Political Economy of Modern Capitalism: Mapping Convergence and Diversity
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Neoliberalism and deregulation have come to dominate national and international political economy. This major book addresses this convergence and analyzes the implications for the future of capitalist diversity. It considers important questions such as: Is the preference for free markets a well-founded response to intensified global competition? Does this mean that all advanced societies must all converge on an imitation of the United States? What are the implications for the institutional diversity of the advanced economies?
Political Economy of Modern Capitalism provides a practical and informed analysis of the public policy choices facing governments and business around the world.
demands. Perhaps most disturbing were concerns, also older than the crisis but dramatized by it, that the German system of knowledge production and diffusion might have structurally and, barring major institutional adjust ments, irreversibly lost touch with changing markets. With the Japanese successes of the late 1980s, competitive advantage in quality markets appeared to derive increasingly from fast product turnover rather than slow product refinement. The German system of innovation,
competition (Table 4.6), each with its advantages and disadvantages, which in a given situation can benefit or penalize a given geographical area. First, the Rhineland model (with an important variant which is Japan ese microcorporatism) depends on a dense network of intermediary insti tutions between central government and individual economic agents (professional associations, strong unions, large firms and financial groups). The chief advantage of this type of capitalism is that it is built
homogeneity of elites crisis of state Fordist model � Anglo-Saxon search for an alternative model tradition Rhineland \ / ---->j n assortment of institutional i m ports and adaptations -----+. of government intervention original trajectory (government inspired) � r ---+ . Figure 4.5 The influence of national trajectories - to imitate one form of capitalism is always to adapt it Copyrighted Material FRENCH STATISM AT THE CROSSROADS 95 Admittedly the crisis is no longer
been several times pointed out, government, even when it has adopted market-driven policies, continues to play a decisive role in policy for both innovation and competitive infrastructure, including socio political stability. It may be a matter of regret that French capitalism is in a minority by not yet having profited from sweeping fiscal reform, while the recurring imbalance in financing social security has so far not led to a comprehensive redefinition of objectives, means and results that
choice in the matter (at least until after the results of the choice are obvious). Second, under Conservative capitalism a minority did well and a tiny minority did extraordinarily well. These were, of course, those at the top end of the income distribution and these are, equally inevitably, those who occupy most of the main pos itions of power and influence in society. That such people would both believe and promulgate the view that Conservative capitalism succeeded and that it is therefore a