11. Welfare States and Growth Models and VOC Flashcards
What drives the UK’s consumption-led growth?
Domestic consumption fueled by credit.
What characterizes Italy’s growth model?
Economic stagnation, low wages, and weak productivity.
What defines Sweden’s balanced growth model?
Combining export-driven growth with strong domestic consumption.
Why do countries use different growth strategies?
Because their welfare policies align differently with economic goals.
What are key characteristics of LMEs?
Market-driven coordination, flexible labor markets, short-term corporate focus, and radical innovation.
Can you name examples of LMEs?
United States, United Kingdom, Canada, and Australia.
What are key characteristics of CMEs?
Non-market coordination, strong labor protections, long-term strategies, and incremental innovation.
Can you name examples of CMEs?
Germany, Sweden, Denmark, and Japan.
How do LMEs and CMEs differ in corporate governance?
LMEs are stock market-driven, prioritizing shareholders; CMEs are stakeholder-driven, focusing on long-term stability.
How do industrial relations differ between LMEs and CMEs?
LMEs have weak unions and decentralized bargaining; CMEs have strong unions and centralized wage-setting.
How is VoC relevant to European political economy?
Explains differing EU policy preferences
What are key strengths of the VoC framework?
Highlights institutional complementarities, explains industry strengths, and analyzes resilience to crises.
What are the five key institutional spheres in VoC?
Industrial relations, vocational training, corporate governance, inter-firm relations, and employee relations.
How do employees differ between LMEs and CMEs?
LMEs: Individualistic and performance-based.
CMEs: Collaborative, with a focus on collective agreements.
What is Corporatism?
A system where governments work closely with major groups, like businesses, labor unions, and other interest organizations, to make decisions and shape policies.
