ges have changed
This paper will show how post-industrialism has dramatically reduced the
ability of many Western European countries to control inflation and
unemployment. Basically, two variables explain many of the differences in
the economic success of Western European countries: 1) the presence or
absence of corporatist institutions and practices, and 2) the role of
leftist, Social Democratic political parties in government (Cameron, 1984,
p. 144). Centralization of labor representation encourages corporatist
bargaining. On the other hand, fragmented labor representation complicates
agreement. The greater the number of parties, the less likely it that they
will find a solution that suits all negotiators. According to statistics,
countries with the most unified labor during the 1970's and 1980's,
Austria, Sweden, Norway, Germany, Denmark and Finland, were all among the
most successful in Europe at controlling unemployment and inflation, while
the countries with the most disunited labor, Italy, France and Spain, were
the least successful. This paper will examine how centralization and
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