Varieties of Coordination and the Transformation of Solidarism: A Comparison of Germany and Sweden

19 Pages Posted: 19 Jul 2010 Last revised: 31 Aug 2010

See all articles by Gregory Jackson

Gregory Jackson

Freie Universität Berlin

Gerhard Schnyder

Loughborough University London - Institute for International Management; University of Cambridge - Centre for Business Research; King's College London

Date Written: 2010

Abstract

Recent work in comparative political economy has stressed that coordination of firm-specific investments is a necessary condition for the development of solidaristic policies promoting social welfare (Martin & Thelen 2007). In the absence of ‘macrocorporatism’ firms will be unable to maintain long-term commitments to employees and will withdraw political support for generous forms of social welfare. Other authors however have recently argued that institutions of coordinated capitalism may not be necessary for solidaristic policies to persist (Pontusson 2009). However, both views fail to properly account for the role that new types of investors – in particular foreign institutional investors – play in changes of European economies. This paper compares two models of capitalism known for the solidaristic forms of coordination – Germany and Sweden – in order to show how different types of ownership systems influence solidarism. We attempt to explain the puzzle that Sweden has managed to largely maintain the egalitarian and solidaristic nature of its economic system, while solidarism has declined in important ways in Germany. We argue that different types of corporate ownership and control may account for different degrees of change in the solidaristic features of these economies. We find that the particular structure and nature of the Swedish ownership spheres have proven to maintain a higher capacity for coordination than the German bank-centered ownership networks.

Suggested Citation

Jackson, Gregory and Schnyder, Gerhard, Varieties of Coordination and the Transformation of Solidarism: A Comparison of Germany and Sweden (2010). APSA 2010 Annual Meeting Paper, Available at SSRN: https://ssrn.com/abstract=1644001

Gregory Jackson (Contact Author)

Freie Universität Berlin ( email )

Boltzmannstrasse 20
D-14195 Berlin, 14195
Germany

HOME PAGE: http://www.wiwiss.fu-berlin.de/institute/management/jackson/team/gjackson/index.html

Gerhard Schnyder

Loughborough University London - Institute for International Management ( email )

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Great Britain
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University of Cambridge - Centre for Business Research ( email )

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HOME PAGE: http://www.cbr.cam.ac.uk/people/research-associates/gerhard-schnyder/

King's College London ( email )

150 Stamford Street
London, SE1 9NN
United Kingdom
++44 (0)20 7848 4633 (Phone)

HOME PAGE: http://www.kcl.ac.uk/schools/sspp/mgmt/people/academic/schnyder/

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