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State Traditions in Institutional Reform

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State Traditions in Institutional Reform STATE TRADITIONS IN INSTITUTIONAL REFORM. A CASE STUDY OF FRENCH AND GERMAN TELEPHONE POLICY DEBATES FROM 1876 UNTIL 1997 Thesis submitted for the Ph.D. degree June 2004 London School of Economics and Political Science Government Department Marit Sjovaag Marino UMI Number: U194823 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. Disscrrlation Publishing UMI U194823 Published by ProQuest LLC 2014. Copyright in the Dissertation held by the Author. Microform Edition © ProQuest LLC. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code. ProQuest LLC 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106-1346 «y «Political anc Economic Science TKtS^S F 836/ Abstract This thesis tests the claim that national differences in sectoral state traditions diminish over time. The case study covers telephone policy debates in France and Germany in five time periods fi*om 1876 until 1997: the ‘consolidation phase’ (1876 - 1900); the 1920s; the post-Second World War years; the debates leading up to corporatisation in the 1980s; and the debates around opening for full competition in the 1990s. The analytical framework is founded in writings on state traditions and on the role of ideas and discourse in policymaking. The study’s object of investigation, ‘sectoral state traditions’, is developed to allow for comparison both longitudi­ nally within one country and cross-nationally. It comprises the notion of authority and of who should be the relevant actors in the policy process; public ethos of sectoral policies; and criteria for legitimate decision-making procedures and discourse. Central concepts and ideas in public debates are identified in both countries for each period. The investigation of public political debates (parliamentary debates, governmental and other public documents, and newspaper articles) in each country shows that sectoral state traditions were highly resistant to change. Cross-national comparison fiirther corroborates the persistence of the two sectoral state traditions, which, despite common external fectors (technology, international cooperation, supranational legislation), showed little or no convergence. The set of actors perceived as relevant to policymaking remained largely stable throughout the period under investigation. The French ethos of ^service public", and the German ethos of efficient infi-astructure provision, remained central. Criteria for decision-making and discourse altered m France in the late 1980s, whereas they remained stable in Germany. Evidence therefore does not support a hypothesis of convergence between the two sectoral state traditions. This thesis is the product of a long process which would have been made even more difficult had it not been for the invaluable help and support from these persons: The Centre for European and Asian Studies at the Norwegian School of Management and Telenor was at the origin of this project. I would particularly like to thank KjeU A. Eliassen, Catherine Borve Monsen, and Patrizia Cincera, who provided an inspiring research environment. Ellen Jacobsen provided continuous moral support, and Kare Hagen showed an impressive patience while I was playing around with different ideas. At the London School of Economics and Political Science I must thank Prof. George Jones, Martin Lodge, Lindsay Stirton, Steve John, Simon Hix, and Maria Kampp, who all provided useful comments to my numerous drafts. Winston Maxwell at Hogan & Hartson in Paris taught me about the finer points of French law. Patrice Carré and the staff at France Telecom’s archives in Paris provided invaluable help and assistance on my way through the French official documents. Raymund Werle at the Max Planck Institut in Cologne gave me easy access to a host of documents it would otherwise have been difficult to find. Verona Christmas- Best was invaluable in translating long and difficult sentences into readable English. Svein Sjovaag and Ingun Sjovaag both solved pressing technical problems as and when they occurred. Petra Tree has been invaluable to my children, and, therefore, to me. Thank you. The biggest thank, however, goes to my supervisor. Dr. Mark Thatcher, who has shown remarkable continuity and stability throughout this project. TABLE OF CONTENTS Introduction: The continuity of ideas in telephone policy 11 S ectoral state tr a d itio ns 11 Contribution a n d limitations of th esis 12 THE CASE STUDY - SECTORAL STATE TRADITIONS IN TELEPHONE POLICY 14 A pproach 18 Archive search and selection 19 Evaluating stability and change 23 Weighting of different actors’ discourse 25 T hesis o utline 26 Chapter 1 Ideas, state traditions, and political discourse 29 T he im po rtance of ideas 30 The ‘state traditions’ concept 35 Ch anges in id ea s a n d state tr a d itio ns 40 D isco urse a s indicato r of sectoral state tr a d itio ns 44 The role of institutional reform 46 A n a ly sin g secto ral state tr a d itio ns 47 Defining sectoral state traditions; Central elements 48 Origin of a sectoral state tradition 49 Determining change in sectoral state traditions 50 T he em pirical c a ses - french A n d g erm a n teleph one policy d eb a t es 52 Chapter 2 Consolidation of state monopolies - the first 25 years of telephone service provision 54 THE CASE OF Fr a n c e 5 5 Telephone policy and the state: 1876-1900 56 Sovereignty, the government, and social interaction 57 Liberty or equality, competition or monopoly 59 Early telephone legislation 61 License conditions 64 The 1880s - principles and pragmatism 66 The case of Limoges -administrative solution to financial challenge 71 Nationalisation 73 Budgetary unity vs. industrial activity - the 1890s 74 T he case of G er m a n y - 77 The telephone and the state: 1876-1900 78 The nature of the telephone monopoly 79 Early drivers of network expansion 85 The 1880s - legislative confusion and political neo-mercantilism 87 The Telegraphengesetz of 1892 90 The Telegraphenwegegesetz of 1899 94 The Femsprechgebührer-Ordnung from 1899 98 Co n c lu sio n : Consolidated sectoral state tr a d itio ns in the teleph one secto r in France a n d G er m a n y 100 Chapter 3 The reforms of the 1920s 106 T he CASE OF Fr a nc e 107 French telephone policymaking in the early 20^^ century 109 Service public 110 Budgetary unity 114 Changing view of the end-user 117 Financial and technological deterioration 118 Parliamentary debate 120 Reform outcome - the Loi des finances of 1923 127 T he c a se of G er m a n y 132 Telephone policy in Germany in the early 20* century 133 The situation prior to reform 136 Changing power structures - the Weimar republic 137 Public debate 138 RPTV autonomy 139 Budget balancing 141 Commercial management principles 145 Reform outcome - the Reichspostfinanzgesetz of 1924 146 Policymaking after 1924 150 Modem management and rationalisation measures 153 Relations between the Reich and the Lander - the Femmeldeanlagengesetz of 1927 155 Co n c lu sio n : S tability a n d ch ang e in secto ral sta te traditio ns DURING THE 1920s 156 Chapter 4 The post-war regime 160 The case of F r a n c e 161 Telephone policy in the post-Second World War years 164 Public political discourse: the continued importance of service public 165 The 1950s and the 1960s: ‘efficiency’ and ‘autonomy’ 168 Efficiency 171 Determining the cost of service publics 172 Organisational autonomy 173 Financial autonomy - the CNT 175 T he c a se of G er m a n y 178 Post-Second World War debate on telecommunications policy 182 The end of the Reichspost 183 Legal provisions in the new Bundesrepublik 185 The new Constitution 185 The Postverwaltungsgesetz (PverwG) of 1953 188 Principle of democratic administration 189 Principle of Sondervermogen 191 The Sachverstandigkommission 1965 196 The Kommission Deutsche Bundespost 1970 201 Co n c lu sio n : S ectoral state traditio ns in tfie po st- w a r period 203 Chapter 5 Changing the status of the public operators 208 THE CASE OF Fr a n c e 209 The situation prior to reform: telecommunications policy in the 1970s 212 Changing environment of telecommunications services 213 Increasing political awareness 215 Legislative action 218 European legislation and domestic competition 220 The Prévôt commission 224 The 1990 Law on the organisation of posts and telecommunications 229 The 1990 Law on the regulation of the telecommunications sector 233 THE CASE OF Ger m a n y 238 Telephone policy in the 1970s: changing ideas about organisational framework 240 Growing support for competition 244 Further debate on competition 249 Report from the Government Commission for Telecommunications (The Witte Commission) and the Government’s Concept 252 A new law on telecommunications in Germany 258 Co n c lu sio n : S tability a n d ch ang e in the secto ral sta te tr a d itio ns in 262 THE 1980s Chapter 6 Privatisation and full competition 266 The case of Fr a nc e 267 Telecommunications and the state in the 1990s 269 The aftermath of corporatisation - emerging issue of privatisation 270 The Dandelot report 273 The ensuing debate 276 Service public vs. universal service 280 Regulation of competition 287 The institutional framework 289 Interconnection 292 The new telecommunications regime 293 The case of Ger m a n y 296 Telecommunications policy in Germany
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