Embedded Liberal Compromise: The End Of An Era

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What were the most significant features of the “embedded liberal compromise”, did the compromise allow for a “golden age” of capitalism, and why did it end? Embedded Liberalism was first used by the influential political scientist John Ruggie in 1982 in his essay ‘Globalization and the embedded liberal compromise: The end of an era?’ It is a term generally used to describe the economic situation following the destruction of world war two up to the neoliberal revival of the 1970’s. Embedded liberalism was essentially a compromise which enabled states to push a policy of social welfare and to regulate their economies to eventually reduce unemployment, but combining this with open, liberal free trade among nations. Ruggie had the desire to keep as many of the benefits that the open, free market system of the previous era had, yet still enabling states to pursue welfare based policies domestically. Ruggie believed that political and economic stability and sustainability relied on social legitimacy ; this was what the embedded liberal compromise was trying to achieve. The embedded liberal compromise led to levels of growth across the globe never previously seen before or since, which has now become to be known as ‘The Golden Age of Capitalism’. However the system relied on the strength of its most important member, the United States…show more content…
The only way ahead was to construct the right blend of state, market, and democratic institutions to guarantee peace, inclusion, well-being, and stability’ this led to the growth of embedded

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