German Capitalism Does It Exist Can It Survive Wolfgang.pdfVIP

German Capitalism: Does It Exist? Can It Survive? Wolfgang Streeck 95/5 This paper is a preprint of a contribution to: Colin Crouch and Wolfgang Streeck, eds., 1995: Modern Capitalism or Modern Capitalisms?, London: Francis Pinter. The French edition (Y a-t-il plusieurs formes de capitalisme?) will be published by Editions La Decouverte, Paris, in 1995. Max-Planck-Institut für Gesellschaftsforschung Lothringer Str. 78 D-50677 Köln Germany Telephone 0221/33605-0 Fax 0221/33605-55 MPIFG Discussion Paper 95/5 E-Mail mpi@mpi-fg-koeln.mpg.de ISSN 0944-2073 Home Page http://www.mpi-fg-koeln.mpg.de November 1995 2 MPIFG Discussion Paper 95/5 Abstract Drawing on extensive comparison with the United States, Japan and Britain, the pa- per describes the “German model” of advanced capitalism as an institutionalized high-wage economy combining high competitiveness in world markets with strong social cohesion and, in particular, low levels of inequality along a variety of dimen- sions. This combination is explained by a unique set of socio-economic institutions, in particular socially instituted and circumscribed markets, negotiated firms commanding long-term attachment of both labor and capital, a facilitating state relying mainly on indirect means of intervention, widespread associational self-governance by organized groups in civil society, and institutionalized cultural patterns that promote long-term commitments and continuity. These institution