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Social Democracy and Market Reform in Australia and New Zealand

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  • Quiggin, John

Abstract

Social democratic governments in Australia and New Zealand adopted policies of radical free-market reform, including financial deregulation, privatization, and public-sector reform in the 1980s. Because of the absence of institutional obstacles to government action, reform was faster and more comprehensive in New Zealand than in Australia. The New Zealand reforms were associated with increasing inequality and generally poor economic outcomes. There is nothing in the New Zealand experience to support the view that radical free-market economic policies are consistent with social democratic welfare policies or with social democratic values of concern for the disadvantaged. The Australian reforms were less radical, and were accompanied by some refurbishment of the welfare state. Economic performance did not improve, as anticipated by advocates of reform, but was considerably better than that of New Zealand. Copyright 1998 by Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Oxford Review of Economic Policy.

Volume (Year): 14 (1998)
Issue (Month): 1 (Spring)
Pages: 76-95

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Handle: RePEc:oup:oxford:v:14:y:1998:i:1:p:76-95

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Cited by:
  1. Obinger, Herbert & Zohlnhöfer, Reimut, 2005. "Selling off the family silver: the politics of privatization in the OECD 1990-2000," TranState Working Papers 15, University of Bremen, Collaborative Research Center 597: Transformations of the State.
  2. Tim Hazledine & John Quiggin, 2005. "No More Free Beer Tomorrow? Economic policy and outcomes in Australia and New Zealand 1984-2003," Australian Public Policy Program Working Papers WP4P05, Risk and Sustainable Management Group, University of Queensland.
  3. Sue Konzelmann & Marc Fovargue-Davies & Gerhard Schnyder, 2012. "The faces of liberal capitalism: Anglo-Saxon banking systems in crisis?," Cambridge Journal of Economics, Oxford University Press, vol. 36(2), pages 495-524.
  4. Ganghof, Steffen, 2001. "Global markets, national tax systems, and domestic politics: Rebalancing efficiency and equity in open states' income taxation," MPIfG Discussion Paper 01/9, Max Planck Institute for the Study of Societies.
  5. John Quiggin, 2005. "Economic liberalism: fall, revival and resistance," Australian Public Policy Program Working Papers WP3P05, Risk and Sustainable Management Group, University of Queensland.
  6. Starke, Peter, 2005. "Resilient or residual? From the wage earners' welfare state to market conformity in New Zealand," TranState Working Papers 22, University of Bremen, Collaborative Research Center 597: Transformations of the State.
  7. Konzelmann, S. & Fovargue-Davies, M., 2011. "Anglo-Saxon Capitalism in Crisis? Models of Liberal Capitalism and the Preconditions for Financial Stability," ESRC Centre for Business Research - Working Papers wp422, ESRC Centre for Business Research.
  8. Miroslav Prokopijevic, 2002. "Does growth further improve economic freedom?," ICER Working Papers 16-2002, ICER - International Centre for Economic Research.

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