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Table of contents
- Abstract
- On the 9th of February the Swiss population decided with a slight majority of 50,3% to limit the immigration into their country (Schweizerische Eidgenosschenschaft, 2014). Due to this development, the political system âdirect democracyâ is discussed m...
- According to the election programs, more and more German political parties like to integrate more direct democracy into the existant system of the representative democracy in Germany. For example âDie Linkeâ, the âSPDâ or new political parties like th...
- Currently Switzerland is, after Luxembourg the county with the most immigrants in Europe (Statista 2014). 22,8 % of the population are inhabitants with migrant background, which is a historical maximum in Switzerland (Statista 2014).
- Definition of direct democracy
- After the population voted, the federal council has the duty to implement the selected decisions inside and outside of Switzerland, if necessary with new negotiations for example with the European Union (Auer, 2014). In case of the initiative against ...
- To reverse a voted law, the majority of the citizens in a new election is necessary. After a referendum, the authorities have to defend the decision against any criticism. Therefore government and parliament are obliged directly to the people in the s...
- Critic of the economy
- Especially, the economy is criticising the decision of the Swiss population about the initiative against mass immigration. In general, due to the low tax pressure (which could also be ascribable to the direct democracy) Switzerland is a commercially a...
- However, due to the current developments especially branches like the building industry, export companies, banks and insurance companies are fearing a disadvantage because the competitiveness is much lower compared to other countries. Particularly tra...
- It has to be considered that the main goals of the companies are not to increase the property of the population. Companiesâ main focuses are on economical goals like maximizing the turnover. Therefore the companies and the population sometimes have di...
- Lack of knowledge
- Another aspect that is criticised very often is that much of the selectors do not have the necessary education to make sustainable decisions for a country and therefore make âpoor decisionsâ. From the empirical point of view this, however, is not true...
- M. Benz and A. Stuetzer (2003) state that the âinfluence of more political participation possibilities is substantial: the range is comparable to an increase in education from just compulsory education to having attended a diploma schoolâ (p. 55). The...
- Connection between direct democracy and prosperity
- The empirical study of Lars Feld and Marcel Savioz found that there is a correlation between the degree of direct participation possibilities and the per capita income. They compared the per capita income of inhabitants living in cantons with large di...
- According to the study, cantons with a larger direct participation possibility have a significantly higher per capita income than cantons with a lower participation possibility. In the year 1989 Swiss cantons with larger direct participation possibili...
- Institutional effects on happiness
- Another important aspect to have a well-developed, high performing economy is the subjective satisfaction with life or the happiness of the population. A satisfied population is more active, optimistic, helpful and loyal.
- All these aspects are very important for the economy. Oswald found that prosperous people are happier, but that the effect is small or even statistically insignificant. Unemployment however leads to a very unhappy population. Moreover, happiness is "h...
- Conclusion
- The direct democracy helps avoiding distances between the population and the self-appointed so called elite. This phenomenon can be observed in many countries pursuing the representative democracy. Politicians without experience and knowledge in the e...
- Due to the observations in the essay, the direct democracy has many advantages compared to the representative democracy. Especially the economy is benefiting from the system because of low tax ratios and an attractive environment with an education lev...
- According to Feld and Savioz, a correlation between the degree of participation possibilities and the per capita income exists. People living in cantons with larger direct participation possibilities have a significant higher per capita income. The as...
- The consequences for the economy and the society of the popular initiative against mass immigration can certainly not be estimated and strongly depends on the degree to which the federal council will limit the immigration in Switzerland. The Swiss eco...
- As already discussed, in some ways Switzerland already limits the immigration into the country by allocating residence and work permits. The actual agreement on the free movement of labour between Switzerland and EU/EFTA member states stipulates that ...
- Bibliography
- Auer A. (2014). Die Magie der direkten Demokratie. Neue ZĂźricher Zeitung. http://goo.gl/u2DJ5B {09.05.2014}
- Benz M., & Stutzer A. (2003). Are voters better informed when they have a larger say in politics? Kluwer Academic Publishers, (119), pp. 31-59.
- Die wichtigsten Steuern im internationalen Vergleich (2012), Bundesminesterium fĂźr Finazen.
- Dunsch J., (2014). Schweizer wollen Einwanderung begrenzen. Frankfuter Allgemeine Zeitung, http://goo.gl/upUIeT {04.05.2014}
- Feld L. P., & Savioz R. M. (1997). Direct Democracy Matters for Economic Performance: An Empirical Investigation. Kylos, 50, pp 507-53
- Frey B. S. (2014). Wie vertragen sich direkte Demokratie und Wirtschaft? Neue ZĂźricher Zeitung. http://goo.gl/7m3tp0 {09.05.2014}
- Frey B. S. & Stutzer A (2001). What Can Economists Learn from Happiness Research? CESifo Working Paper, 503, pp 1-37
- Kaiser T. (2011). Deutsche Firmen zahlen besonders hohe Abgaben. Die Welt. http://goo.gl/BtT8du {09.05.2014}
- Matsusaka J. G. (2005). Direct Democracy Works. Journal of Economic Perspectives, 19(2), pp. 185-206.
- Organisation for Economic Co-operation and Development, Category âJobsâ, (2013). http://goo.gl/48hP8I {09.05.2014}
- Organisation for Economic Co-operation and Development, Category âHelthâ, (2013). http://goo.gl/SsE45U {09.05.2014}
- Oswald, A. J. (1997). Happiness and Economic Performance. Economic Journal, 107(445), pp. 1815-1831.
- Schweizerische Eidgenosschenschaft â Statistik Schweiz (2014) http://goo.gl/M6BJUI
- Statista (2014), Ausländeranteil in der Schweiz und ihren Nachbarstaaten. http://goo.gl/d3fcIr (09.05.2014)
- Statista, (2014), Länder mit der besten allgemeinen Qualität der Infrastruktur in 2012/2013. http://goo.gl/ZkBnjK {09.05.2014}
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