge on this dynamic topic

The External Relations of the European Union towards the United States: How Relevant is the European Union in Constraining or Replacing U.S. Hegemony?, Jean Monnet/Robert Schuman Paper Series, Vol. 1 No. 3, September 2002

(From the introduction). The study object of this paper is the external relations of the European Union towards the United States. The core question of this essay is not the U.S. hegemony by itself; in fact, both parties agree on a myriad of issues, share common values, and keep intensive and active economic and political exchanges. The 1950s and 1960s were witness to the shining power of the United States and Europe was willing to receive U.S. aid through the Marshall Plan. The problem arises when U.S. policies affect Europe and the EU is not able to provide concrete actions to reverse them. At this point, one inquiry is the focus of the analysis: How relevant is the EU in constraining or replacing U.S. hegemony? A simple answer is insufficient to shed light on this question. Most scholars underline the shortcomings of the EU and the influence of the United States in determining EU external relations. However, the EU in 2002 is quite different from the European Community at the beginning of the 1990s. Although reactive to international and regional, political and economic stimuli, the EU has forged informal and formal practices to provide coordinated positions. Depending on the specific area, the EU’s performance is more or less successful. Whereas in economic issues the EU has been able to respond to the U.S. in trade disputes, in political and security affairs the panorama is mostly discouraging. Accordingly, the hypothesis of this paper is: The more the EU is able to encapsulate the interests of the fifteen member states in a common front, the greater are the opportunities for more beneficial agreements with the United States, and to constrain or replace the actions or inactions of U.S. hegemony. In order to support this proposition, four areas of the transatlantic relationship are examined in this paper. The first part focuses on the current theoretical debate on the transatlantic relationship. Secondly, the paper analyzes the different natures of both foreign policies, emphasizing the problems associated with the European (intergovernmental and supranational) model to design its external relations. The third section describes the relative balance between the US and the EU on economic terms, and considers the benefits of having international institutions to regulate trade practices. Finally, the imbalance in security affairs is depicted, highlighting the new institutional developments in Europe to participate in regional crises with or without (but not against) the United States