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The authors present important research showing that corporatist institutions generate smaller non-competitive wage differentials than a decentralized system. A theoretical explanation is developed based on the hold-up problem in investments, arguing that corporatist institutions solve the problem by specifying ex ante nominal contracts that remove the necessity of ex post bargaining over the surplus of an employment relationship. The authors also argue that such institutions allow sufficient flexibility to accommodate aggregate shocks, even more so than decentralized systems. Corporatism or Competition? is the first book to bring together the mass of research on comparative wage differences, wage movements and employment behaviour in different countries with different institutional frameworks, in an organized and coherent fashion.
Rather than viewing the history of American capitalism as the unassailable ascent of large-scale corporations and free competition, American Fair Trade argues that trade associations of independent proprietors lobbied and litigated to reshape competition policy to their benefit. At the turn of the twentieth century, this widespread fair trade movement borrowed from progressive law and economics, demonstrating a persistent concern with market fairness - not only fair prices for consumers but also fair competition among businesses. Proponents of fair trade collaborated with regulators to create codes of fair competition and influenced the administrative state's public-private approach to market regulation. New Deal partnerships in planning borrowed from those efforts to manage competitive markets, yet ultimately discredited the fair trade model by mandating economy-wide trade rules that sharply reduced competition. Laura Phillips Sawyer analyzes how these efforts to reconcile the American tradition of a well-regulated society with the legacy of Gilded Age of laissez-faire capitalism produced the modern American regulatory state.
This paper outlines a larger planned project on the effect of democracy on corporatism in Mexico. The “state corporatism” by which autocratic governments harnessed major societal interests was common in Latin America during much of the 20th century. As the region democratized, theorists expected these tight state-labor bonds to disappear, and in fact organized labor does appear much more fragile today than before the transition. Yet this weakness is most likely a function of economic, not political, liberalization. Rather, this paper posits that corporatism is likely to survive and possibly thrive in new democracies, all else equal. Yet it has been empirically difficult to isolate the effects of democracy from those of economic opening. Furthermore, the relative distinctiveness of the corporatist experience across countries has hindered systematic comparison. A subnational analysis of the education sector in Mexico reduces these problems. Teachers are largely protected from the international competition associated with mobile capital. And the variation in the level of electoral competition across relatively similar Mexican states facilitates comparative analytic leverage. Nevertheless, the strength of corporatism remains difficult to measure. As such, this paper proposes the use of three education policy areas through which the extent of union-government ties can be seen. Preliminary evidence supports the hypothesis that democratization by itself does not undermine corporatism.
This is an important volume by authoritative authors that raises important questions about democracy. It demands extended attention and will stimulate debate. Wyn Grant, Political Studies Review This timely book fills a void in the literature on interest group representation in democracies. Contributors address various topics in democratic development and interest group representation in a manner that is both broadly comparative and attentive to in-depth case studies. . . . Overall, this is a great addition to the literature on democratic consolidation with a neo-corporatistic focus. Highly recommended. B.A Yesilada, Choice At a time when democratization and the state of democracy are at the forefront of attention in many parts of the world, this book examines the state-of-the-art on this vital political issue. Revisiting the now classical literature on neo-corporatism in light of current research and theory, the contributors illustrate the enormous influence of the neo-corporatist debate on modern political science, political sociology, and political economy. Reflecting on a major part of the recent history of social science, they shed light on some of its current core concepts, such as governance, policy networks, and varieties of capitalism. The book traces the evolution of political conflicts concerning social order; from the class conflicts in Europe in the of 1970s Europe to the subsequent Latin American and Eastern European battles over democratization and democratic transition, to the debate on the democratic deficit of the European Union. Paying tribute to the work of Philippe Schmitter, which bridges the themes discussed in the book and which has provided inspiration to an entire generation of social scientists, The Diversity of Democracy will be invaluable to academics, students and researchers with an interest in political science, democratic theory, European integration and the study of democratic transitions as well as Latin American and Eastern European studies.
First published in 1980. In Pluralism and Corporatism the author examines the ‘pluralist' conception of democratic advanced industrial societies and shows to what extent an alternative conception the ‘corporatist' society is more appropriate today. The book reviews criticisms of standard conceptions of industrial society and draws empirical support for some new approaches from the politics of Britain, France, Germany, Holland, Belgium, Italy, Japan and the United States: an analysis which shows that there are tendencies everywhere towards the fragmentation of government responsibility and its assumption both by governmental and organised group bureaucracies. The author argues that this pattern of policy-making is in fact in conflict with standards of behaviour which are fundamental to the ideal of representative and accountable democratic government. Both critical review and analysis are organised in a way which will maximise the usefulness of Pluralism and Corporatism as a theoretical complement to those more standard texts in comparative government which already provide a study in-depth of individual countries. It seeks to review changing political culture, political economy, party and interest intermediation, bureaucratic influence, constitutional effects on political behaviour and the international constraints upon government which arise from interdependence. It will become essential reading for courses on the politics of advanced industrial societies and particularly of Western Europe.