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Nevertheless, up to the 1970s Vienna experienced a considerable growth in employment because Austrokeynesian public investment and deficit spending strategies resulted in an expansion of public sector employment. Through this and by repatriating migrant workers it was possible to keep unemployment figures rather low in Vienna when the first signs of crisis of the Austrian post-war growth model began to emerge in the 1970s (Schmee and Weigl, 1999, p. 77). From the second half of the 1980s and the early 1990s, the fall of the Iron Curtain and Austria’s accession to the European Union in 1995 forced Vienna to abandon its orientation towards national markets and integrate into an internationalising economy.

The workfarist reordering of active labour market polices increasingly ties social benefits to the willingness of the unemployed to participate in coaching and (re-)training measures, in make-work programmes and to take up any job available, be it precarious or not (Peck, 2001). However, an exclusive focus on workfare to understand the ongoing reorientation of welfare would be rather narrow if one wants to understand how cities try to reconcile economic changes and social cohesion in an increasingly internationalised economy through the creation of new institutions and activities.

M. (2005), ‘‘La De´mocratie Dans L’approche de Sen’’, L’e´conomie politique, Vol. 27, pp. 27-36. -M. (2008), ‘‘Activation policies, new modes of governance and the issue of responsibility’’, Social Policy and Society, Vol. 7, pp. 367-77. Cutler, T. and Waine, B. (1997), Managing the Welfare State, Berg, Oxford. Esping-Andersen, G. (1990), The Three Worlds of Welfare Capitalism, Polity Press, Cambridge. Go¨teborgs Posten (1979), ‘‘O¨verflo¨diga Arbetare Va¨grar La¨mna Varven’’, 26 June, p. 11. Hamilton, C.

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