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?Particularistic? Liberalism: Industries, Institutions and Influence in Liberal Market Economies

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Abstract:

Globalization?s onset inspired predictions about convergence of diverse capitalist economies to American-style liberalism (Kurzer 1994; Frieden & Rogowski 1996). Even dissenters (Garrett 1998; Boix 1998; Hall & Soskice 2001; Kitschelt, Lange, Marks & Stephens 1999), who insisted on the persistence of different capitalist models, agreed on liberalism?s comparative advantages: fewer regulations, less particularistic policy-making, and swift asset redeployment. Rather than inspiring hands-off government, however, increased international competition has often been accompanied by industry-specific tax cuts and credits, subsidies, and import relief. Neither the convergence school nor its critics, can explain when and why the liberal market economies (LMEs) in the UK, US, and Canada stray from laissez-faire. This paper argues that political institutions explain divergence among LMEs. My argument is that the key variable distinguishing between the UK and US is the weakness of party discipline in the United States and its strong presence in the UK. The most important distinction in scholarly work, by contrast, has been between majoritarianism and proportional representation electoral systems (Rogowski 1987). Political party discipline influences politicians? incentives to adopt universalistic versus particularistic policies toward business in the aggregate, as well as policies regarding specific sectors. The policy result of weak party discipline is different from the result of federalism. In systems with weak party discipline, businesses can invest in particular favors from individual legislators. In federal systems, by contrast, the only industrial particularism is inter-state bids for mobile industries capable of making credible exit threats.

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industri (121), polici (98), parti (94), polit (70), disciplin (60), govern (59), uk (39), institut (37), differ (31), us (31), system (30), specif (30), press (28), intern (27), state (26), canada (26), economi (25), univers (24), econom (24), particular (23), american (23),

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Keywords: globalization, convergence, industrial policy, varieties of capitalism, party discipline, federalism
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Kramer, Claire. "?Particularistic? Liberalism: Industries, Institutions and Influence in Liberal Market Economies" Paper presented at the annual meeting of the American Political Science Association, Boston Marriott Copley Place, Sheraton Boston & Hynes Convention Center, Boston, Massachusetts, Aug 28, 2002 <Not Available>. 2009-05-26 <http://www.allacademic.com/meta/p65414_index.html>

APA Citation:

Kramer, C. , 2002-08-28 "?Particularistic? Liberalism: Industries, Institutions and Influence in Liberal Market Economies" Paper presented at the annual meeting of the American Political Science Association, Boston Marriott Copley Place, Sheraton Boston & Hynes Convention Center, Boston, Massachusetts Online <.PDF>. 2009-05-26 from http://www.allacademic.com/meta/p65414_index.html

Publication Type: Conference Paper/Unpublished Manuscript
Review Method: Peer Reviewed
Abstract: Globalization?s onset inspired predictions about convergence of diverse capitalist economies to American-style liberalism (Kurzer 1994; Frieden & Rogowski 1996). Even dissenters (Garrett 1998; Boix 1998; Hall & Soskice 2001; Kitschelt, Lange, Marks & Stephens 1999), who insisted on the persistence of different capitalist models, agreed on liberalism?s comparative advantages: fewer regulations, less particularistic policy-making, and swift asset redeployment. Rather than inspiring hands-off government, however, increased international competition has often been accompanied by industry-specific tax cuts and credits, subsidies, and import relief. Neither the convergence school nor its critics, can explain when and why the liberal market economies (LMEs) in the UK, US, and Canada stray from laissez-faire. This paper argues that political institutions explain divergence among LMEs. My argument is that the key variable distinguishing between the UK and US is the weakness of party discipline in the United States and its strong presence in the UK. The most important distinction in scholarly work, by contrast, has been between majoritarianism and proportional representation electoral systems (Rogowski 1987). Political party discipline influences politicians? incentives to adopt universalistic versus particularistic policies toward business in the aggregate, as well as policies regarding specific sectors. The policy result of weak party discipline is different from the result of federalism. In systems with weak party discipline, businesses can invest in particular favors from individual legislators. In federal systems, by contrast, the only industrial particularism is inter-state bids for mobile industries capable of making credible exit threats.

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Document Type: .pdf
Page count: 24
Word count: 5694
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`Particularistic' Liberalism: Industries Institutions and Influence in Liberal Market Economies Claire Kramer Duke University cvk2@duke.edu Prepared for presentation at the American Political Science Association Annual Meeting August 28­September 1 2002 in Boston Massachusetts. Comments are welcome! 1 Abstract Globalization's onset inspired predictions about convergence of diverse capitalist economies to American­style liberalism (Kurzer 1994; Frieden & Rogowski 1996). Even dissenters (Garrett 1998; Boix 1998; Hall & Soskice 2001; Kitschelt Lange Marks & Stephens 1999) who insisted on the persistence of
Trade Conflict in High­ Technology Industries. Washington D.C.: Institute For International Economics. Uriu Robert. 1996. Troubled Industries: Confronting Economic Change in Japan. Ithaca N.Y.: Cornell University Press. 23 Weaver R. Kent and Bert A. Rockman eds. 1993. Do Institutions Matter?: Government Capabilities in the United States and Abroad. Washington D.C.: Brookings Institution. Weaver R. Kent. 1985. The Politics of Industrial Change: Railway Policy in North America. Washington D.C.: Brookings Institution. Weingast Barry. 1995. "The Economic Role of Political Institutions:


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