What is the future of social democracy in the age of globalization? The Swedish model, long the paradigm for socially responsible capitalism, was pronounced dead in the 1990s, after a period of decline and disappointing economic performance. But a new Swedish model has emerged and is thriving. How did this happen and what can we learn from the Swedish experience?Europeanization and globalization were expected to erode social democracy in Sweden, placing limits on the power of organized labour to negotiate with capital. Unions were no longer in a position to trade wage moderation for welfare gains, the argument went, as neo-corporatism died and footloose capital dictated the rules of the political game. The electoral decline of Swedish social democracy and the abandonment of corporatism as an essential aspect of public policy made conditions even more difficult. Here Dimitris Tsarouhas shows why and how the model did not die. Tracing the emergence of the original model to its institutional and political origins, he garners rich empirical evidence to show the resilience of the fundamental nature of Swedish social democracy in the face of changing policies, institutions and labour relations. Tsarouhas draws attention to the institutional build-up of the Swedish polity, the resources accumulated by the labour movement and the essentials of a system premised upon high skills, high product quality and the high taxes that go with them. Above all, this book suggests a clear-cut yet immensely contentious policy lesson: in an age of globalization, politics, and policy choices every step of the way, still matter. 'Social Democracy in Sweden' is an important reassessment of European social democracy and the impact of globalization, and offers important insights for the way forward.
Social Democracy in Sweden
The Threat from a Globalised World