Emerging Varieties of Capitalism in Transition Countries

2006 ◽  
Vol 39 (7) ◽  
pp. 829-854 ◽  
Author(s):  
Magnus Feldmann
Keyword(s):  
Central And Eastern Europe ◽  
Industrial Relations ◽  
Varieties Of Capitalism ◽  
Wage Bargaining ◽  
Economic Organization ◽  
Economic Relations ◽  
Policy Choices ◽  
Coordinated Market Economies ◽  
Comparative Capitalism ◽  
Strategic Policy

This article analyzes patterns of economic coordination in Estonia and Slovenia, two postsocialist countries in Central and Eastern Europe, by using the varieties of capitalism (VOC) framework. The article argues that Estonia and Slovenia are very good examples of liberal and coordinated market economies. Market-based coordination of economic relations predominates in Estonia, whereas Slovenia has highly institutionalized coordination. Industrial relations and wage bargaining arrangements are the main focus, but other areas studied by the VOC literature are briefly considered as well. The article also accounts for the origins of these arrangements by examining the interaction of two sets of factors: economic organization and industrial relations under the old system, on one hand, and strategic policy choices, especially the effects of privatization and monetary policy on formalizing coordination, on the other. The article considers some general implications of this analysis for studying successful postsocialist transition and comparative capitalism.

scholarly journals Crisis and opportunity: Varieties of capitalism and varieties of crisis responses in Estonia and Slovenia

2016 ◽  
Vol 23 (1) ◽  
pp. 33-46 ◽  
Author(s):  
Magnus Feldmann
Keyword(s):  
Eastern Europe ◽  
Trade Unions ◽  
Central And Eastern Europe ◽  
General Pattern ◽  
Industrial Relations ◽  
Varieties Of Capitalism ◽  
Wage Bargaining ◽  
Progressive Politics ◽  
Social Council ◽  
Crisis Responses

A growing literature has analysed capitalist institutions in Slovenia and Estonia, two countries often viewed as representing very different varieties of capitalism in Central and Eastern Europe. Slovenia has been unique in the region, given its highly centralized wage bargaining and the importance of corporatist institutions, notably the tripartite Economic and Social Council; it is thus an exception to the general pattern of weak unions and ‘illusory corporatism’ across the region. By contrast, Estonia is commonly viewed as a prime example of a liberal market economy, in which industrial relations are decentralized. This article analyses how these distinctive institutional configurations have shaped the two countries’ responses to the global economic crisis beginning in 2007–2008. It explores whether these institutions have undergone changes as a result of the crisis, and also seeks to identify lessons from this experience for the future prospects for corporatism and tripartism, and also for the revitalization of trade unions and progressive politics in Central and Eastern Europe more generally.

Varieties of capitalism: the importance of political and social choices

2006 ◽  
Vol 12 (3) ◽  
pp. 407-425 ◽  
Author(s):  
Phil Almond ◽  
Maria Gonzalez Menendez
Keyword(s):  
Labour Market ◽  
Significant Role ◽  
Industrial Relations ◽  
Varieties Of Capitalism ◽  
Economic Success ◽  
Political Choice ◽  
Employment Policies ◽  
Coordinated Market Economies ◽  
Employment Systems ◽  
The Relationship

This paper examines the influential Varieties of Capitalism argument (Hall and Soskice 2001) that economies tend to one of two forms of capitalism - liberal market and coordinated market economies - with different employment policies being conducive to economic success in each. An analysis of the relationship between financial and labour market systems suggests that the links between the two operate in a less deterministic way than is suggested by Hall and Soskice. This suggests that industrial relations actors are not prisoners of coordinated or liberal systems, and that ‘political’ choice retains a significant role in changes to employment systems.

scholarly journals Business Against Markets: Employer Resistance to Collective Bargaining Liberalization During the Eurozone Crisis

2020 ◽  
Author(s):  
Alexandre Afonso ◽  
Fabio Bulfone
Keyword(s):  
Collective Bargaining ◽  
Transaction Costs ◽  
Small Firms ◽  
Industrial Relations ◽  
Varieties Of Capitalism ◽  
Wage Bargaining ◽  
State Regulation ◽  
The State ◽  
Eurozone Crisis ◽  
Employment Conditions

Abstract Employer organizations have been presented as strong promoters of the liberalization of industrial relations in Europe. This paper, in contrast, argues that the preferences of employers vis-à-vis liberalization are heterogeneous, and documents how employer organizations in Spain, Italy and Portugal have resisted state-led reforms to liberalize collective bargaining during the Eurocrisis. It shows that the dominance of small firms in the economies of these countries make employer organizations supportive of selective aspects of sectoral bargaining and state regulation. Encompassing sectoral bargaining is important for small firms for three reasons: it limits industrial conflict, reduces transaction costs related to wage-bargaining and ensures that member firms are not undercut by rivals offering lower wages and employment conditions. Furthermore, the maintenance of sectoral bargaining and its extension to whole sectors by the state is a matter of survival for employer organizations. The paper presents rationales for employer opposition to liberalization that are different from the Varieties of Capitalism approach.

Experimentalism as a Tool of Economic Innovation in Germany

2001 ◽  
Vol 19 (3) ◽  
pp. 1-33 ◽  
Author(s):  
Wade Jacoby ◽  
Martin Behrens
Keyword(s):  
Industrial Relations ◽  
Information Gathering ◽  
Wage Bargaining ◽  
The Other ◽  
Social Partner ◽  
Social Actor ◽  
Comparative Political Economy ◽  
System A ◽  
German Model ◽  
Economic Innovation

Our purpose in this article is to analyze changes in the German wagebargaining system, a system that has attracted enormous attentionfrom scholars of comparative political economy and comparativeindustrial relations. We argue that the wage bargaining portion ofthe German model is neither frozen in place, headed for deregulation,nor merely “muddling through.” Rather, we see the institutionalcapacities of the key actors—especially the unions and employerassociations—making possible a process we term “experimentalism.”In briefest form, experimentalism allows organizations that combinedecentralized information-gathering abilities with centralized decision-making capacity to probe for new possibilities, which, oncefound, can be quickly diffused throughout the organization. We willshow that the capacity for such experimentalism varies across actorsand sectors. And, to make things even tougher, neither major Germansocial actor can sustain innovation in the longer term withoutbringing along the other “social partner.”

scholarly journals Polish-Russian Economic Relations Under the Conditions of System Transformation

2011 ◽  
Vol 13 (1) ◽  
pp. 23-31
Author(s):  
Paweł Bożyk
Keyword(s):  
Central And Eastern Europe ◽  
Economic Recession ◽  
Economic Transformation ◽  
Eastern European ◽  
Trade Volume ◽  
System Transformation ◽  
Russian Market ◽  
Economic Relations ◽  
Standards And Regulations ◽  
Eastern European Countries

The rapid economic transformation in Central and Eastern Europe, modelled on Western economies and based, in some aspects, on neoliberal principles, Has found the region’s countries to a bigger (Eastern European countries) or lesser (Poland, Czechoslovakia, Hungary) degree unprepared. The resulting economic recession, especially in Russia, has had an adverse effect on mutual trade between Poland and Russia. In order to improve economic relations with Russia and increase the trade volume, Poland, remaining within the bounds of EU standards and regulations, needs to adapt the commodity structure of Polish exports to the needs of the Russian market.

scholarly journals Business Against Markets: Employer Resistance to Collective Bargaining Liberalization During the Eurozone Crisis

2019 ◽  
Vol 53 (5) ◽  
pp. 809-846 ◽  
Author(s):  
Fabio Bulfone ◽  
Alexandre Afonso
Keyword(s):  
Collective Bargaining ◽  
Transaction Costs ◽  
Small Firms ◽  
Industrial Relations ◽  
Wage Bargaining ◽  
State Regulation ◽  
The State ◽  
Euro Crisis ◽  
Eurozone Crisis ◽  
Employment Conditions

Employer organizations have been presented as strong promoters of the liberalization of industrial relations in Europe. This article, in contrast, argues that the preferences of employers vis-à-vis liberalization are heterogeneous and documents how employer organizations in Spain, Italy, and Portugal have resisted state-led reforms to liberalize collective bargaining during the Euro crisis. It shows that the dominance of small firms in the economies of these countries make employer organizations supportive of selective aspects of sectoral bargaining and state regulation. Encompassing sectoral bargaining is important for small firms for three reasons: it limits industrial conflict, reduces transaction costs related to wage-bargaining, and ensures that member firms are not undercut by rivals offering lower wages and employment conditions. Furthermore, the maintenance of sectoral bargaining and its extension to whole sectors by the state is a matter of survival for employer organizations. The article presents rationales for employer opposition to liberalization that differ from the varieties of capitalism approach.

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