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German Politics and Society

ISSN: 1045-0300 (print) • ISSN: 1558-5441 (online) • 4 issues per year

Volume 35 Issue 1

Wal-Mart Goes To Germany

Culture, Institutions, and the Limits of Globalization

Matthias Kaelberer Abstract

Wal-Mart’s failed entry into the German retail market represents a puzzle for theories of globalization, which assert that more efficient producers will drive out poorly performing competitors, producing profits for themselves and gains for consumers. Wal-Mart’s ability to dominate its input network and to provide low-cost leadership through lean production has often been seen as the global example of creating efficiencies in the retail sector. In 2006, however Wal-Mart abandoned an eight-year effort to become a dominant player in Germany’s retail market. I argue that efficiency is not absolute, but rather context-specific and socially constructed. Domestic culture and institutions interact to constrain convergence towards a single business model in the retail sector. In the end, it was not the rigidity of German market conditions—such as high labor costs or union power—that led to failure, but rather the inflexibility of Wal-Mart’s strategy in coping with complex local conditions.

Cues for Integration

Foreign Policy Beliefs and German Parliamentarians’ Support for European Integration

A. Burcu Bayram Abstract

How do foreign policy beliefs affect German parliamentarians’ (mps) support for European integration? Despite important advances, the literature has overlooked the effect of foreign policy beliefs on national representatives’ attitudes toward integration. This study provides a systematic investigation of the role foreign policy beliefs play in shaping German mps’ support for European integration. I argue that given the complex and contentious character of European integration politics mps derive heuristic cues from their foreign policy beliefs to form opinions on the desirability of integration. Using data from an original survey conducted with members of the seventeenth German Bundestag, I show that a belief in multilateralism increases support for European integration while isolationist and hawkish foreign policy orientations decrease support. These results indicate that support for European integration is not merely determined by party ideology, electoral pressure or economic considerations, but also has a psychological foundation shaped by politicians’ core beliefs about how the world of international politics operates.

Germany and Russia Since Reunification

Continuity, Change, and the Role of Leaders

Randall Newnham Abstract

How can we understand German-Russian relations since German reunification? Both the geopolitical positions of the two states and the political and economic ties between them have been transformed over the past twenty-five years. This paper will argue, however, that the role of the two countries’ leaders in shaping these relations has been surprisingly important. Building on the tradition of “first image” analysis in international relations, this paper shows that, along with larger political and economic trends, personal relations between these leaders have helped to set the tenor of bilateral ties. When the leaders were able to build trust and personal friendships, relations improved. Yet more recently, since 2012, relations have soured sharply. While there are obviously larger reasons for this, more negative personal ties between leaders have also played an important role. In short, just as issues of trust and friendship matter in personal ties, they also matter in International Relations.

Anticorruption

A Case of “Good, but Could Do Better”

Dan Hough Abstract

This article utilizes a neoinstitutionalist framework to argue that while Germany’s anticorruption infrastructure remains strong, resilient path-dependent tendencies often make it difficult to reform. The article analyzes three specific areas: the state’s attitude to regulating German business, meeting international anticorruption commitments, and doing justice to the rising transparency agenda. High-profile examples of corruption in multinational businesses prompted significant changes to these companies’ compliance regimes. This critical juncture, however, did not prompt reform across much of the Mittelstand. Germany’s preparedness to fulfill international commitments, meanwhile, has been strongly dependent on correspondence with the internal logic of German politics and law. Where this was not so and in the absence of any critical junctures, change has been infrequent. Finally, the rise of an international transparency agenda has not fit with the logics of German public life, and change has been minimal. Thus, despite a strong anticorruption record, German elites would benefit from proactively thinking about where corruption lurks and what could be done.

Book Reviews

Jeffrey LuppesKlaus BerghahnMeredith Heiser-DuronSara JonesMarcus Colla