Session 1, European Political Economy (POSC 263), Spring Term 2004

THE THREE PRIMARY TRAITS OF DEMOCRATIC CORPORATISM

(1) An ideology of social partnership (culture of compromise).

(2) A relatively centralized and concentrated system of interest groups.

(3) Voluntary and informal coordination of conflicting objectives through continuous political bargaining between interest groups, state agencies, and political parties.

TWO TYPES OF DEMOCRATIC CORPORATISM:

Liberal corporatism - powerful internationally oriented business communities with relatively weak labor unions; global adaptation to economic change. Cases: Switzerland, the Netherlands, and Belgium.

Social corporatism - nationalized business community with relatively powerful labor unions; national adaptation to economic change. Cases: Austria, Norway, and Denmark. Sweden is a partial exception since it has both internationally oriented business and powerful labor unions.