Governments in some democracies
target benefits to small groups at the expense of many
using policies like subsidies. Why do some governments
redistribute more narrowly than others? The
willingness of elected leaders to selectively target
economic benefits to business depends on how
politicians are elected and the geographic
distribution of economic activities within a country.
Based on interviews with government ministers and
bureaucrats, as well as parliamentary records,
industry publications, local media coverage, and new
quantitative data, the book demonstrates that
government policy-making can be explained by the
combination of electoral institutions and economic
geography. Specifically, it shows how institutions
interact with economic geography to influence
countries' economic policies and international
economic relations. Identical institutions have
wide-ranging policy effects depending on the context
in which they operate. As a result, no single
political institution is a panacea for pressing issues
like income inequality, international economic
conflict, or minority representation.
"A refreshing new perspective on the
economic effects of electoral rules, supported by new
evidence and a rigorous analysis of the interaction of
geography and politics. This book makes a
path-breaking contribution to the analysis of modern
democracies, and sheds new light on the political and
institutional determinants of particularistic economic
policies."
- Guido
Tabellini, Intesa Sanpaolo Chair of
Political Economics, Università Commerciale Luigi
Bocconi
"Spending to Win shows that the interplay of
national economic structure and national electoral
systems has a powerful impact on economic policy. In
it, Rickard analyzes how the geographical distribution
of economic activity interacts with the character of
electoral institutions to affect politicians'
incentives to cater to special interests. Spending
to Win is an original, creative, and compelling
contribution to our understanding of the making of
economic policy. It is a must read for anyone
interested in economic policy, political economy, and
electoral institutions."
- Jeffry
Frieden, Stanfield Professor of
International Peace, Harvard University
"Rickard’s study adds value to a wide swath of
literature in comparative political institutions,
comparative political economy, and international
political economy. Using new data, new measures, and
meticulous interview research, Rickard shows us that
geography is a crucial, and often forgotten, variable
for understanding distributive politics."
"A welcome return to an institutional-themed approach
to the policy impacts of electoral rules. Spending
to Win provides a very useful approach to
empirically demonstrating the relation of electoral
institutions and political strategies. By providing a
novel and useful approach to operationalizing
political spending strategies through the analysis of
subsidies, the study will surely encourage future
expansions and refinements."
"Rickard's book asks an important question in
political economy: why do governments sometimes
respond to the broad public and other times to special
interest groups? Her research helps solve the puzzle
of why concentrated interest groups sometimes get what
they want in politics and sometimes are unable to."
- Helen
V. Milner, B. C. Forbes Professor of
Politics and International Affairs, Princeton
University
"Rickard's book provides a clear and compelling theory
of subsidies to special interests across the world's
wealthy democracies. Its account of how electoral
institutions interact with geographic dispersion of
industries is at once simple and powerful. The study
makes a particularly important contribution to our
understanding of economic policies directed to special
interests in systems of proportional representation."
- Miriam
Golden, Peter Mair Chair in
Comparative Politics, European University
Institute
"By inventively operationalizing the previously under
appreciated variable of geographic concentration of
industries, Rickard greatly advances and refines our
understanding of the link between electoral systems
and protection. Both her logic and her marshaling of
evidence are impeccable."
- Ronald
Rogowski, Distinguished Global Visiting
Professor, New York University Abu Dhabi
Table of
Content and Sample Chapters
Chapter 1:
Who Gets What and Why? The Politics of Particularistic
Economic Policies
Governments' willingness to selectively target economic
benefits, like subsidies to businesses, depends on the
way politicians are elected and the geographic
distribution of economic activities. Electoral
institutions interact with economic geography to
influence countries' economic policies and international
economic relations.
Chapter 2: The Uneven
Geographic Dispersion of Economic Activity
One of the most striking features of modern economies is
the uneven distribution of economic activity.
Activities, such as production and employment, are
unevenly distributed across space. In this chapter, I
explore the concept of economic geography: what it is,
why does it vary, and how might it matter for politics?
Chapter 3: How
Institutions and Geography Work Together to Shape
Policy In this chapter, I discuss the mechanisms through
which economic geography and electoral institutions work
to shape leaders’ policy incentives, notably effective
vote maximization and the nature of electoral
competition. I also discuss possible alternative
mechanisms including government partisanship, factor
mobility, party discipline, and electoral
competitiveness.
Chapter 4: Explaining
Government Spending on Industrial Subsidies
Subsidies for the manufacturing sector constitute a
larger share of government expenditures in countries
with plurality electoral systems than in countries with
proportional systems when manufacturing employment is
geographically concentrated. When manufacturing
employment is geographically diffuse, governments in
proportional systems assign relatively more of their
budgets to manufacturing subsidies than governments in
plurality systems, holding all else equal.
Chapter 5: The Power of
Producers: Successful Demands for State Aid
Two violations of European Union rules on State Aid are
examined in this chapter: a program to support Cognac
producers in France and a subsidy for Austrian wine
makers. The two subsidy programs exhibit different
characteristics because of the respective countries’
electoral institutions and economic geography.
Countries’ electoral institutions and economic geography
influence the likelihood of governments’ compliance with
EU state aid rules.
Chapter 6: Why
Institutional Differences among Proportional
Representation Systems Matter
Among proportional systems, spending on subsidies for
diffuse groups is higher in closed list systems, where
voters select a party at the ballot box, as compared to
open list systems where voters to select individual
candidates from a party’s list. The most generous
subsidies in PR systems occur in open-list systems with
high mean district magnitude and geographically
concentrated groups.
Chapter 7: The Policy Effects
of Electoral Competitiveness in Closed-List PR
The generosity of government-funded subsidies varies
between electoral districts in an archetypal
proportional system: Norway. Parties target subsidies to
districts where they have relatively more supporters.
Qualitative evidence from interviews of government
ministers and bureaucrats responsible for the
administration of Norway's subsidy programs confirm the
importance of electoral politics and economic geography
for governments’ spending decisions.
Chapter 8: Conclusion
and Implications My argument suggests a solution to the debate
over which democratic institutions make politicians most
responsive to special interests, namely economic
geography. My argument also adds an important element to
neo-institutional theories in political science by
demonstrating that it matters not only what voters want
from government but also where they are located.