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5. Describe the Keynesian welfare state characteristic of Atlantic Fordism.

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The Keynesian welfare state (or KWS) characteristic of Atlantic Fordism had both economic and social policy aspects. Economically it aimed to secure full employment in relatively closed national economies mainly through demand-side management and regulation of collective bargaining; socially it aimed to generalize norms of mass consump- tion so that all its citizens shared the fruits of economic growth (and so contributed to effective domestic demand) and to promote forms of collective consumption that supported a Fordist growth dynamic. While the inacroeconomic role was mainly determined and implemented at national level, local states assumed an increasingly important role in infrastructural and social policy. While local economic conditions obviously affected how local government saw its economic role, the KWS social policy role was almost universal. The emerging 'Schumpeterian workfare state' involves quite diffe:rent activities. Thus, economically, it attempts to promote flexibility and permanent innovation in open economies by intervening on the supply side and tries to strengthen as far as possible the structural competitiveness of the relevant economic spaces. With growing inter- nationalization and resulting competitive pressures, public spending is also subject to general downward pressure. But states at all levels are also subject to growing pressure to subordinate social policy to the needs of labour market flexibility and the demands of structural competitiveness.These changes cannot be reduced to effects of a crisis of Fordism. Geopolitical factors have also played a key role (as Mann and Shaw emphasize elsewhere in this issue): such factors include the end of the Cold War, the approach of the Pacific Century, and the rise of so-called 'tribal' identities. The Soviet communist collapse has replaced the struggle between capitalism and communism as competing world systems by often intense struggles between competing versions of capi- talism. Thus military competition between major national states declines in favour of civilian economic and technological issues; and security is redefined in terms of environmental risks, sustainable development, the narcotics trade and transnational migration. These shifts are reflected in the reorientation of foreign policy towards technological, economic and ecological issues and the increased salience of foreign affairs in many fields of domestic policy. Such changes help to explain the rise of the 'competition' state at supranational (e.g. European) and national levels. Moreover, for reasons suggested in the dominant geo-economic narra- tives about the changing forms of competition and the importance of structural competitiveness, these changes also require a more active, supply-side-oriented role for regional and local states. This trend is rein- forced by reinvigorated 'tribal' identities which are oriented to regional rather than national identities. Furthermore, once the sovereign national state's traditional role in defence is downgraded, many of its other func- tions may also be displaced to other political levels. In short, the 'region state' and/or 'transnational territory' ) have become more important than the national state for many purposes.

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