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Linking Political Economic Projects and Pension Systems in Europe: A Comparison of the Role of Occupational Pension Funds as Investment Actors in Three European Countries

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Abstract:

The paper explores the relation of different political economic projects and the development of pensions as a social right in three countries: Sweden, Germany and United Kingdom. It comprises three parts. The first part provides the conceptual framework, which combines a Polanyian perspective for the social embeddedness of markets with a three dimensional power theoretical approach in order to analyse modes of governance as practices of socio-economic regulation. The second part identifies the link between the macro-level of analysis i.e. different political economy logics and modes of governance and the meso-level of analysis i.e. the institutional paths that these countries have followed in developing their pensions systems and what used to be and currently is the role of occupational pension funds in them. This type of funds offers a prime example of how institutions that originally developed within a logic of social rights have now become actors in the economy. The decision-making of this new actor is however depended on the power relations between labour and capital in each country. The third part of the paper continues to show how the institutional paths have departed from their national spatio-temporal fix and have been re-embedded in the market-economy rationale of the neo-liberal project. The paper identifies a trend towards the ?equitisation? of pension funds as part of a broader process of marketisation of pensions as social right. The significance of the investment decision for pension occupational funds becomes crucial since funds are becoming major actors in the economic field. Their investment decision depends much on power relations between labour and capital ranging for example from social development (public houses, creation of jobs in the national environment) to the creation of profits through domestic and foreign financial markets. The paper concludes that pension occupational funds are re-embedded in a framework of choices, dominated increasingly more from the market economy rationale and the neo-liberal political project.

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pension (212), financi (93), system (87), capit (74), fund (73), scheme (72), institut (69), privat (68), market (64), labour (49), polit (49), role (48), reform (43), develop (42), new (42), invest (41), state (40), product (39), economi (37), social (36), union (31),
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Name: International Studies Association 48th Annual Convention
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MLA Citation:

Roumpakis, Antonios. "Linking Political Economic Projects and Pension Systems in Europe: A Comparison of the Role of Occupational Pension Funds as Investment Actors in Three European Countries" Paper presented at the annual meeting of the International Studies Association 48th Annual Convention, Hilton Chicago, CHICAGO, IL, USA, Feb 28, 2007 <Not Available>. 2009-05-24 <http://www.allacademic.com/meta/p181329_index.html>

APA Citation:

Roumpakis, A. , 2007-02-28 "Linking Political Economic Projects and Pension Systems in Europe: A Comparison of the Role of Occupational Pension Funds as Investment Actors in Three European Countries" Paper presented at the annual meeting of the International Studies Association 48th Annual Convention, Hilton Chicago, CHICAGO, IL, USA Online <PDF>. 2009-05-24 from http://www.allacademic.com/meta/p181329_index.html

Publication Type: Conference Paper/Unpublished Manuscript
Abstract: The paper explores the relation of different political economic projects and the development of pensions as a social right in three countries: Sweden, Germany and United Kingdom. It comprises three parts. The first part provides the conceptual framework, which combines a Polanyian perspective for the social embeddedness of markets with a three dimensional power theoretical approach in order to analyse modes of governance as practices of socio-economic regulation. The second part identifies the link between the macro-level of analysis i.e. different political economy logics and modes of governance and the meso-level of analysis i.e. the institutional paths that these countries have followed in developing their pensions systems and what used to be and currently is the role of occupational pension funds in them. This type of funds offers a prime example of how institutions that originally developed within a logic of social rights have now become actors in the economy. The decision-making of this new actor is however depended on the power relations between labour and capital in each country. The third part of the paper continues to show how the institutional paths have departed from their national spatio-temporal fix and have been re-embedded in the market-economy rationale of the neo-liberal project. The paper identifies a trend towards the ?equitisation? of pension funds as part of a broader process of marketisation of pensions as social right. The significance of the investment decision for pension occupational funds becomes crucial since funds are becoming major actors in the economic field. Their investment decision depends much on power relations between labour and capital ranging for example from social development (public houses, creation of jobs in the national environment) to the creation of profits through domestic and foreign financial markets. The paper concludes that pension occupational funds are re-embedded in a framework of choices, dominated increasingly more from the market economy rationale and the neo-liberal political project.

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Associated Document Available International Studies Association 48th Annual Convention
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Document Type: PDF
Page count: 19
Word count: 9365
Text sample:
Antonios Roumpakis1 PhD Candidate in the Department of Social and Policy Sciences European research Institute University of Bath Paper to be presented in the “International Studies Association 48th Annual Conference 2007 “Policy Politics and Responsible Scholarship” Under the stream of the International Political Economy within the theme of “The contours of a finance-led growth regime: examining the international political economy of financialization” Title Linking political economic projects and pension systems in Europe: A comparison of the role of occupational
is whether organised labour might be able to exercise some control over the investment of funds e.g. the case of Metal-workers in Germany. Although ethical considerations in investment practices are important the citizens of the three European nation states under examination here are interlocked with the performance of capital markets. Private pension funds represent institutional investors that pressure for low labour costs decentralised bargaining and the adoption of shareholder value in other countries. In this way the notion of


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