The Madisonian Turn: Political Parties and Parliamentary Democracy in Nordic Europe

9. East-West Conflict and Europeanization: International Effects on Democratic Politics in the Nordic States

9 ✦ East-West Conflict and Europeanization International Effects on Democratic Politics in the Nordic States C Y N T H I A K I T E On January 26, 2009, the government of Iceland led by Prime Minister Geir Haarde resigned. The resignation came a week after a crowd of at least 2,000 broke windows and threw eggs and yogurt at Iceland’s parliament building to protest the country’s growing economic crisis. The events that led to the fall of the government can be traced to the collapse of the subprime mortgage market in the United States in the fall of 2008. This developed into a global financial crisis, and Iceland’s banks, heavily indebted, immediately had problems borrowing money. In contrast to the United States, the government lacked the resources needed to bail out the banks. The currency plummeted. The banking system collapsed. Haarde’s government was forced to nationalize banks, fix the value of the currency, and turn to the IMF for a loan. Others, notably Sweden and Britain, also provided help. In the end, however, none of this saved the government. As one protester explained, “We’ve lost all faith in our leaders” (Moody 2009; see also chapter 5, this volume). What is surprising in this story is not that a government was forced out of office by events that originated beyond its borders. Rather, it is that the impact of international developments on the domestic policy process, the authority of national actors and institutions, and the national democratic chain of delegation and accountability is often overlooked. And when it is acknowledged, it is seen as a deviation from politics “as usual.” This chapter seeks to correct this view by considering how, over time, democratic politics in the Nordic countries have been influenced by the international environment. 329 This chapter is brief, but the overall message is that international developments can influence democratic politics in a variety of ways, sometimes rather predictably, other times unexpectedly. In addition, the analysis will show that these five countries have not necessarily been affected in the same way or to the same degree. Rather, it is the interaction of internal and international conditions that determines how the international environment matters across the Nordic region. The Nordic states have been subject to similar (but far from identical) international pressures , but the ways in which governments, parliaments, and political parties have responded and the impact they have had on democratic politics have differed. Together with chapter 8, this chapter sets the stage for the final analysis in chapter 10. In particular, since this chapter analyzes the international origins of some of the changes in and constraints on parliamentary democracy, the final chapter can focus on changes and constraints that are commonly understood as domestic. The issue of the impact of international environment on national democratic politics is, however, a potentially unwieldy topic. To make it manageable I have limited my focus to two empirical topics , which I use to explore the consequences of international developments on the national policy process. These topics are security and regional integration (EU) policy. I do not discuss developments in North-South relations , global trade and finance, or the United Nations. Although obviously important in their own right, they have generally had less impact on parliamentary politics in the Nordic states than security and regional integration. Moreover, relations of friendship and enmity are fundamental characteristics of the international system. It is difficult to understand other aspects of the external environment without knowledge of them. The years since the mid-1980s are of particular interest. However, we must briefly consider the way in which international developments impacted on democratic politics in the Nordic states before this period. This provides a useful backdrop for understanding the current period. In addition , it is a healthy reminder that the intrusion of international politics into the democratic policy process is not a new phenomenon. East-West Rivalry, Security Policy, and Domestic Politics There is nothing new about the fact that the international environment affects domestic politics, as noted above. At the end of World War II many people around the world hoped that the postwar period would be dominated by peaceful conflict resolution through the United Nations and by in330 ✦ T H E M A D I S O N I A N T U R N ternational economic cooperation for prosperity and development...