ABSTRACT
This chapter describes some of the sources of that difficulty by examining relations among workers, government, and employers. Government representatives meet regularly with a body representing all unions and a body representing all or most employers. The government therefore found itself playing two roles at once: its own and that of the employer. Government and business seek moderation in wage settlements from organized labor in return for policies favoring full employment and generous spending on social welfare. The differences between pluralism and liberal corporatism can be seen in the varying forms of relationships that exist in world among government, labor, and capital. Relations among government, labor, and business are a potential source of instability in any society, but they assume particular importance in a society trying to make the transition to a market economy. Pluralism is frequently contrasted with the concept of corporatism. "Liberal corporatism" or "social partnership" as practiced in Austria or Sweden, wage-bargaining is highly centralized.
