1. Welfare States in Developing Countries: University of Pittsburgh
Unique or Universal?
Nita Rudra
University of Pittsburgh

2. Research question
Do developing countries maintain distribution regimes
that fall into distinct systematic patterns?

3. Argument in brief
Two main types of LDC welfare states: “systematic divergence”
Productive welfare state
Protective welfare state
(Weak) dual welfare state
Broader implications:
Early Comparative Political Economy (CPE) view of political economy of LDCs: extreme divergence
Challenge International Political Economy (IPE) view of political economy of LDCs: convergence

4. 1. Current views of LDC political economy – theoretical context
Extreme Divergence (CPE )
“the tendency of societies to grow more alike, to develop similarities in structures, processes and performances” (Kerr 1983)
Leveling forces of industrialization require a particular arrangement of social and economic forces.
Existence of welfare states is by-products of industrialization
Convergence: (IPE)
All nations will ‘converge’
challenges of growth in a globalizing economy ensure significant similarities between the political economies of the many LDCs
Political economies will converge at the lowest common denominator.

5. 2. Why are LDCs likely to have welfare states (vs CPE)?
Demonstration effect
Social reactions to the market
Some strong labor groups
Democracy

6. 2. What is the defining characteristic of LDC welfare states?
Capacity to commodify
LDCs are most concerned about absence of proletarianism
E.g., capital depends on commodifying welfare state
Differences (vs IPE)
Emphasis on commodification will vary
Politically more difficult to achieve
Precedence set by OECD countries

7. Protective welfare regime
2. The Typology
Protective welfare regime
Productive welfare regime
Distrust of international markets.
Encourage international market participation.
Renders governments with greater control and discretion over economy.
Governments must sacrifice some control and discretion over economy.
Favor social insurance-type policies that provide direct and immediate benefits to labor.
Favor social policies that serve the interests of K and L: investment in human capital.

8. 2. Comparing Welfare Regimes in Developed & LDCs
OECD Welfare Regimes
Decommodification
HIGH
Social Democratic
Pre-commodification
Commodification
(successful)
Decommodification
MEDIUM
Conservative
Decommodification
LOW
Liberal
LDC Welfare Regimes
Commodification
HIGH
Productive
Pre-commodification
Decommodification
LOW
Commodification
LOW
Protective
Decommodification
HIGH

9. 3. Cluster Analysis is used to identify groups
A quantitative classification technique
Finds similarities between units
Hierarchical agglomerative linkage method
Answers three questions:
Are there groupings in the data?
Are they driven by region, income level, etc?
Do they confirm convergence, divergence of systematic divergence hypothesis?

10. 3. Analysis Results

11. 4. Implications…and ‘so what’
Welfare state is not necessarily a by-product of post-industrial development.
LDC welfare states are unique and universal.
LDCs are not converging.
Sets stage for future research in IPE
More data and exploration
More rigorous test of international market effects
Policy-oriented research