As discussed in Chapter 5, the main result of the Washington Consensus was to forge a form of market-based logic within the developing world. Whether this emerged primarily as a US-led incentive, or whether it merely demonstrated the ideological strength of neoliberal principles, is harder to ascertain. However, as the 1990s progressed it became noticeable that the influence of neoliberalism had grown to a level where it appeared to be truly global. As such, the much heralded idea that a ‘variety’ of capitalisms exist within international politics had been questioned as a result of this dominance. This is an acknowledgement that different types of capitalism exist within different national traditions. The ‘Anglo-Saxon’ tradition, favoured by the anglophone countries (the UK, the USA, Australia, New Zealand, Ireland and so on) provide the general characteristics of neoliberalism — minimal state interference in the economy, low taxation and little regulation. This contrasts with the continental form of ‘Rhine capitalism’ that was for a long period a feature of German capitalism. Here, a more regulated form of capitalism has traditionally been practised, relying on tighter regulation and greater corporate control of economic output, which is at odds with the neoliberal tradition (Hall and Soskice 2001). Added to that has been the Scandinavian or Nordic model of capitalism, where low corporate tax and flexibility have been coupled with high welfare protection and high individual income tax (Palan and Abbott 1996).
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