Uncertain boundaries

by Marino Regini

During the post-World War II period, a pattern emerged in several European countries: centralized and concerted political regulation of the economy based on Keynesian policies, the development of the welfare state and moderately successful attempts at tripartite agreements. This pattern underwent a serious crisis in the 1980s, however, and in the view of many observers was replaced by a far-reaching deregulation of the economy. In contrast to this view, Professor Regini argues that social and political institutions have by no means lost their ability to structure economic activities. They have, in fact, shaped the different ways in which the European economies have adjusted to market conditions. Regini argues that while it is wrong to see deregulation as a general trend taking place in formerly institutionally regulated economies, the relevant institutions have changed. A pattern of "micro-social" regulation of European economies has emerged as a potential replacement for the "macro-po