It is widely claimed that as the integration of the world economy advances, national governments are becoming less relevant, losing their powers not only to influence macroeconomic outcomes and to implement social programmes, but to determine strategies for managing the industrial economy. In the face of such claims of state powerlessness, this book proposes that what lies behind some of the most successful economics today is a series of state–informed and state–embedded institutions for governing the economy. The book?s central proposition is that the impact of external economic pressures is to a large degree domestically determined, varying in important measure according to the robustness or weakness of national institutions. This thesis is advanced through an analysis of the sources and varieties of state capacity for governing industrial transformation. Focusing on the unravelling of Sweden?s distributive model of adjustment, on the evolution of developmental states in East...

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