Published online by Cambridge University Press: 28 March 2014
The appeal to globalization as a non-negotiable external economic constraint plays an increasingly significant role in the linked politics of expectation suppression and welfare reform in contemporary Europe. Yet, although it threatens to become something of a self- fulfilling prophecy, the thesis that globalization entails welfare retrenchment and convergence is empirically suspect. In this paper it is argued that there is little evidence of convergence amongst European social models and that, although common trajectories can be identified, these have tended to be implemented more or less enthusiastically and at different paces to produce, to date, divergent outcomes. Second, I suggest that it is difficult to see globalization as the principal agent determining the path on which European social models are embarked since the empirical evidence points if anything to de-globalization rather than globalization. The implications of this for the future of the welfare state in Europe and for the USA as a model welfare state regime are explored.
An earlier version of this paper was presented as an inaugural lecture at the University of Birmingham and as the keynote address at the opening conference of the GENIE Network, University of Cyprus. The work presented here arises out of recently completed research on ‘Globalization, European Integration and the European Social Model’, which formed part of the ESRC's ‘One Europe or Several’ Research Programme (project grant L213252043). The author is indebted to Government and Opposition's referees and editors for their generous and perceptive comments on an earlier iteration.
2 King, Anthony, ‘Overload: Problems of Governing in the 1970s’, Political Studies, 23: 2/3 (1975), pp. 284–96, 286.CrossRefGoogle Scholar
3 M. Crozier, ‘Are European Democracies Becoming Ungovernable?’, in M. Crozier, S. Huntington and J. Watanuki, The Crisis of Democracy, New York, New York University Press, 1975, p. 8.Google Scholar
4 D. Held, A. McGrew, D. Goldblatt and J. Perraton, Global Transformations, Cambridge, Polity Press, 1999.Google Scholar
5 P. A. Hall, ‘Organised Market Economies and Unemployment in Europe’, in N. Bormeo, ed., Unemployment in the New Europe, Cambridge, Cambridge University Press, 2001, p. 68, n. 9.Google Scholar
6 Cooke, W. N. and Noble, D. S., ‘Industrial Relations Systems and US Foreign Direct Investment Abroad’, British Journal of Industrial Relations, 36: 4 (1998), pp. 581–609;CrossRefGoogle ScholarD. Swank, ‘Social Democratic Welfare States in a Global Economy: Scandinavia in Comparative Perspective’, in R. Geyer, C. Ingrebristen and J. Moses, eds, Globalisation, Europeanisation and the End of Scandinavian Social Democracy?, Basingstoke, Palgrave, 2000, pp. 83–138; D. Swank, Global Capital, Political Institutions and Policy Change in Developed Welfare States, Cambridge, Cambridge University Press, 2002.
7 P. A. Hall and D. Soskice, eds, Varieties of Capitalism: The Institutional Foundations of Comparative Advantage, Oxford, Oxford University Press, 2001; G. Garrett, Partisan Politics in the Global Economy, Cambridge, Cambridge University Press, 1998; Garrett, G., ‘Shrinking States? Globalization and National Autonomy in the OECD’, Oxford Development Studies, 26: 1 (1998), pp. 71–98;CrossRefGoogle ScholarT. Iversen, J. Pontusson and D. Soskice, eds, Unions, Employers and Central Banks: Macroeconomic Coordination and Institutional Change in Social Market Economies, Cambridge, Cambridge University Press, 2000; H. Kitschelt, P. Lange, G. Marks and J. D. Stephens, Continuity and Change in Contemporary Capitalism, Cambridge, Cambridge University Press, 1999.
8 For a more extended analysis see Hay, C., ‘Common Trajectories, Variable Paces, Divergent Outcomes? Models of European Capitalism Under Conditions of Complex Economic Interdependence’, Review of International Political Economy, 11: 2 (2004), pp. 231–62.CrossRefGoogle Scholar
9 Swank, ‘Social Democratic Welfare States’; Swank, Global Capital; see also L. Mosley, Global Capital and National Governments, Cambridge, Cambridge University Press, 2003.Google Scholar
10 Hay, ‘Common Trajectories, Variable Paces’.Google Scholar
11 On ‘neo-liberal globalization’ see, for instance, S. Gill, ed., Globalisation, Democratisation and Multilaterialism, Basingstoke, Palgrave, 1997; and, for an important critique from a rather different perspective, see Ashman, S., ‘Resistance to Neoliberal Globalisation: A Case of Militant Particularism?’, Politics, 24: 2 (2004), p. 143–53.CrossRefGoogle Scholar
12 Western, B. and Beckett, K., ‘How Unregulated is the US Labour Market? The Penal System as a Labour Market Institution’, American Journal of Sociology, 10: 4 (1999), pp. 1030–60;CrossRefGoogle Scholarsee also Blyth, M., ‘Same As It Never Was: Temporality and Typology in the Varieties of Capitalism’, Comparative European Politics, 1: 2 (2003), pp. 215–26.CrossRefGoogle Scholar