Deutschland im Frühjahr 2004 - Blockierter Standortwettbewerb der Bundesländer?

Norbert Berthold and Holger Fricke

Chapter 6 in List Forum Band 30, 2004, vol. 1, pp 81-110 from List Gesellschaft e.V.

Abstract: Development of economic growth and employment in Germany are sluggish. An inadequate federal system and restricted institutional competition are some of the main shortcomings and reasons for this negative development. The German Länder don't have the competences to shape the key policies. Thus, Germany forgoes the benefits of institutional competition, that would result in an higer level of efficiency. However, there are some policy areas, where the Länder have at least some scope. This holds true especially as far as the administration rather than the legislative is concerned. The study "Die Bundesländer im Standortwettbewerb" evaluates the success of the German Länder. According to this study, the different performance of the Länder is partially due to different policies in areas where political scope acutally exists. If the sluggish competition among the Länder was stimulated, the economic development of Germany as a whole could benefit. Thus, a comprehensive reform of federalism in Germany should take place. Competences are to be distangled. Länder should have much more political scope. As the Föderalismus-Kommision starts its work, proposals are currenly all about. Apparently, most of these suggestions don't meet the needs of a far-reaching reform. (Original text only available in german language)

Keywords: Institutional competition; Germany; economic growth (search for similar items in EconPapers)
Date: 2004
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