Democracy and the Economy in Finland and Sweden since 1960: A Nordic Perspective on Neoliberalism (Palgrave Studies in Political History)

This book explores the relationship between democracy and the economy in contemporary political thought and policy-making. Using the concepts of economic, industrial and enterprise democracy, the author focuses on the history of Finland and Sweden during the latter part of the twentieth century. The three concepts are discussed in relation to various political groups, such as social democrats, conservatives and liberals, and the reforms that they were associated with, painting a picture of changing economic thought in the Nordic countries, and the West more generally. Arguing that the concept of democracy has evolved from representative parliamentary democracy towards ‘participation’ in civil society, this book demonstrates how the ideal of individual freedom and choice has surpassed collective decision-making. These shared characteristics between Finland, Sweden and other Western countries challenge the view that the Nordic countries have been exceptional in resisting neoliberalism. In fact, as this book shows, neoliberalism has been influential to the Nordics since the 1970s. Offering an innovative and conceptual perspective on European political history, this book will appeal to scholars interested in Nordic political history and modern European history more generally. Acknowledgments Praise for Democracy and the Economy in Finland and Sweden Since 1960 Contents About the Author Abbreviations List of Figures Chapter 1: Introduction Neoliberalization and the Narrowed Meaning of Democracy Explaining Conceptual Change with Changing Ideational Constellations and Dilemmas Structure and Scope of the Book Chapter 2: Economic Democracy as a Contested Concept The Origins of Economic Democracy Growing Demands for Democratization in the 1960s Active Industrial Policy and Economic Planning as Social Democratic Strategies Markets Against Planning and Socialization The Dream of Decentralization Economic Democracy Anchored to the Market Economy and Local Communities Chapter 3: Enterprise Democracy: Employee Power or Consultative Cooperation? The Origins of Enterprise Democracy Power, Codetermination or Cooperation? Strategic Management or Influence in Everyday Work? The Value of Enterprise Democracy: National Interest as a Limit to Democracy The Distinction Between Political and Economic Issues The Primacy of Efficiency Over Democracy and Security Enterprise Democracy Turns into Cooperation and Codetermination Chapter 4: Collective Ownership as a Form of Economic Democracy Power and Ownership for Wage-Earners? Social Democratic Doubts About Collective Ownership Business and Center-Right Mobilization Against ‘Fund Socialism’ The Modest Realization of Wage-Earner Funds Wage-Earner Funds Turn Into Cooperation Funds in Finland109 “Funds Would Not Solve the Problem” “Productive Participation” Through Voluntary Personnel Funds People’s Capitalism Instead of Collective Ownership Chapter 5: New Economic Paradigm Narrows the Horizon of Democratization From the ‘Golden Age’ to the ‘New Spirit’ of Capitalism The Political Mobilization of Business Cooperation and Participation Instead of Democracy The Market Economy and Free Enterprise as Guardians of the Common Good Social Democrats Choose the ‘Third Way’ Decentralization and Local Democracy as Guiding Stars ‘Third Way’ as Ideational Change The Role of Ideas in Political Change Chapter 6: Last Struggles for Economic Democracy Contradictions of Democratization and Liberalized Capitalism Local Bargaining and Flexible Wages: Increased Democracy? Social Democrats and Trade Unions Hold on to the Rhetoric of Economic Democracy Adapting Economic Democracy to Individualism and the Market Economy Center-Right Critique of Collectivism Persists Working Life Reform of the Finnish ‘Blue and Red’ Government Chapter 7: From Democratization to Liberalization The Fall of Communism and the Transformation of Social Democracy Economic Crisis Consolidates Depoliticization and Expert Rule Changing Sites of Democratization: From the Economy to the Public Sector Trade Unions Searching for Their Place in Decentralizing Labor Markets Center-Right Parties Take Power in the Midst of the Economic Crisis Social Democrats Return to Office with Convergent Policy But Divergent Rhetoric Vision of the Future Becomes a Relic of the Past Chapter 8: Conclusion The Rise and Decline of Economic Democracy Democracy and the Economy in Neoliberal Capitalism Can the Economy be Re-Politicized? References Archival Sources Published Sources Literature Index