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'New Politics' and Globalization on Social Democratic Corporatism: the Case of Sweden

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'New Politics' and Globalization on Social Democratic Corporatism: the Case of Sweden University of Calgary PRISM: University of Calgary's Digital Repository Graduate Studies Legacy Theses 2000 The impact of the 'new politics' and globalization on social democratic corporatism: The case of Sweden Capelli, John Capelli, J. (2000). The impact of the 'new politics' and globalization on social democratic corporatism: The case of Sweden (Unpublished master's thesis). University of Calgary, Calgary, AB. doi:10.11575/PRISM/16909 http://hdl.handle.net/1880/40443 master thesis University of Calgary graduate students retain copyright ownership and moral rights for their thesis. You may use this material in any way that is permitted by the Copyright Act or through licensing that has been assigned to the document. For uses that are not allowable under copyright legislation or licensing, you are required to seek permission. Downloaded from PRISM: https://prism.ucalgary.ca UMVEEtSLTY OF CALGARY The Impact of the 'New Politics' and Globalization on Social Democratic Corporatism: The Case of Sweden John CapelIi A THESIS SUB- TO THE FACULTY OF GRADUATE STUDIES IN PARTIAL FCILFl[LMENT OF THE REQUIREMENTS FOR THE DEGREE OF MA- OF ARTS DEPARTMENT OF POHTICAL SCIENCE CALGARY, ABEIXTA MARCH, 2000 Natiod Library Bibfiothhue nationale du Canada Acquisitions and Acquisitions et Bibliographie Services services bibliographiques 395 Wellhgtwt Street 395, rue Wellington OttawaON K?AON4 OttawaON KlAONLS Canada Canada The author has granted a non- Lzauteura accorde une licence non exclusive Licence allowing the exclusive pernettant a la National Library of Canada to Bibliotheque nationale du Canada de reproduce, loan, distribute or sell reproduire, preter, distriiuer ou copies of this thesis in microform, vendre des copies de cette these sous paper or eIectronic formats. la forme de micxofiche/film, de reproduction sur papier ou sw format eectronicpe. The author retains ownership of the L'auteur conserve la propriete du copyright in this thesis. Neither the hitd'auteur qui protege cette thkse. thesis nor substantial extracts Eom it Ni la these ni des extraits substmtiels may be printed or otherwise de celle-ci ne doivent Etre imprimes reproduced without the author's ou autrement reprod* sans son permission. auton'sation. I wodd Iike to thank the Canada-European Union Exchange Programme for funding my studies and research for a period of five months at Uppsala University. Sweden. I would also like to thank the Department of Political Science at the University of Calgary for the fmancial, as well as moral support. Lastly, an extended thanks goes to Dr. Gretchen MacMillan for alIowing me the opportunity to explore areas of great interest to me, for the constructive comments and criticisms, and for the patience. To my parents TABLE OF CONTENTS Approval page .................................................................................................. C~.~.......C.u0 0 Achowledgements.....~~~.~~~..~...~,~~~~~..~.~~..~o...~.~.C.~.L~CC~C..~~~.~~LC.t~C...~~...C.L....~~C.~CC~~~~.C. .-,u-0. C . Ddcatlon,. ........~C~o.~~.C.~o.~,.~...,~~~,,,..~.~...~.~~tC~~.~.~~~~..~oC~~~~.~..~.~.~...L~~~.o, ..---........~rrr~oC~~CCCCC~r~~ Table of Contents ......................................................................................................... v CHAPTER ONE: 'SOCIAL DEMOCRATIC CORPORATISM' IN THE POST- INDUSTFUAL ERA ............................................................................................. 1 The State and Society in the Postindustrial Era ..................... 8 CHAPTER TWO: STATE-SOCIETY REIATIONS IN THE POST- INDUSTRIAL ERA: GRAMSCTS C0NCWTLJA.L MODEL................. A6 A Theoretical Overview .................................................................. 16 Gramsci: 'Hegemony' and 'Historical Blocs' ........................... 19 CHAPTER THREE: THE DEMISE OF THE KEYNESIAN HISTORICAL BLOC: THE IMPACT OF THE 'NEW POLITICS' AND GLOBALIZATION.......................................................................... ...-...C00.*-*.-.*28 - * The 'New Pohcsr.............................................................................. 28 * . GIobahzatton .................................................................................... -.*-46 CHMTER FOUR: THE DEVELOPMENT OF SWEDISH 'SOCIAL DEMOCRATIC CORPORAT][SM:: A NEW 'HISTORZCAL BLOC....... 59 The Swedish Mode1 ....................................................................... ...64 Postindustrialization and the ChalIenges to the Swedish Mode1................................................................................... 75 CHAFER FIVE: THE DEMISE OF THE 'KEYNESIAN HISTONCAL BLOC': THE SWEDISH EXPEZUENCE. 1980-1995 ............................................. .84 Divisions in Labour: Radicalization, New AIIiances. and Reforms ........................................................................................ 86 Postindustrial Cleavages and the Transformation of the Swedish Model ................................................................................. ..94 A New Model?.................................................................................... 99 CHAPTER SIX: A 'NEOLIBERAL HIST0RI:CA.L BLOC?............................... LO? Neoliberalism and the Swedish Experience ........................ 110 CHAPTER ONE 'SOCIAL DEMOCRATIC CORPORATISM' IN THE POSTINDUSTRIAL ERA A function of social science is to provide a better understanding of both the process and the ~Iesthat guide interactions between individuaIs and organizations within a given society. As such, the activities of socid actors and the structures within which their actions take place, have been an object of study for social science. Within the discipline, moreover, a great deal of interest and effort has gone into understanding the process of social change. This thesis appIies these general lines of inquiry to the forces that have undermined what has been referred to as the 'embedded IiberaI' order (Ruggie, 19 82; HelIeiner, 1994a), the 'neo-libera1 historic bIocr (Cox, 1993), or more simply the 'Keynesian post-war consensus' (see Pierson, 1991: ch.4). All these terms describe a particdar historical period in the development of advanced capitast societies.1 This period, which lasted from the end of the Second IFO~ pmposes, hnow on this historid perlod wilI be &referred to as the Xeynesian hisforid bIOct* World War to the mid-1970s, was characterized by the following: I) a compromise between the two industria1 capitalist cIasses, business and labour, which would Iead to a curtailment of the disruptive antagonism of the pre-WWII years, and the start of an all-inclusve process of policy formulation mediated by government. 2) A commitment to full employment, sustained economic growth, and the provision of an extensive package of social services. 3) A concerted effort among leading capitalist states to ensure a greater degree of policy autonomy for the Keynesian 'interventionist' state2 (under the rubric of the Bretton Woods financial order), so as to protect society from the destructive effects of a self-regulated rnarket.3 By the mid- 1970s, the 'Keynesian historical bloc' had come to an end. Not only had Western societies undergone some fundamental changes, but so had the capitalist productive structure and the state's ability to operate autonomously in an ever expanding global market. More signiF~cantly, a new cuItural and inte1Iectua.l orthodoxy had deveIoped, which was able to successfulIy articulate an understanding of the meaning and significance of these changes; such orthodoxy, commonly referred to as neoliberalism, supplanted Keynesian principles and developed a new consensus among Western mass publics. 2The Keynesian dochine is prediated upon the belief that a self-regdated market is susceptibIe to economicaIIy and soda[ly ciisnrptTve dedInes in demand. Keynes beIieved that the market needed to be managed by governments; during times of decmsing demand and investment (usuaEy resulting in increased unemployment), goveuunentswodd be expected to promote demand and mmentby boosting economic activity through measures such as public worksr monetary poky and the manipulation of interest rates (Piersonr 1991: pp.267). -e nonnative assumption that is made here, borrows heady from Katl PoIanyi's (1944) seminal work on the relations between society and the matket As we shall see, in their attempt to contain what were perceived as the adverse effectsof umestrkted capital movements, the drab ofthe BrettDn Woods Agreement (1944) made the same assumption (Hd&-r 19% ch.2)- This issue wiIL be discussed at greater imgth m the pages that foIIow. The demise of the 'Keyensian historical bloc' can be attributed to shifts in vaIues and attitudes among Western mass publics associated with the rise of the so-called 'new politics', as well as the structural changes associated with the process of globalization. In short, the 'new politics' can be construed as the redefinition of the socio-political agenda of postindustrial societies. resulting from the growing disaffection among Western mass pubLics with both conventional structures of political participation and intermediation, and the inadequacies associated with traditional cleavage structures (Muller-Rommel, 1989, 1990; Poguntke, 1989: Inglehart, 1990a; Kitschelt, 1994, butsen, L998). The mass mobilization that came to symbolize the rise of the 'new politicst stemmed from the reaction to the lack of effectiveness with which advanced industrialist states accomodated the growing diversity of preferences among Western mass publics. Globalization,
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