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Varieties of Coordination and Trajectories of Change: Social Policy and Economic Adjustment in Coordinated Market Economies |
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Abstract:
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This paper investigates the politics of change in coordinated market economies, and explores why some countries (well-known for their highly cooperative arrangements) manage to sustain coordination when adjusting to economic transformation, while others fail. We argue that the broad category of “coordinated market economies” subsumes different types of cooperative engagement: macro-corporatist forms of coordination are characterized by national-level institutions for fostering cooperation and feature a strong role for the state, while forms of coordination associated with enterprise cooperation more typically occur at the level of sector or regional institutions and are often privately-controlled. Although these diverse forms of coordination once appeared quite similar and functioned as structural equivalents, they now have radically different capacities for self-adjustment.
The role of the state is at the heart of the divergence among European coordinated countries. A large public sector affects the political dynamics behind collective outcomes, through its impact both on the state’s construction of its own policy interests and on private actors’ goals. Although a large public sector has typically been written off as an inevitable drag on the economy, it can provide state actors with a crucial political tool for shoring up coordination in a post-industrial economy. We use the cases of Denmark and Germany to illustrate how uncontroversially coordinated market economies have evolved along two sharply divergent paths in the past two decades, and to reflect on broader questions of stability and change in coordinated market economies. The two countries diverge most acutely with respect to the balance of power between state and society; indeed, the Danish state—far from being a constraint on adjustment (a central truism in neoliberal thought) – plays the role of facilitator in economic adjustment, policy change, and continued coordination. |
Most Common Document Word Stems:
sector (133), coordin (121), state (100), public (92), social (82), employ (78), 50 (76), polit (67), level (64), 00 (59), govern (52), cooper (52), market (51), economi (46), germani (46), denmark (46), larg (43), polici (42), union (42), institut (42), worker (42), |
Author's Keywords:
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varieties of capitalism, comparative political economy, social policy, institutional analysis, Germany, Denmark |
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Association:
Name: American Political Science Association URL: http://www.apsanet.org
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Citation:
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MLA Citation:
| Martin, Cathie. and Thelen, Kathleen. "Varieties of Coordination and Trajectories of Change: Social Policy and Economic Adjustment in Coordinated Market Economies" Paper presented at the annual meeting of the American Political Science Association, Hyatt Regency Chicago and the Sheraton Chicago Hotel and Towers, Chicago, IL, Aug 30, 2007 <Not Available>. 2011-06-09 <http://www.allacademic.com/meta/p209925_index.html> |
APA Citation:
| Martin, C. J. and Thelen, K. , 2007-08-30 "Varieties of Coordination and Trajectories of Change: Social Policy and Economic Adjustment in Coordinated Market Economies" Paper presented at the annual meeting of the American Political Science Association, Hyatt Regency Chicago and the Sheraton Chicago Hotel and Towers, Chicago, IL Online <PDF>. 2011-06-09 from http://www.allacademic.com/meta/p209925_index.html |
Publication Type: Conference Paper/Unpublished Manuscript Abstract: This paper investigates the politics of change in coordinated market economies, and explores why some countries (well-known for their highly cooperative arrangements) manage to sustain coordination when adjusting to economic transformation, while others fail. We argue that the broad category of “coordinated market economies” subsumes different types of cooperative engagement: macro-corporatist forms of coordination are characterized by national-level institutions for fostering cooperation and feature a strong role for the state, while forms of coordination associated with enterprise cooperation more typically occur at the level of sector or regional institutions and are often privately-controlled. Although these diverse forms of coordination once appeared quite similar and functioned as structural equivalents, they now have radically different capacities for self-adjustment.
The role of the state is at the heart of the divergence among European coordinated countries. A large public sector affects the political dynamics behind collective outcomes, through its impact both on the state’s construction of its own policy interests and on private actors’ goals. Although a large public sector has typically been written off as an inevitable drag on the economy, it can provide state actors with a crucial political tool for shoring up coordination in a post-industrial economy. We use the cases of Denmark and Germany to illustrate how uncontroversially coordinated market economies have evolved along two sharply divergent paths in the past two decades, and to reflect on broader questions of stability and change in coordinated market economies. The two countries diverge most acutely with respect to the balance of power between state and society; indeed, the Danish state—far from being a constraint on adjustment (a central truism in neoliberal thought) – plays the role of facilitator in economic adjustment, policy change, and continued coordination. |
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| Document Type: |
PDF |
| Page count: |
42 |
| Word count: |
11223 |
| Text sample: |
| 1 VARIETIES OF COORDINATION AND TRAJECTORIES OF CHANGE: Social Policy and Economic Adjustment in Coordinated Market Economies By Cathie Jo Martin Boston University and Kathleen Thelen Northwestern University Submitted for Publication to World Politics (April 2007) INTRODUCTION Does egalitarian capitalism have a future? In the face of massive changes sparked by globalization technological change and the secular decline of manufacturing students of the political economy of the advanced industrial democracies are posing this question with increased urgency (e.g. Pontusson |
| of union density combined with a measure of corporatist organization in employers’ associations for 1998 x axis = Public Sector Size as measured by general government total outlays as a percent of nominal GDP for 2000. Sources: PublicSize00 is a measure of general government total outlays as a percent of nominal GDP for 2000. The data are taken from OECD “General Government Total Outlays ” Table 25 Economic Outlook No. 78 (December 2005) available at http://www.oecd.org/document/61/0 2340 en_2649_201185_2483901_1_1_1_1 00.html. |
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