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Under What Circumstances Do Social Accords Work?

Social accords can provide wide-ranging macroeconomic benefits, including low unemployment and inflation, economic stability, and real improvements in the material conditions of the most disadvantaged. More debatable is the extent to which successful experiments with social accords are replicable across countries and durable, once established, within each country. In this paper we locate social accords within business systems theory. Thereafter, we assess the track record of social accords and the organizational and institutional prerequisites for a successful social accord. Finally, we explore their relative durability and seek to draw a distinction between temporary suspensions of centralization and broader systemic crises.