View source for Vetterliwirtschaft/copinage (Switzerland)

{{infobox 
| nameofpractice =Vetterliwirtschaft/copinage
| flagemoji = 🇨🇭
| definition =Provision of mutual favours or preferential treatment
| location =Switzerland
| imagemap =Switzerland map.png
| clusters =
[[:Category:Solidarity|Solidarity]] – [[:Category: Normative ambivalence| Normative ambivalence]] – [[:Category: Conformity| Conformity]] – [[:Category: Lock-in effect| Lock-in effect]] – [[:Category: Community lock-in| Community lock-in]] – [[:Category: Amoral familism| Amoral familism]] 
| categories =
[[:Category:Switzerland|Switzerland]] – [[:Category: Europe| Europe]] – [[:Category: Favour| Favour]] – [[:Category: Mutual help| Mutual help]] – [[:Category: Influence| Influence]] 
| authorofpiece =Lucy Koechlin
| authorinstitution =Department of Social Sciences, University of Basel, Switzerland
| authorwebsite =[https://ethnologie.philhist.unibas.ch/en/persons/lucy-koechlin/ Profile page at UB]}}
<big>'''By Lucy Koechlin, Department of Social Sciences, University of Basel, Switzerland'''</big>
[[Category:Solidarity]] 
[[Category: Normative ambivalence]] 
[[Category: Conformity]] 
[[Category: Lock-in effect]] 
[[Category: Community lock-in]] 
[[Category: Amoral familism]] 
[[Category:Switzerland]] 
[[Category: Europe]] 
[[Category: Favour]] 
[[Category: Mutual help]] 
[[Category: Influence]] 
[[Category:Entry]] 
[[Category: Volume 1]] 
{| class="wikitable"
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|style="font-size:1.1em;"| ''Vetterliwirtschaft'' is a widespread expression denoting mutual favours or preferential treatment in German-speaking communities in Switzerland. It derives from the German term''Vetternwirtschaft'', which literally translates as the 'cousins' economy'. Swiss-German dialects exclusively use the diminutive form ''Vetterliwirtschaft'' (i.e. signified by the suffix -li, which makes the literal meaning akin to 'little cousins' economy'). Like nepotism, ''Vetterliwirtschaft''implies the favouring of friends or family by those in a position of power. Everyone knows what is meant: ‘back-scratching’ exchanges of favours between colleagues in politics and business.
|}

In the French-speaking parts of Switzerland, the equivalent term ''copinage'' is used,
from the French ''copain'', meaning &#39;buddy&#39; or &#39;mate&#39;. Although ''copinage'' is usually translated as
&#39;cronyism&#39;, the meaning of ''copinage'' and ''Vetterliwirtschaft'' strongly reflects the social,
political and economic idiosyncrasies of Switzerland. Switzerland is a small country, which
prides itself in its egalitarian and citizen-based political system. Historically, Switzerland
came into existence through a growing coalition of communities, as exemplified by the Swiss
national folk hero Wilhelm Tell. 

The founding legend, in which Tell assassinated a brutal
Habsburg ruler with his crossbow, sparking rebellion and the eventual independence of the
Old Swiss Confederacy, represents the resistance of oppressed Swiss communities against the
occupying force of the counts of Habsburg. The Old Swiss Confederacy was based on a
coalition (''Eidgenossenschaft'', literally: an &#39;oath-fellowship&#39;) of communities from Uri,
Schwyz and Unterwalden in what is now central Switzerland, with the Federal Charter of
1291 regarded as its founding document. In subsequent centuries, more so-called cantons and
cities joined the confederation (a loose union of federal states), leading to the establishment
of modern Switzerland on the basis of a federal constitution in 1848. The history of
Switzerland is embodied in its official name, the &#39;Swiss Confederation&#39;<ref name="kreis">Kreis, G. (ed.). 2014. Die Geschichte der Schweiz. Basel: Schwabe Verlag</ref>.

This history has translated into a strong bottom-up democracy, where the smallest
political unit is the community, which to this day is vested with real political power. The
centrality of the idea of the community as the core unit of society is reflected in the country’s
executive body. Switzerland’s executive is headed not by an individual (such as a president
or prime minister), but rather a collective body, the Federal Council, which acts as both head
of state and head of government. Tellingly, the seven-member Federal Council, elected by
Parliament, forms a multi-party body representing the different regions and languages of
Switzerland<ref name="kreis" /><ref>Vatter, A. 2014. Das politische System der Schweiz. Baden-Baden: Nomos</ref><ref name="kriesi">Kriesi, Hp. 2008. The Politics of Switzerland: Continuity and Change in a Consensus
Democracy. Cambridge: Cambridge University Press</ref>.

Thus, the community as a political institution and as a frame of reference for political
identity plays a key role in Swiss culture. It also has economic implications: as a result of the
political authority vested in communities, business and politics are closely intertwined on a
local level. Many people running a small business, such as an electrician or a small
construction company, will also have some local political position, or have had one at some
time. 

This is where ''Vetterliwirtschaft/copinage'' comes into play: a local electrician may be
awarded the contract to rewire a municipality&#39;s public buildings without a public tender or
clear criteria; or a local farmer may have a &#39;gentleman&#39;s agreement&#39; with the village council to
maintain the school grounds or clear the roads from snow in winter. However,
''Vetterliwirtschaft/copinage'' also takes on more obviously corrupt forms, especially in
procurement and construction; typical examples include the brother-in-law of a local
politician getting a contract to build a new school, or the re-zoning of land so that an
influential member of the community can build a house, or a commercially lucrative hotel or
ski-lift<ref>Queloz, N., Borghi. M. and Cesoni, M-L. 2000. Processus de corruption en Suisse. Basel:
Helbing und Lichtenhahn</ref>. However, although all these decisions pass through a village or
municipal council, it is striking that the community routinely turns a blind eye to these
informal practices. This is even true of cases where other members of the community are
being excluded from such deals.

One reason for the widespread societal acceptance of ''Vetterliwirtschaft/copinage'' may
lie in the so-called &#39;consensus-democracy&#39;<ref name="kriesi" /><ref name="kreis" /> that characterises
Switzerland. The Swiss loathe being confrontational – issues are solved by consensus, while
conflict is frowned upon. This deep-seated suspicion of individuals who go ‘against the
grain’ remains highly topical, illustrated by the heated debates surrounding the introduction
of an (ironically toothless) whistleblower law in Switzerland<ref>Jürgensen, N. 2015. ‘Korruptionsstrafrecht: Schutz für Vetterliwirtschaft’, Neue Zürcher
Zeitung, 3 June, http://www.nzz.ch/schweiz/schutz-fuer-vetterliwirtschaft-1.18554626</ref><ref>Carranza, C. J. 2014. Whistleblowing: Perspectives en droit suisse. Genève: Schulthess</ref><ref>The Economist. 2015. ‘Whistleblowing in Switzerland: Rough Terrain’, The Economist, 5
December, http://www.economist.com/news/business/21679456-two-court-cases-illustrate-
struggles-employees-who-allege-wrongdoing-rough-terrain</ref>.

Furthermore, the nature of Swiss nepotism differs from &#39;[[Old_Boy_Network|old boy networks]]&#39;, which
usually serve to entrench the economic and political privileges of the upper classes.
''Vetterliwirtschaft/copinage'' is more democratic and inclusive; it is an everyday occurrence on
the local level, and is not only tolerated but viewed with some fondness by many Swiss. The
political history, the smallness of the country, and not least the high density of all sorts of
associations, mean that the Swiss know each other very well on a local level. Politics is very
accessible, and social capital – i.e. horizontal ties between community members characterised
by high levels of trust and reciprocity – is high<ref>Freitag, M. 2014. Das sozial Kapital der Schweiz. Zürich: Neue Zürcher Zeitung</ref>. Arguably,
''Vetterliwirtschaft/copinage'' contributes to the density of social capital by fostering exchange
networks that are embedded in a community.

Switzerland may be highly democratic, participative and egalitarian compared with
many other societies, but ''Vetterliwirtschaft/copinage'' can also be observed in the higher
echelons of society. Especially since World War II, elite networks mutually reinforced their
ties and opportunities by occupying key positions in politics, business and the army (which to
this day is a militia army based on conscription of all adult males). For decades, these &#39;higher&#39;
forms of ''Vetterliwirtschaft/copinage'' enjoyed virtual immunity from public critique. This
changed in the late 1990s, when a series of scandals shook the famously stable country. 

The most spectacular incident was the cessation of flight operations of the renowned Swiss airline
Swissair on 2 October 2001. Due to the company’s inability to make payment to creditors on
its large debt, fuel suppliers refused to fuel the waiting aircrafts, grounding thousands of
passengers around the world. The incident sent shockwaves through Swiss society as the
Swiss held great pride in Swissair, seeing it as a national treasure and the epitome of Swiss
stability and quality. Swissair&#39;s previously inconceivable collapse was a result of seriously
misguided management strategies and regulatory failure. In particular, it brought to light
what the media has called the ‘inbreeding’ of top management: the systematic &#39;recycling&#39; of a
handful of board members between several large Swiss companies, some of whom also acted
as members of parliament<ref>Lüchinger, R., Haemmerli, Th. and Willmann. B., Swissair – Mythos und Grounding. Zürich:
Scalo Verlag</ref><ref>Stämpfli, R. 2003. ‘Die organisierte Unverantwortlichkeit: die Schweiz hat gewählt’, Rote
Revue: Zeitschrift für Politik, Wirtschaft und Kultur, 81(4): 25-31</ref>. For the first time, this type
of ''Vetterliwirtschaft/copinage'' within the political establishment was seen to be deeply
problematic, and has since led to a far more critical attitude towards such practices.

The new millennium has seen significant changes in terms of access to politics and
business. ''Vetterliwirtschaft/copinage'' among political and economic elites has become the
exception due to a transformed political and social landscape, tightened regulatory
frameworks and highly internationalised boards of large companies<ref>Aiolfi, S. 2015. ‘Die Globalisierung der Vetterliwirtschaft’, Neue Zürcher Zeitung, 16 July,
http://www.nzz.ch/wirtschaft/unternehmen/die-globalisierung-der-vetterliwirtschaft-
1.18580564</ref><ref>Stock, O. 2007. ‘Schluss mit der &quot;Schweiz AG&quot;: Das Ende der Vetterli-Wirtschaft’,
Handelsblatt, 22 June, http://www.handelsblatt.com/unternehmen/industrie/schluss-mit-der-
schweiz-ag-das-ende-der-vetterli-wirtschaft/v_detail_tab_print/2825594.html</ref><ref>Jürgensen, N. 2015. ‘Korruptionsstrafrecht: Schutz für Vetterliwirtschaft’, Neue Zürcher
Zeitung, 3 June, http://www.nzz.ch/schweiz/schutz-fuer-vetterliwirtschaft-1.18554626</ref>. Yet although this may hold particularly true on a national level, on
a local level the many forms of ''Vetterliwirtschaft/copinage'' remain more tenacious.