Club of Amsterdam, June 25, 2003

1. Club of Amsterdam, June 25, 2003 Re-Inventing Democracies for the Future: A few Remarks on the Swiss «Model»

2. Reform of the armed forces Civil defense and population protection Program for the creation of apprenticeships Closure of nuclear power plants Moratorium for refurbishing nuclear power plants Income and wealth-tested premiums for health care insurance «Four Sundays without Car Traffic» Equal rights of access for the handicapped Regulations for «Fair Rents» «Super Sunday», May 18, 2003:National vote on 9 propositions Club of Amsterdam

3. Closure of nuclear power plants Club of Amsterdam

4. Income and wealth-tested premiums for health care insurance Club of Amsterdam

5. High hurdles: Popular and state vote Club of Amsterdam

6. Examples for cantonal votes (%Yea) • Law on extended shopping hours (2000, 56%) • Cantonal supplements to federal social security payments (44,1%) • Cantonal investment in Crossair/Swiss (55,5%) Club of Amsterdam

7. Club of Amsterdam

8. Examples for communal votes • Budgeting and expenditure authority of local council (2002, 863 yeas vs. 611 nays, 51,4% voter participation) • Contribution of CHF 2’481’200.- for renovation of regional hospital (2001, 3133 yeas vs. 1005 nays, 33,3% voter participation) Club of Amsterdam

9. 1848 – 1970: 223 (Ø 1,9/year) 1971 – 1990: 256 (Ø 7,8/year) 1991 – 2001: 105 (Ø 9,5/year) Direct democracy on the rise: More votes Club of Amsterdam

10. Participation in elections and in votes Club of Amsterdam

11. Vote participation rate >> election participation rate → limited role of parliament → stable 4 party government («Magic Formula») Participation rate depends on mix/composition of ballot → (additive) issue voting → high degree of predictability Declining vote participation Club of Amsterdam

12. Mandatory referendums Amendments to the Constitution Membership in supranational organizations Majority of voters and majority of the cantons required 1848-2001: 198 votes 75% accepted Mandatory referendums as confirmation and legitimation of consensus process Club of Amsterdam

13. Optional referendums Laws and certain international treaties 50’000 voter signatures required within 100 days after final vote by parliament Majority of voters required 1848-2001: 141 votes 51% accepted Optional referendums as veto mechanism for special interest groups/cantons Club of Amsterdam

14. Popular initiatives Amendment to the Constitution 100‘000 voter signatures required within 18 months General proposal or precise paragraphs Optional counter-proposal by government/parliament plus tiebreaker Agenda setting and reform function 1848-2001: 138 votes 8,7% accepted Low success rates for popular initiative Club of Amsterdam

15. More communicative politics Reduction of apathy and cynicism, increase of self-esteem (and happiness) Financial and fiscal restraint Collective learning processes Antidote to the «personalization» (and banalization) of politics (?) Restoration of trust (?) In praise of direct democracy … Club of Amsterdam

16. Club of Amsterdam

17. Basisjahr 1984 = 100, Quelle: OECD USA EU EFTA Schweiz Switzerland with low (or no) growth Club of Amsterdam

18. Club of Amsterdam

19. Growth 1980 – 2000: Switzerland‘s position according to 3 concepts of GDP GDP standardized Command GDP GDP in PPP Club of Amsterdam

20. Ranking GDP per capita: Top Ten 1970 - 2020 Club of Amsterdam

21. Projection of GDP per capita for 2015 Club of Amsterdam

22. Labor force participation, 1999 (in %) Schweiz Norwegen Japan USA Grossbritannien Kanada Schweden Australien Fürstentum Lichtenstein Österreich Niederlande Neuseeland Deutschland Frankreich Irland Belgien Italien Quelle: OECD, 1999 Club of Amsterdam

23. Growth of labor productivity, 1992-2001 Club of Amsterdam

24. Patterns of labor productivity Japon Modèle Anglo- Saxon Modèle Latin Modèle Scandinave Modèle Allemand Suisse Quelle: seco 2003 (Studien zum Wachstumsbericht) Club of Amsterdam

25. Change in public expenditure (% of GDP), 1992-2001 Club of Amsterdam

26. Change in fiscal quota, 1992-2001 Club of Amsterdam

27. Change in public debt, 1992-2001 Club of Amsterdam

28. Club of Amsterdam

29. Chronic lack of growth, low productivity Loss of competitive advantages Missed opportunities due to, and of, Non-EU-membership Systemic blockage of necessary reforms Demographic trap: democratic majority of elderly voters against younger generations? Territorial units VS. urban development The price of direct democracy (and «extreme» federalism)? Club of Amsterdam

30. December 6, 1992: 50,3% of voters and two thirds of cantons vote against EES Club of Amsterdam

31. Electricity prices for industrial clients in selected cities in Europe and Switzerland (1.1.2003) Club of AmsterdamInterlaken

32. Liberalization of postal service market (2001): Switzerland still with a weighty monopoly Club of Amsterdam

33. Speed of liberalization: Slow Switzerland Club of Amsterdam

34. Chronic lack of growth, low productivity Loss of competitive advantages Missed opportunities due to, and of, Non-EU-membership Systemic blockage of necessary reforms Demographic trap: democratic majority of elderly voters against younger generations? Territorial units VS. urban development The price of direct democracy (and «extreme» federalism)? Club of Amsterdam

35. Effects of federalism on veto players and other institutions Club of Amsterdam

36. «In Switzerland, a federal country with a combination of bicameralism und qualified majority decision making , the role of the President of the Confederation is even more reduced; in fact, Swiss Citizen may even ignore his name. George Tsebelis, Federalism and Veto players Veto players Club of Amsterdam

37. Chronic lack of growth, low productivity Loss of competitive advantages Missed opportunities due to, and of, Non-EU-membership Systemic blockage of necessary reforms Demographic trap: democratic majority of elderly voters against younger generations? Territorial units VS. urban development The price of direct democracy (and «extreme» federalism)? Club of Amsterdam

38. Club of Amsterdam

39. Centralization [«fédéraliser»] Equalization? Unbundling? New layers (agglomerations) New territorial Functional, overlapping, and competing jurisdiction (FOCI) New definition and reduction of territorial units Reform of federalism (>> direct democracy) Club of Amsterdam

40. Net-contributors andnet-receiversdue toNew (federalist) Financial Equalization(in Mio. CHF) Club of Amsterdam

41. Centralization [«fédéraliser»] Equalization? Unbundling? New layers (agglomerations) New territorial Functional, overlapping, and competing jurisdiction (FOCI) New definition and reduction of territorial units Reform of federalism (>> direct democracy) Club of Amsterdam

42. Club of Amsterdam

43. A program for autonomous (economic) policy reform (?) • Maximum openess for international exchange and immigration • Liberalization of domestic markets, decisive free market and competition policy • Active foreign trade policy in all directions • Redimensioning of welfare state, strengthening individual responsibility • Investment in education and research (plus structural innovation) • Maintain and protect Swiss accomplishments: liberal and flexible labor market, high quality infrastructure, safety, quality of life Club of Amsterdam