Switzerland’s Political Performance Compared: Determinants of a Success Story

Abstract In comparisons of OECD member countries, Switzerland receives top marks on central indicators of political performance such as the rate of unemployment, the inflation rate and general government net debt interest payment. Focusing on the period from 1990 to 2012, this essay examines the sources and causes of this success story, drawing not only on hypotheses and data that are specific to Switzerland but also on explanatory approaches that compare Switzerland to other wealthy democracies. Of the several key items involved – including the institutional, procedural and actor-related characteristics of Switzerland – the variables that have proven to be most important are those contributing to policy area-specific explanations (such as central bank autonomy, distributional conflict and fragmentation of fiscal policy), as well as indicators of social partnership in industrial relations and the distribution of power between political parties.