Chapter

Still Three Models of Capitalism? The Impact of Changing Policies and Growing Pressures on Economic Practices

Vivien A. Schmidt

in The Futures of European Capitalism

Published in print August 2002 | ISBN: 9780199253685
Published online November 2003 | e-ISBN: 9780191600210 | DOI: http://dx.doi.org/10.1093/0199253684.003.0004
Still Three Models of Capitalism? The Impact of Changing Policies and Growing Pressures on Economic Practices

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This chapter adds to the ‘varieties of capitalism’ literature by demonstrating that economic practices of countries are not converging on a one‐size‐fits‐all neo‐liberal model of capitalism, despite the fact that all have become more market‐oriented. Instead, they continue to be differentiable into not just two varieties of capitalism, conforming to liberal or coordinated market economies, but three, along lines of development from the original three postwar models of capitalism. The chapter contrasts the three varieties of capitalism in terms of interfirm relations, business‐government relations, and management‐labour relations; outlines the differential national pathways of adjustment of the countries conforming to the three varieties; highlights their continuing differences using indicators related to the financial markets and production systems; and considers their comparative advantages and disadvantages. It concludes that while British market capitalism has gone farther in its traditional market‐oriented direction, German managed capitalism is under strain, while French state capitalism has been transformed but has become neither market nor managed capitalist.

Keywords: business‐government relations; financial markets; interfirm relations; managed capitalism; management‐labour relations; market capitalism; market orientation; production systems; state capitalism; varieties of capitalism

Chapter.  15963 words.  Illustrated.

Subjects: Comparative Politics

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