Renewing Democracy

Conditions of Efficient Democracy

Lessons from Long-term 
Political and Macroeconomic Experiences

Summary and Table of Contents in English
of a text based essentially on the German case

Eckhard Sambach 


Table of contents
Table des matiéres

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Main site in German
Home page in French



Table of contents
links to text in German

This site will be changed in view of the opinion delivered by the Scientific Advisory Council with the German Federal Minister of Economics and Labour dated 11 October 2003 concerning

"Re-examining Autonomy in Wage Bargaining"

In particular inside the section "Reforming wage bargaining" the suggestions on "Global orientation by Parliament" will be replaced by the Advisory Council's recommendations on the future functioning of the labour market including the unconditional opening by law of the collective wage agreements.


Unacceptable trends and exasperating political developments
Inevitable or almost insurmountable reasons


    Increased capital intensity
         Quantitative aspects
         Negative accompaniments
         Altogether positive balance

    Unwise behaviour
         Lacking overview
         Procedures and criteria of selection
         Lacking orientations
         Insufficient sanctions

    Compatibility dilemma
        Temporal aspect
        Material aspect
    Justice and social dilemma
        Justice dilemma
        Social dilemma

    In political life
    In enterprises
    Avoiding reactions


Renewal of the democratic process


Self-confident citizens
         Basic concept
         Minimum of knowledge
             Arithmetic relations
                 Process analysis
                 Structural analysis
             Empirical relations 
         Informing the citizens
         Right to be informed
             Information as public good
             Information by independent bodies 

Distribution of roles in society
        Citizenry and general government
            Problems with political parties
                Role of the parties
                Institutional gap
                New parties - Their financing
            Opinion poll
            Longer legislative period
Autonomy in wage bargaining
            Meaning and reasons
                Situation-suitable relative wages
                Restraint of politicians
            Excessive demands on wage partners
            Economic problems
                Effects on relative wages
                Effects on structural change
                Effects on the wage level
            Political problems
            Quasi-absolute autonomy
            Reforming wage bargaining
                Global orientation by Parliament
                Abandoning strikes and lock out
        General government and enterprise

Reforms within public authorities
    Independent institutions
        General requirements
        Central bank
    General government
        Distribution of function
        Basic conditions
        Target-instrument relation
            Tinbergen's policy theorem
            Direct instrument-target allocation
        Requirements for the longer term
        Behavior standards for public finance
        Advice on economic policy
        High-level positions
            Reports of Independent Experts
                Reprehensible acts
                Proper behaviour
            Additional request

Mentality problems
    Mentality and politics
    Differences in mentality
        Between countries
        Within countries
    Features of behaviour
    Conflict delimitation

Adjustment between regions 
    Parameters and burden of adjustment
    Role of exchange rates
        Catching up with exchange rates
        Catching up without exchange rates




The Arrow paradox
Real exchange rate fluctuations of the USA
Terms of office of German Bundeskanzler
Capital intensity, the factors labour and fixed capital as well as their productivities, D, 1950 = 100
Population trends (older persons and persons of the employable age), D F US J, 1960 = 100
Adjusted wage share, relation between real wages and productivity, D, since 1950
Adjusted wage share of energy-importing countries, D F A B IRL JP, since 1960
Relation between real wages and productivity (relation of East to West Germany), since 1991
Profitability, growth, investment and employment, D, since 1950
Receipts, expenditure and debt of general government, D, since 1950
Interest payments and compensation of employees of West German enterprises, since 1971
Borrowing and capital formation of central government, D, since 1950
Wage and salary earners of general government (as % of total population), D F US JP, since 1960
Investment ratios, D US JP, since 1960
Relative GDP-prices, effective exchange rates and relative productivity, US JP, 1960 = 100
Relative GDP-prices, effective exchange rates and relative productivity, D, 1960 = 100
Real catching up between Japan and the USA, since 1960
Developments in the United States, since 1960

Relation between real wages and productivity, East Germany relative to West Germany, since 1991
      Global table
      Detail tables
Interest payments and compensation of employees of West German enterprises, since 1971
Borrowing and capital formation of central government, D, since 1950
Regional disparities in France (the three poorest in relation to the wealthiest region), 1982 - 1992


National Accounts
National Statistical Offices
Central Banks
Opinions Serving the General Interest


| Demokratieerneuerung | Political parties | Autonomy in wage bargaining |
Renewal of Democracy | Beginning of page | Renouveler la démocratie|

This site is revised and enhanced
Paragraphs with headings in italics on own web page

The Author is grateful for
suggesting improvements

Copyright (c)1999-2005 by Eckhard Sambach. All rights reserved.









Reform of Democracy 
Regeneration of Democracy