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1 federalism p o l i t i c a l e c o n o m y z a t i o n embeddedness of markets s o c i o l o g y o f m a r k e t s m a r k e t s d e m o c r a c y c o m p a r a t i v e p o l i t i c s creation of markets h i s t o r i c a l i n s t i t u t i o n a l i s m institutional complementarity c a p i t a l i s m E u r o p e u n c e r t a i n t y social order i n s t i t u t i o n s i n t e r n a t i o n a l i n t e g r a t i o n creation of value trust

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3 The Max Planck Institute for the Study of Societies conducts basic research on the gover n ance of modern societies. It aims to develop an empirically based theory of the social and political foundations of modern economies by investigating the interrelation between economic, social and political action. Using primarily an institutional approach, it examines how markets and business organizations are embedded in historical institutional, political and cultural frameworks, how they develop, and how their social contexts change over time. The institute seeks to build a bridge between theory and policy and to contribute to political debate on major challenges facing modern societies.

4 04 s o c i e t y e c o Human society is the most complex entity researchers can study. The variety of social relationships that comprises and connects human societies rivals the most highly developed organisms in its diversity, and nowhere else does evolution occur as rapidly as in the constantly changing social world.

5 05 n o m y Recent years have witnessed a continuing shift from state regulation to market-driven forms of social order. Social The MPIfG explores the social science today must therefore pay increasing attention to how the economy works and political foundations of modern economies. and interacts with the state and other social subsystems. Current research at the Max Planck Institute for the Study of Societies (MPIfG) investigates the social, cultural and political preconditions for the operation of markets, which have become the dominant institutions governing production and distribution. Researchers explore how markets and business organizations are embedded in historical, institutional, political, and cultural frameworks, and examine the social and political processes that shape economic relations over time. Work at the institute aims to establish an empirically based understanding of the social and political foundations, or the constitution, of modern economies and of the interrelations between social, political, and economic action. That the economy has become the main subject of interest at a research institute devoted to Gesellschaftsforschung i.e., the study of societies reflects the ongoing transformation of the postwar socioeconomic order of embedded liberalism. As long as this order prevailed, modern capitalism tolerated policy interventions in the name of economic efficiency and social peace. Today the capitalist economy seems to have largely emancipated itself from the tutelage of politics and the state, and has in turn begun to impose its terms on the political system. In the midst of a historical process of worldwide liberalization, it seems that now more than ever, and certainly more than in the postwar period, capitalist markets determine the conditions under which other social spheres operate. Understanding the operation of the economy has become a precondition for understanding other areas of social life, including politics and the state, which seem to be increasingly propelled by an ostensibly self-driven process of market expansion. Political economy in particular can no longer afford to treat the economy as a neutral entity separate from society operating under distinct and invariable laws of cause and effect, to be strategically utilized by policy-makers for the common good. When the economy ceases to function as a machine for the creation of material prosperity, it becomes imperative for political-economic theory to crack open its black box and reintegrate its inner workings into the world of social action. The current program moves the economy to the center of the institute s research agenda, but this does not mean that the work at the MPIfG replicates economics as an academic discipline. Unlike standard neo-classical economics, and in an attempt to return to some of the roots of sociological and economic theory, projects at the MPIfG study the contemporary capitalist economy as a historical social order with real actors in unique historical contexts. Doing so requires a revival of traditions of economic sociology and political economy as theories of society. The recovery of a social theory of the economy is the Institute s current research program.

6 06 a s k e x The research program is determined by the directors of the MPIfG, Jens Beckert and Wolfgang Streeck. Their current research focuses on the sociology of markets and on institutional change in contemporary capitalism. Sociology of Markets Markets are the core institution of capitalist economies. The researchers in this project area use sociological theories and methods to develop an understanding of the operation of markets. Markets are understood as arenas of social action where actors confront each other under conditions of competition. What social, cultural, and political conditions are required for markets to emerge, reproduce, and change? Institutional Change in Contemporary Capitalism The research projects in this area explore the restructuring of the postwar democratic nation-state and the processes linked to it: the liberalization of national economies and the concurrent globalization of markets and of the political institutions that regulate them. In light of growing internationalization, what are the causes, forms, and mechanisms of change in politicaleconomic institutions, in the role of government policy, in its capacity to influence social conditions, and in the capitalist economy?

7 07 p l o r e Research Group on European Liberalization Policies During the last decade, the European Commission and the Court of Justice have identified a growing number of member states regulations as obstacles to the common market and the European Union s competition regime. The research group analyzes the sources, sequences and consequences of European liberalization policies. How are European varieties of capitalism changing? What enables supranational institutions to expand their spheres of influence in arenas such as public banking, corporate law and labor law? Research Group on Institution Building Across Borders The interaction of national and global institutions increasingly affects the coordination of economic, social and political activities in modern economies. This raises questions about the preconditions, processes, and mechanisms of institution building across borders, beyond national and supranational statehood. Are global institutions possible? What forms of participation at the transnational level exist for state and non-state actors? Research Group on Economic Patriotism This research group explores expectations on the nation state under conditions of economic internationalization which find expression in the phenomenon of economic patriotism. It studies the emergence of the concept and seeks to distinguish the rhetoric of economic patriotism from related concepts such as economic nationalism and protectionism. How does economic patriotism arise from tensions between political boundaries and economic spheres of influence?

8 08 c r e a t i v i t y n e t Pioneering results come from multidisciplinary thinking, open-minded research and globally connected research Sociologists Jens Beckert and Wolfgang Streeck jointly direct the Max Planck institutions. Institute for the Study of Societies. Some 40 to 50 researchers, doctoral and postdoctoral researchers, visiting researchers, and grant-funded researchers are working at the institute, often in teams that include collaborators from other countries. The social and intellectual environment at the MPIfG promotes cooperation and idea-sharing. Communication among researchers, both within projects and beyond, is vital, as is interaction between the directors and researchers at the institute and intense networking with the institute s partners in Germany and abroad. Joint decision-making at the institute promotes collective and individual creativity and paves the way for talented researchers to achieve first-rate results. The MPIfG considers international cooperation to be the most promising organizational model for comparative research. Some 25 visiting researchers stay at the institute each year, making valuable contributions to its research program. The MPIfG is part of an international network of social science research institutions and researchers, with strong connections in England, France, Italy, and the United States. The institute cooperates with several leading institutions with similar research interests, including the Fondation Nationale des Sciences Politiques (Sciences Po) in Paris, the London School of Economics, Harvard University, Northwestern University, and the Massachusetts Institute of Technology (MIT).

9 09 w o r k The MPIfG is continually expanding its collaboration with the Fondation Nationale des Sciences Politiques (Sciences Po) in Paris, the leading social science university in France. The collaboration with Sciences Po includes a joint doctoral program (cotutelle de thèse), a summer school for doctoral students, an exchange program, regular joint seminars and workshops, and an Otto Hahn Junior Research Group on Economic Patriotism located at Sciences Po and affiliated with the MPIfG. Jack Barbalet, Professorial Fellow at the Centre for Citizenship and Public Policy, University of Western Sydney. Each year the MPIfG invites a distinguished scholar in the field of political science, economics or sociolo gy to spend three to six months at the institute. Scholars in Residence are known for their outstanding academic achievements, and each pursues a special project that coincides with the research conducted at the MPIfG.

10 10 e x c e l l e n c e t o p Max Planck institutes are built around leading The Max Planck Society s approach to research makes Max Planck institutes an attractive place to work. The researchers. institutes are built around leading researchers who choose their own research subjects, are given outstanding working conditions, and are free to select their own staff. These freedoms carry a commitment to excellence: every two years, an independent international commission, the Scientific Advisory Board, evaluates the institute s research. Researchers at the institute are frequently recognized for their scholarly achievements. MPIfG fellows have received highly regarded national and international prizes, including the Johann Skytte Prize, the Science Prize of the Stifterverband, the Bielefeld Science Award, and the Schader Prize, as well as honorary doctorates from several European universities. Doctoral fellows at the MPIfG have won prizes for young researchers, including the Max Planck Society s Otto Hahn Medal for outstanding achievement. Many MPIfG researchers have gone on to professorships at prestigious universities in Germany and abroad. Appointed by the president of the Max Planck Society, the Scientific Advisory Board of the MPIfG advises the institute s directors on issues affecting the research program and evaluates the institute s research output for the president of the Max Planck Society: Prof. Nicole W. Biggart Graduate School of Management, University of California, Davis Prof. Geoffrey M. Hodgson University of Hertfordshire, Hatfield Prof. Stephan Leibfried Zentrum für Sozialpolitik, Universität Bremen Prof. Richard Münch Universität Bamberg Prof. Jonas Pontusson Department of Politics, Princeton University Prof. Manfred G. Schmidt Institut für politische Wissenschaft, Universität Heidelberg Prof. David Stark Department of Sociology, Columbia University, New York Prof. Philippe Steiner Centre d Études Sociologiques de la Sorbonne (CESS), Université Paris-Sorbonne (Paris IV) Prof. Richard Swedberg Department of Sociology, Cornell University, Ithaca, NY Prof. Jörg Sydow Institut für Management, Freie Universität Berlin 7/2010

11 11 re s e a rc h e r s Jens Beckert was appointed to succeed MPIfG director Fritz W. Scharpf in Beckert is one of the leading representatives of the new economic sociology, a research area that examines how markets and business organizations are embedded in historical, institutional, political, and cultural frameworks, how they develop, and how their social contexts change over time. The uncertainty inherent in economic transactions is the point of departure for his research. He combines approaches from sociology and economics with the aim of contributing to a sociological theory of economic action. Beckert s work has brought him international acclaim and helped establish economic sociology as a field in Germany. Inspiring multidisciplinary inquiry, his work has sparked debate at the nexus of law, sociology, political science, and economics. Wolfgang Streeck has been director of the MPIfG since 1995, when he succeeded founding director Renate Mayntz. Prior to his appointment at the MPIfG, Streeck was a professor of sociology and industrial relations at the University of Wisconsin in Madison. Choosing themes that cross sociology, political science, and political economy, he investigates how the friction between a democratic polity and a capitalist economy is reflected in the constitution of the modern welfare state, the regulation of labor relations and employment, and the fiscal crisis of the state in contemporary capitalism. Among the fields of inquiry Streeck has helped to shape in over thirty years of scholarship are the study of institutional change; the organization, articulation and intermediation of economic interests; and the differences and commonalities between the political economies of contemporary societies. Streeck was an advisor in the Alliance for Jobs founded by former Chancellor Gerhard Schröder and a member of the Federal Commission for the Modernization of Worker Participation on the Supervisory Boards of German Firms. Renate Mayntz s work on social theory, political governance, policy development and implementation, and transnational regulatory structures has set trends in social science. The founding director of the Max Planck Institute for the Study of Societies, Mayntz was director of the institute from 1984 to The nature and purpose of political counseling has always been a subject of her scholarly interest. Recently Renate Mayntz has focused on aspects of global governance such as financial markets in the wake of the financial crisis. Fritz W. Scharpf stands out among the political scientists of his generation. Director of the MPIfG from 1986 to 2003, Scharpf has worked on multi-level governance, federalism, European integration, and the political economy of welfare states. His involvement in debates about labor market policy, European policy, and the reform of German federalism has had a lasting impact in Germany and beyond.

12 12 o p p o r t u n The MPIfG provides its researchers with excellent working conditions and promotes their professional Researchers at the MPIfG are among the best in their field. With their expertise, development. curiosity, and creativity they develop innovative approaches to the study of modern societies. The institute provides them with excellent working conditions and promotes their professional development. The MPIfG offers an attractive research environment to its postdoctoral fellows, enabling them to work on a project of their choosing that fits into the institute s research program. Being the head of a Max Planck Research Group is a special opportunity for young researchers to advance their academic careers. They can pursue self-chosen research with a budget of their own. International PhD Program IMPRS-SPCE Talented doctoral students from Germany and abroad working in political science, economic sociology, and organizational sociology come together at the International Max Planck Research School on the Social and Political Constitution of the Economy (IMPRS-SPCE). The School is an international PhD program offered jointly by the MPIfG and the Department of Management, Economics, and Social Sciences of the University of Cologne. The first graduate program in economic sociology and political economy in Germany, it explores the social and political foundations of modern economies and examines the interrelation between economic and social action. The School integrates approaches from the new economic sociology, comparative political economy, and organizational sociology. International cooperation plays an important role in the work of the IMPRS-SPCE. A large share of the doctoral fellows comes from abroad, and research stays at international partner institutions bring doctoral students together with the leading scholars in their field. A unique curriculum of seminars, colloquia, and summer schools and close involvement in the research under way at the MPIfG and the university ensure the best possible training for a career in research. Several prestigious partner institutions in Europe and the United States collaborate with the IMPRS-SPCE, including the Fondation Nationale des Sciences Politiques (Sciences Po) in Paris. An agreement between the universities in Cologne and Paris makes it possible for IMPRS-SPCE students to earn degrees from both universities through a double doctorate (cotutelle de thèse).

13 13 i t i e s c a r e e r s The Max Planck Society has developed a program to motivate talented doctoral students from around the world to pursue their studies in Germany: the International Max Planck Research Schools. The doctoral program offered jointly by the MPIfG and the University of Cologne, the IMPRS-SPCE, provides highlevel training for a career in research.

14 14 The MPIfG is an eminently a c a d e m t h e accessible institution open MPIfG researchers publish their results not only to researchers and experts, but to the general public as well. in books and articles. Some fifty monographs and articles are published every year by internationally acclaimed publishers and journals. The MPIfG also has its own publications series MPIfG Books, MPIfG Journal Articles, MPIfG Discussion Papers, and MPIfG Working Papers which give the scientific community timely access to the results of its research. MPIfG researchers present their work at the major international meetings of sociological and political science associations. They speak at universities and research institutions in Germany and abroad and are invited by policy-makers and corporations to give lectures. The MPIfG has a book stand at major national and international conferences, where it displays its research results and increases the visibility of the institute and its researchers in the scientific community. The MPIfG is an eminently accessible institution open not only to researchers and experts, but to the general public as well. The institute reaches out to the community with its website, newsletters and information brochures, an annual colloquium, public lectures, field trips for students, lectures in schools, an annual art exhibition, and a fellowship program for journalists. Journalist in Residence Cornelia Schmergal (Wirtschafts Woche) holds an in-house workshop on giving interviews. The Max Planck Institute for the Study of Societies, together with the Amsterdam Institute for Advanced Labour Studies, the Social Science Research Center Berlin, and the Center for Social Policy Research of the University of Bremen, offers Journalist in Residence Fellowships to media professionals. The Fellowship gives journalists a respite from the routine of the newsroom and an opportunity to devote time to in-depth reporting and discussions with researchers at the institute about current societal issues.

15 15 i a p u b l i c Open Access The MPIfG is committed to Open Access free access to research results on the web. The institute is working together with publishers to make its publications available free of charge on its website. Books from the MPIfG s Campus Verlag book series that are more than two years old and the entire MPIfG Discussion Paper and MPIfG Working Paper series may be downloaded as free PDFs. The MPIfG Journal Articles series provides free access to online versions of many of the articles by MPIfG researchers that have been published in peer-reviewed scholarly journals. The 2008 Annual MPIfG Colloquium on the history and the future of social science in Germany. The Society of Friends and Former Associates of the MPIfG supports research at the institute in a variety of ways. The group funds a Journal Article Prize for MPIfG researchers and provides financial assistance to young researchers. It also organizes the annual MPIfG Colloquium. The society promotes dialog with interested social groups and encourages friends and former associates of the MPIfG to keep in touch with the institute. Visit the Society of Friends and Former Associates of the MPIfG on the web:

16 16 p t h e o Social engineering cannot be the goal of social theory since those affected by political intervention The goal of sociology and political science is to develop theoretical concepts can understand its intentions. that improve our understanding of society and politics. This is particularly true for research carried out at a Max Planck Institute, which is committed to basic research. Conceptual knowledge is derived from the empirical study of social phenomena. Precise empirical observation is essential for identifying structures and mechanisms calling forth theoretical concepts that are capable of guiding future research. Unlike research in the natural sciences, the objects of study in the social sciences are not indifferent to its results. Social engineering cannot be the goal of social theory since those affected by political intervention can understand its intentions. There is a reciprocal relationship between researchers on the one hand and policy-makers, organized interests, civil society, and firms on the other. Through public lectures and occasional participation in political advisory bodies researchers at the MPIfG provide valuable information to politics and business. Accounting for social reality by observing and assessing social phenomena can provide valuable input for decision-makers. Although social science can never take the place of an experienced practitioner s intuition, its findings can give decision-makers a better idea of past experience and future opportunities. The social sciences provide reflective knowledge and background information that allow political actors to view their decisions in a larger context. Social science can also have a more long-range influence on political practice when its discussions shape a society s discourse and its understanding of the world. Research at the MPIfG aims at a theory that treats human society not as a passive object but as a community willing and able to learn about itself. Far from being a user s manual for social engineers, such a theory can foster a process of democratic deliberation and self-reflection capable of collective action.

17 17 r a c t i c e r y Dialog with practitioners in politics and business is important for the MPIfG. Its Board of Trustees, including political leaders at the federal and regional level, business leaders, journalists, members of interest associations and representatives of the University of Cologne and the city of Cologne, promotes contact with the general public interested in the institute s research and gives advice to its directors. Tissy Bruns Der Tagesspiegel Prof. Dr. Axel Freimuth Rector of the University of Cologne Dr. Rainer Hank Frankfurter Allgemeine Sonntagszeitung Ursula Heinen Member of the Bundestag Reiner Hoffmann Coordinator of the North Rhine Region of the Mining, Chemical and Energy Industrial Union (IG-BCE) Dr. Hermann H. Hollmann Member of the executive board of Ford-Werke GmbH Köln Prof. Dr. Michael Hüther Director of the Institut der deutschen Wirtschaft, Cologne Guido Kahlen Municipal Director of the City of Cologne Kerstin Müller Member of the Bundestag One of the ways the directors of the MPIfG take part in political debate is by contributing their expertise to government committees addressing such issues as German federalism and the modernization of worker participation on supervisory boards in Germany. Giving expert advice to political practitioners enriches the development of theories on social processes. Dr. Rolf Mützenich Member of the Bundestag Helmut Stahl Former Head of the CDU Parliamentary Party Group in the Landtag of North Rhine-Westphalia Dr. Michael Stückradt Deputy Minister of Innovation, Science, Research and Technology for North Rhine-Westphalia Dr. Wolfgang Uellenberg-van Dawen National headquarters of ver.di, Berlin 7/2010

18 18 f a c t s c o The MPIfG is one of the With about thirty positions for researchers and largest social science service staff and almost as many doctoral and research institutions in postdoctoral fellows, the Germany. Max Planck Institute for the Study of Societies is one of the smaller of the eighty research institutes maintained by the Max Planck Society. It is one of the largest social science research institutions in Germany. The MPIfG was founded in Founding Director Renate Mayntz headed the institute together with Fritz W. Scharpf until In 1995, Wolfgang Streeck was appointed as her successor, and Jens Beckert succeeded Fritz W. Scharpf in The MPIfG, like all the other Max Planck institutes, is committed to basic research. The MPIfG does not do contract research. The MPIfG receives a yearly budget of some four million euros from the Max Planck Society. Two directors head the institute and share responsibility for its research. Four service groups library, computing, editing and PR, and administration/secretaries are the backbone of the institute s infrastructure. The MPIfG offers traineeships in office communications and IT. MPIfG employees are involved in the local community through corporate volunteering in social projects for young people. Keep in touch If you would like to receive information about the MPIfG s work regularly, go to Service Newsletters and Mailings. We also offer RSS feeds on news, recent publications, and events. Contact Max-Planck-Institut für Gesellschaftsforschung Max Planck Institute for the Study of Societies Paulstr Cologne Germany Tel Fax

19 n t a c t s The MPIfG cooperates closely with several research institutes abroad, including: Fondation Nationale des Sciences Politiques (Sciences Po) in Paris and its affiliated institutes (CEE, CSO, CERI, CEPREMAP), Center for European Studies and Department of Sociology at Harvard University, Department of Political Science at Massachusetts Institute of Technology (MIT), Institute for Policy Research and Department of Sociology at Northwestern University in Evanston, Department of Management at the London School of Economics (LSE), Faculty for Social and Political Sciences at the Università degli Studi di Milano, Robert Schuman Centre for Advanced Studies at the European University Institute in Florence, and Amsterdam Institute for Advanced Labour Studies (AIAS). Organization and Structure of the MPIfG Board of Trustees Directors at the Institute Scientific Advisory Board Published by Max Planck Institute for the Study of Societies, Cologne Editor Christel Schommertz Design die copiloten, Cologne Picture Credits All photos by MPIfG except: getty 04, Sciences Po 09, Filser 11u., ullstein 17 Printed by Moeker Merkur, Cologne Administrative Director Management Committee Research Meeting July 2010 Research Areas Administration Computer Committee Sociology of Markets Institutional Change in Contemporary Capitalism Computing Research Group on Liberalization Policies Library Committee Research Group on Institution Building across Borders Editing & PR Research Group on Economic Patriotism Library Professional Development Committee Governance of Global Structures Theories and Methods Doctoral Program IMPRS-SPCE: Dissertation Projects Secretaries Publications Committee Projects by Visiting Researchers Organizational Structure of the MPIfG

20 g o v e r n a n c e l i b e r a l i corporate governance political reform preferences s o c i a l n e t w o r k s r e g i m e c o m p e t i t i o n i n s t i t u t i o n a l c h a n g e s t a t e i n t e r v e n t i o n w e l f a r e s t a t e game theory g l o b a l i z a t i o n n a t i o n - s t a t e moral values v a r i e t i e s o f c a p i t a l i s m e c o n o m i c s o c i o l o g y competition social norms i n t e r n a t i o n a l i z a t i o n

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