Energy crisis and government regulations: Swedish and Dutch responses in 1973

Abstract

Industrially developed and trade dependent states may be especially hard hit by international economic crises. It appears that such states’ governmental response to crises will depend on: traditions of economic planning; international trade and political connections; political pressures within the state; and traditions of business‐government relations. These factors determine the mix of direct planned government intervention, reliance on private industry, or disjointed bureaucratic regulations in crisis. Sweden and Holland utilized all three approaches during the 1973–74 oil crisis. The Swedish government intervened more directly and the Dutch relied more on multinational oil companies and a series of ad hoc regulations. The Netherlands’ greater diplomatic and economic leverage conditioned the somewhat less assertive government response.