Neo-liberal Small States and Economic Crisis: Lessons for democratic corporatism Baldur Thorhallsson and Rainer Kattel

This paper argues that the 2008 economic crisis was particularly deep in Estonia and Iceland because non-corporatist neo-liberal political features were essential endogenous factors deepening it. A lack of corporatist features also formed the basis for responses to the crisis and the political aftermath in both cases. Furthermore, the paper argues that adding new institutionalist aspects to the corporatist model helps deepen our understanding of political dynamics in societies that lack clear-cut corporatist features.

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(This was originally published in Journal of Baltic Studies, DOI:10.1080/01629778.2012.719306.)