Tripartism and economic reforms in Slovenia and Poland

This chapter analyzes the varied impact of tripartism on economic reforms and its consequences for socio-economic outcomes in Slovenia and Poland the two countries that can be characterized as cases of strong and weak tripartism respectively. The analysis probes into three different hypotheses about the beneficial impact of tripartism on macroeconomic outcomes, distributive outcomes, and reform sustainability. The paper finds mixed results with respect to the contribution of tripartism to macroeconomic outcomes: no impact is detected with respect to inflation, but available evidence suggests its beneficial contribution in Slovenia through a particular combination of negotiated incomes policies, active labor market policies, and employment protection legislation. The impact with respect to distributive outcome is less ambiguous: there is clear evidence that the well functioning tripartism has contributed to more equal distribution of income and low poverty rates in Slovenia.Finally, I find a positive impact of tripartism on reform sustainability. Whether or not particular reforms were negotiated between the state and social partners has evidently affected the degree to which these reforms have proved to be sustainable and supported by trade unions, who are normally most likely to mobilize against policies generating material hardships.