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After The Golden Age: A Decline of Sodal Democratic Policies in Western Europe During The 1980s?
After The Golden Age: A Decline of Sodal Democratic Policies in Western Europe During The 1980s?
by Wolfgang Merkel
Department of Political Science
University of Heidelberg
This article, written in 1989, tests the (liberal, Marxist, rational choice) hypotheses on the decline of social
democracy on the policy level. After a brief critique of the shortcomings of the "decline hypotheses," the
policies of those social democratic and socialist parties are analyzed which have stayed in government during
the "post-golden age" (Sweden, Norway, Finland, Austria, France, Greece, Spain)-which is to say, after the
second oil-price shock of 1980. The general answer to the predictions of a general decline is clear: there can be no
general answer. The decline of social democratic policies is neither general nor irresistible. Besides the failure
of implementing social democratic policies in southern Europe, there are cases of resilience and resurgence of
social democracy in northern Europe as well, i.e., there are too many exceptions for any "general thesis" to
sustain.
Table of Contents
4. What Is to Be Explained?
Conclusion
2
party competition for the working class vote. But these factors
matter only temporarily, they do not alter the fundamental logic
of the "iron" trade-off. Consequently, Przeworski and Spraque
conclude: "Thus the era of electoral socialism may be over"(ibid.
185) •
3. What Is to be Explained?
Great Britain and Ireland. This group can be called the "losers"
of the post-golden-age (at least of the 1980s). The Portuguese
and Italian Socialists cannot be taken into consideration either,
because the first governed only for two years (1983-1985) in a
"grand coalition" during the 1980s and the latter, although it
has remaining throughout the 1980s in power, has always been the
junior partner in a five party coalition. Therefore, it is
impossible to attribute specific policies or the governments
performance as a whole to the PSP or PSI.
reduction of cl~
econanic structures
inequalities ,through:
econani c cycJ es
~ xonarri c conpeti tiveness
-full anplarent
-redistribution:
class structure
-wages
-tax systen
arnmgenents in the
-welfare policies
industrial relations _ -----=::::::::: social daocx:ratic/
-JOOdernization type of the we Hare • socialist government:
-single party gov.t
-genner policies
political structures(La.h
-centralist/ federalist state
nemocratization.tfu-oug~: -strength of the opposition
-reform of t~ public -position of the central ban'<
administration
-efficiency of t~e state
-territorial necentral.
bureaucracy
-neocorporatist necision
IlBldng in econ.
ann soc.
...
policies
-daocx:ratization at the
wor'<place
17
consideration:
This does not imply that Scandinavian social democracy has not
changed. However, the incremental changes on the level of
macroeconomic management did not alter their fundamental politics
and policies during the 1980's. In particular, these changes did
not diminish the social welfare commitments of the three social
21
£conolic IndustriaI Type of Power Single Party gOY. t/ Fraglentation Re levance of the
COlpet it iveness Re 1at ions Me I fare state Quotient. coalition gov.t of the Opposit. leftist opposit.
45-8880-88
Austria lediull high centraliz./ bourgeoise 2.5 3.1 -single party gov.t lediu. irrelevant
neocorporat ist -coalition gov.t 1
Finland lediull high centraJiz.! bourgeoise! 1.8 1.9 coa Iit ion gov.ts 2 high high
neocorporat ist universalistic
lorway lediu. high centraliz./ uniYersa listie 3.0 2.0 single party gOy.t 3 high
neocorporat i st low
Sweden high high central iz.! universalistic 3.5 2.1 single party goy.t 4 high low/ lediUI
neocorporat i st
France lediu. low centraliz./ bou ri8o ise 1.0 2.1 -coalition 9o.Y.t 5
confl ictua I lediUl lediua
-Single party gov.t
Greece 10. low cent ra liz./ larginal 0.7 3.2 single party gov.t lediu. lediul
paterna I ist ie/
conflictual
Spain low/iediul lediu. centraliz./ larginal U 2.B single party gOy.t high low
coope rat ive - 1986/
1986 . conflictual
1970-1983: single party 90v.t; 1183-1986: sllll coalition; • Power Quotient: given points divided by years in governaent
1986 • : grand coalition. Points: - DelUSively social deacmtic goyernl8nts:
• points for each year in governl8nt
1980-1181: sla11 coalitions; 1987 -: grand coalition; - social deaomts as dOlinut coalition partner:
3 points for each year in goyernlent
3 linority govermnts
- socia I delocrats as equal partners in a grand
4 linority cabinets with parlialentary support of the
coalition: 2 points for each year in goyern.ent
COllunist Party, and to a linor degree of the Center
Conclusion
least not in the case of the PSOE and PASOK government. At the
end of the 1980s only the French socialists pursued moderate
social democratic policies (esp. under Rocard) without having
changed into a typical social democratic party. The Austrian
socialists remained a typical social democratic party, but have
been moving successively away from social democratic economic and
social policies. However, the minor changes of the Nordic social
democratic policies in the 1970's and 1980's can neither be
compared with the retreat from the concept of revolution during
the first two decades of the century nor with the abandonment of
the pursuit of socialism by parliamentary means in favor of the
committment to employment, efficiency, and social welfare after
the second World War. The retreat of the social democratic
governments from single modes of state interventions into the
economy (the economic dimension) did not negatively affect the
provision of social welfare (the social welfare dimension)in
Northern Europe. It cannot be interpreted as a third change of
fundamental social democratic paradigms in this century.
parties and policies, that is to say, too many exceptions for any
"general thesis" to sustain.
Table 3: [,olation of Policies RIder Social Delocratic aid
Socialist Go'eralents daring the "Golden Age and the 1980s
lorny unimsalistic;
ledina/ high strong centralized wage rapid grolth
'Golden Age" lediul/ large na: econolic planning; Itrong direct spending Iml lettlemt;
tiolalized lector Btate controlled intervention acti te LIP
credit policies;
loderate dennd
unagelent
Finland lediul/ large Bupply orielted non direct inter: leans tested; .eak/ led ina demtralized lediUl grolth
utionalized Keynesian ecololic tentiolS lediUl spending wage settluent;
Bector policy level weak acti ,e LKP
latioaaliutiOD/ lacroeeololic Itate Ilterteatiol Role of lage Settlemt/ GrolU of the IeIrare Policy
PrintisatioD Policy ilto the Ecoioll leocorporatiBI Labor larket folicy Pablic Sector
Public Sector.
1983.
Staatspartei. Zur Geschichte und Politik der SPO seit 1945. Wien
1988.
Durham 1988.
46
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