The authors offer a social democratic alternative to neo-liberalism. First, liberalisation must be accompanied by social policies that minimise socialcosts. Second, policies must be designed with a view towards growth, and finally, policies must be
formulated and implemented through corporatist-style consultation and negotiation beyond the state
and parliament to include unions, employers and other interest groups.
"Concertation" is central to their argument: it subjects the reform strategy to the competitive
interplay of political forces, improves policy outcomes, builds support for the continuation of
reforms, and helps consolidate democratic institutions.
