Electoral and partisan influences on Australian fiscal policy from Menzies to Hawke

I examine the controversial questions of whether or not partisanship and electoral motives shape the fiscal policies of Australian governments. I also extend the partisan model of policy choice for the Australian case. Specifically, using time‐series data for the financial years 1962–63 through 1989–90,1 explore partisan and electoral influences on the overall fiscal stance and the personal income transfer payments of the Commonwealth government Results indicate that, net of the influences of inertia in the policy process and of variations in economic forces, partisanship and elections play significant roles in determining both overall fiscal policy and income transfer outlays. Analyses reveal that fiscal policies become more expansionary across the electoral cycle while Labor and coalition governments have large but diminishing partisan effects cm policy over their terms in office.     

Austerity,Right Populism,and the Crisis of Labour in Canada

In the aftermath of the 2008 financial crisis, neoliberal governments embarked on austerity programs that include reducing public services, imposing public sector wage restraint, and reorganizing public sector working conditions and labour relations. In this context of economic crisis and austerity, populism has risen across North America and Europe on both the right and left of the political spectrum. The rise of right populism in particular confronts unions with key organizational and strategic challenges as neoliberal governments seek to mobilize right populist discourses in their efforts to restructure work and labour relations. Using a socio‐geographic framework, and based on an examination of post‐2008 legislative and policy measures undertaken at the federal, provincial, municipal levels in Canada, this paper explores the nexus between “uneven austerity”, rising populism, and union strategic capacities. We examine this intersection of austerity and populism at multiple scales to reveal the implications for organized labour.     

Sir Otto Niemeyer,the bankrupt state and the federal system

One of the main myths about Australian political and economic history relates to the intervention in economic policy making in the 1930s by the Bank of England through the mission of Sir Otto Niemeyer. This article argues that Niemeyer's advice was not heeded. Rather, parallels between what he demanded and the Premiers’ Plan were largely confined to the level of rhetoric as part of a strategy to regain access to the London capital market. State expenditures were reduced gradually according to local political calculations and fiscal priorities, and not in step with the timetable set by the Bank of England. Far from weakening and dividing the Australian state, the federal separation of powers led to the gradual introduction of fiscal austerity, as state governments had little option but to maintain their role in complementing capital accumulation and facilitating social legitimation.     

Unravelling Washington's Judgement Calls: The Cases of the Malaysian and Chilean Capital Controls

While the option of constraining cross-border financial flows to emerging markets (capital controls) has taken a backseat in the official policy debates about strengthening the global financial architecture, the International Monetary Fund (IMF) has ceded that certain temporary measures to limit the inflow of hot money may be beneficial in achieving some breathing space for governments. In this sense, capital controls are only to be used as a means to reach the larger end, namely, the proper (neoliberal) management of financial liberalisation. Indeed, by sanctioning a particular type of capital control it is engaging in a political judgement call, which is based upon certain material interests, as opposed to mere economic logic. This becomes evident when we juxtapose two different types of capital controls: the Chilean unremunerated reserve requirement, which was endorsed by the Fund, and, conversely, the IMF's rejection of the Malaysian currency control. I suggest that the IMF's opposition to Malaysian controls stems from its perception that capital restraint on outflows threatens the imperative of free capital mobility, which benefits both the US and transnational financial capitals.     

The Rhetorical Framing of Policy Intervention

When prime ministers speak, the nation usually listens. In the Australian federation, prime ministers have consistently used the power of their political pulpit to launch policy interventions into areas of traditional State responsibility. This article suggests that there is an emerging rhetorical pattern to the way these policy interventions are presented. Prime ministers of both major parties have used rhetoric to portray the Commonwealth as acting on behalf of the legitimate interests of constituents who have been ignored by State governments. Occurring in close proximity to federal elections, policy interventions are shown to be weapons which favour incumbent prime ministers in their battles with State governments and federal oppositions alike.     

DO FEDERAL DEFICITS MOTIVATE REGIONAL FISCAL (IM)BALANCES? EVIDENCE FOR THE SPANISH CASE

This paper studies the vertical and horizontal interactions between federal and regional governments in terms of public deficits. Recent studies commonly restraint budget slippages to the incentives created by the institutional arrangements within a country. Alternatively, we estimate here a fiscal reaction function for the Spanish regions over the period 1995–2010, paying special attention to the impact of the federal fiscal stance on regional fiscal imbalances. Our results indicate that higher public deficits for the central government encourage larger fiscal imbalances at the regional level. This vertical interaction is interpreted in the context of yardstick competition models. We also find a significant impact from fiscal decisions taken by governments at the same decision‐making tier in a specific region.     

Politics,Society and Financial Liberalization: Turkey in the 1990s

This article focuses on the political economy of Turkey in the 1990s to illustrate the importance of analysing economic variables that intersect with the quality of political democracy. In 1989, the debt‐ridden state moved to systematically and completely deregulate Turkey’s financial markets. Together with the ongoing processes of liberalizing commodity markets and integrating with global capital markets, financial liberalization was expected to achieve fiscal and monetary stability, stimulate business confidence to invest in productive sectors, produce stable growth, encourage privatization and control inflation. However, the new hegemony of the capital markets has gone hand‐in‐hand with deteriorating macroeconomic performance, a worsening income distribution, the discrediting of politics and its isolation from society. The authors examine several key dynamics which are helping to legitimate the neoliberal agenda of the 1990s. These include the distribution of state largesse to manipulate electoral capitalism; the rise of an informal sector in the ‘Anatolian Tigers’; promotion of the seductive attractions of the market; and an antipolitical reform populism adopted by political actors to exploit popular disillusionment with the political system.     

Tensions between municipal reform and outdated fiscal levers in rural British Columbia

Debates about the future of small municipalities in Canada are set against a backdrop of economic, political, and social restructuring processes that have displaced former state investment policies in favour of neoliberal public policy approaches. Small municipalities struggle with outdated financial and governance structures and a provincial public policy agenda that asks them to become more creative, innovative, and “entrepreneurial” in their approach and responsibilities. Drawing upon key informant interviews with eight case studies in British Columbia, Canada, this research examines the tensions between municipal reforms mandated by the provincial government over the past 30 years and commensurate fiscal levers and capacities in place to address these broadening responsibilities for small municipalities in volatile staples-dependent regions. Our findings demonstrate how successive provincial governments have mobilized New Public Management objectives through a host of legislative and regulatory changes that have increased the responsibilities and requirements on local governments without commensurate fiscal or jurisdictional capacity.     

Recently Observed Polarising Tendencies and Australian Cities

Recent research and writing about social and spatial polarisation in Australian cities is reviewed in a five-part study. The first part outlines the international context in which Australian urban restructuring and polarisation is occurring. The second considers the consequences of structural adjustment in Australia in terms of changes to the distribution of national income and social costs. There is an apparent incongruity of sharper spatial disparities developing during a decade (1982—94) when the living standards of the poor were maintained at 1982 levels by the social security system under federal Labor governments.Part three surveys several recent that explicitly set out to measure shifts in urban spatial inequality, and thereby help to clarify aspects of the debate about social and spatial polarisation under Australian conditions. Part four sets out to show how both the construction of this debate, and the response of governments to urban restructuring in Australia, are implicitly grounded in three competing theoretical frameworks: ‘post-marxist’ political economy; neoliberalism; discourses of identity and difference. Finally, practical and ethical issues are raised that stem from the triumph of neoliberal ideology over alternative visions of the ‘companionable state’.     

Competition between regional governments and the federal culture of fiscal equalisation

Since federation, regional economic development in Australia has been shaped by fiscal competition among state and Commonwealth governments. Variations in the fiscal capacity of the different governments to provide goods and services, together with the Commonwealth's increased revenue collection powers since 1942, has led to vigorous political competition between the states over their share of the general purpose funds through a process known as fiscal equalisation. The state premiers themselves have been at the forefront of the debates over fiscal equalisation and, as events surrounding the 1992 June Premiers’ Conference have indicated, competition over an equitable share of the fiscal resources highlights the strong federal orientation of economic development. The aim of this paper is first, to explain the significance of the Commonwealth Grants Commission's equalisation process in the wider economic and political context of competitive state federalism and, second, to explain the historical importance of regional political values that contribute to the shape of state economic developments.     

The economic planning advisory council: The reality of consensus

The Hawke federal Labor government continued the process of national reconciliation and consensus‐formation begun by the National Economic Summit by institutionalizing group/government intermediation and consultation within the Economic Planning Advisory Council (EPAC). This paper looks at the development of the policy which led to the establishment of EPAC to determine what was expected of such a body. The objects and functions of the council are then examined to determine whether its operation increases the efficacy of consensus in government policy‐making. The formal institutionalization of interest groups into the policy process opens up questions about the relevance of theories of corporatism to this innovation in the Australian political system and the findings of this paper in regard to EPAC are discussed in this context to ascertain whether there is evidence of corporatism inherent in these arrangements. Finally, consideration has been given to the question of whether EPAC and consensus have changed the relationship between sectional interests and the government in the Australian political system.     

Establishing political priority for regulatory interventions in waste management in Australia

ABSTRACT

This paper establishes a multi theory framework to help explain factors and conditions promoting a political priority for policy change. The framework’s analytical utility is illustrated through its application to a case study of waste management in Australia. A lack of political momentum to prioritise regulatory interventions has contributed to uncoordinated responses by the Australian federal and state governments resulting in unsustainable approaches to waste management. Lessons are derived from the analysis that provide insights into the potential for establishing political priority for policy change from uncoordinated voluntary schemes to more coordinated regulatory approaches.     

Global Rhetorics, National Politics: Pursuing Bank Mergers in Canada

In the neoliberal reconfiguration of both national and international political economies during the 1980s and 1990s, the interests of North American financial capital have apparently reigned supreme. Having ceded sovereignty to financial markets and financial institutions, national states seem to have lost their power to control them: the genie appears to be well and truly out of the bottle. Drawing upon an analysis of political debates in Canada over plans by the country's largest banks to merge, this article critically engages with literatures that imply that liberal strategies and corporate politics are doomed to prevail. In exploring the reasons for the Canadian government's rejection of the mergers, the article demonstrates the complex relationships between geography, politics and economics in the discursive representations of the national interest. Not only did the banks fail to understand the need to lobby effectively, the paper argues, but bank finance has gone from occupying a privileged role in the Canadian body politic to one in which its interests must now compete openly against others, highlighting important political changes in a globalising world.     

Rethinking Development Space in Emerging Countries: Turkey's Conservative Countermovement

Despite an increasingly flexible global policy context, most emerging countries refuse to venture beyond their pre‐existing development strategies. This article contends that in some cases domestic political constraints under liberalized markets might preclude policy dynamism. In particular, it draws attention to the tension between market expansion and social cohesion as a formative influence over policy patterns. This tension is sometimes addressed through a conservative countermovement whereby liberally‐oriented governments entice sections of the poor into broad electoral coalitions by employing palliative interventions alongside market‐expanding policies. Turkey's ruling Justice and Development Party (AKP) is one example. Central to the Turkish case has been the redeployment of the country's historic foreign capital‐dependent pattern of growth in the service of selective redistribution and credit‐fuelled consumerism. The ensuing deficit‐led neoliberal populism assured stable and equitable growth in the extraordinary international and domestic context of the mid‐2000s, but has proven unfeasible since the global crisis. However, this coupling of market and social preferences has become politically so firmly entrenched in time that it now constrains the policy options to address Turkey's developmental impasse.     

Australian Aboriginal Policy: Aboriginal Pressure Groups or Government Advisory Bodies?

Western democracies in the 1970s including Australia experimented with more permanent mechanisms for obtaining policy advice at the national level from their politically unorganized indigenous minorities. This paper examines some of the difficulties encountered when federal governments attempt to foster national Aboriginal organizations with possible pressure group functions. As a case study in federal policy-making this two-part paper analyzes the steps by which the Australian government terminated the initial experiment with the government-created National Aboriginal Consultative Committee (1973–76) and, using selectively a commissioned report by Dr L. R. Hiatt (Part I), structured in detail two new bodies: the National Aboriginal Conference and the Council for Aboriginal Development (Part II). The paper argues that unless governments develop a serious policy of Aboriginal political development at the national level, governments will subvert their own goals by fostering Aboriginal organizations in which neither they nor Aboriginals have confidence.     

Policy Instrument Choices for Growth Management and Land Use Regulation

What factors account for local government land use practices and their choices among specific growth management policy instruments? We apply the political market framework to examine how land use policy choices in Florida are shaped by institutional features of county governments and the demands of organizations and interests in a community. Local policy decisions reflect a balance of the conflicting interests and responses to economic and political pressures. The results demonstrate that county government structure and election rules play critical roles in the adoption of urban service boundaries, incentive zoning, and transfer of development rights programs. We report evidence consistent with the argument that these “second‐generation” growth management policies are motivated by exclusionary goals.     

The Liberal Paradox and the Politics of Asylum in Australia

This article interprets the politics of asylum in Australia in light of what James Hollifield calls ‘the liberal paradox’; that is, the trend amongst contemporary states towards greater transnational open-ness in the economic arena alongside growing pressure for domestic political closure. It begins with an outline of Australia's recent history of economic reform and of the discourse of globalisation that has been employed to legitimise the changes wrought by this transition. Focusing on the period from the late 1990s to the early 2000s, the article provides an account of anxieties associated with these changes and an analysis of government strategies to secure the support of disaffected sections of the electorate. Asylum policy is analysed in this context. The article shows how the policing of asylum seekers constitutes performances of political closure designed to assuage those made vulnerable by Australia's neoliberal economic trajectory. It argues that these politics of asylum are indicative of the tensions between transnational engagement and territorial closure faced by neoliberal states more generally.     

Neoliberalism in a Small Canadian City? Windsor City Council and the Reform of the Detroit River Border Crossing

This article examines the idea of the neoliberal city. Using the reform of the Detroit River international border crossing between Canada and the United States as a case study, the article explores the extent to which a small- to medium-sized Canadian municipality is capable of developing policy positions that challenge neoliberalism. The conclusion is mixed. Windsor City Council is not advancing policies that present a fundamental challenge to the economic status quo. It does not, for example, challenge the rationale that a new border crossing will facilitate freer trade. Nevertheless, neither are the municipal council's positions completely in line with arguments that municipal governments have no room to advance positions in opposition to major economic interests. The council is advancing policy positions opposed by major local, regional and international business interests. There is, therefore, some evidence of the possibility of local agency within the geography of neoliberalism.     

Privatization and Democratization in Lithuania: A Case Study of Who Benefits in Siauliai

While Lithuania had undertaken substantial political and economic reform prior to independence, the greatly accelerated pace of privatization following the restoration of same resulted in the emergence of a business class at the local level controlling most of the economic wealth. Concurrent with the process, the state became increasingly less able to either subsidize local governments or assist those hurt most by the reforms. A case study ofSiauliai, Lithuania demonstrates that while the new local business class is overrepresented in the city's government other social elements are not without political voice. Indeed, there appears to be substantial evidence of an "urban regime" linking political office seekers and business interests in an interdependent relationship permitting the former a significant degree of latitude in responding to the demands of pensioners and other citizen groups who make up the majority of their political base.     

Redemocratization and Decentralization in Brazil: The Strength of the Member States

With redemocratization and the promulgation of the 1988 Constitution, Brazil became highly decentralized in terms of the distribution of financial revenue and political strength. As a result, sub-national governments, and especially the states, are now at the centre of the political and financial scene. In the absence of party-oriented politics, regional politicians, and particularly the state governors of the most important states, provide the federal government with ruling coalitions. The central question addressed in this article is what the state governments and their politicians are doing with this political and financial strength. A further point made is the importance of incorporating the states into the framework of analysis of decentralization: at the state level it is possible to identify a number of details about processes which remain too general at the national level and too specific at the local level. Brazil's experience in a decade of political and financial decentralization shows that although decentralization fosters democracy, a variety of other political and economic factors are also of influence, thus exposing the limits of decentralization's impact on policy results.