The Limits of Social Democracy

For many analysts modern Sweden is a case study of the success of social democratic principles. In no other capitalist country has the labor movement played a more influential role in government and industry, and thus Sweden invites a series of questions concerning the relationship between social democracy and capitalism. In The Limits of Social Democracy, Jonas Pontusson traces the history of Sweden's industrial organization and industrial policy. By focusing on production, he comes to a far less sanguine assessment of the Swedish labor movement's achievements than that of scholars who focus on social welfare policies. He persuasively demonstrates how the reconciliation of capitalism and social democracy is inherently precarious and unstable. Pontusson first provides an overview of the entire experience of Social Democratic government between 1932 and 1991. In particular, he explores early efforts to plan and control investment, production, and ultimately the performance of the economy. Pontusson then examines specific initiatives launched by the labor movement in the 1960s and 1970s for the purpose of enhancing public influence over investment. He concludes by assessing what has