Sweden and the ‘third way’. A macroeconomic evaluation

Abstract:

Many political parties of the left have found the way forward for them is the 'Third Way', being the path between unbridled capitalism and old-style Keynesian-corporatist forms of social democracy. Why the 'Third Way' and not the 'Middle Way' may be due to the marketing influences at work in modern politics, as it smacks of something 'new' and does not carry the taint of compromise that the words 'Middle Way' do. Whatever the name, this book is concerned with the substance of the policy.

The work is organised in four parts. Part one provides the theoretical background and outlines the main features of the 'Third Way' - 'this new social democracy'. Part two examines the traditional 'Swedish Model' through its origins and driving force in the labour unions towards 'full employment', its greater sophistication as full employment was achieved, and the departure from government of the Swedish Social Democratic and Labour Party (SAP) and its return to office in 1982 followed by creation of the 'Third Way Economic Programme' (TWEP). Part three turns to the international influences at work, namely globalisation, regionalism and European integration, technology and contingent changes in work patterns. Part four considers alternative macroeconomic strategies following the 'ultimate unravelling' of the 1982-91 TWEP and the collapse of the SAP government. It looks at the 'New Start' programme and the New Swedish Social Democracy of Centre Left alliances to the redefinition of the SAP and pursuit of the 'Third Way' programme of neo-liberal economic management.

The work will interest scholars and students of economics and political sciences as well as policy researchers and politicians interested in economic management.