Changes in the international environment, from the stagflation of the 1970s to the globalization of capital markets in the 1990s, have challenged the ability of all advanced welfare states to maintain postwar achievements of full employment, social security and social equality. Nevertheless, national responses and actual performance differed greatly. This two-volume study examines the adjustment to external economic challenges over three decades in Australia, Austria, Belgium, Denmark, France, Germany, Italy, the Netherlands, New Zealand, Sweden, Switzerland and the United Kingdom Volume I presents comparative analyses of differences in the vulnerabilities and capabilities of these countries, in the effectiveness of their policy responses, and in the role of values and discourses in the politics of adjustment Volume II presents in-depth analyses of the experiences of the countries, including special studies on the participation of women in the labour market, early retirement, the liberalization of public services and international tax competition.