Advanced capitalist democracies (ACDs) have generated unprecedented prosperity by investing in the institutional foundations of skill formation and innovation. These investments have been enabled by a strong state and the incentives of long-established political parties to appeal to educated middle classes and aspirational voters. However, technological change also brings about massive economic displacements and rising inequality, which in turn create new political divisions. This dynamic was evident during the industrial revolution and is equally true in the current ICT revolution, which has led to a resurgence of inequality following a post-war 'Golden Age' of rising economic equity.
In this month’s Max Weber Lecture, Torben Iversen, EUI Fernand Braudel Fellow and Professor of Political Economy at Harvard University, will focus on the rise of the knowledge economy and the political and economic divisions it has generated, particularly the rise of right-wing populism. The knowledge economy is increasingly concentrated in metropolitan clusters, where knowledge-intensive businesses and highly educated workers co-locate, creating a new 'Rokkanian' cleavage. However, the extent of this concentration varies significantly across countries.
Why is knowledge-driven growth more concentrated in some nations, like the US, and less so in others, such as northern Europe? The presentation will emphasise the role of public policy in shaping these agglomeration effects and, consequently, regional inequality. Political coalitions, rooted in distinct democratic institutions, influence these policies. While there is widespread pessimism about the future of ACDs, cross-national variations in the structure of the new economy highlight the enduring power of the democratic state to shape this future.
About the speaker
Torben Iversen is a Fernand Braudel Fellow at the EUI and Professor of Political Economy in the Government Department at Harvard University. His research interests lie at the intersection of comparative political economy, electoral politics, and applied formal theory. He is the (co-)author of five books and about four dozen articles on advanced capitalist democracies.