Corporate Power and Social Policy in a Global Economy: by Kevin Farnsworth

By Kevin Farnsworth

Spanning the total period of the Conservative governments and the 1st time period of latest Labour, this publication appears to be like at mechanisms of company strength and impression; company opinion and impact in a variety of social coverage components together with: schooling, education, future health and social safety; altering company effect on social coverage in recent times in a global context and enterprise involvement in social coverage tasks and welfare delivery.

By exploring company perspectives and critiques, energy, impression and involvement in social provision, this publication is helping to handle vital questions in social coverage and, in so doing, is going a way in the direction of final a gaping gap within the present literature. The book's breadth and multidisciplinary method will allure not just to scholars of social coverage, but in addition to scholars of commercial, public zone administration and politics, their lecturers and coverage makers within the box.

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Extra resources for Corporate Power and Social Policy in a Global Economy: British Welfare under the Influence

Sample text

The extent of capital mobility can be illustrated with reference to levels of foreign direct investment flows across borders. This increased sharply in all countries apart from Japan. 2 illustrates the growing significance of inward and outward investment flows as a percentage of home country GDP. Increased dependence on foreign investments, as opposed to domestic investments, will generally place states in a more vulnerable position, since policy has to be geared towards the needs of relatively footloose and disloyal forms of capital.

At the same time, the UK also has the highest level of outward FDI, which in 2000 was almost double the equivalent rate of the next highest country, Canada. This, together with the fact that the UK has historically had relatively low levels of domestic business investment (Gamble, 1990; Bond and Jenkinson, 1996), creates disproportionate dependency on mobile capital. The figures presented so far confirm that most economies have become more open under globalisation. Further confirmation of this is provided by Quinn and Inclan (1997) who provide an index of ‘openness’ for six countries (US, UK, Germany, France, Japan and Italy) based on the extent to which these economies are ‘open’ to internationally mobile capital.

Under increasing structural power, taxation levied on businesses, through employers’ social security contributions and taxation on profits, would be expected to decline while labour’s contribution would be expected to increase. The problem then, as now, is that corporate taxation is extremely difficult to gauge and interpret for the reasons outlined below. Focusing on headline rates provides the simplest method. 1, there is a clear trend towards reductions in headline rates. The UK actually had the second highest rate in 1979, but by 1999 had the lowest of its major competitors.

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