Taking Capitalism Seriously: Towards an Institutional Approach to Contemporary Political Economy

Max Plank Institute for the Study of Societies (MPIfG) Discussion Paper No. 10/15

37 Pages Posted: 26 May 2011

See all articles by Wolfgang Streeck

Wolfgang Streeck

Max Planck Institute for the Study of Societies

Date Written: October 1, 2010

Abstract

This paper outlines an institutionalist political economy approach to capitalism as a specific type of social order. Social science institutionalism considers social systems to be structured by sanctioned rules of obligatory behavior. Its perspective is one of collective ordering, or governance, through regularization and normalization of social action, either by public authority or by private contract. Political economy looks at the interrelations between collective action in general and collective rule-making in particular, and the economy; it extends from economic and social policy-making to the way in which economic interests and constraints influence policy, politics and social life as a whole. The approach proposed in this article looks at society and economy as densely intertwined and closely interdependent, which is what traditional concepts of capitalism stood for. Proceeding from an institutionalist perspective, it elaborates a concept of capitalism not as a self-driven mechanism of surplus extraction and accumulation governed by objective laws, but as a set of interrelated social institutions, and as a historically specific system of structured as well as structuring social interaction within and in relation to an institutionalized social order.

Keywords: political economy, collective action, policy-making, institutionalism

JEL Classification: P16, D7

Suggested Citation

Streeck, Wolfgang, Taking Capitalism Seriously: Towards an Institutional Approach to Contemporary Political Economy (October 1, 2010). Max Plank Institute for the Study of Societies (MPIfG) Discussion Paper No. 10/15. Available at SSRN: https://ssrn.com/abstract=1817736 or http://dx.doi.org/10.2139/ssrn.1817736

Wolfgang Streeck (Contact Author)

Max Planck Institute for the Study of Societies ( email )

Paulstr. 3
Cologne, 50676
Germany

HOME PAGE: http://www.mpifg.de/people/ws/index_de.asp

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