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Economic Adjustment and Political Transformation in Small States$
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Erik Jones

Print publication date: 2008

Print ISBN-13: 9780199208333

Published to Oxford Scholarship Online: September 2008

DOI: 10.1093/acprof:oso/9780199208333.001.0001

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The Politics of Economic Adjustment

The Politics of Economic Adjustment

(p.27) 1 The Politics of Economic Adjustment
Economic Adjustment and Political Transformation in Small States

Erik Jones (Contributor Webpage)

Oxford University Press

This chapter shows how democratic corporatism and regional integration can be combined in a single model to facilitate industrialization and macroeconomic adjustment by small states. It shows how democratic corporatism can be used to effect price-incomes policies and it explains why these policies are more effective in bad economic conditions than when performance is good. It examines the conditions for successful economic integration with larger countries. Finally, the chapter explains how the use of democratic corporatism and regional integration can strengthen the political legitimacy of small states. This argument is made in general terms and is not specific to Belgium and the Netherlands.

Keywords:   democratic corporatism, political legitimacy, price-incomes policy, regional integration

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