Swiss voters' direct say on reforms
| Author | Benedikt Braumann |
| Position | IMF European Department |
| Pages | 185-191 |
Page 185
The Swiss economy returned to growth in 2004, but further economic reforms are needed to meet the challenges of raising the growth rate and tackling mounting fiscal pressures. Does the country's direct democracy system- which gives the Swiss public a say on many aspects of policy-impede the ability to push through needed reforms? A look at the outcome of referendums under this system seems to confirm that voters tend to understand the urgency of reforms much more in difficult times, while preferring the status quo when the economy is doing well.
Page 190
Switzerland's unique system of direct democracy is sometimes blamed for the country's slow growth. Voters can decide on many aspects of policy, including structural reforms and fiscal management. But reforms are rarely popular, which leads to the argument that direct democracy bolsters the status quo, which over time could cause Switzerland to fall behind its peers. But is this really the case? A recent IMF Selected Issues paper looks at whether popular participation impedes fiscal adjustment or reform, and examines the circumstances under which voters do accept change.
No other country gives voters as much say on economic policies as Switzerland. Referendums can be called on all laws and international treaties, provided more than 50,000 voters sign a petition. The Swiss currently vote in about 15 national referendums per year, and the number doubles if one includes cantonal and local referendums. Since consensus is important for political success, legislation is slow and involves extensive consultations.
For the same reason, the federal government includes the four largest political parties, ranging from conservative to leftist.
The average political position of Swiss voters has been fairly stable over time.An analysis of federal and cantonal elections shows no trend toward either left or right in the period 1970-2004. The distribution of political power in parliament, however, shows increased polarization between the left, the right, and the center.Among the three political positions, the two dominant parties-the populist conservative SVP and the leftist SP, which have fairly contrasting programs-enjoy the strongest voter support, while support for the center parties has been...
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