Negotiation process in politics among different interest groups

1. Negotiation process in politics among different interest groups 22.04.2014 , Riga Agnes Karpati

2. LECTURE OUTLINE • INTRODUCTION • INSTITUTIONS AND ACTORS • LEGISLATIVE PROCESS • LOBBYING • EXAMPLES • REGULATION OF LOBBY • PRACTICE • WORKSHOP CHALLENGES • CONCLUSION

3. The spoon, the cup and the bucket During a visit to a mental asylum, a visitor asked the director how to determine whether or not a patient should be institutionalised. “Well,” said the director, “we fill up a bathtub, then we offer a teaspoon, a teacup and a bucket to the patient, and ask him to empty the bathtub.”

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5. The plug...

6. Policy process What is policy?

7. Public policy process in brief

8. Actors in the policy process • Main categories of actors in the policy process. • Official actors – statutory or constitutional responsibilities. • Legislative, executive, and judiciary. • Unofficial actors – participation with no explicit legal authority. • Interest groups, media, political parties, voters.

9. Official actors – branches of government • Legislature • Executive • Judiciary

10. Legislature Functions  Law-making, control of executive, control of finances, etc Goal  Getting reelected, pleasing the voters Nature  Decentralized – works in committees, issue networks, party leaderships

11. Executive Functions  execute, enforce and administers laws, agenda setting Goals  effective accomplishment of different agendas, provide public goods Nature  hierarchical, appointed executives and permanent bureaucracy, fixed and official jurisdictional areas

12. Judiciary Functions  interpret legislation Goals  administration of justice Nature  reactive to public policy

13. EU Institutions Unique institutional setup • European Council – broad agenda-setting, leaders of EU • European Parliament – directly elected MEPs, represent citizens • European Commission – represents the interests of the EU as a whole, members appointed by member states’ governments • Council of the European Union – defend national interests of member states • European Court of Justice – interprets EU law

14. Decision making process in the EU 3 main institutions are involved: • Commission • Council • EP In principle, the Commission proposes new laws, and the Parliament and Council adopt them. The Commission and the member countries then implement them, and the Commission ensures that the laws are properly applied and implemented. Ordinary legislative procedure (Art. 294 TFEU) is used for policiest that apply all over the EU.

16. Unofficial actors in the policy process Interests groups Media Individuals Political parties Think tanks and research institutions

17. Interest groups activities – common advocacy Common advocay methods are often used to enforce changesby making demands. Most of the time these methods are primarilyused to send outto mobilise people typically in order to weaken the position of a particulardecision-maker. • Campaign contributions • Media content • Mass mobilization, protest, and litigation • Riots and protest marches

18. Lobby What is lobby? Do you know any lobbies?

19. Lobbying Lobbying is interest intermediation, interest groups activity connecting public institutions/agencies to citizens. Lobbyist is defined as organization or individual that seeks to influence policy , but does not seek to be reelected. (Richardson, 2002) “Janus-faced” creatures for looking towards both state and society, sometimes regarded as “factions” for undermining general interest.

20. Rationale of Lobby Indispensable for serving as a channel for the voice of citizens, act as “schools for democracy” – socializing citizens as political beings.(Eising, 2007) Important supply of information and potential source of legitimacy for policy-makers. (Coen, 2007)

21. Nature of lobbying Lobbying is a specialized form of advocacy. It is a strategic, palnned and informal way of influencing decision-makers. It is typically two-way, open communication by linking the interests of different stakeholders, creating win-winsituations and investing in long-term relationships with decision-makers.

22. Common advocacy vs Lobbying Guidelines on lobby and advocacy, ICCO manual, 2010.

23. Some facts In the European public policy process some 15,000 Commission and European Parliamentary officials face some 20,000 lobbyists on a daily basis . (Coen, 2007) Estimated, 1450 formal interest groups operating at the European level, 350 firms with European affairs offices and 267 law and public affairs firms active in EU public policy.(Coen, 2007) In 2013 the total number of entities engaged in lobby is over 5000.

24. Lobby groups exert influence along the whole European policy process -initiation and ratification of policy at the Council of Ministers, - agenda setting and formulation at European Commission led forums, - reformulation of policy at the European Parliament committees, - to the final interpretation, harmonisation and implementation of regulation in the nation state. In following and accessing all points of the policy process, EU interest groups are important supply of information on the development and delivery of EU public policy and a potential source of legitimacy to policy-makers. (Coen, 2007)

25. EU influence on interest groups Four characteristics of the EU influence the formation, the role and fuctions of interest groups. • highly dynamic system • complex system • multi-level system • privileges consensus building (Eising, 2007)

26. EU influence on interest groups • EU is a highly dynamic system  deepening integration and expansion of EU competences result in: • Growing number of groups; • Diversity in group profiles; • Difficulty to forecast political developments (devotion of resources to monitoring)

27. EU influence on interest groups • EU is a highly complex system  importance of interest groups vary substantially accross policy areas, which result in: • In areas where the EU has exclusive competence, such as CAP, Common Commercial Policy, etc, interest groups have good access to institutions. • In areas that has been second and third pillar in the old system, such as foreign policy, refugee and asylum policy, the access is more restricted.

28. EU influence on interest groups • EU is a multi-level system member states also have important say in the EU Policy making, therefore • they offer different access point to interest organizations • Transposition of measures into national law and implementation at the national level • Co-ordinated action at all levels

29. EU influence on interest groups • EU is a system that privileges consensual decision-makingthe historical preference of consensus was replaced by reliance on qualified majority for practical reasons, • however this legacy implied that opinions of interest groups were taken into account and were regarded as increasing the legitimacy of EU policy – still holds

30. Differences in lobby organizations • National lobby  emphasize national character of interests, direct membership, besides interest representation perform services for their members (advice, training, partner match-making, etc) • Euro-groups  typically (approx. 2/3) federal structure – associations of associations, some has direct membership, high degree of specialization, low level of resourcing and autonomy - focus on representation of interest, difficulty of internal agreements due to multi-national make-up of membership,

31. Overcrowding?? EU institutions havedifficulty in managing and regulating the expanding numbers of interests. It is also a challenge how interests groups can continue to influence and contribute to the EU public policy process in a positive and constructive form. Few would question the importance of interest groups to facilitate policy, advocate positions, provide expertise and at times scrutinise authority.

32. Regulation of EU lobby • Code of conduct and • Transparency register: http://europa.eu/transparency-register/index_en.htm

33. Types of associations • Business interests • Cross-sectoral • Sector associations and firms • Professional interests - peak associations - sectoral interests

34. BUSINESSEUROPE (ex UNICE) Cross-sectoral Union of Industrial and Employer’s Confederation of Europe changed name in 2007. • Federation of confederations, claims to represent 41 members in 35 countries, covering 20 million companies. • Mission: “ to ensure that companies' interests are represented and defended vis-à-vis the European institutions with the principal aim of preserving and strengthening corporate competitiveness. BUSINESSEUROPE is active in the European social dialogue to promote the smooth functioning of labour markets.” (www.businesseurope.eu) • Heavy bureaucracy, difficulties of reaching common position, lowest common denominator  broad interest of the entire European business accross the board

35. AMCHAM-EU or EU Committee Cross-sectoral • Defines itself as the “voice of American business in Europe”, represent large US investments in the EU • The organization historically helped socialize American member companies in the Brussels public affairs • It provides a forum for business leaders at the highest level to engage EU polititians at the highest level • Members include top Fortune 100 • Coca-Cola, IBM, AT&T, General Motors, Exxon Mobil, Intel, Nike, McDonald’s, Microsoft, etc. • High fees, exclusive club

36. ERT Cross-sectoral • The European Round Table of Industrialists • ERT is a forum bringing together around 50 Chief Executives and Chairmen of major multinational companies of European parentage covering a wide range of industrial and technological sectors.  Companies of ERT Members are widely situated across Europe, with a combined turnover exceeding € 1,300 billion, sustaining around 6.8 million jobs in the region. They invest more than €51 billion annually in R&D, largely in Europe; which is equivalent to 18% of total EU R&D expenditure. (www.ert.eu.) • Flexible structure, allows selection of issues, personal membership on invitation only.

37. Some more Cross-sectoral • EUROCHAMBRES • UEAPME – European Association of Craft, Small and Medium-Sized Enterpries

38. Sectoral associations and firms • EUROFER – Steel industry association • CEMBUREAU – Cement Industry Association • Etc. • Second most important route for EU interests representation, after contact with national decision-makers, is through EU associations • Direct membership – different stenghts • Associations have special competencies iin representing collective, EU-wide interests and offer genuine collective opinion. • Individual companies may be solo actors but this is far smaller segment than interest associations.

39. Professional interests These usually include fully qualified doctors, lawyers, architects, vets, dentists, engineers, teachers, nurses, writers, artists, managers, etc. Examples: CEPLIS – European Council of the Liberal Professions EUROCADRES – Council of European Professional and Managerial Staff AEMH – European Association of Senior Hospital Physicians CCBE – Council of the Bars and Law Societies of the European Union Etc. Professions sometimes had been slow to recognize the benefits of the single market freedoms, its opportunities and acted in a hostile and defensive manner for protectionist reasons

40. Key civil society organizations/NGOs European Consumers Organization (BEUC) European Women’s Lobby (EWL) European Trade Union Confederation (ETUC) Greenpeace Oxfam Friend of the Earth Etc.

41. Lobbying targets • Direct: targets are the actual decision-makers • Intermediate: targets “transmit the message” • Indirect: targets are individuals and organisations that can influence direct targets

42. Methods – determined by available political space and access • Policy brief • Personal letters • Personal meetings, exchanges • Participation in consultation (experts) • Strategic litigation • Informal contacts • Working visits with decision-makers • Participation in public hearings • Drafting joint strategies • Etc.

43. Guidelines on lobbying by ICCO Step 1 – Clarify the objectives of your organization  mission and objectives Step 2 – Define you consituency  For whom are you doing this? Define interests and perceptions of beneficiaries. Step 3 – Choose your goal and set objectives  set realistic goals and objectives, differentiate between scope of concern and scope of interest. Step 4 – Define the decision-makers  who do you aim to influence? What are the procedures? Who are the decision-makers? Step 5 – Prepare your organization for lobby  what are your organization’s capabilities? What are internal procedures?

44. Guidelines on lobbying by ICCO Step 6 – Identify the stakeholders  what are the opportunities and threats in the outside world? Can some other group undermine your efforts? With whom you might collaborate? Step 7 – Check whether lobby is possible  Is lobby effective to influence this policy? Step 8 – Develop action plan  define methods you intend to use and resources you have at your disposal Step 9 – Implement action plan  carry our the plan Step 10 – Ensure monitoring and follow-up  keep track of results

45. Policy scans Guidelines on lobby and advocacy, ICCO manual, 2010.

46. Policy scans Guidelines on lobby and advocacy, ICCO manual, 2010.

47. ICCO proposes the following logic: • Describe the context and the problem you aim to address • Describe who you aim to support • Verify whether this connects with the mission and objectives the network or programme coalition you are connected with • Verify whether there is a role for a decision-maker (if there is no such role, then lobby and advocacy is not the right tool.) • Describe what the role of the public sector should be • Describe what you want the public sector to do: what should be changed? • Describe who in the public sector is responsible for bringing about the necessary changes • Describe what you want from this person and when • Elaborate your objectives as smartly as possible

48. Workshop challenges The Commission is now preparing an initiative on E-invoicing in the field of public procurement. Start developing a strategy for the following lobbies: • Friend of the trees NGO • United Printer Manufacturers • Council of Kind Accountants in the EU • Business Applications Software Developers’ Chamber • Association of Small and Medium-Size Enterprises in the EU • Total Paper Round Table – Paper producer firms CEO’s club

49. Guidelines on lobby and advocacy, ICCO manual, 2010.

50. Challenge 2 Your organization has managed to make an appointment with one important decision-maker. Prepare a policy brief that you can give to the Commissioner on the meeting.