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Drawing on research analyzing similarities and differences among 19 rich democracies, this article compares the economic performance of big spenders and lean spenders at a similar economic level from 1950 to the late 1990s. Going beyond aggregate public spending, it shows the contrasting effects of particular types of spending and taxing and particular social policies. I highlight the extraordinary continuity of the contrasting institutions and policy directions of these countries. I find that there is not one road to good economic performance, but several. I specify five types of political economy, each with its own costs and gains in people's well-being, both economic and noneconomic. A final summary compares extremes: the confrontational "low road" pursued by the USA and the "high road" pursued by the strongest consensual democracies of Continental Europe, where social partners have negotiated real reforms in expensive social policies while preserving social cohesion. [ABSTRACT FROM AUTHOR]

Western Europe has been integrating since 1950, but such a process must not be confused with state absorption. The EEC and NATO probably enhance national statehood more than they diminish it. Equally, integration has been paralleled by peripheral disintegration even since 1945. This is because many states are multicultural. This process may continue, but its origins are complex, being derived from the evolution of nationalist ideology in the nineteenth century. An important factor is modern integrative ideology which undermines the appeal of regional nationalist movements. [ABSTRACT FROM AUTHOR]