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 <ul><li>Uneven and uncertain distribution of cost: </li></ul><ul><ul><li>spreading the cos...
<ul><li>Recommendations: </li></ul><ul><ul><li>Complicated sequencing schemes </li></ul></ul><ul><ul><li>Complicated compe...
(2) What do governments really want? <ul><li>To be reelected: </li></ul><ul><ul><li>policies depend on the electoral cycle...
<ul><li>Recommendations: </li></ul><ul><ul><li>Create incentives for “good policy-making” </li></ul></ul><ul><ul><ul><li>I...
(3) EU level: conceptual background <ul><li>National PE reflected at the EU level </li></ul><ul><li>LS as a moving program...
(4) EU level: ability to act? <ul><li>Intergovernmental policy making: </li></ul><ul><ul><li>IGs – not a policy instrument...
(5) EU level: external pressures <ul><li>Negotiated pressure: </li></ul><ul><ul><li>NRP – problem of self reporting </li><...
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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

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Political economy of Lisbon strategy

  1. 1. Political economy of the Lisbon strategy Janez Šušteršič University of Primorska – Faculty of Management
  2. 2. Purpose Political economy (PE) issues behind the weak implementation of the LS at national level at the EU level
  3. 3. (1) Issues in political tactics <ul><li>Uneven and uncertain distribution of cost: </li></ul><ul><ul><li>spreading the costs over time, compensating the losers (fiscal capacity?) </li></ul></ul><ul><li>Psychology: </li></ul><ul><ul><li>good times or bad times; creating positive expectations; using myopia </li></ul></ul><ul><li>Using economic interdependecies: </li></ul><ul><ul><li>first implement reforms with immediate positive effects </li></ul></ul>
  4. 4. <ul><li>Recommendations: </li></ul><ul><ul><li>Complicated sequencing schemes </li></ul></ul><ul><ul><li>Complicated compensation schemes </li></ul></ul><ul><li>Problem: </li></ul><ul><ul><li>Gvt still assumed to be well-intended and to have perfect knowledge </li></ul></ul>
  5. 5. (2) What do governments really want? <ul><li>To be reelected: </li></ul><ul><ul><li>policies depend on the electoral cycle and on the size and broadness of the coalition </li></ul></ul><ul><li>To carry out their program: </li></ul><ul><ul><li>but, usually, subject to election concerns </li></ul></ul>
  6. 6. <ul><li>Recommendations: </li></ul><ul><ul><li>Create incentives for “good policy-making” </li></ul></ul><ul><ul><ul><li>Institutional solutions </li></ul></ul></ul><ul><ul><ul><li>External pressure </li></ul></ul></ul><ul><ul><ul><li>Provide information and knowledge </li></ul></ul></ul><ul><li>Problem: </li></ul><ul><ul><li>Whom do we address with the recommendations? </li></ul></ul>
  7. 7. (3) EU level: conceptual background <ul><li>National PE reflected at the EU level </li></ul><ul><li>LS as a moving programme: </li></ul><ul><ul><li>From sustainable development to growth&jobs </li></ul></ul><ul><ul><li>From “the best” to “facing challenges” </li></ul></ul><ul><ul><li>From “development” to “reforms” </li></ul></ul><ul><ul><li>From left to right </li></ul></ul>
  8. 8. (4) EU level: ability to act? <ul><li>Intergovernmental policy making: </li></ul><ul><ul><li>IGs – not a policy instrument </li></ul></ul><ul><ul><li>OMC – soft and complicated </li></ul></ul><ul><ul><li>CLP – without a real budget, no “peer-review” </li></ul></ul>
  9. 9. (5) EU level: external pressures <ul><li>Negotiated pressure: </li></ul><ul><ul><li>NRP – problem of self reporting </li></ul></ul><ul><ul><li>Benchmarking – negotiated methodologies </li></ul></ul><ul><ul><li>Recommendations – a political document </li></ul></ul><ul><ul><li>Partnership approach of the commission – the only possibility </li></ul></ul><ul><ul><li>Works when wanted by national politicians (national ownership) </li></ul></ul>

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