Chapter 21: The welfare state by Kees van Kersbergen and Philip Manow Caramani (ed.) Comparative Politics Section V: Public policies Chapter 21: The welfare state by Kees van Kersbergen and Philip Manow

Chapter 21: The welfare state Introduction (1/1) What is the welfare state? The emergence of the welfare state The expansion of the welfare state Variations among developed welfare states The effects of the welfare state The challenges and dynamics of contemporary welfare states Conclusion Chapter 21: The welfare state Introduction (1/1) The welfare state represents the single most important transformation of advanced capitalist democracies after the Second World War. The modern welfare state is the product of the interplay between political equality (democracy) and economic inequality (capitalism). CP tries to explain the emergence, growth, and consequences of welfare states, but also addresses fundamental issues of social justice and the good society.

Chapter 21: The welfare state What is the welfare state? (1/1) Introduction What is the welfare state? The emergence of the welfare state The expansion of the welfare state Variations among developed welfare states The effects of the welfare state The challenges and dynamics of contemporary welfare states Conclusion Chapter 21: The welfare state What is the welfare state? (1/1) State-centred definitions of welfare states focused solely on how much a state was spending. Today, there is a more encompassing perspective on the welfare state: What is the money spent on? What are the effects on distribution? What other social institutions are important? State, family and markets are all welfare providers. Hence we speak of a welfare regime. The welfare regime is a complex system of managing social risks.

Chapter 21: The welfare state The emergence of the welfare state (1/2) Introduction What is the welfare state? The emergence of the welfare state The expansion of the welfare state Variations among developed welfare states The effects of the welfare state The challenges and dynamics of contemporary welfare states Conclusion Chapter 21: The welfare state The emergence of the welfare state (1/2) Different theoretical perspectives of the emergence of the welfare state: Functionalist approach: The welfare state is an answer to problems created by capitalism: New risks of industrialization (e.g. unemployment) Vanishing of traditional means of subsistence/mutual assistance Class mobilization approach: The welfare state is the outcome of political struggles between social classes and their political organizations: The main political driving force was the labour movement. The aim was the decommodification of labour

Chapter 21: The welfare state The emergence of the welfare state (2/2) Introduction What is the welfare state? The emergence of the welfare state The expansion of the welfare state Variations among developed welfare states The effects of the welfare state The challenges and dynamics of contemporary welfare states Conclusion Chapter 21: The welfare state The emergence of the welfare state (2/2) Institutionalist approach: The welfare state is a central element in modern nation-state building It was a compensation to workers for the lack of participatory rights Early welfare programs were not always targeted at workers but often at other classes of risk (e.g. mothers, soldiers) No direct empirical connection between economic well-being, democratization and development of welfare system

Chapter 21: The welfare state The expansion of the welfare state (1/4) Introduction What is the welfare state? The emergence of the welfare state The expansion of the welfare state Variations among developed welfare states The effects of the welfare state The challenges and dynamics of contemporary welfare states Conclusion Chapter 21: The welfare state The expansion of the welfare state (1/4) A.) The impact of social democracy: The mere presence of democratic structures could not explain the growth of the welfare state sufficiently. Therefore, the explanatory importance of party politics was analysed. Empirical analysis indicated that decommodification was strongest where left parties were strong (social democratic rule), especially when supported by strong union movements. A developed welfare state was interpreted as evidence for a shift in the balance of power in favour of the working class and social democracy.

Chapter 21: The welfare state The expansion of the welfare state (2/4) Introduction What is the welfare state? The emergence of the welfare state The expansion of the welfare state Variations among developed welfare states The effects of the welfare state The challenges and dynamics of contemporary welfare states Conclusion Chapter 21: The welfare state The expansion of the welfare state (2/4) B.) The role of neo-corporatism and the international economy: The political impact of the left parties and the development of welfare states were only strong in countries with neo-corporatist structures (Katzenstein 1985). Neo-corporatist structures could predominantly be found in small open economies. This facilitated consensus-building and economic adjustments which improved international competitiveness.

Chapter 21: The welfare state The expansion of the welfare state (3/4) Introduction What is the welfare state? The emergence of the welfare state The expansion of the welfare state Variations among developed welfare states The effects of the welfare state The challenges and dynamics of contemporary welfare states Conclusion Chapter 21: The welfare state The expansion of the welfare state (3/4) Criticism to the social democratic argument: C.) Risk redistribution: The task of the welfare state is not only the redistribution of wealth but a broader reallocation of risk (the working class is not the only risk category) D.) Christian democracy: Some countries developed a strong welfare state without a strong social democratic labour movement. Welfare programs were also promoted by political Catholicism (Christian democrats).

Chapter 21: The welfare state The expansion of the welfare state (4/4) Introduction What is the welfare state? The emergence of the welfare state The expansion of the welfare state Variations among developed welfare states The effects of the welfare state The challenges and dynamics of contemporary welfare states Conclusion Chapter 21: The welfare state The expansion of the welfare state (4/4) Criticism to the social democratic argument (continued) E) Secular trends: The growth of the welfare state is also influenced by secular processes beyond the control of single political actors (demographic ageing, de-industrialization etc.).

developed welfare states (1/3) Introduction What is the welfare state? The emergence of the welfare state The expansion of the welfare state Variations among developed welfare states The effects of the welfare state The challenges and dynamics of contemporary welfare states Conclusion Chapter 21: The welfare state Variations among developed welfare states (1/3) Dimensions of variations among welfare systems: Taxed vs. contribution financed Protection of citizen vs. protection of workers Acquired right vs. need based Minimum standard vs. standard of living

developed welfare states (2/3) Introduction What is the welfare state? The emergence of the welfare state The expansion of the welfare state Variations among developed welfare states The effects of the welfare state The challenges and dynamics of contemporary welfare states Conclusion Chapter 21: The welfare state Variations among developed welfare states (2/3) The most influential typology of welfare states was developed by Esping- Andersen (1990): Anglo-Saxon liberal model: - Low and flat rate benefits - Tax-financed - Low public spending and social protection - Based on citizen status Scandinavian social democratic model: more generous benefits Tax-financed High levels of public spending Based on citizen status

developed welfare states (3/3) Introduction What is the welfare state? The emergence of the welfare state The expansion of the welfare state Variations among developed welfare states The effects of the welfare state The challenges and dynamics of contemporary welfare states Conclusion Chapter 21: The welfare state Variations among developed welfare states (3/3) Continental conservative regimes: Benefits in relation to living standard Contribution financed Based on employment status Esping-Andersen based his categorization on the index of decommodification. Some additional categories have been added to this typology, namely the Southern-European and the Australian welfare regime types.

Chapter 21: The welfare state The effects of the welfare state (1/3) Introduction What is the welfare state? The emergence of the welfare state The expansion of the welfare state Variations among developed welfare states The effects of the welfare state The challenges and dynamics of contemporary welfare states Conclusion Chapter 21: The welfare state The effects of the welfare state (1/3) Does a welfare state: Modify social inequality? Alleviate poverty? Reduce social risk? Have varying consequences for social stratification? (class, gender, ethnicity) The welfare state is itself a system of social stratification. It can counter, reproduce, or reinforce social inequalities (class, gender, ethnicity).

Chapter 21: The welfare state The effects of the welfare state (2/3) Introduction What is the welfare state? The emergence of the welfare state The expansion of the welfare state Variations among developed welfare states The effects of the welfare state The challenges and dynamics of contemporary welfare states Conclusion Chapter 21: The welfare state The effects of the welfare state (2/3) Redistribution  More equality What provides more equality? Targeting (liberal welfare states) Universalism (social democratic welfare states) The paradox of distribution: The more benefits are targeted exclusively at the poor and the more public policies are devised to create equality via equal transfers to all, the less likely inequality is reduced.

Chapter 21: The welfare state The effects of the welfare state (3/3) Introduction What is the welfare state? The emergence of the welfare state The expansion of the welfare state Variations among developed welfare states The effects of the welfare state The challenges and dynamics of contemporary welfare states Conclusion Chapter 21: The welfare state The effects of the welfare state (3/3) Empirical research shows that universalism is more successful in reducing inequality than targeting. Inequality is measured in terms of income and therefore predominantly addresses the class aspect. But the impact of the welfare state is different for men and women (gender aspect). Welfare states also contributed to macro-economic efficiency (e.g. increasing supply of female labour).

The challenges and dynamics of contemporary welfare states (1/3) Introduction What is the welfare state? The emergence of the welfare state The expansion of the welfare state Variations among developed welfare states The effects of the welfare state The chaleanges and dynamics of contemporary welfare states Conclusion Chapter 21: The welfare state The challenges and dynamics of contemporary welfare states (1/3) Does globalization result in a downward movement for welfare states? Efficiency hypothesis: The high levels of social welfare are unsustainable. Compensation hypothesis: Welfare states are a compensation for the risks of economic openness.

The challenges and dynamics of contemporary welfare states (2/3) Introduction What is the welfare state? The emergence of the welfare state The expansion of the welfare state Variations among developed welfare states The effects of the welfare state The challenges and dynamics of contemporary welfare states Conclusion Chapter 21: The welfare state The challenges and dynamics of contemporary welfare states (2/3) In spite of globalization, OECD countries have been able to maintain high levels of welfare. But why can welfare states persist in the era of globalization? Welfare state reforms are politically dangerous and induce political backlash. Welfare programs became institutionalized and a possible new veto player. New challenges create new demand for welfare programmes: Welfare states are an expression of modernization Welfare states still play a central role in social integration and nation building

The challenges and dynamics of contemporary welfare states (3/3) Introduction What is the welfare state? The emergence of the welfare state The expansion of the welfare state Variations among developed welfare states The effects of the welfare state The challenges and dynamics of contemporary welfare states Conclusion Chapter 21: The welfare state The challenges and dynamics of contemporary welfare states (3/3) The changing welfare state: Pierson (2001) identified three dimensions of welfare state change: Recommodification: Increased pressure to participate in labour markets (liberal regimes) Cost containment: Attempt to keep balanced budgets (social democratic regimes) (3) Recalibration: Adaption of welfare state to new demands (conservative regimes)

Chapter 21: The welfare state Conclusion (1/1) Introduction What is the welfare state? The emergence of the welfare state The expansion of the welfare state Variations among developed welfare states The effects of the welfare state The challenges and dynamics of contemporary welfare states Conclusion Chapter 21: The welfare state Conclusion (1/1) The causes and effects of welfare state change will be one of the main fields of research. Welfare state reform is a political process where power struggles are crucial. Understanding welfare state changes is therefore a key for the understanding of modern politics.