Creating Social Europe IV The growth of social protection pre-1914.

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Presentation transcript:

Creating Social Europe IV The growth of social protection pre-1914

Preamble: Foundations of social insurance Bismarckean (Germany) –Earnings-related system (reinforces social hierarchies: low state subsidies) –Local autonomy (founding social democracy) Beveridgean (Britain) –Flat-rate (in the name of equal treatment: a regressive tax? More state subsidy) –Central domination (bureaucratic) from Whitehall Diverse forms of social insurance

Social Assistance models: origins Political importance of rural sectors –Lower cost of living –Smallholders: employers or employees? Examples: tax-funded old age pensions –Denmark (1893) –[UK (1908)] –Sweden (1913) –[?? France (1910)]

Scandinavia Historical assumption: Scandinavian welfare is product of SDP political dominance Both Sweden and Denmark debate (and reject) Bismarckean pension scheme Debate influenced by position of rural workers and small farmers Both threatened by emigration

Denmark Free trade economy based on agriculture US imports threaten rural production (1880s) Poor law funded by rural rents Social insurance = no solution 1893 alcohol tax funds old age pension –For morally respectable poor –Shift of burden to town Ghent system extended (voluntary insurance)

Sweden More industrialised: more protectionist Social Democrats (SDP) recruit industrial workers More punitive poor law (rural rent funded) Higher emigration: smaller farms: more women workers Social insurance option more seriously considered

Swedish pension compromise (1913) Universal coverage Graduated worker/beneficiary contribution Graduated pension (sop to SDP & urban workers) No employer contribution (largely tax- funded) Plus introduction of state subsidies for voluntary sickness funds (1913)

Scandinavian mixture Tax-funded assistance ‘as of right’ Schemes neither socialist nor punitive Co-exist with state-subsidised voluntary social insurance n.b. UK tax-funded old age pensions (1908) as supplement to compulsory social insurance

France: social assistance and voluntary ‘insurance’ III Republic: anti:-imperialist,Germany &RC Mutuelles associated with Bonapartism 1880s Republic debates public assistance for groups ‘at risk’ of destitution –1893 sickness (free medical care) –1905 old age / disability –1905 pregnant women and large families Support grounded on ‘risk’, not poverty: helps waged and unwaged (peasant proprietors)

Remember Franco-German relations 1871

France: support for self help Reforming the polity 1884 – Trade union rights recognised 1893 mutuelles reformed (democratic elections and extensions of benefits) 1905 national (& local) government subsidies for mutuality & unemployment funds 1910 Insurance-based pensions [ROP] –For lowest paid peasants and workers [fails and becomes reliant on state allowance = a national social assistance programme]

The impact of industrialisation

Conclusions I: typologies of social insurance ‘Ghent’ model: (in France, Denmark, Sweden) = local or national subsidies for mutual aid based on voluntary affiliation [term used most often for municipal unemployment funds: cf Germany] A mix of ‘pure’ insurance and collective self help But social insurance is not the only option: social assistance offers alternative

Conclusion II: the politics of social policy development Social policies shaped by implicit agendas Scandinavia: rural poverty, rural taxes, emigration France: consolidation of republican virtues (solidarity) Germany: consolidation of established social order, legitimacy of Reich UK: promoting national efficiency and Empire By 1914: rising significance of national systems