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Is Neo Corporatist Model Fading Away Essay

2015 words - 9 pages

Theories of Neo-corporatism
In 1970s, the term Neo-corporatist had been formed since Manoilesco’s theory of the single-party state seemed hardly to analyze interest group field, which was at most applicable to the older authoritarian or fascistic corporatism (Von Beyme, 1983). Since then, corporatism has attracted academic interest and consequently greater efforts were endowed to attempt more precise concept and theories (Molina & Rhodes, 2002). Just as Pallesen (2006) states that “The late 1970s and 1980s were the golden age of neo-corporatism in the literature and in policy making (Schmitter 1974; 1979)”.

Based on Wilson (1983), neo-corporatism has been defined as “interest ...view middle of the document...

Schmitter (1974) states that state corporatism had been implanted impressively, quickly and radically, whereas societal corporatism crept hesitantly, unevenly, experimentally and incrementally. Accordingly, Meier (1988) states that the modified and organized interest group has played a public functions and lost its private characteristic, which government depended on. And since the decentralization control of contextual conditions had led the hierarchical government to a bargaining position instead of enforcement, which counts for the decisive difference between corporatism and voluntary-based neo-corporatism. Martin (1983) argues that the new corporatists have focused on liberal corporatism, which entails thoroughly different group-government relations from those traits of “pluralism”. According to Beyme (1985; Alson 1986), neo-corporatist model is “as a kind of compromise” in policy-making process where neo-corporatists find “a common meeting ground” others.

Reviewing the debates about the decline of neo-corporatist model
In the four decades following World War Two, economic performance of neo-corporatist had been excellent (Coen and Wilson, 2010 ). According to Teague (1995: 255-6; Wood & Harcourt, 2000), neo-corporatism has four merits, firstly the competitiveness between tradable goods sector and non-tradable goods sector has ensured by the outcome of wage bargaining, secondly the wage bargaining process can provide the basis for avoidance of macro-economic turbulence, relieving the worst inflations in the business, thirdly it fulfills full employment target and reduces the strike, finally it promotes a greater equity. Lewin (1994) also argues that neo-corporatist model has given the minorities an opportunity to be in involved in politics who have no say in the parliament structure, thus the social integrity was enhanced due to the encouragement of minorities sticking to the system.

But afterwards the efficacy neo-corporatism had been in obsolete trends, which was alleged because of a combination of globalization and centrifugal forces and internal conflicts in the labor unions (Coen and Wilson, 2010). Crepaz (1992) found that corporatist had weaker influence on economic growth in 1980s than it in 1960s and 1970s by examining economic performance of eighteen industrialized democracies. The history has witnessed the ‘social integration’ that neo-corporatism integrated a rigidly, hierarchically stabilized social order from contemporary social classes (Phillips, 1978), and neo-corporatism is specialized in modeling low and medium technology based industries (Eichengreen, 2006; Hall and Soskice, 2001; Katzenstein, 1985; Lundvall, 2002; Ornston, 2013), while the supporters of neo-corporatism merely alleged its benefit, not ‘growth’ (Lewin, 1994).

However globalization has triggered flow of labor across countries, and disrupted this kind of stability between labor and capital thus threatened corporatist countries’ social integration due to...

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