The Decline Of The Welfare State

An analysis of the welfare state from a political economy perspective that examines the effects of aging populations, migration, and globalization on industrialized economies. In The Decline of the Welfare State, Assaf Razin and Efraim Sadka use a political economy framework to analyze the effects of aging populations, migration, and globalization on the deteriorating system of financing welfare state benefits as we know them. Their timely analysis, supported by a unified theoretical framework and empirical findings, demonstrates how the combined forces of demographic change and globalization will make it impossible for the welfare state to maintain itself on its present scale. In much of the developed world, the proportion of the population aged 60 and over is expected to rise dramatically over the coming years—from 35 percent in 2000 to a projected 66 percent in 2050 in the European Union and from 27 percent to 47 percent in the United States—which may necessitate higher tax burdens and greater public debt to maintain national pension systems at current levels. Low-skill migration produces additional strains on welfare-state financing because such migrants typically receive benefits that exceed what they pay in taxes. Higher capital taxation, which could potentially be used to finance welfare benefits, is made unlikely by international tax competition brought about by globalization of the capital market. Applying a political economy model and drawing on empirical data from the EU and the United States, the authors draw an unconventional and provocative conclusion from these developments. They argue that the political pressure from both aging and migrant populations indirectly generates political processes that favor trimming rather than expanding the welfare state. The combined pressures of aging, migration, and globalization will shift the balance of political power and generate public support from the majority of the voting population for cutting back traditional welfare state benefits.

In an age of government imposed austerity, and after 30 years of neo-liberal restructuring, the future of the welfare state looks increasingly uncertain. Asbjørn Wahl offers an accessible analysis of the situation across Europe, identifies the most important challenges, and presents practical proposals for combating the assault on welfare. Wahl argues that the welfare state should be seen as the result of a class compromise forged in the 20th century, which means that it cannot easily be exported internationally. He considers the enormous shifts in power relations and the profound internal changes to the welfare state which have occurred during the neo-liberal era, pointing to the paradigm shift that the welfare state is going through. This is illustrated by the shift from welfare to workfare and increased top-down control. A fascinating study in its own right, that will appeal to students of economics and politics. The Rise and Fall of the Welfare State also points to an alternative way forward for the trade union movement based on concrete examples of struggles and alliance-building.

Western Welfare in Decline explores the plight of poor single mothers in five English-speaking countries that have implemented welfare restructuring: the United States, Canada, Britain, and New Zealand.

Leading scholars in the field examine the highly topical issue of the future of the welfare state in Europe. They argue that welfare states need to adjust, and examine which kind of welfare architecture will further Europe's stated goal of maximum social inclusion and justice. The volume concentrates on four principal social policy domains; the aged and transition to retirement; the welfare issues related to profound changes in working life; the new risks and needs that arise in households and, especially, in child families; and the challenges of creating gender equality. The volume aims to promote a better understanding of the key welfare issues that will have to be faced in the coming decades. It also warns against the all-too-frequent recourse to patent policy solutions that have all to often characterized contemporary debate. It intends to move the policy debate from it often frustrating vague and generic level towards greater specificity and nuance.

On the economics of the welfare State

For a century, economists have driven forward the cause of globalization in financial institutions, labour markets, and trade. Yet there have been consistent warning signs that a global economy and free trade might not always be advantageous. Where are the pressure points? What could be done about them?Dani Rodrik examines the back-story from its seventeenth-century origins through the milestones of the gold standard, the Bretton Woods Agreement, and the Washington Consensus, to the present day. Although economic globalization has enabled unprecedented levels of prosperity in advanced countries and has been a boon to hundreds of millions of poor workers in China and elsewhere in Asia, it is a concept that rests on shaky pillars, he contends. Its long-term sustainability is not a given.The heart of Rodrik>'s argument is a fundamental 'trilemma': that we cannot simultaneously pursue democracy, national self-determination, and economic globalization. Give too much power to governments, and you have protectionism. Give markets too much freedom, and you have an unstable world economy with little social and political support from those it is supposed to help. Rodrik argues for smart globalization, not maximum globalization.

In The Politics of the Welfare State in Turkey, author Erdem Yörük provides a politics-based explanation for the post-1980 transformation of the Turkish welfare system, in which poor relief policies have replaced employment-based social security. This book is one of the results of Yörük’s European Research Council-funded project, which compares the political dynamics in several emerging markets in order to develop a new political theory of welfare in the global south. As such, this book is an ambitious analytical and empirical contribution to understanding the causes of a sweeping shift in the nature of state welfare provision in Turkey during the recent decades—part of a global trend that extends far beyond Turkey. Most scholarship about Turkey and similar countries has explained this shift toward poor relief as a response to demographic and structural changes including aging populations, the decline in the economic weight of industry, and the informalization of labor, while ignoring the effect of grassroots politics. In order to overcome these theoretical shortages in the literature, the book revisits concepts of political containment and political mobilization from the earlier literature on the mid-twentieth-century welfare state development and incorporates the effects of grassroots politics in order to understand the recent welfare system shift as it materialized in Turkey, where a new matrix of political dynamics has produced new large-scale social assistance programs.

During the late nineteenth and early twentieth centuries, more Americans belonged to fraternal societies than to any other kind of voluntary association, with the possible exception of churches. Despite the stereotypical image of the lodge as the exclusive domain of white men, fraternalism cut across race, class, and gender lines to include women, African Americans, and immigrants. Exploring the history and impact of fraternal societies in the United States, David Beito uncovers the vital importance they had in the social and fiscal lives of millions of American families. Much more than a means of addressing deep-seated cultural, psychological, and gender needs, fraternal societies gave Americans a way to provide themselves with social-welfare services that would otherwise have been inaccessible, Beito argues. In addition to creating vast social and mutual aid networks among the poor and in the working class, they made affordable life and health insurance available to their members and established hospitals, orphanages, and homes for the elderly. Fraternal societies continued their commitment to mutual aid even into the early years of the Great Depression, Beito says, but changing cultural attitudes and the expanding welfare state eventually propelled their decline.