CAPTURE OF GOVERNMENTS: RE- NEGOTIATING THE SOCIAL CONTRACT IN CENTRAL EUROPE TAMÁS PÁL [Institute of Sociology, Hungarian Academy of Sciences]

THE QUESTIONS Social contracts in the contemporary Central Europe- social pacts, demonstrations of the political goodwill, or tools for social engineering? Their functions now: not a wage-inflation compromise, but a.A tool for the state-s role re-definitions fbudget, welfare state, etc.] b.A platform for the reconstruction and growth of underdeveloped social actors: unions, national capital, social movements

THE ACTORS THE MAJOR AXES: STATE-SOCIETY The frontline: not labour-capital, but the government and the users of the welfare state administration Therefore instead of the Western tripartite solution- involvement of civil structures, and independent scholars for their organisations] Key question in CE: weak unions + multinational capital. WHO DOES REPRESENT WHOM AT THE NATIONAL ROUND TABLE?

POINTS OF REFERENCE A.The Spanish political pact for democratic transition- a tool for stabilization B.The classical tripartite system [mainly German, Austrian] C.The Dutch system for employment policy [job sharing] D.The Irish deal [a development pact for wage control]

THE LATIN- AMERICAN OPEN ECONOMY SOCIAL CONTRACT DEBATE What´s needed: An open economy social contract that Goes beyond standard social programs to emphasize jobs for the less skilled Protects not just the poor but the large majority of near-poor households that are vulnerable in an open economy

THE ACTUAL DILEMMA A.Enlarged, or growing cake VERSUS rolling back strategies? B.Tool neutrality, versus tool specificity? C.Local pacts and their framing D.Non-convergene of labour and industrial relations between EU-15 and EU-10- short- or middle-term?

GOOD GOVERNANCE?

SOCIAL CONTRACTS AS REGULATORS

LEVELS OF FORMALIZATION I

HISTORICAL REFERENCES

TAXONOMY OF SOCIAL PACTS:LEVELS OF GOVERNANCE/DEGRESS –ARTICULATION TYPES OF ISSUES/ NUMBER OF POLICY AREAS LOWHIGH LOWI. SHADOW PACTS II. HEADLINE SOCIAL PACTS HIGHIII. INCOMES POLICIES IV. NEO- CORPORATIST CONCERTA- TION

TAXONOMIES I. narrow/exlusive weakly integrated shallow II.wide/inclusive weakly integrated/ shallow III.narrow/exclusive highly integrated/deep IV. wide/inclusive highly integrated/deep

THE EVOLUTION OF SOCIAL PACTS- PATHS-TRAJECTORIES InstitutionalizationDe-institutionalization Trajectory 1Repetition I-I, II-II, III-III, IV- IV Abondonment I-#I, II- #II, III- #III, IV -#IV Trajectory 2Integration/vertical shift I-III, II-III, II-IV Disintegration/vertica l shift III-I, III-II, IV- II Trajectory 3Expansion I-II, III- IVReduction/horizontal shifT II-I, IV-III

Social Contract on Two Levels Underlying Social Contract This is an attempt to get the economic contract and the social contract to mutually reinforce themselves. Questions that get answered here include: is this a short or long-term deal? Is it open or task specific? Is it a partnership or a series of transactions? Ongoing Social Contract It makes explicit the expectations for interaction, such as norms for communication, decision making, handling unforeseen events, dispute resolution at the source, and conditions and means for renegotiations.

ENFORCEMENT I

ENFORCEMENT II

OLD AND NEW CONTRACTS- LOYALTY, OR PARTICIPATION IN CHANGE?

An Alternative Scenario: A New Social Contract Engaging the Public: Can it be a force for Change? Revisiting basic values: The moral foundations for work Work & its Role in Society Expanded View of the Key Actors & Institutions Multiple Stakeholder View of the Firm Expanded Roles for Unions/Associations Expanded Role for Labor Market Intermediaries & Community Groups Recast Government as a Catalyst for Change

Economic Function security standards of living efficiency quality goods & services Individual Value dignity respect identity voice social interaction World of Work Place in Society family community citizenship REDEFINITION OF WORK IN THE NEW SOCIAL CONTRACT

SOCIAL CONTRACT I-LIFETIME EMPLOYMENT EXPECTATIONS

OUR AGENDA: the major targets of the NEW SOCIAL CONTRACT A.EDUCATIONAL PACT Creation of individual educational accounts- joint financing- state, social actors, industry, individual families,etc. B. SOCIAL SUSTAINABILITY PACT labour standards + social cohesion + moderate green program