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Samenvatting The Governance And Politics Of Social Problems (S_GPSP)
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Governance and Politics of Social ProblemsHoorcollege 1
Introduction
Democracy & Europe
- In Europa veel democratie, vooral na WO2
- Autocratie = dictatuur
- Hybrid regimes = anocracy
- Since 1970 still not completely stable
- In the middle of dramatic political changes, traditional party systems and political
conventions are being overturned
- Liberal democracy = power of governments is constrained by constitutional rules which are
upheld by an independent judicial system. Checks and balances
History to why traditional politics is replaced (and populism started rising)
- Post-war era (end war, end communism) showed a general consensus among political elites
is many countries, supporting the capitalism (free market economic policies and commitment
to regional integration). Parties came together
- Critic-> Party cartel arises, principled opposition became replaced with consensus and
cooperation among the major parties. (terechte kritiek)
- But with new issues such as immigration, European integration, free-market and climate
change differences emerged between parties and voters -> populism came to challenge the
traditional/establishment centrist parties
- Causes: economic global crisis, increasing inequality (which also lead to) anti-immigrant
sentiments. -> poor and immigrants are to blame
- After financial crisis in NL populism won, free-market economy lost a little
Populist revolt against representative democracy
- Frame elite and traditional institutions as enemy of the people
- Anti-establishment (always against leading party)
- Anti-expert/intellectualism (problem are easy) and so:
- Simple and immediate solutions
- Pro commons sense (commons sense will solve the easy problems, no need for expert, just
use common sense)
- Out-group derogation. Us vs Them. Ingroup vs Outgroup
- Leads to -> societal polarisation, threat to democracy, because even though people with
opposite views are necessary, describing opponents as enemies is not democratic behaviour
- Traditional politics is being replaced, there is more multiparty competition going on
- But also a pushback against consensus and free market. For welfare state, against consensus
and increased uncertainty.
Welfare state and inequality. (verzorgingsstaat)
- Welfare state -> European governments tend to engage in relatively high levels of economic
redistribution and typically provide extensive social protection supports (pensions or
unemployment assistance). Mediator of capitalism & inequality
- Economic redistribution = herverdelen van geld verdient met belasting of van bepaalde
mensen
- Limits free-market economy
- After fincancial crisis there were cuts -> increasing inequality
,Hoorcollege 2
Capitalism, crises, governance
Mitigating capitalism & inequality
-> Welfare state is a defining factor of certain model of capitalism
-> Welfare states are supposed to fixed the inequality, have stability
Different forms of capitalism depending on welfare state design, on how governments pay for
insurance, on what the welfare state demands of firms and companies (what responsabilities) and
the important determinants of that demand.
Market
- How do governments interact with markets?
- Interfere? Let the market be?
- Pure free-market vs completely planned economy
Taxes
- How and where do governments levy taxes?
Industrial relations
- How are relations between employers and employees organised?
- How much does an employee have to say?
- Pure capitalism -> no trade union, employers have power
- Role of government = overleggen with trade unions, CAO’S , having the employer pay part of
the unemployment benefits if employee gets the sack
Welfare state
- How are benefits organised?
Economic function
- How is the money made?
All models mean government interference to some degree, governments issue governance in
congruence with model of capitalism
What is governance?
-> intervention through policy. Besturen door beleid.
-> mostly by state, sometimes used for other organisations
,Models of capitalism = form of structural state intervention = pattern of consistent governance
(predicable policy)
VB) Tattasteel, because of the continental capitalism -> nationalisation of Tata steel -> intervene in
tata steel
States intervene in environment/reality with patterns according to type of capitalism
Why governance?
-> State intervention should guarantee certain morally desired outcomes
(responsible financial sector)
Financial 2008 crisis
- Mortage backed security, Collateralized Debt Obligation (worthless)
- No one paided mortage back, but they became more valuable
- Taxpayers would bail them out,
- Blaimed poor people and immigrants
Desired outcomes and model of capitalism correlate!
-> Form of capitalism serves as structural way of trying to attain that outcome
Angelo Saxton model -> Free-market -> desired outcome = individual freedom
Continental -> state intervention when needed -> desired outcome = collective goods
Internationalisation and neoliberalism
-> the catch, the idea that different models of capitalism continue to exist has been questioned as
there has been increased pressure from the international economy.
-> countries became independent on other cultures, all is connected, nothing is centrally controlled
-> rise of network society
-> varieties of capitalism appear less as different form of capitalism and more as different types of
neoliberalism:
- Trust in freemarket, everywhere on earth, upheld/enforced politically
- Associated with Angelo-Saxon model: privatization, deregulation, less state spending
- Consenus, partycartel based on neoliberalism after WO2
Crisis:
1) Less regulation and oversight, less political influence
2) Increase of economic traffic and increasing interdependence of financial institutions (banks)
3) Fraudulent CDO’s want to make money
4) Implosion and crisis of the system
5) Governments take over banks too big to fail.
3 problems that occurred during crisis
- Failure or regulation or protection (no over/insight in politics). Government didn’t do
anything to prevent the crisis or stop housing and construction overheating
- Euro as common currency flawed process (integration without taking differences in account).
Euro brought different economies together and didn’t do anything with those differences.
- Preservation of the system (banks), so state (taxpayers) took over debts, debt and loss were
passed to the public purse. Helped fuel anti-establishment parties, government intervention
favoured banks, wealthy and foreigners instead of ordinary people.
Austerity (bezuinigingen) followed.
-> Pro’s and anti for decreasing government spending:
Pro:
- More competitiveness, compete out of crisis
- Less debts -> more internationally economically attractive
- More international investmens by foreign firms
, - Force jobless people to find a job
- Les wages, reducing cost, more competitiveness
Anti:
- Invest money in economy, not take out
- Debt can be paid back as soon as economy is back
- Hits the poorest the hardest (immigrations and poor get blaim)
- Poore spend more direct
- More expenditure means more income for state
Consensus after fall of communism -> free market idea, solution for crisis -> austerity, governance
became smaller -> Neoliberalism prevailed
Democracy legitimises government intervention, power comes from people!
Hoorcollege 3
The executive branch
-> How does governance work?
-> How doe state intervention works?
-> Relation between politics and policy implementation/execution = public administration
What is/constitutes the executive branch?
The separation of power in three branches. Trias politica. Checks and balances.
Legislative branch = Parliament: 1e kamer (lowerhouse) EN 2e kamer (upperhouse). Political side of
the course
Judicial branch = Laws, supreme court
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