Is Small Still Flexible? An Evaluation of Recent Trends in Danish Politics

How has Denmark been able to adjust its economic and industrial policies in an era of major changes in the international economy? The article gives a survey of the last 10 years, especially more recent years. Before 1986 wage policy and public‐expenditure policy were dominant. Since then they have been supplemented by a new structural policy to increase the level of technology, to improve education and research and to change the composition of Danish exports as far as products and markets are concerned. The adjustment of policies has taken place in a stable multi‐centred political system. The process has been characterized by institutionalized campaigning, moulding of interests and mobilization of compromises and mutual understanding. The capacity for flexible adjustment seems to originate from the stability of the political system. Likewise, uncertainty and instability seem to weaken the capacity for political flexibility. During the last two years the transformation of the elite consensus into state programmes and administrative decision‐making has been hampered and the whole structural policy approach has been challenged by a neoliberal alternative. This is mainly due to an extraordinary parliamentary stalemate in a situation of extreme minority parliamentarism.