Anglo-Saxon economic model

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The Anglo-Saxon economic model is a liberal, market-oriented system characterized by relatively low regulation, flexible labor markets, and a limited welfare state compared to more social-democratic models.

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Anglo-Saxon economic model canonical 1

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Statements (59)

Predicate Object
instanceOf economic model
macroeconomic policy regime
emergedIn late 20th century policy debates
hasCharacteristic activation policies encouraging rapid return to work
decentralized wage bargaining
emphasis on competition policy over industrial policy
emphasis on deregulation
emphasis on free trade and openness to international capital flows
emphasis on individual responsibility
emphasis on labor market flexibility over job protection
emphasis on means-tested social benefits
emphasis on monetary stability and low inflation
emphasis on shareholder value
encouragement of entrepreneurship and start-ups
fiscal policy focused on budget discipline and low deficits
flexible labor markets
greater wage dispersion
high degree of financial market liberalization
high degree of product market competition
liberal market orientation
limited employment protection legislation
limited employment-based social insurance
limited role for corporatist arrangements
limited role for national-level social partnership agreements
limited sectoral bargaining
limited state ownership in the economy
limited use of price controls
limited welfare state
policy discourse emphasizing efficiency over equity
policy discourse emphasizing market solutions over state intervention
policy discourse influenced by neoliberal ideas
preference for market-based allocation of resources
preference for privatization of state-owned enterprises
prevalence of flexible and atypical employment contracts
relatively high income inequality compared to Nordic and continental models
relatively light business regulation
relatively low employment security
relatively low minimum wage levels in some adopting countries
relatively low public social spending as share of GDP
relatively low state regulation of markets
relatively low taxation compared to social-democratic models
relatively small public sector compared to GDP
relatively weak trade union power compared to coordinated market economies
reliance on private pensions and private health insurance in some countries
residual welfare state focused on poverty relief rather than universalism
short-term profit orientation in corporate governance
strong legal enforcement of contracts
strong protection of private property rights
strong role for capital markets in corporate finance
use of independent central banks for monetary policy
isAssociatedWith United Kingdom economic system
United States economic system
other English-speaking economies in some classifications
isContrastedWith Nordic social-democratic economic model
continental European coordinated market economy model
isInfluencedBy classical liberal economic thought
neoliberal economic thought
isUsedIn comparative political economy literature
welfare state regime typologies

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Nordic model contrastsWith Anglo-Saxon economic model