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)
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
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
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
Different theoretical perspectives of the emergence of the welfare state:
(1) 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
(2) 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
(3) 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
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
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
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
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.).
Chapter 21: The welfare state
Variations among
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
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
Chapter 21: The welfare state
Variations among
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
The most influential typology of welfare states was developed by EspingAndersen (1990):
(1) Anglo-Saxon liberal model:
Low and flat rate benefits
Tax-financed
Low public spending and social protection
Based on citizen status
(2) Scandinavian social democratic model:
more generous benefits
Tax-financed
High levels of public spending
Based on citizen status
Chapter 21: The welfare state
Variations among
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
(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
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
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
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).
Chapter 21: The welfare state
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
Does globalization result in a downward movement for welfare states?
(1) Efficiency hypothesis:
The high levels of social welfare are unsustainable.
(2) Compensation hypothesis:
Welfare states are a compensation for the risks of economic
openness.
Chapter 21: The welfare state
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
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
Chapter 21: The welfare state
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
The changing welfare state:
Pierson (2001) identified three dimensions of welfare state change:
(1) Recommodification:
Increased pressure to participate in labour markets (liberal regimes)
(2) 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
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.