By Wyn Grant (auth.)
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Extra resources for The Politics of Economic Policy
Example text
Indeed, they may have some incentive to rationalise their decision. There is some evidence that one of the reasons for the indifferent performance of the opinion polls in the 1992 election was that electors who intended to vote Conservative because they did not want to pay higher taxes were reluctant to admit their motivation to pollsters. The available evidence suggests that economic issues are an important influence on voting behaviour, but are by no means the only important issue-related influence.
In Britain, industrialisation took place before the development of a modern state, and largely as the result of the efforts of individual entrepreneurs. This led to a deeply rooted preference for a limited role for the state. 22 THE POLITICS OF ECONOMIC POLICY Countries following a 'catching up' strategy such as Germany and Japan had to develop an effective partnership between government and business. One aspect of this relationship was the encouragement of effective business associations to act as intermediaries between firms and the state, of which an example is the Handwerk system which facilitates high training and productquality standards in smaller German firms.
The delay in any revival in consumer spending, and the prolongation of the recession, thus had much to do with the particular structure of the British housing market. Some of the major underlying causes of poor British economic performance, such as inadequate training and weak research and development, are to some extent amenable to remedy through government action. Poor quality of management, particularly of the production process, is more difficult to tackle through government policies. Business schools often seem to have concentrated on producing someone suited for a high-level, corporate staff function, for example, a member of a takeover team, rather than remedying the deficiencies of line management of the production process.