State and the Economy

Abstract

Alfred Chandler Jr (1990) in Scale and Scope: The Dynamics of Industrial Capitalism categorized the United States, Great Britain and West Germany into three distinct types of capitalism — competitive, personal and cooperative. In adopting such a classification, Chandler recognized the dominant characteristics of each country and acknowledged at the same time the presence of common underlying characteristics of modem industrial capitalism. The unique experience of each country in the development of industrial capitalism, within a broadly accepted model of a mixed economy, has encouraged comparative studies. Such studies in comparative political economy have helped to identify both convergence and divergence in the development of modern capitalism (Crouch and Streeck, 1997; Hall and Soskice, 2001). While recognizing such variations, I have explored the differences between state intervention in the United States and other mixed economies (1992). This exploration into the role of the state in the economy has led me to view the interrelationship between polity and economy as essentially complementary or synergistic (Mascarenhas, 1992, 1996, 1999; Evans, 1995).