The Political Economy of Corporatism SOCIOLOGY, POLITICS AND CITIES

Editor: JAMES SIMMIE

PUBLISHED Manuel Castells: CITY, CLASS AND POWER Patrick Dunleavy: URBAN POLITICAL ANALYSIS Brian Elliott and David McCrone: THE CITY Roger Friedland: POWER AND CRISIS IN THE CITY Wyn Grant (ed.): THE POLITICAL ECONOMY OF CORPORATISM Stuart Lowe: URBAN SOCIAL MOVEMENTS james Simmie: POWER, PROPERTY AND CORPORATISM The Political Economy of Corporatism

edited by WYNGRANT

M MACMILLAN Editorial matter and selection© Wyn Grant 1985 Individual chapters © Alan Cawson, Colin Crouch, Roger King, Wyn Grant, Bernd Marin, Jane A. Sargent, Peter Saunders, Philippe Schmitter, James Simmie 1985

All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright Act 1956 (as amended). Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages.

First published 1985

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British Library Cataloguing in Publication Data The Political economy of corporatism. - (Sociology, politics and cities) I. Corporate state I. Grant, Wyn II. Series 321.9 HD3611 ISBN 978-0-333-36899-2 ISBN 978-1-349-18041-7 (eBook) DOI 10.1007/978-1-349-18041-7 To the participants in the International Institute of Management project on business interest associations Contents

General Editor's Preface by James Simmie 1x Foreword x1 Notes on the Contributors xm

1 Introduction WynGrant 1 2 Neo-corporatism and the State Philippe Schmitter 32 3 Corporatism in Industrial Relations: a Formal Model Colin Crouch 63 4 Austria-The Paradigm Case of Liberal Corporatism? Bernd Marin 89 5 Corporatism and Local Politics Alan Cawson 126 6 Corporatism and Urban Service Provision Peter Saunders 148 7 Corporatism and Planning James Simmie 174 8 Corporatism and the Local Economy Roger King 202 9 Corporatism and the European Community Jane A. Sargent 229

Notes 255 References 25 7 Index 272 General Editor's Preface

SOCIOLOGY, POLITICS AND CITIES Cities are the focal points of economic, political and cultural life in most countries. They are the places where the results of past and present economic and political conflicts leave their most obvious marks. To understand the changing characteristics of cities, it is therefore necessary to comprehend the relationships between economic and political forces and the influence they have on the lives of different citizens. The series 'Sociology, Politics and Cities' provides a vehicle for the exploration of these relationships. As they cannot be understood within the confines of traditional single disciplinary boundaries, the series aims to be transdisciplinary and includes works which combine, in different ways, such subjects as sociology, economics, politics and history in so far as they contribute to the understanding of cities. The series also aims to contribute to cross-national under­ standing of cities. This is because, although Britain was the first country to experience a revolution in manufacturing industry, and the consequent industrial urbanisation, it has now reached a stage of de-industrialisation combined with de-urbanisation which needs to be set in an international context. The British economy is no longer in the world's first division. Events in its cities are increasingly determined by world rather than purely national economics. The understanding of this global context and how it is affecting cities in other countries is now an important part of urban analysis. The series is also concerned with what private and public action should be recommended in cities. It is therefore interested in public and private policies with respect to cities and their regions. x General Editors Preface The general aim of the series 'Sociology, Politics and Cities' is therefore to encourage and stimulate a continuing analysis of cities in capitalist, socialist and underdeveloped economies. It is concerned to develop theoretical understanding of these phen­ omena based upon empirical analyses. On the bases of such understanding the series is also concerned with the formulation and evaluation of relevant urban policies.

London 1985 James Simmie Foreword

I have been involved for a number of years in research stimulated and informed by nco-corporatist writing, but, despite a number of volumes on the subject, it became apparent that the most recent theoretical work and empirical research findings were not available in a convenient form. Moreover, in teaching students about nco-corporatism, I became aware that they found the subject a confusing one, not least because of the limits of the available literature for teaching purposes. This volume attempts to bring together the latest theoretical work and empirical research in the area in a form that will be useful both to academics interested in nco-corporatism, and to students approaching the subject for the first time. The introduction is particularly intended to provide students un­ familiar with the literature with an overview of the subject as a whole. I have incurred many intellectual debts in the preparation of this volume. Philippe Schmitter provided me with hospitality in Chicago, Berlin and Florence during the gestation of this book, listened patiently to my attempts to formulate my ideas more coherently, and helped me to straighten out my thinking: an extended conversation on the subject whilst walking round Stratford upon Avon on a cold winter day was particularly helpful. Wolfgang Streeck provided me with hospitality in Berlin and Florence, and was of considerable assistance to me in arriving at a better understanding of corporatism in theory and practice. Philippe and Wolfgang co-ordinated the International Institute of Management project on business interest associa­ tions and brought together an exceptional group of scholars from eleven countries to whom this book is dedicated. Among them, special thanks must go to William Coleman of McMaster xii Foreword University for his advice and assistance. Hanspeter Kriesi of the Sociological Institute of the University of Zurich provided me with many insights into corporatist arrangements in Switzer­ land, and also retrieved my luggage from the Swiss customs. Frans van Waarden of the University ofLeiden was a construc­ tive and formidable adversary in many disputations. I also benefited considerably in intellectual terms from my membership of the Corporatism and Accountability Sub-Com­ mittee of the Economic and Social Research Council under the chairmanship ofProfessor R. Dore. Professor G. Botz invited me to a conference on nco-corporatism at the University of Salzburg at an important point in the development of this book and, by allowing me to test my ideas at an early stage of development, prevented me from arriving at conclusions that would have been too unorthodox. Jane Sargent and Helen Rainbird were hard-working research assistants and intellec­ tually invigorating colleagues on two projects related to nco­ corporatist themes. A number of individuals read through the introduction and I am grateful to the following for their comments: Malcolm Anderson, University of Edinburgh; Graham Cox, University ofBath; Ron Dore, Technical Change Centre; GrantJordan, University of Aberdeen; Shiv Nath, University ofWarwick; and William Paterson, University ofWarwick. The responsibility for any errors, omissions or poor judgements remains mine. I am most grateful to the contributors to this volume for their comments on the introduction and their forbearance and energy in responding to requests for revised drafts of their chapters. James Simmie was a helpful and understanding series editor, and Steve Kennedy at Macmillan was patient, tolerant and supportive through a number of delays and difficulties. Last but not least, I must thank my wife, Maggie, and our children, Sophia, Rosalind and Amelia, for once again putting up with the strains of having a writer in the house. As Amelia commented, 'You take so long to produce your books and when they come out they are so boring.' I hope, nevertheless, that some readers will find that this book has something to offer them.

Leamington Spa, October 1984 Wyn Grant Notes on the Contributors

Alan Cawson is Lecturer in Politics at the University of Sussex, and was a Jean Monnet Fellow at the European Univer&ity Institute, Florence, in 1984--5. He is the author of Corporatism and Welfare and a number of articles on corporatism, democracy and state theory. Colin Crouch is Reader in Sociology at the London School of Economics and Political Science. He is the author of Class Conflict and the Industrial Relations Crisis, The Politics of Industrial Relations and Trade Unions: The Logic of Collective Action. Wyn Grant is Senior Lecturer in Politics, and a member of the Institute for Employment Research, at the University of Warwick. He is Associate Editor ofPolitical Studies, author of The Political Economy ofIndustrial Policy and Independent Local Politics in England and Wales, and co-author of The CBI and The Politics of Economic Policymaking. Roger King is Head of the Department ofBehavioural Sciences at Huddersfield Polytechnic. He is the editor of Capital and Politics, and co-author of The Middle Class, Respectable Rebels and The British Right. Bernd Marin is Professor of Comparative Political and Social Research at the European University Institute in Florence, and was formerly Deputy Director of the Institute for Conflict Research in Vienna and U niversitatsdozent at the University of Vienna. He directs the International Bureau of Political and Social Research, Florence-Vienna. Among his books are Politis­ che Organisation sozialwissenschaftlicher Forschungsarbeit, Wachstum­ skrisen in Osterreich? Vol. 1, Grundlagen (with M. Wagner), Vol. 2, Szenarios, and Die Paritiitische Kommission. XIV .Notes on the Contributors Jane Sargent is currently completing a PhD thesis for the London School of Economics on British interest group represen­ tation in the European Communities. She has published articles on this topic in a number of journals including the Journal of Common Market Studies and West European Politics. In 1984 she was appointed PRJResearch Officer for the Retail Consortium. Peter Saunders is Reader in Sociology in the School of Cultural and Community Studies at the University of Sussex. He is author of Urban Politics: A Sociological Interpretation, Social Theory and the Urban Question, and (with John Dearlove) An Introduction to British Politics. Philippe C. Schmitter is Professor of Political and Social Sciences at the European University Institute, and was formerly at the University of Chicago. Recent publications include 'Democratic Theory and Nco-Corporatist Practice' in Social Research 1983. An edited collection of essays (with Wolfgang Streeck) on Private Interest Government will soon be appearing, as will three volumes on Political Life After Authoritarian Rule in Latin America and Southern Europe (with Guillermo O'Donnell and Laurence Whitehead). James Simmie is Lecturer in Urban Sociology at University College, London. He is the author of The Sociology of Internal Migration, Citizens in Coriflict and Power, Property and Corporatism.