Competitiveness as affected by state structure: Lessons for the European telecommunications industry

The purpose of this thesis is to investigate sources of tension between the EU and two of its Member States regarding telecommunications liberalization and the Common Market. Much of the conflict in negotiation proceedings for service industries could be avoided if EU initiatives accounted for the way in which Member State Governments influence industry. This problem is attacked via a case study comparison of telecommunications liberalization in Germany and Britain. The political implications of corporatism and pluralism on industrial innovation and growth are discussed in terms of the relationship between labor, industry and government. The economic implications of corporatism and pluralism for the telecommunications industry are analyzed in terms of the dominant approach for achieving competitiveness in the trade of goods. A correlation is established between government structure and corporate performance (and the rate at which competition is introduced) in the telecommunications industry. Recommendations for future regional negotiations and competition-based initiatives are provided.