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This thesis deals with questions of governance, control and discretion in state agencies. It is grounded on a case study of the Swedish National Agency for Education (Skolverket), from its prelude in the late 1980s, to its start in 1991, through several governments, seven ministers and four direktor generals, up tp 2014. The empirical part of the thesis follows the periods of the four director generals. The study is based on a vast number of documents, supplemented with interviews. For the analysis, a model of governance and control was condensed from the literature. This model attempts to cover both the political governing of agencies and the internal organizational control of agencies. This model was furthermore developed into three ideal type control styles: Old public management/ Agency, New public management/ Actor, and New public governance/ Arena. Analysis showed that Skolverket started out as a new type of agency, resembling the ideal type of NPG/ Arena, but over time, with an increasing pressure from the political level, it gradually turned into a more "normal" state agency, at one period resembling the ideal type of NPM/ Actor but finally becoming more similar to the ideal type of OPM/ Agent, however with still strong internal traits of an Arena. Further analysis showed that the actual governance and control featured several crucial characteristics that proved to be of importance for the amount of discretion left for the directors and officials of the agency. These characteristics were the degree of 1) unified or plural value systems, 2) partial or comprehensive use of control "tools", and 3) high or low degree of specificity. These three characteristics were combined into eight different types of roles, each with a specific type and level of discretion, from the most restricted ("Authoritarian") to the most unrestricted ("Laissez-faire") and six other roles in between. It is proposed that this scheme of roles form a novel way of analysing the level and distribution of discretion in agencies.

Regional politics is changing; it is transforming from being mainly a responsibility of the central state to a concern that is more for the regional or local governments. At the same time, there are signs of a transformation of the political system in general. The development indicates a decreasing hierarchy as the power of the state is challenged and the political agents are increasing in number. This indicates that the political agents are changing but there are also indications that the political forms are transforming. The politics is increasingly characterised by project and process politics, networks, cooperation and partnerships. This transformation is generally described as the transformation "from government to governance". New governance is one of the most frequently discussed issues in contemporary political science literature, and this has led to a wide variety of conceptualizations. Considering the changing regional politics and general changes as the political forms and agents, this thesis studies who governs the regional politics and how regional politics is governed.The purpose of this thesis is to provide empirical contributions in order to increase the understanding of changes in regional politics at the local level. This is done by dividing governance modes into typologies. Four political processes at the local level in the municipality of Åre between the years 1973-2007 are analyzed. The thesis is based on qualitative semi-structured elite interviews. The informants have been selected by snowball sampling. The interviews have also been complemented by documentary studies. The documents that have been studied are the protocols from the municipal assembly from 1973, when the municipality was created, to􀂒􀂟2007. The documents also consist of the parish archives (sockenkrönikor) governmental reports and official documents of the local and state-level government. The material has been analyzed by using process tracing.The main results of the study are that there have been changes in the regional politics at the local level in relation to the political agents and the forms of politics. The 1970s were characterized by strong state power and hierarchy. The political processes have increasingly been characterized by the typology of the new governance. The study has shown that in practice the regional politics in Åre is characterized by both traditional governance and new governance at the same time there has not been a paradigmatic shift. The elements of new governance are increasing but there are still significant signs of the traditional bureaucratic system such as hierarchy and ordered rule. As the signs of new governance increase, the political entrepreneurs play a bigger role in the processes being analyzed. The study also shows that the critique of traditional forms of governance relating to participation and influence has not become irrelevant as the signs of new governance increases.

The literature highlights how climate change might challenge the definitions of wine geographical indications (GIs) in Europe. The central issue addressed in this thesis is whether European GI viticultural systems could tackle climate change via initiating adaptive institutional change processes to relax the constraints imposed by GI production standards. To do so, drawing from institutional economics theory and literature on cooperatives and collective brand, we developed a novel agent-based model (ABM) representing an abstract GI wine production system in the European Union (EU). Using illustrative data, our model allows testing different impact scenarios driven by climate change, spatial heterogeneity, and alternative institutional settings (i.e., voting mechanism). We used the model to explore individual and collective components of climate resilience and the relationship between economic agents and their environment. We compared the average output of 100 simulations for each of the 12 different climate-landscape-institution scenarios. The inclusion of endogenous institutional change led to considerable variations in all target variables, including the emergence of complex/chaotic behaviours. It enabled the system to reduce farm exits, increase profitability and collective brand value. We showed how landscape heterogeneity has a twofold role in the climate resilience of the system. It increases individual adaptability but obstructs collective adaptive capacity through institutional change. The two different voting mechanisms considered (i.e., relative and absolute majority) did not produce any discernible result. The study highlights the importance of policies oriented to strengthening investments in intangibles and facilitating GI rule amendments, especially in sectors where cooperatives predominate due to poor intangible investments capability and other issues connected to member heterogeneity.

This thesis explores the human-environment interaction within the climate-sensitive socio-ecological system of Lake Chilwa in Malawi. It uses the livelihoods framework to analyse various coping strategies to resource scarcity due to lake recessions. The main aim is to understand the processes by which decision-making takes place and the influence of various agents of change on coping with environmental shocks, i.e. water recessions. Lake Chilwa undergoes periodic water recessions with up to twelve incidents recorded between 1900 and 2012. While the lake and its wetland is an economic aquatic agriculture system in between recessions, it is unclear how households around the system survive during the periods of water recessions. Qualitative and quantitative studies were conducted between March 2012 and December 2013 on Chisi Island of Lake Chilwa to evaluate the coping strategies and their major drivers in responding to the periodic lake recessions. Using interpretive analysis, the findings show that people from the Lake Chilwa socio-ecological system have lived in anticipation of periodic environmental shocks due to their deep historical knowledge of the lake level and its fluctuations. This knowledge has been passed from generation to generation. Results further show that the main coping strategies that have stood the test of time for every recession are based on reciprocity and redistribution. These include sharing through kinship ties, hunting wild birds and farming. In many cases coping strategies for each specific recession are driven by political, social and economic factors prevailing at that particular period. Given these conditions, different agents (individuals or communities) make choices designed to maximise their own interests as they scramble to access scarce resources. Although natural resources in these systems are fundamental assets in rural livelihoods, accessing them in times of scarcity requires better governance systems that consider social, political and economic contexts.

The deliverable D6.1 of the LIFT project explores what types of discourses are used in six European Union (EU) member states' Rural Development Programs (RDP) and other agricultural policy documents and how they incorporate ecological approaches acrossthree Common Agricultural Policy (CAP) periods. This multiple case study highlights similarities and differences in the dominant discourses as emerging from national policy documents in the following selected EU member states: France, Germany (Bavaria), Hungary, Poland, Romania and Sweden. It also demonstrates how discourse analysis can be used to gain understanding about the dominant discourses expressed in these documents in relation to how ecological approaches are defined, the policy rationale for encouraging ecological approaches and the expected consequences of doing so. Conceptually, we focused on two types of discourses identified from the literature: 1) the three CAP discourses: i) neomercantilism; ii) neoliberalism and iii) multifunctionality, and 2) the five socio-political discourses of Rural Development (RD): iv) agri-ruralist, v) hedonist, vi) utilitarian, vii) nature conservation and viii) community sustainability. These types of discourses were together integrated in a model, where each policy discourse depicts agriculture as accomplishing a specific function. The theoretical framework is grounded within a political economy perspective. This means that policy develops because of confrontation between different concerned agents with different interest, pushing for different objectives. The state acts as an intermediary between these agents and aims at ensuring consensus and maintenance of agreement. Policy documents are therefore often the result of competing discourses and contradicting policy objectives. Across EU member states, the results show that ecological approaches are mainly depicted with the multifunctionality discourse with two dominating sub-discourses of nature conservation and agri-ruralism. Nevertheless, we observe an increase in the use of the neomercantilist discourse in the last CAP period. This parallels what the previous literature finds in Commissioners' speeches: a reappearance of the traditional neomercantilist discourse in the CAP agenda 2014-2020. Farming systems (with farming practices) related to agroecology, biodiversity-based and organic farming are among the most commonly mentioned farming systems.

The aim of this thesis is to understand the decision-making processes concerning ice-breaking along the coast of Norrland, with the specific aim to analyse the activities of regional interest groups in the Norrland region and government agents at different administrative levels at the key stages of the decision-making processes: initiation, drafting and decision-making. The thesis also explores how institutional factors at different administrative levels affected the agents that were involved at those stages of the decision-making processes. As navigation along the northern Swedish coast must negotiate winter conditions which causes ports to freeze over, the government ice-breaking service functions as an instrument to compensate the export firms in Norrland for these constrains. Year-round navigation in the north Swedish coastal waters was achieved through a series of decision-making processes that took place during the period from 1940 to 1975. These decision-making processes are important to study since ice-breaking was an integrated component of the expanding heavy basic industries in Norrland and thereby for the rapidly growing exports during the 1950s and 1960s. This period is the decisive point in the economic history of the Norrland region regarding how the natural resources should be exploited and how exports should be advanced. This study concludes that the decision-making processes were initiated by government agents at different administrative levels. Official investigatory commissions were set up at several occasions to deal with issues related to the government ice-breaker service by the ministries responsible for ice-breaker policy. It is also demonstrated that the decision-making processes concerning ice-breaker investments were initiated by the government boards that were responsible for the operation of the ice-breaker service. In this respect, the study concludes that the government activities during the initiation stages should not be confused as a sign of regional interest group passivity on these issues. The activities of the interest groups during the initiation stages were primarily intended to draw attention to the problems caused by winter to regional shipping, in order to put the issue on the political agenda. As the decision-making processes proceeded into the drafting stages, the participation from regional interest groups was much more significant as the government offered interest groups forums and procedures for structural consulting through various organisational arrangements. The regional interest groups that participated in those arrangements were industrial firms in the heavy basic industries sector. In those cases other regional interest groups participated, they would promote the interests of those firms. As a result, the final drafts from committees and government bodies included arguments that favoured an expansion of ice-breaking to promote the growth of the heavy basic industries in the Norrland region. The analysis of the decision-making stages suggests that a combination of institutional factors at different administrative levels contributed to the outcome of the decision-making processes. One result is that the general aims of macro policy such as trade policy, growth policy and regional development policy were favourable towards an expansion of the government ice-breaker service, which would benefit the export industries in the Norrland region. Another result is that the sectoral organization within the government maritime bodies contributed significantly to the outcome of the decision-making processes. Large-scale planning and operational experimentation was allowed to take place within the ice-breaker service, which convinced the government that ice-breaking and winter navigation was a feasible transport alternative.

The EU Renewable Energy Strategy (RES) Directive requires that each member state obtain 20% of its energy supply from renewable sources by 2020. If fully implemented, this implies major changes in institutions, infrastructure, land use, and natural resource flows. This study applies a political geography perspective to explore the transition to renewable energy use in the heating and cooling segment of the Swedish energy system, 1980–2010. The Nordic welfare model, which developed mainly after the Second World War, required relatively uniform, standardized local and regional authorities functioning as implementation agents for national politics. Since 1980, the welfare orientation has gradually been complemented by competition politics promoting technological change, innovation, and entrepreneurship. This combination of welfare state organization and competition politics provided the dynamics necessary for energy transition, which occurred in a semi-public sphere of actors at various geographical scales. However, our analysis, suggest that this was partly an unintended policy outcome, since it was based on a welfare model with no significant energy aims. Our case study suggests that state organization plays a significant role, and that the EU RES Directive implementation will be uneven across Europe, reflecting various welfare models with different institutional pre-requisites for energy transition.

In May 1856 the EFS (the Swedish Evangelical Mission Society), influenced by the new evangelism-movement, was established as an "internal mission" within the Church of Sweden. During the same period the "new evangelism" revival movement established regional organizations in order to coordinate the movement in different parts of the country. These regional organizations consisted of the movement's local mission societies in a province or part of a province of Sweden. This study will focus on democracy and theological identity in the EFS through an analysis of how the regional organizations acted, what role they played, how the EFS was influenced by them and how the EFS decided to establish its own regional organization. One result of the earlier tensions between the regional mission organizations and the EFS was the establishment of the independent organizations Mission Covenant Church of Sweden (Svenska Missionsförbundet) (1878-) and Mission Society of Bible faithful Friends (Missionssällskapet Bibeltrogna Vänner) (1911-). This investigation looks into 17 of 36 regional mission organizations that existed. The time frame of the investigation is from the establishment of the EFS in 1856 to the establishment of the regional structure of the EFS in 1922. The EFS changed over time. The change of society and wishes from the movement's local mission societies and regional mission organizations were agents in this transformation. An important result of this research is that this transformation of the EFS proceeded at a slow pace and with the preservation of the EFS's theological identity.

The purpose of this dissertation is to describe, explain and understand how slowness appeared when some decisions were made in the area of welfare policy and how this slowness was eliminated. The study focuses on major changes. It is argued that such changes follow another logic than small gradual adjustments. Four breaking points have been selected for a deeper analysis: the pension policy decisions of 1913 and 1994 and the housing policy decisions of 1935 and 1992. These decisions led to the emergence of fundamentally new institutional structures concerning the relation between the central government and the citizens. The study shows that an established institutional structure within a welfare policy area generated mental constructs and decision rules that governed political decision-making. This governance resulted in slowness in the form of lengthy decision-making processes. The fundamental institutional structure was being altered only when the mental constructs were broken down. A common feature was that the decisions were first made when discontent with the prevailing order became so strong that it overwhelmed the fear of a new institutional structure. The general tendency was also to shape the fundamental changes in relation to the citizens so that the changes could be portrayed as small. The established mental constructs are the determining explanation for slowness. The interest organizations played a secondary role, as their interests are shaped in accordance with the mental constructs. Their resistance was declined at the same time when the mental constructs were broken down. The individuals – agents of change – that constantly worked for the change of system in reality appear to be significantly more interesting than hindering organization. Their influence showed a recurring pattern.

This dissertation examines the last thirty years of internal reforms in the Swedish Government Offices. Analysis of the evolution of personnel politics, the formation of one agency and the attempts to introduce a collective activity planning model, show that the immediate problems of the early 1970's – an over dimensioned staff, territory battles and unclear division of responsibility for personnel and organisation – remains to this day, notwithstanding the many reforms to approach them. One principal explanation behind this is that the key players for successful reorganisations – the politicians – do hardly ever partake. Instead, and on the basis of the perspective of bureaucratic politics, this dissertation demonstrates that the internal development of the Government Offices should be explained as the result of struggles between different bureaucratic actors, with diverse views on problems and their solutions, and with various prospects and strengths to affect the outcome. Due to the choice of politicians to leave this policy field open to bureaucratic politics, the policy is essentially shaped and decided within a bureaucratic context. The dissertation ends in a conclusion that there is an almost constant bureaucratic battle behind internal organisation of the Government Offices, a conflict where tradition, values and strong bureaucratic actors play an important part, and where institutional change is exceptional, since the preserving powers in these processes have the upper hand. But politicians can change – in spite of these traditions, values and bureaucratic agents – if they have the determination. The theoretical aim of this dissertation, through a critical assessment of the bureaucratic politics perspective – an evaluation motivated by the empirical data and inspired by two challenging and related theoretic models; sociological and historical institutionalism – is to display the qualities and shortcomings of the bureaucratic politics model, to develop and improve the original model of bureaucratic politics, and making it more expedient for future studies of institutional change in central political organisations.

Public catering can have a considerable environmental and educational impact. A scenario of more legume and less meat consumption in Sweden was in the present study used as a tool to explore the possibilities of Swedish public school meals to become more sustainable. Strong structuration theory provided a focus on organisational structure and stakeholder influence, enabling a holistic view of the issue at hand. A literature review, on the topics of successful implementation of sustainability projects within public catering and individual agency within school meals, provided a knowledge base from which an online survey and a guide for complementary interviews were built. The survey was aimed at municipal dietary managers and assessed their experiences of working with sustainable school meals and their attitudes towards the dietary scenario. Furthermore, the survey tried out a way of measuring how much legumes and meat are served in school canteens. The complementary interviews focused on individual actors' perceived agency to act for sustainable change. The results suggest that the study participants in general have both the knowledge and interest to make school meals more sustainable. They also saw the more legumes dietary scenario as desirable. Complicating factors are that the priorities of catering organisations and schools are often not well aligned, and resources are lacking to work on collaborations to improve this. It is also often unclear who has the responsibility to make sure teaching on sustainability is carried over from the classroom to the canteen. Individual agents with a high motivation to make positive change can be important drivers of sustainability projects, but for a change such as significantly greener school meals to take place, a whole food culture needs to change. Educational efforts and finding ways of engaging multiple stakeholders in the decisions are needed to this end. Unambiguous political goals, with adequate action plans, would give structure to the work on more sustainable school meals. Finding ways of quantifying and comparing sustainability efforts between municipalities would draw attention to the importance of the matter. The approach that was tried out in the present study however proved to be too impractical to use.

Enligt den svenska förvaltningstraditionen, vilken bygger på den Weberianska byråkratimodellen, ska politiker fatta beslut och tjänstemännen verkställa dem. Men, relationen mellan politiker och tjänstemän i den kommunala vardagen förefaller inte vara så enkel. Förtroendevalda politiker upplever ett problem med att tjänstemännen har för stor makt, vilket leder till ett inflytande på den politiska processen som inte står i proportion till deras formella position. Problemet bottnar i att den Weberianska byråkratimodellen inte längre fungerar som ett vägledande ideal i praktiken. Den kommunala vardagen karakteriseras istället av en otydlighet i hur makten i praktiken konstitueras och distri-bueras i relationen mellan politiker och tjänstemän, med resultat att icke-förtroendevalda chefstjänstemän kan hamna i en maktsituation där de kommer i besittning av, förutom sin legitima chefsmakt, en reell politisk makt. Som en följd av detta kan våra svenska kommuner komma att ledas av en profession som tränger undan och kanske i praktiken övertar politisk ledning – en profession som enligt den Weberianska byråkratimodellen formellt ska vara politiskt maktlösa. Mot bakgrund av detta syftar studien till att bidra till kunskapen om de kommunala chefstjänstemännens politiska agerande och de maktförhållanden som konstituerar detta agerande. Med makt avses i avhandlingen en kapacitet att handla som ägs av agenter och som kan identifieras i kraft av chefspositionens varaktiga relationer med underliggande sociala strukturer mellan politik och förvaltning, mellan politiker och tjänstemän. Makt betraktas följaktligen som en förklaringsfaktor för att förstå chefstjänstemännens politiska agerande. Avhandlingen baseras på en fallstudie av kommunchefer, dvs. kommunens ledande tjänsteman som befinner sig i den omedelbara närheten av den kommunövergripande politiska ledningen, och som därigenom verkar i gränslandet mellan politik och administration. För att bidra till denna kunskap utvecklas i avhandlingen en analysmodell med utgångspunkt i den kritiska realismens synsätt på sociala strukturer och kausalitet. Modellen baseras på tre olika typer av analyser, en strukturell analys, en kausal analys och en förståelseanalys. Med hjälp av den strukturella analysen identifieras tre stycken strukturella maktresurser som kan ses som förbundna med den kommunala chefstjänstemannapositionen. Dessa benämns centralitet, kontroll över kritiska resurser, och närhet till makt. Med hjälp av den kausala analysen studeras vad och hur dessa maktresurser tillåter innehavaren av chefstjänstemannapositionen att påverka för att uppnå effekter. Analysen visar att de strukturella maktresurserna möjliggör för chefstjänstemannen att påverka hela den politiska beslutsprocessen genom att med rätt timing i ärendehanteringen, och de beslutsunderlag som ligger bakom detta, presentera olika problembilder och konsekvensbeskrivningar. Med hjälp av förståelseanalysen studeras chefstjänste-männens politiska agerande. Med utgångspunkt i en kritisk realistisk ansats kan de kommunala chefstjänstemännens politiska agerande förstås i termer av en proaktiv politisk roll som är inneboende i chefspositionens generiska karaktär. Den proaktiva rollen är intimt sammanlänkad med strukturella maktresurser genom det att den för sin existens kräver strukturella maktresurser som är förbundna med den kommunala chefstjänstemannapositionen. ; Politicians are meant to make decisions and administrators are supposed to execute them according to the Swedish public administration tradition; a tradition built on the Weberian bureaucracy model. But, power relations between politicians and administrators in municipal practice do not appear as unambiguous as the tradition purports. Administrators have too much power according to elected officials, which in turn have an impact on the political process that is not consistent with the administrators' formal position. This causes tension in the relations between politicians and administrators. The problem seems to stem from the fact that the Weberian bureaucracy model no longer serves as a guiding ideal in practice. Instead the local government practice is characterized by how vaguely the power is constituted and distributed in the social relation between politicians and administrators, resulting in the fact that non-elected public managers find themselves in a power position encompassing not only their legitimate managerial power, but also real political power – which is not consistent with the ideal bureaucracy model according to which this type of power is reserved only for elected officials. As a result the Swedish municipalities may be run by a profession that in practice take over the political leadership; a profession that in keeping with the Weberian ideal model is supposed to be powerless. This dissertation aims to contribute to field of knowledge concerning the municipal administrators' political actions and the power relations constituting this behaviour. For the purpose of this dissertation the term power intends a capacity to act inherent in agents and that can be identified by virtue of the managerial position's lasting relations with underlying social structures between politics and administration, between politicians and public administrators. Power is thus looked upon as an element of explanation in understanding public managers political behaviour. The dissertation is based on a case study of municipal managers, i e the leading public administrator in a municipality who is in the immediate proximity to the overall political leadership and thereby serves in the borderland between politics and administration. A model of analysis is developed with its basis in the critical realism's approach on social structures and causality- The model is based on three different types of analyses, a structural analysis, a causal analysis, and an analysis of understanding. The structural analysis helps identify three structural power resources that are associated with the municipal management position; centrality, control over critical resources, and nearness to power. By means of the causal analysis one studies what and how these power resources permit the holder of the managerial position to influence in order to achieve certain effects. The analysis shows that the structural power resources make it possible for the public managers to influence the political decision making process through right timing in delivering official documents, along with the decision support data, presenting different problem areas and consequences of these. With the support of the analysis of understanding the municipal manager's political behaviour is studied. With reference to a critical realist approach the answer is that the public managers' political behaviour can be understood in terms of a proactive political role inherent in the managerial positions generic character. The role is strictly interconnected with the structural power resources due to the fact that the role requires, for its existence, structural power resources as are associated with the municipal managerial position.

Evaluation has grown in both volume and scope across levels and sectors in recent decades, particularly in the school sector. Despite this growth, there is insufficient knowledge about how and in what ways evaluations are formed, institutionalized and used in education governance and education reforms. This thesis addresses some of these issues by studying evaluation policy. The aim of the thesis is to explore and analyse the design and possible changes in national evaluation policy in compulsory education during two periods of extensive education reforms (1988-1994 and 2008-2014). The theoretical framework builds on evaluation research and policy studies, particularly the literature on policy design. These two strands of literature are supplemented with additional analytical tools from historical institutionalism regarding policy change. Drawing on previous research, a definition of evaluation policy that incorporates the policy context and also enables studying an implicit policy is proposed. On the empirical level, the findings are based on official policy documents, material produced by national government agencies as well as evaluations and evaluation systems. The thesis shows that during the first period (1988-1994), the evaluation policy was characterized as a means of helping to implement the extensive reforms. Evaluations were to be conducted on all levels of the school system to promote development on each executive level. The policy design reflected evaluation as a learning and capacity-building tool. Schools and municipalities were positioned as owners and co-creators of evaluation knowledge. During the second period (2008-2014), the evaluation policy was partially revised in order to come to terms with inadequate evaluations and declining school results. The policy included more sanctions and hortatory tools, and more emphasis was placed on comparisons and rankings. The evaluation policy was based on the assumption that local actors should and will act on evaluative knowledge created by the agencies and international actors, and that they could be motivated to do so by the threat of, for example sanctions or issues of ranking and comparisons. The evaluation policy design was largely stable over time. However, three more incremental but significant changes were identified: i) the policy design element "agents and implementation structures" was altered, ii) the evaluation policy expanded and iii) became more directed towards national and external control. These changes also indicated more negative implications for democracy during the second period. In relation to evaluations' democratic function the analysis showed that the evaluation policy mainly strengthened the legitimizing and controlling function, whereas the enlightenment function was not prominent. This implies a risk that issues that may be relevant from a broader democratic and societal perspective may be overlooked and not subjected to evaluation. The thesis also acknowledges and illustrates the importance of uncovering and reconstructing evaluation policies, policies that are partly veiled, since also implicit policies will have democratic implications.

From 1960 and onwards the Swedish tax system has gradually changed from mostly progressive to mostly proportional and heavily dependent on taxation on consumer goods. This dissertation aims to describe and explain the role of Social Democracy in this process by studying the forming and further development of the omsättningsskatt, later transformed to a proper value added tax mervärdesskatt (VAT), from an historical institutional perspective. Previous research has considered these taxes as mainly financing tools, linked to the building of the well-fare state. While taxes are crucial in the financing of public expenditure, I claim a more complex background to the consumer tax, thereby highlighting a neo-corporative income political setting, hitherto not paid attention to, between a Social Democratic Government and the Trade Union Confederation (LO). Empirically the dissertation covers a period from the late 1950:s up to 2006. Drawing on an extensive material, including protocols from the major decision-making bodies within the Social Democratic Party, I demonstrate how Social Democracy, in a constant interplay between the two power centres, Government and LO, has formed a tax structure closely aligned with LO income political goals of closing the gap between blue and white-collar workers. In the formative moment, LO agreed to restrain wages and was rewarded by targeted cuts in income tax, transfer payments and an extensive labour market policy, made possible by the new tax. In the years to come the resulting informal institutional structure was increasingly strained as tactical-strategical considerations tempted the Government to use the tax instruments for vote- and office-seeking purposes. Not without difficulties both parties, however, succeeded in upholding the informal institutional arrangements until 1986 when internal discontent within LO set forces in motion. Social Democratic tax policy, until now considered beneficial for trade union members, was rejected and in conjunction with an ideational paradigmatic shift towards supply-side economics, the institution was pushed towards a critical junction and a new institutional setting. The VAT-ties to LO were eventually cut, permitting the Government to align the VAT-policy with an overriding goal of office-seeking through alliance building. From 1991 and onwards a highly political- strategical VAT-policy has thus resulted not only in a differentiated VAT, but also in numerous tax cuts on minor items of symbolic importance to various political parties. The strategy has hollowed the tax revenues but proved successful in forging and upholding temporary political alliances in Parliament. The main empirical findings – the presence of a neo-corporatist income policy and the pursuing of a class-based tax policy – departs from earlier research and shed new light on what we call "The Swedish model". The institutional conclusions are, however, in line with an historical institutional perspective stressing the importance of a formative moment, path dependency, ideas as agents of change and the theory of gradual institutional development, a theory that might benefit from further theorising in the interplay between formal and informal veto points.