Democracy Social and The Electoral Dilemma Germany Post war (PW) Settlement
1) De-Radicalization 2) Wage Restraint 3) "Chancellor Democracy" 4) State Regulation-Social Market Economy: importance of state regulation in the political economy in West Germany 5) Realignment-1970s-PM(Post Materialism)
Germany: Classic labor included model it was massively defeated and economically and politically restructured. A lot of the legacies were wiped off. It has a peculiar post war settlement; lots of consensus from 1950-70s and realignment occurs in the 1970s, it takes a particular form: a post materialist form. Instead 2 kinds of issues dominate in Germany politics: 1st, interest in ecological problems 2nd an argument against the way in which German political a social life had become increasingly bureaucratized. You see a transition from the old left to the new left. Deradicalization occurs relatively early: talk of the politics of the social democratic party in Germany. It is the first party on the left which explicitly agrees to maintain capitalism and to abandon its support for public ownership of industry; abandons nationalization of industry as a goal...in 1958. What this signals an attempt of the party to move towards the middle. A consequence of the battle within the party won by the pragmatists, it is designed to increase popular support in the elections. The strategy works. In the mid 1960 the SPD forms a gvt in a coalition (part of a coalition gvt) and governs with the Christian Democratic Union, and they govern together until 1970. That period in power had a consequence for the SPD, and it showed that it was capable to form a gvt, and its participation legitimated its presence in German politics. Sine 1970, the SPD has been in power most of the time 19702008. It is usually in coalition with the Free Democratic Party (FPD) and sometimes in coalition with the Green Party.
German pb was unique: too much consensus in politics, not enough opportunity to express opposition esp. in legislature. Consequence of how Germany reconstructed econ and politically in 1940 due to fear of some form of militarism in terms of foreign policy so encouraged stability and consensus. Key party was Christian democratic union, social democratic party that dominated politics through 60s and 70s. SPD was a party of permanent opposition socialist in terms of political identity and strong commitment to nationalization of industry (relatively radical), which is first step toward removal of market economy. CDU was a cross-denominational party, known in imperial period and interwar period as the center party and exclusively catholic. But in part to encourage removal of religious conflict after WWII, the party was encouraged to include all. SPD maintains this commitment to nationalize industry. In party conference , gives up to capture more middle ground. Fairly detailed change of party program removing all radical party commitments.
In 1960s, that change paid off as 1966, forms coalition gvt: Grand coalition. Looked odd as included the most important party of left and right: 1966-1950. Shared nbs of policies and commitments. Meant legislature could not be a significant venue of opposition or dissent since controlled 80-90% of popular vote. Why did they come together at this point? Coalition gvt was needed because of necessity of improving way german economy was managed politically. Response to german political crisis. Demonstrated in LR that SPD could govern effectively and work w/others. Legitimated SPD. Germany was not homogenous as radicalization and mobilization of students and workers. Focus on Well educated young cohorts: new form of opposition in German society. Mostly white collars, "post-materialists" Imp. Post-war generations emergence look for political mobilization outside: extra-parliamentary opposition. Attempt to grasp opposition in civil society. Counter-political system to the legitimate political institutions. Radical commitment: german politics are too homogeneous. Search for autonomous expression. General kind of critic Grand coalition emerges to manage economic crisis: fear that german industrial production was not competitive int'lly while it was export-led. To manage issue of competitiveness, changed industrial strategy. Decided german economy had to find a new source of energy input into German industrial production. Historically had relied on coal but began running out or too expensive, feared oil as controlled in middle east. Began thinking of nuclear energy to run factories. Began building nuclear plants: highly politicized in where nuclear cites would be built. Way by which a movement critical of general patterns became critalized around this issue. Out of this issue emerged the most imp. Grassroot org. in Germany: the ecological Green movement (1st in Europe, followed by Belgium) by new left post materialists, post-marxist new left. Goal was to mobilize outside political system while having outcomes in that political system meaning not forming a political party as feared ideals would become corrupted. So for long time, resisted transition from being a movement to a political party. In 1970s, eventually made transition: Green party made breakthrough at local level and consolidate before becoming a national party due to federal nature of political system. Tried to maintain its core commitments through transition in interesting way. Didn't want to be a party like others so organized differently: did not take a salary, party constitution enforced regular change of leadership, party constitution in which activists dominated (vs internal hierarchy avoided). Avoided pbs which deradicalized the old left. Green party has become a lot like others, govern in coalition, organized like other parties run by secretariat, activits are not that important though present, and receive salary. But It has forced all parties to take on issues linked to ecology.
UK: British pattern is primarily about trade unions and their role in politics. British labor mvt and party
Pb: "who governs in the UK? The party in power or the trade unions?" Pb centers on how the economy is managed politically. More specifically, pb of trade unions' role in 1960s-1970s. British settlement: Keynesianism: doctrine by which to manage economics by using gvt policies. Attempt to secure goal of full employment. Economy is naturally unstable. The role of gvt is to intervene in ways that reduce the natural fluctuations of the private economy aka. Manage consumption and demand. The pb is that there is no mechanism by which to put in place simultaneously both full employment and relatively low inflation. Keynesianism uses wage restraint or wage policies to restrain inflation. Because wage restraint is so important, the labor mvt becomes important. Keynesianism is most appropriate in 50-60s for British state. Way to manage inflation to retain full employment. Becomes a challenge in 1970s because of inability of british gvt to restrain wage demands. Emerges a new different political paradigm: monetarism. According to monetarism, economies don't require a great deal of state requirement to regulate themselves through time => different attitudes towards wage restraints and trade unions. Monetarists prefer to discipline unions and eliminate inflation using the rate of growth of the Ms. Monetarists don't want to rely on trade unions to discipline the work force, rather the market forces and if it doesn't you become unemployed. Monetarism became attractive in 1970s because wage restraint weren't working and inflation was being pushed up by wage demands; and because it became an idea around which to organize around the conservative party in order to capture the conservative party and reorient it away from Keynesianism, and to run an electoral campaign against labor. Capturing widespread dissatisfaction w/growing power of trade union in Britain. First attempt at income policies in 1948 in UK: a public pronouncement that W demand should be restrained but the gvt has no power to enforce sanctions if W demands are too high. It was a sign that labor party recognized the necessity to reduce W demands. Conservatives in 50s accepted W driven inflation because it didn't feel like it could take over trade unions, it and was still a period of relatively high economic growth. By 60s moved toward a policy of income policy because of Keynesianist belief that it could commit to full employment. In 1954, Labour party: voluntary income policies (wage restraint) which failed so labor party moved toward statutory income's policy (gvt policy that forces unions to restrain wages by setting sanctions) In 1960s, Pitch battle between labor party and trade union mvt= polarized the labor party among party of nation or party of working class. Failure to restrain W in face of trade union power encouraged less moderate conservatives to question Keynesianism as post war settlement. In 70-74, Heath (conservative) tried to break w/british collectivism in 3 ways:
1. Announced a cut in gvt subsidies to get state out of economy 2. Change to social services provided according to need 3. Announced that he would have no room for income's policy whether voluntary or statuatory. If gvt stood firm in front of public sector, it would remain strong. Had to take the stance vs. the nat'l union of mineworkers which would est. a reputation of toughness of state. But failed and implemented a statuatory income's policy and violated other commitments. Returned the subsidies to nationalize some industries ex. Rolls-Royce. Attempt to break w/collectivist policies failed. It polarized british politics over who governs. In 1974 a labor party is elected until 1979. It writes a social contract setting how labor party in power and trade unions will cooperate to set wages. By late 1970s, their relations are bad = work stoppages, strikes... to force gvt to think of trade unions as a party of class. In 1979, rupture in postwar settlement w/Margaret Thatcher. She runs on economic doctrine of monetarism to break the political power of trade unions. Post war realignment w/coming to power of Margaret Thatcher. From 1979 to 1997, conservatives are in power: long hegemony. Effects of this political realignment: New party emerges out of labor party who want a party on the left which is not dominated by labor mvt. Much more supportive of EU integration Emergence of new labor: the 3rd way Reduces the power of trade unions; more supportive of EU membership; and backs from LT tradition of support of nationalization of industries to renew itself as party of nation and capture votes other than traditional support base. Political realignment introduces new issues. In particular, territorial partition became much more important in 80s and 90s. Visible changes as soon as labor returns to power, using devolution to get their votes back from Wales and Scotland as ST strategy.
BRITISH COLLECTIVISM: way of doing politics minimized differences between conservative and liberal parties. They converged on a set of policies on how to manage the economy. Politics of labor: 1. Labor party has a special connection w/trade union mvt historically. The labor party is formed of a group of working class activitists who had been part of liberal party. The labor party emerges in 1920s out of a sense of working class activitists don't have space out of concerns of the working class. From 1920s on, close connection is reflected in the way programs and policies are implemented and formulated in annual party conferences dominated by trade union members. Trajectory of the labor party from '45 had a big impact on british politics from 80s on. 2.
France is a classic case of labor exclusion
Regime change in post-war period in 1958 towards 5th republic: LR consequence of legacy of French revolution. The 5th is the most durable regime in French political history. It is now deeply entrenched and not challenged. Thoroughly consolidated. Tensions about nature of political regime were not resolved in postwar settlement. The French 5th republic usually associated w/Charles de Gaulle leader of free French. Had a distinguished military district. Withdrew from politics in late 40 in disgust to the way French politics were organized. French society turned to de Gaulle when sought to write a new constitution. Charismatic and deeply conservative w/military history. In 1962, de Gaulle put the most imp. Amendment to constitution of French republic in terms of how the French president was elected. Before 1962, the president was voted from the National assembly. In 1962, the president would now be directly elected in separate election following US model. => LT political consequences: polarization and presidentialization Polarization: refers to tendency of parties to form two competitive alliances due to details of the amendment. The president would be directly elected in 2 stages. First election w/multiple candidates. If one receives more than 50% of vote, he becomes president. If not, the first 2 best are running another election. => gives incentive for parties to form broad coalitions so that their candidates will compete in runoff elections. Polarization along left/right dimension creating socialist&communist to coordinate for second round which is likely because of the nb of ppl who run in the first Presidentialization: political parties give imp. To winning the next presidential election. Creates incentives for parties to become more elaborate, introducing image politics => tendency to introduce ideological moderation.
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Postwar settlement in France in terms of political economy:
Pb of too much centralization. In late 60s, response by radical expression of the old left through work stoppages and strikes in economy and occupation of university campuses. Political reaction against the way business and state colluded to manage the French economy from 1945 on. Five features of this postwar settlement pattern aimed at understanding how business and gvt worked together: Modernizing coalition emerging after 1945 led by bureaucrats and business leaders (labor deliberately excluded because the trade union mvt didn't have the kind of organizational capacity to discipline the action of trade unions, and French politics on the left included a very powerful communist party vs no powerful social-democratic party) Modernizing and economic growth was state led. Economic planning was important in France and it was led by bureaucrats. => set out 5 yr plans for economic production, picking nat'l
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champions that would receive state subsidy, and create nationalized industries where necessary => great deal of state intervention to promote economic growth more than economic modernization. This was made possible because no political counterweight (weak legislative) to appointed bureaucrats Ex. In 12 yrs of 4th republic, there were 24 gvt changes, typically coalition gvts Very centralized, top heavy economic management working w/o input of labour. Growth rates were relatively high so relatively successful management but very uneven social and regional distribution growth ppl thought because of state centralization but 5th rep did not solve any of these so by 1960s, ppl sought different ways to be included in gvt. New postwar generation coming into political world that was centralized and deeply conservative. Alliance emerges between the 2 sectors of society most touched by French way of politics: students and working class. Crises begins w/attempt of gvt to implement wage restraints and reduce the already eliminate trade union's significance in social security system => triggered mobilization by communist and socialist trade unions through self-management of the economy involving the occupation of factories by workers producing a general strike across France in which about half the workers are involved. At the same time, students mobilize on campuses. University campuses had been expanded to provide space for individuals for new spaces were inadequate as they were to further state's intent of modernization. Challenge to constitution of 5th republic. Agrees to provide space for trade unions in labor market. Consequences of may-june '68: .realignment within the French left which means socialist emerge as dominant party in left over the LT as it best responds to polarization by forming the Union of the left and run a "common program" and thus come to power controlling both the National Assembly and gvt in 1981. In 1984, the communist party leaves the gvt coalition