Martin Marcussen

Central banks on the move

Abstract More than 90 per cent of all independent states have established a central bank in some form or other. During the 1990s, a vast majority of all central banks underwent structural reforms, thus achieving a larger measure of legal independence. The article illustrates that the central bank case is particularly interesting since it demonstrates that different levels and dimensions of convergence and divergence are closely interrelated, and that it takes both demand- and supply-driven explanations to account for these change processes.

Unpacking international organisations

List of figures List of tables List of authors Foreword 1. The bureaucracy of international organisations 2. On the principles of organisation of international bureaucracies Section I 3. The European Commission 4. The OECD Secretariat 5. The WTO Secretariat Section II 6. Departmental dynamics in international bureaucracies 7. Supranational dynamics in international bureaucracies 8. Epistemic dynamics in international bureaucracies 9. Intergovernmental dynamics in international bureaucracies Conclusions 10. Complexity and stability in international bureaucracies References Appendix Index

Transverse Integration in European Economic Governance: Between Unitary and Differentiated Integration

Abstract After more than a decade of the euro, we have a good idea about what sort of European macro‐economic governance structure is in the making — its underlying principles and its relationship to EU ‘deepening’ and ‘widening’ and, not least, to globalization. In relation to economic union, above all the single market, the principle of unitary integration provides an overarching framework, its rationale provided by customs union theory. In contrast, monetary union exhibits the principle of differentiated integration, its rationale founded on ‘will and capability’. This duality is expressed in the EU as ‘one market’ co‐existing with several currencies, one of which is the euro. We conceptualize the outcome as ‘transverse integration’ to capture the hybrid, multidimensional and dynamic character of European macro‐economic governance. This concept seeks to show that European macro‐economic governance transcends traditional classifications such as euro ‘insiders’ versus ‘outsiders’ and ‘frontrunners’ versus ‘laggards’ in euro entry. It offers a tool with which to critically examine these classifications. Transverse integration is also multidimensional in capturing the input side (public opinion), governance structures (‘institutional fuzziness’), and output side (performance) of European macro‐economic governance. Finally, it highlights the dynamic character of European macro‐economic governance, showing how the balance between the unitary and differentiated integration principles changes over time. The article argues that it makes more sense to study unitary and differentiated integration as cross‐cutting phenomena in European macro‐economic governance. Experience suggests that differentiation should not be seen as a temporary phenomenon and hence that transverse integration is here to stay.

The OECD civil servant: Caught between Scylla and Charybdis 1

ABSTRACT Civil servants in international secretariats are exposed to numerous, cross-cutting and, at times, conflicting pressures and expectations. The secretariat of the Organisation for Economic Cooperation and Development (OECD) is no different. This study reveals a fundamental ‘misfit’ between external demands and internal dynamics in the OECD Secretariat. On one hand, the OECD analysts are employed on the basis of merit. Compared to the employees in the central administrations in many OECD member states, the OECD personnel are very competitive in terms of experience and academic skills. Thus, the OECD Secretariat can be seen as a veritable powerhouse of idea generation, data collection and analysis. On the other hand, the OECD member states seem to be reluctant to let the OECD do what it does best: produce bright, challenging and provocative ideas. In many regards, the OECD personnel are, in practice, being reduced to undertaking basic secretariat functions such as organizing meetings, writing summaries and arbitrating between conflicting national interests. Despite having a vast role repertoire of roles at their disposal, this article reveals the paradox when OECD officials play out only two roles: the epistemic role, in which creative thinking and innovation are rewarded, and the bureaucratic role, in which rule following and regularity are rewarded. This paradox is characterized as a role dilemma that is compatible with the idea of the OECD as an international compound bureaucracy. The article concludes by suggesting three scenarios of how the observed dissonance between the internal and external dimensions of the OECD identity can be accommodated.

Denmark and european monetary integration: Out but far from over

Denmark is not likely to introduce the European single currency in the foreseeable future. At present, Danish politicians and the country’s population do not consider the issue of the euro to be of primary importance for the development of the Danish society and polity. Despite (or maybe because of) the fact that the country is a euro‐outsider it is performing quite well economically and politically. Thus, Denmark may be an ‘out’ country but it is definitely not ‘over’ and done with as regards European monetary integration. Furthermore, the present situation is not historically unprecedented since Danish monetary authorities have traditionally not been used to having monetary sovereignty to any significant extent. This implies that Danish policymakers have found a number of indirect means to influence monetary policy‐making in the euro‐area.

Transcending Analytical Cliquishness with Second-generation Governance Network Analysis

Two distinct traditions in the analysis of governance networks appear to have developed without drawing significantly on one another’s methodological and analytical strengths. The first, Social Network Analysis, is primarily practiced by American social scientists applying quantitative research methods. It emphasizes the network attributes of actors and/or their structural position in larger networks. The second tradition, Policy Network Studies, is primarily a European phenomenon emphasizing the economic and political resources that actors bring with them to networks, interdependence between network actors, as well as the larger institutional context in which network negotiation is embedded.

Bending and bowing the BIS

The official story of the Bank for International Settlements is one of continuous transformation over a period of almost 80 years. It has survived one crisis after the other. It is true that its functions and purpose have changed over the years, but the chameleonic change the Bank exhibits does not reflect change in all aspects of what is a very complex organization. If we look inside the organization we get a picture of basic command structures that have remained completely intact for the entire life-span of the organization. Thus, a study of the Bank for International Settlements clearly illustrates that actors play decisive roles for organizational change as well as for stability. Institutional entrepreneurs adapt the functions and purpose of an organization to the changing environment, whereas maintenance workers invest all their skills and resources in protecting and consolidating the power relations that were established during the very first months of the organizations life.

Out of the Box Coping Successfully with Euro-Outsiderness

The existence of the euro-area has lowered the costs emanating from the autumn 2008 financial crisis for weak euro-area economies. For the Scandinavian euro-outsiders, the financial crisis awoke a public discussion about the pros and cons of the euro. This is just natural in a situation of crisis. Owing to their good economic standing, however, the Scandinavian euro-outsiders have not, on the whole, been worse off outside the euro-area than EU member states inside it. One reason may be the level of micro-innovation. Over the past 10 years, a considerable amount of experience has been accumulated among the euro-outsiders. Innovative ways have been found to compensate for non-membership of the euro-area. In fact, it seems as if the special status of the semi-permanent euro-outsiders, such as Denmark and Sweden, initially has worked as a catalyst for innovation among civil servants and other stakeholders, thereby contributing to innovation in the entire public sector in these countries. Somehow this stands in sharp contrast to the reform rhythm among the euro-insiders.