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Political economy of Lisbon strategy

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

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

Published in: Technology, Economy & Finance

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  • 1. Political economy of the Lisbon strategy Janez Šušteršič University of Primorska – Faculty of Management
  • 2. Purpose Political economy (PE) issues behind the weak implementation of the LS at national level at the EU level
  • 3. (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
  • 4.
    • Recommendations:
      • Complicated sequencing schemes
      • Complicated compensation schemes
    • Problem:
      • Gvt still assumed to be well-intended and to have perfect knowledge
  • 5. (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
  • 6.
    • Recommendations:
      • Create incentives for “good policy-making”
        • Institutional solutions
        • External pressure
        • Provide information and knowledge
    • Problem:
      • Whom do we address with the recommendations?
  • 7. (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
  • 8. (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”
  • 9. (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)