Conclusion: Policy Diversity in Germany's Federalism

Abstract

This article will examine the extent to which the narrative of policy diversity is characteristic of German federalism, using findings from comparisons of policies in the individual Länder and with a special focus on the period since the German reunification. The first part of the article presents findings supporting the view that there is a significant degree of policy diversity in the states (Länder) of the Federal Republic of Germany (section one). Longitudinal studies also indicate an increase in policy diversity (section two). On the other hand, there are also some indicators that point to policy convergence, that is, to decreasing policy diversity (section three). On the whole, though, there are major differences between the German Länder, as is evident from even a cursory comparison with the Swiss cantons, the United States of America and the Austrian Länder (section four). The causes of the policy diversity and its limits must still be clarified. For this purpose four explanatory variables will be discussed in the final section of this article (section five): the partisan composition of government in the Länder, which increases the likelihood of policy diversity, and three other factors which tend to reduce the possibility of policy diversity: the competition between the two large pro-welfare state parties; then the division of powers between the federal state, the Länder and the European Union; and finally the institutional constraints on fiscal policy in the Länder.