The coming of the third front campaign -- Good people and good horses go to the third front -- Concentrating forces to wage wars of annihilation -- Produce first and consume later -- Industrial development amid cold war insecurity -- Epilogue: the demilitarization of Chinese socialism.

This paper examines the relationship among economic context, political institutions, and the political dynamics of adjustment within national models of capitalism through an analysis of recent labor-market reform in France and Germany. It argues that a climate of economic austerity since the...