This book assesses the changing nature of state intervention in the
economies of the affluent democracies. Against a widespread
understanding that contemporary developments, such as globalization
and new technologies, are pressing for a rollback of state
regulation in the economy, the book shows that these same forces
are also creating new demands and opportunities for state
intervention. Thus, state activism has shifted, rather than simply
eroded.
State authorities have shifted from a market-steering
orientation to a market-supporting one. Chief among the new state
missions are: repairing the main varieties of capitalism (liberal,
corporatist, and statist); making labor markets and systems of
social protection more employment-friendly; recasting regulatory
frameworks to permit countries to cross major economic and
technological divides; and expanding market competition at home and
abroad.
Because the changes from market steering to market support are
so controversial and far-reaching, state officials often find
themselves making choices that produce clear winners and losers.
Such choices require a capacity to act unilaterally and decisively,
even in the face of substantial societal opposition. As a result,
state activism, autonomy, and occasionally imposition remain
essential for meeting the challenges of today's globalizing
economy.
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