The Economics of the Third Way: Experiences from Around the World

239 Pages·2001·1.2 MB·English

by  Philip Arestis

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The Economics of the Third Way
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The Economics of
the Third Way
Experiences from Around the World
Edited by
Philip Arestis
Professor of Economics, South Bank University, London, UK
and
Malcolm Sawyer
Professor of Economics, University of Leeds, UK
Edward Elgar
Cheltenham, UK • Northampton MA, USA
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©Philip Arestis and Malcolm Sawyer 2001
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system or transmitted in any form or by any means, electronic, mechanical
or photocopying, recording, or otherwise without the prior permission of the
publisher.
Published by
Edward Elgar Publishing Limited
Glensanda House
Montpellier Parade
Cheltenham
Glos GL50 1UA
UK
Edward Elgar Publishing, Inc.
136 West Street
Suite 202
Northampton
Massachusetts 01060
USA
A catalogue record for this book
is available from the British Library
Library of Congress Cataloguing in Publication Data
The economics of the third way : experiences from around the world / edited by
Philip Arestis, Malcolm Sawyer.
p. cm.
Includes bibliographical references and index.
1. Economic policy—Case studies. 2. Mixed economy—Case studies. I. Arestis,
Philip, 1941-II. Sawyer, Malcolm C.
HD87.E269 2001
338.9—dc21
2001023592
ISBN 1 84064 459 1
Printed and bound in Great Britain by Biddles Ltd, www.biddles.co.uk
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Contents
List of figures vii
List of tables ix
List of contributors x
1 Economics of the ‘Third Way’: introduction 1
Philip Arestis and Malcolm Sawyer
2 The third sociological way 11
Michael Rustin
3 European employment policies: a new social democratic
model for Europe? 26
Euclid Tsakalotos
4 Economics of the British New Labour:an assessment 46
Philip Arestis and Malcolm Sawyer
5 Anatomy of Clintonomics 60
Robert Pollin
6 Social democratic policy and economic reality: the Canadian
experience 79
Jim Stanford
7 The Third Way: Italian experiments 106
Augusto Graziani
8 Distribution and growth: can the New Left deal with the
neo-Schumpeterian ‘accord’? Some comments on the
French experience 120
Pascal Petit
9 The Austrian Way:economic and social partnership 140
Ewald Walterskirchen
10 The economic policy of the Spanish Socialist governments:
1982-96 155
Jesus Ferreiro and Felipe Serrano
11 The Greek experiment with the Third Way 170
Thanos Skouras
12 South Africa: a Third Way in the Third World? 183
Jonathan Michie and Vishnu Padayachee
v
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vi The economics of the Third Way
13 Coping with globalisation: Australian economic policy and the
Third Way 201
Tim Harcourt
Index 221
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Figures
4.1 Distributional impact of major fiscal reforms announced
since July 1997 54
6.1 Canadian public finances, 1985-99 82
6.2 Canadian growth and deficits, 1985-99 83
6.3 Ontario public finances, 1985-98 88
6.4 Ontario growth and deficits, 1985-98 89
6.5 Saskatchewan public finances, 1985-98 89
6.6 Saskatchewan growth and deficits, 1985-98 90
6.7 British Columbia public finances, 1985-98 90
6.8 British Columbiagrowth and deficits, 1985-98 91
6.9 Manitoba public finances, 1985-98 91
6.10 Manitoba growth and deficits, 1985-98 92
6.11 Nova Scotia public finances, 1985-98 92
6.12 Nova Scotia growth and deficits, 1985-98 93
6.13 Quebec public finances, 1985-98 101
6.14 Quebec growth and deficits, 1985-98 101
8.1 Output growth 122
8.2 Productivity growth 123
8.3 Employment growth 125
8.4 Temporary jobs 126
8.5 Unemployment rates 127
8.6 Unemployment ratios 128
8.7 Wage share in national income 129
8.8 Fiscal levy/GDP 130
8.9 Transfers to households 131
9.1 Growth of real GDP in the Kreisky era, 1970-82 and the
coalition government, 1983-99 149
9.2 General government financial balance in the Kreisky era,
1970-82 and the coalition government, 1983-99 149
9.3 Inflation rate in the Kreisky era, 1970-82 and the coalition
government, 1983-99 150
9.4 Employment in the Kreisky era, 1970-82 and the coalition
government, 1983-99 150
9.5 Unemployment rate in the Kreisky era, 1970-82 and the
coalition government, 1983-99 151
vii
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viii The economics of the Third Way
10.1 Prices and costs evolution in the manufacturing sector 158
10.2 Prices and costs evolution in the services sector 158
10.3 Evolution of the public administration expenditures 162
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Tables
3.1 European Council Meetings -main conclusions in areas of
macroeconomic and employment policies 29
3.2 Basic components of economic policy 32
3.3 Employment Guidelines (Luxembourg process, incorporated
into European Employment Pact) 35
5.1 Estimated effective federal tax rates on 1998 income under
prevailing tax law, 1977-98 62
5.2 Federal expenditures by function, 1992-99 63
5.3 Macro performance indicators 65
5.4 Components of GDP (in percentages) 66
5.5 Financial market indicators 68
5.6 Measures of well-being for workers and the poor 71
6.1 Indices of labour market regulation, Canadian Provinces 93
8.1 Share of temporary jobs in employment in 1997 126
8.2 Unemployment rates by age group 127
8.3 Employment ratios by age group 128
11.1 Private sector gross fixed capital formation 172
11.2 Government consumption and investment 173
11.3 Various macroeconomic indicators 178
12.1 Growth, unemployment and inflation, 1994-99 188
12.2 Budgetary aggregates, millions of rands 189
13.1 The stages of the Prices and Incomes Accord 209
ix