Dr Donato Di Carlo

This course is available on the MRes/PhD in Management (Employment Relations and Human Resources), MSc in China in Comparative Perspective, MSc in Human Resources and Organisations (International Employment Relations/CIPD), MSc in Political Economy of Europe in the World, MSc in Political Economy of Europe in the World (LSE and Fudan), MSc in Political Economy of Europe in the World (LSE and Sciences Po), MSc in Political Science (Conflict Studies and Comparative Politics), MSc in Political Science (Global Politics) and MSc in Public Policy and Administration. This course is available with permission as an outside option to students on other programmes where regulations permit. This course uses controlled access as part of the course selection process. For information on controlled access courses, including eligibility, application processes, deadlines, and departmental contact details, please refer to the Controlled Access Courses webpage.

To apply for a place, ALL students should submit a statement via LSE for You outlining your specific reasons for applying, how it will benefit your academic/career goals, and how you meet any necessary pre-requisites (maximum 200 words).

The first round of offers will be made from 12-noon on the Friday before Autumn Term week 1. The final deadline for applications is 12-noon on the Friday of Autumn Term week 2.

For queries contact: ei@lse.ac.uk

This course has a limited number of places (it is controlled access) and demand is typically very high. Priority is given to students from the European Institute, so students from outside this department may not get a place.

Recommended pre-requisites:

Students taking this course are encouraged to acquire a basic understanding of economics and political economy concepts, e.g. via the indicative readings recommended

How do capitalist economies evolve, adapt, grow, and compete in a rapidly changing globalised world? Why do seemingly similar countries respond differently to major economic shocks such as financial or energy crises, or follow different trajectories when adjusting to structural transformations such as the green transition, the knowledge economy, or China’s rise as a major industrial power?

This course examines the diversity of European models of capitalism, drawing primarily—but not exclusively—on Comparative Political Economy (CPE) scholarship to analyse the institutional and political foundations of European economies. It explores how national economies are organised, how processes of growth creation are structured, and why national economic systems tend to remain distinct despite pressures for neoliberal convergence generated by the Europeanisation of policymaking and the globalisation of finance and production. Students examine country-specific patterns of macroeconomic and industrial policymaking, analyse both the supply and demand sides of European economies, and identify the institutional and political sources of cross-country variation in socio-economic and innovation outcomes.

The course is structured into three interconnected parts.

The first, Concepts and Historical Developments, provides a foundational understanding of key debates in CPE, exploring the diversity of European capitalisms during les trente glorieuses (1945–1975) and how different economies responded to the common challenges posed by the oil shocks of the 1970s.

The second, Comparative Analysis of Capitalist Models, introduces analytical frameworks such as varieties of capitalism (VoC) and growth models (GM) to examine how economies function and adapt, particularly in response to globalisation, financialisation, and the rise of the knowledge economy.

The third, Capitalism and Contemporary Crises, applies these concepts and frameworks to analyse how different models of capitalism have responded to major economic shocks and structural transformations, including Europe’s sovereign debt crisis, COVID-19, the 2022 energy and inflation crisis, China’s industrial ascent, and the renewed turn towards state interventionism through industrial policies for the twin transition and strategic autonomy.

By integrating theoretical perspectives from the Varieties of Capitalism (VoC) and growth models literatures with in-depth comparative analysis of different models of capitalism, this course equips students with the analytical tools needed to understand the evolution of European capitalism(s), engage critically with contemporary economic challenges, and assess how national political economies mediate and respond to the global forces shaping advanced capitalism today.

15 hours of seminars and 10 hours of lectures in the Autumn Term.

This course has a reading week in Week 6 of Autumn Term.

The course consists of weekly 1-hour lectures and 1.5-hour seminars held throughout the term. While intellectually stimulating and rigorous, the course is structured to ensure that the workload remains manageable. Students who dedicate around 4–5 hours per week, including seminar preparation and participation, should find the material both accessible and rewarding.

Seminar preparation requires completing the essential readings provided in the reading list. From Week 2 onward, each seminar begins with a 20-minute presentation delivered by a small group of 2–3 students. These presentations introduce the weekly topic and address one or two of the core seminar questions listed on Moodle for that week.

The presentations are followed by a 10-minute “devil’s advocate” discussion. After the presentation, the instructor assigns two students—one male and one female—to act as “devil’s advocates” and critically question the presenters, initiating the Q&A. The remainder of the seminar is devoted to in-depth group discussion, critical analysis, and evaluation of the arguments raised in the readings and presentations.

Essay (1500 words) in Autumn Term Week 7.

Students may submit one optional essay of up to 1,500 words. The purpose of the formative essay is to train students in developing a properly formulated research question and to practise analytical writing in preparation for the summative assessment. The formative essay is due by the end of Week 7 of the Autumn Term (before midnight on the Friday of Week 7). Students are encouraged to use the Reading Week (Week 6) to begin working on the assignment if they wish.

The following list provides a selection of foundational works in European Comparative Political Economy (CPE), presented broadly in chronological order to reflect the institutionalisation and development of the field since the post-war period:

• Shonfield, Andrew. Modern Capitalism: The Changing Balance of Public and Private Power. Oxford University Press, 1965.
• Katzenstein, Peter J. (ed.). Between Power and Plenty: Foreign Economic Policies of Advanced Industrial States. Madison: University of Wisconsin Press, 1978.
• Goldthorpe, John H. Contemporary Capitalism. Oxford University Press, 1984.
• Scharpf, Fritz Wilhelm. Crisis and Choice in European Social Democracy. Cornell University Press, 1991.
• Albert, Michel. Capitalism Against Capitalism. Whurr, 1993.
• Crouch, Colin, and Wolfgang Streeck (eds.). Political Economy of Modern Capitalism: Mapping Convergence and Diversity. SAGE, 1997.
• Hall, Peter A. The Role of Interests, Institutions, and Ideas in the Comparative Political Economy of the Industrialized Nations. In Mark Irving Lichbach & Alan S. Zuckerman (Eds.), Comparative Politics: Rationality, Culture, and Structure(pp. 174–207). Cambridge University Press, 1997.
• Hall, Peter A. The Political Economy of Europe in an Era of Interdependence. In Herbert Kitschelt, Peter Lange, Gary Marks, & John D. Stephens (Eds.), Continuity and Change in Contemporary Capitalism (pp. 135–163). Cambridge University Press, 1999.
• Kitschelt, Herbert (ed.). Continuity and Change in Contemporary Capitalism. Cambridge University Press, 1999.
• Hall, Peter A., and David W. Soskice (eds.). Varieties of Capitalism: The Institutional Foundations of Comparative Advantage. Oxford University Press, 2001.
• Schmidt, Vivien Ann. The Futures of European Capitalism. Oxford University Press, 2002.
• Amable, Bruno. The Diversity of Modern Capitalism. Oxford University Press, 2003.
• Crouch, Colin. Capitalist Diversity and Change: Recombinant Governance and Institutional Entrepreneurs. Oxford University Press, 2005.
• Streeck, Wolfgang. E Pluribus Unum? Varieties and Commonalities of Capitalism. MPIfG Discussion Paper, No. 10/12, Max Planck Institute for the Study of Societies, 2010.
• Baccaro, Lucio, and Jonas Pontusson. Comparative Political Economy and Varieties of Macroeconomics. MPIfG Discussion Paper, No. 18/10, Max Planck Institute for the Study of Societies, 2018.
• Palier, Bruno, and Anke Hassel (eds.). Growth and Welfare in Advanced Capitalist Economies: How Have Growth Regimes Evolved? Oxford University Press, 2021.
• Clift, Ben. Comparative Political Economy: States, Markets and Global Capitalism. Macmillan International Higher Education, 2021.
• Baccaro, Lucio, Mark Blyth, and Jonas Pontusson (eds.). Diminishing Returns: The New Politics of Growth and Stagnation. Oxford University Press, 2022.
• Hancké, Bob, Toon Van Overbeke, and Dustin Voss. Understanding Political Economy: Capitalism, Democracy, and Inequality. Edward Elgar Publishing, 2025.

Essay (100%, 3500 words).

The assessment consists of a 3,500-word essay addressing a research question developed by the student. Students are strongly encouraged to discuss and agree on their essay question with the instructor by the end of the Autumn Term to ensure that it is clearly formulated and appropriate. The final submission is due during the Winter Term, with the exact date to be confirmed. There is no final exam for this course.