LECTURES KEY CHALLENGES TO THE WELFARE STATE
LECTURE 1 – Introduction
What is a welfare state?
- Powerful institution at the beginning of the 20 th century, bringing more freedom and
aiding working conditions for labor forces
- Left democrats are in favor of the welfare state
- ‘Democratic system of government care that guarantees collective social wellness of its
subjects, while remaining capitalist production system’
Only in democratic societies – poorer people can vote in favor of their needs,
much more equality, enhanced by the welfare state
Non state actors also provide welfare services, for example labor unions or
health care by employers.
How collective is it; issue of migration
Relationship between capitalism and welfare state relies on the fact that
capitalism creates inequality, especially for the already poor
- Welfare state scheme – highly regulated or financed by government institutions and
legislation
- Its components
1. Social security – e.g. maternity/paternity, pensions etc
2. Health care – e.g. hospital funding or collective health insurance
3. Education – e.g. funding, grants, compulsory laws
4. Social housing – e.g. funding for affordable home
5. Social welfare – e.g. community centers, homelessness services, debt
The origins of the welfare state
- By studying this we understand why the welfare state is changing
- Interrelationship between this welfare state and social change, both influencing each
other
- 3 drivers of social change
1. Industrialization – from agriculture to industry, migration and urbanization, mechanically
supported society resulting in unemployment
2. Individualization – disintegration of traditional communities, quest for individual rights, poor
relief arrangements have now changed as a result of urbanization because everyone moved
and new inhabitants are not integrated
3. Rise of nation – need for new arrangements, bureaucracy and control, quest for national
unity, in which people care for each other
- Bismarck was a German leader of one of the then 13 states, who argued for national
unity and was the first to ever install social insurance for blue collar workers, to protect
against unemployment etc.
This idea of the welfare state expanded to more European countries after the
second World War, which is why for the first 3 years after this is called the
Golden Age of the welfare state.
, Esping Andersen
This development is not the same amongst all these countries, neither are the contents of these
welfare states, there are 3 institutional differences
1. Eligibility – who is entitled to what? E.g. are you paid when sick, or also with family
circumstances? Etc.
2. Generosity – levels of the benefits
3. Decommodification – immunization from market dependency, ´how fucked are you when
you lose your job?’, low means very much fucked
There are 3 types of welfare states
1. Conservative welfare state; France,
- The ‘breadwinners’ are covered by schemes; men
- Generosity is rather high
- Medium decommodification
2. Social democratic welfare state; Scandinavia
- All citizens covered
- High generosity
- High decommodification
3. Liberal welfare state; UK, Ireland, USA
- All citizens covered
- Low generosity
- Low decommodification – forced to find a job right after unemployment
Critics
- His types are caricatures
- Different parts of Europe have different situational factors – e.g. southern Europe has a
family which arranges the welfare state
- His typology is outdated
Welfare state after the Golden Age
- Economic crisis in 70’s and 80’s due to upcoming competition form other economies like
Japan and China caused a crisis for the welfare state
- The welfare state was too extensive they said so they were changed
70/80’s – spendings were cut and restriction of access
90/00’s – new organizational structures and new policy types focusing on
socialization and activation
- 5 processes caused the welfare change
1. Post-industrialization – decline of industrial sector and rise of service industry
2. Individualization – disintegration of social institutions and growing individuation
3. Gender – de-familialization for welfare state services
4. Ageing – ‘de-greening’ the decreasing amount of young people that can take care of elderly
and pay for their services, labor shortage
5. Migration – entitlement of welfare benefits
