AUSTRIA

Austria’s status performance continues to rank in the medium range (-3 ranks relative to SGI 2009).

The state of democracy is generally sound, and legal foundations are solid. There are, however, weak points, such as a high degree of media concentration and discrimination against minorities.

Compared with other OECD economies, the Austrian economy is in good shape and began to grow again in late 2009.

Austria has one of the world’s most extensive social welfare systems. Social policy is generally successful in providing the poor opportunities for social inclusion. But recent trends suggest the gap between rich and poor is widening.

Austria ranks 18th in terms of its quality of democracy.

Electoral processes are generally fair, although intransparencies in party financing are cause for concern. Observers criticize the absence of mechanisms able to monitor how parties spend public funds and private donations.

Media are free of interference but the print media market suffers strong concentration.

Civil rights are safely anchored in the constitution and generally protected in practice. Public awareness of informal discrimination has grown.

A well-established constitutional framework ensures practices remain in accordance with the rule of law.

Despite suffering some blows, Austria’s economic policy performance has hovered at average OECD levels (rank 16).

Most indicators point to a slow but sustainable rejuvenation of the economy since the 2009 global crisis. Fashioning a coherent economic policy from various points on the political spectrum will prove a significant challenge.

The labor market shows a growing employment rate gap between skilled und unskilled laborers, pointing to the need for improved training and activation policies.

The tax system is favorable to foreign capital but places a disproportionate burden on labor and the individual taxpayer by focusing on wages rather than property.

At rank 19, Austria has slid considerably in terms of social policy (-6 ranks relative to SGI 2009).

Austrians enjoy a sound and inclusive - but expensive - health care system. Cost inefficiency is a growing weak point.

Although poverty levels remain below the OECD average, there is a growing underclass of illegal immigrants and working poor in Austria. Income gaps are widening.

Family and pension policies need to adapt to future challenges. All-day childcare facilities need to be established and demographic changes require a swift reform of the pension system.

Integration policy bears significant shortcomings in the absence of a consistent concept regarding the integration of immigrants.

Given its neutrality status, Austria refrains from formulating a foreign policy in broadly international terms and is not subject to direct security threats. The country facilitates regional integration by participating in EU transnational police networks like Europol and the Schengen system.

Though (violent) crime rates are fairly low, ordinary crime is perceived to be a major issue. Public discourse about internal security focuses on migration as the root cause of crime, prompting the government to respond with promises to strengthen the police force.

Austria is losing considerable ground in efforts to ensure the sustainability of its resources.

The oft-cited image of a country taking the lead in environmentally friendly policies is marred by a disappointing reality: Austria is missing the goals set out in the Kyoto Protocol.

Research and innovation suffers from an inability to attract significant research institutions and personnel. Political commitments to innovation investment have to date not been realized.

Structural features in the education system such as the early tracking of students results in a socially unjust system that prevents talented children from disadvantaged families from developing their potential.

Despite some improvements in individual measures, management performance in Austria has fallen one place to rank 16 (relative to SGI 2009).

The structurally weak position of the chancellor inhibits the executive branch’s ability to steer politics.

Policy implementation has run more smoothly, even though ministries are relatively independent from the chancellor and local governments exercise some autonomy.

The inability of the Austrian government to adapt domestic structures to international developments and to introduce needed structural reforms underscore major shortcomings.

The executive demonstrates greater accountability toward citizens and intermediary institutions than it does toward parliament.

At rank 21, Austria’s steering capability remains in the lower middle ranks (-1 rank relative to SGI 2009), despite significant gains and declines on individual measures.

Increasing fragmentation of decision-making inhibits the government’s strategic planning capacity. No systematic pattern of meetings with external experts exists.

Interministerial and cross-coalition coordination de facto bypasses the Chancellery, leaving it with little policy-coordinating role.

The practice of RIA has only recently taken root, but is quickly becoming a useful tool for legislators and other policy-makers.

Austrian corporatism is inclusive insofar as it the policy process contains systematic links to organized interests. Ministries frequently keep specific political actors apprised of relevant policy proposals.

At rank 13, Austria’s policy implementation capacity improved somewhat (+4 ranks) relative to 2009.

Policies included in agreements between coalition partners are likely to be adopted, given the high degree of party discipline in parliament and the limited influence of the second chamber.

Several features of the Austrian political landscape – specifically coalition governments, ministerial autonomy and the chancellor’s weak position – mean that ministers have few incentives to implement the government’s program. Nonetheless, a number of informal mechanisms help commit individual ministers to carrying out government policy.

The federal constitutional structure gives the central government substantial power, but states have a high de facto degree of autonomy.

At rank 27, Austria’s rating for institutional learning has declined dramatically (-16 ranks) relative to the SGI 2009.

Efforts to adapt domestic structures to international developments have been moderate, largely due to the government’s fragmented structure and inefficient decision-making. EU participation takes place at a minimum level, as the government is primarily interested in catering to domestic needs.

The fragmented structure of the Austrian government and the chancellor’s relative weakness makes monitoring from within the central government de facto impossible. Apart from the extension of the National Council’s maximum legislative term from four to five years, there has been no major institutional reform.

Austria ranks among the upper middle range in accountability.

Although the government takes a pro-active approach to informing the public of policy plans, policy literacy remains low in part due to sheer information overload.

Parliament and its committees have the right to summon ministers but rarely exercise these rights in practice.

Austria’s long tradition of social partnership, though waning, still means that economic and social interest groups cultivate a close working relationship with the government.

Quality newspapers in Austria are not widely read, but the state-owned ORF broadcasting system provides a pluralism of information.