Varieties of Capitalism and Business History : The Dutch Case

The deep economic crisis in Europe and the US gives the study of capitalism a new relevance. Could a different organization of the economy have prevented the crisis? Could there be one best system for running a national economy? This volume gives a business history perspective on this debate, filling the often abstract discussion with a flesh-and-bone history – with people who acted and events that took place over a long period of time. Contributors address the main topics of the capitalism debate including corporate governance, the firm and its leaders, multinationals as agents of change, coordination between firms, labor relations, and innovation. This book raises and attempts to provide answers to key questions for every country around the globe: how is change being brought about? Can one see different results from a liberal or more coordinated economy? And most critically: is one economic system most effective in bringing prosperity and enabling enough people to share in the wealth?

The financial crisis of 2008 brought new urgency to the question how best to organise national economies. This volume gives a business history perspective on the Varieties of Capitalism debate and considers the respective merits of the liberal and coordinated market economies. It looks at individual firms and business people as well as institutions and takes a long-term perspective by covering the whole 20^th century. The authors examine both continuity and change with a particular focus on the Netherlands, a nation with an open economy, situated between two countries that oppose each other in the way they organize their economies: Germany and Great Britain. The Netherlands also provides an important case study with Dutch business maintaining strong links to the United States, widely considered to be the ‘typical’ liberal market economy.

Contributors address the main topics of the capitalism debate, including labour relations, corporate governance, the firm and its leaders, coordination between firms, innovation, multinationals as agents of change, and economic performance. They show that the Netherlands moved from a mostly liberal market economy before 1914 towards a coordinated market economy from the 1930s onwards, and – up to a certain extent – back again to a more liberal market economy. Under both varieties of capitalism the country experienced economic growth and stagnation, but a more equal division of wealth occurred in the coordinated market economy only. Wars and international economic crises offered moments for revaluation and changes of tack.

This book raises questions for every country around the globe: How is change being brought about? Can one see different results from a liberal or a more coordinated market economy? And most critically: which system is more effective in bringing prosperity and enabling enough people to share in the wealth?