Continental Drift: On Unemployment Policy Change in Bismarckian Welfare States

This article analyses the development of unemployment policies over the past 20 years in four continental European countries: Belgium, France, Germany and the Netherlands. It shows that, far from being as ‘frozen’ as many analysts have suggested, each of these Bismarckian welfare states has in fact seen considerable change in this policy sector in recent decades. In Belgium, France and Germany, significant changes in unemployment policy reforms have unfolded gradually, through an accumulation of small changes. This finding offers some support to recent theorizing on the potential for policy changes that are both incremental and transformative. However, while such processes have led to shifts in unemployment policy that are far from negligible, the article also argues that they fall short of those seen in this policy sector in other welfare institutional contexts as well as in the Netherlands, where substantive reforms have in the last decade been complemented with changes to the institutional framework for unemployment policy. Through its analysis of the relationship between the institutional features of these welfare states and the possibility frontier of unemployment policy reform, the article develops a nuanced perspective on the scope for and resistance to social policy change in continental Europe.     

Implications of Subsidiarity for the Care of Older People in Germany

This paper examines definitions and origins of the principle of subsidiarity and its application to welfare systems of the Federal Republic of Germany (FRG) with particular reference to the care of older people. The German corporatist welfare system is influenced by conservative views about status relations and Catholic teachings on family responsibilities. Since unification of Germany in 1990 new care systems based on the principle of subsidiarity have been imposed in eastern Germany. The FRG's social insurance system based on entitlement benefits those fully employed, while women and marginalized groups with low status in the labour market are poorly covered by insurance and may have to rely on stigmatizing means-tested social welfare based on subsidiarity. Access to pluralist, fragmented care services depends on eligibility for funding through insurance or social welfare or else on ability to pay. Social care is poorly developed because of the emphasis on insurance and the medical model as well as on the principles of subsidiarity and self help which place an explicit duty on the family, mainly women, to care.     

Choosing Welfare or Losing Social Citizenship? Citizens' Free Choice in Recent Italian Welfare State Reforms

In the past fifteen years, the Italian welfare state has gone through various important reforms. Almost all social policy fields have been significantly challenged by the presence of both national and European constraints, and in different policy fields some fundamental principles of the welfare state have been questioned and changed. The purpose of this article is to present an analysis of the most recent arguments used for welfare state reforms in Italy, focusing in particular on one key question: have the reforms been formulated and implemented in order to increase the freedom of choice of Italian citizens with respect to social protection? After a brief introduction and conceptual clarification, each section of the article will focus on one social policy field (employment, pensions, health care) and discuss the origins and consequences of the reforms with respect to the freedom of choice of citizens. The main argument is that very limited attention has been paid in the national political discourse and reform design to the freedom of choice for citizens in welfare state policies, since other goals (such as cost containment) were much more crucial. The article will end with an overall assessment of the evolution of freedom of choice in the Italian welfare state setting.     

The Middle‐class in the German Welfare State: Beneficial Involvement at Stake?

The working‐class is typically regarded as the driving force of welfare state development. Yet, some argue that the middle‐classes' beneficial involvement in the welfare state is crucial for its financial sustainability and popular legitimacy. Against this backdrop, we investigate how recent welfare state reforms in Germany which affect the status of the middle‐class are viewed and discussed by this group. Germany is a particularly interesting case because its welfare state is seen to be centred on the desires of the middle‐class, especially through its focus on status maintenance and horizontal redistribution over the life‐course. However, the move from status maintenance to minimum income support in unemployment provision and the strengthening of private old age provision challenge this assumption. Thus, we ask how the German middle‐class views the emerging abandonment of the principle of status maintenance and the shift from collective to individual responsibility. Based on qualitative material from focus groups, we find that individual responsibility is generally supported, but that the state is still assigned responsibility for providing basic levels of social security. Furthermore, for those groups seen as less capable of acting individually responsible (e.g. the poor or long‐term unemployed) the ‘inducement’ of – or assistance for – individually responsible behaviour by the state is demanded. Overall, while the principle of ‘individual responsibility’ seems to find some resonance among the middle‐class members interviewed, they still try to balance individual and collective responsibility.     

The welfare state in liquidation?

This paper is about the most recent reforms of cash benefit systems and the sociopolitical debate in eight European countries. The welfare state and the social security system rank high on the political agenda. After many years of economic crisis, with increasingly widespread unemployment and changed family patterns, the welfare system that developed in most western European countries since the end of the Second World War is the focus of attention. In a world of increasing international trade, with competition from countries — in eastern Europe and Asia as well as the United States — which have not developed such comprehensive systems of social security, one of the main issues in the debate is whether western Europe can afford to maintain welfare at the existing level, or whether it is necessary to make fundamental changes. But the discussion also centres on what can be called the welfare state's own internal problems.     

The Korean welfare state: a paradox of expansion in an era of globalisation and economic crisis

When the Asian financial crisis took a heavy toll on Korea in the late 1990s, policy makers responded by extending welfare policy. For many analysts, this was a paradoxical move, marking a fundamental reconfiguration of the social policy system. This article contests that interpretation. It examines the changes made to Korean social policy in recent years, and considers their impact on the Korean welfare state. It notes both that welfare extensions have been comparatively limited, and that they have often formed part of wider attempts to boost labour market flexibility. It thus concludes that limited expansion of the Korean welfare state is chiefly an attempt to bolster industrial competitiveness and economic growth. For now, Korea retains the productivist social policy orientation that has long characterised it. It also concedes, however, that in the future underlying social change, notably a rapidly ageing population, may prompt policy makers to make significant changes to the Korean welfare state.     

Traits of a representative welfare state: the Swedish example

Järkestig Berggren U, Blomberg S, Petersson J. Traits of a representative welfare state: the Swedish example Int J Soc Welfare 2010: 19: 402–411 © 2009 The Author(s), Journal compilation © 2009 Blackwell Publishing Ltd and the International Journal of Social Welfare. The care manager reform and the case manager reform are new reforms in the social care services in Sweden, which are evolving during the 2000s. Together they shape the social care services introducing a new way of decision‐making where representatives for the organisation (care manager) and the users (case manager) negotiate. The reforms have been analysed in two studies with results presented in this article. Using the concepts of role, orientation, function and assignments, it is argued that the managers come to the negotiations on rights from different positions that are both conflicting and complementary. They further mediate the development towards a welfare mix, where the market, social networks and users interact to obtain the public welfare provision. Through this negotiated rights model, it is argued that traits of a representative welfare state emerge, with the distinction of moving the focus to the administrative practices and their differences away from political ideologies.     

The evolution of the Georgian social protection system since independence: An unclear future despite recent expansion

In the first decade of transition, the Georgian social protection system experienced a major retrenchment as the government struggled to finance welfare provision in the face of massive economic contraction and the near collapse of public institutions. Since 2004, this trend has been reversed, with the economy returning to a fast growth path and public administration improving considerably. Recent reforms, including the notable introduction of universal public health insurance, are welcome steps towards building a modern welfare state. Major challenges still remain, however, especially in relation to the system's limited effect on widespread poverty. Decelerating growth, the lack of strong pro‐welfare actors, and the absence of positive external pull factors may stall or prevent future growth, but the changing nature of the social contract between the people and government, as well as Georgian politicians' growing recognition of the importance of the welfare system for inclusive growth, leaves ample space for optimism.     

From Subsidiarity to 'Free Choice': Child- and Elder-care Policy Reforms in France, Belgium, Germany and the Netherlands

This article analyses the patterns of reform in care policies in Bismarckian welfare systems since the early 1980s. Based on a comparison of France, Germany, Belgium and the Netherlands, the article shows that these reforms share similar logics and trajectories, which can be explained by the shared conservative and corporatist traits of Bismarckian labour markets and welfare state institutions and their impact on labour market adjustment possibilities and preferences. Indeed, we argue that care policy reforms have been very closely linked to specific employment strategies, and the politics of welfare without work and subsequent attempts to shift away from such a labour-shedding strategy go a long way in explaining both the nature and the timing of child- and elder-care policy reforms in Bismarckian welfare systems. The article also shows how a focus on promoting ‘free choice’ in all four countries has justified the introduction of measures that have simultaneously reinforced social stratification in terms of access to the labour market – meaning that some women have much more ‘free choice’ than others – and weakened certain labour market rigidities. To conclude, we argue that care policy reforms have provided a backdoor for the introduction of labour-cheapening measures and for increasing employment flexibility in otherwise very rigid labour markets.     

The retrenchment of public pension provision in the liberal world of welfare during the age of austerity—and its unexpected reversal, 1980–2017

Pension system adaption during the “age of austerity” since 1980 is expected to vary between industrialized countries broadly in line with their membership of conservative, liberal, or social democratic worlds of welfare. Empirical testing on the liberal world focuses on the later period and differs in its conclusions. This paper is based on a systematic study of the scale, nature, and trajectory of change in six liberal pension systems between 1980 and 2017 using expenditure, economic, demographic, and social rights data. These data are analysed using a framework developed through critical engagement with Pierson's three welfare state change criteria and the welfare state “dependent variable problem.” The paper finds a significant retrenchment of public pension provision in most liberal welfare states after 1980 but largely during the first half of the period. This has been partly reversed in most countries since the mid‐1990s, though the scale of this reversal varies between countries. The recent rise of the state in liberal systems has been noted by some commentators, but to be properly understood, the paper argues, it must be considered in the context of the significant retrenchment, which preceded it. There is a scope especially for research on the broader social context of recent reforms, particularly how middle‐income groups were affected by retrenchment and how recent reforms have mitigated this.     

The hidden welfare state, tax expenditure and social policy A comparative overview

This article describes, discusses and presents information about tax expenditure and its relation to social policy. It stresses that the hidden welfare state strongly influences social policy and that only looking at the direct provision of welfare goods may be misleading when making comparisons between countries. The article presents new figures on tax expenditure in relation to social policy and does so in a comparative perspective. It is argued that tax expenditure seems to have an upside down effect, but further research is needed to substantiate this. It concludes that tax expenditure strongly influences the provision, financing and delivery of social policy, and tax expenditure therefore has to be more fully integrated into the analysis of the welfare state.     

Digital by default? A qualitative study of exclusion in digitalised welfare

Digitalisation reforms have become increasingly pervasive across European welfare agencies and public sector institutions. As welfare provision becomes premised on the use of digital technologies, often in the form of “self‐service” solutions, new demands are imposed on citizens, including already disadvantaged groups. Although existing research has showcased how digitalisation often reproduces existing lines of stratification, little to no work has been conducted on such processes in the context of welfare provision and public administration. Through a study of citizen service centres in Denmark, based on ethnographic observations and qualitative interviews, this article analyses the new exclusionary mechanisms that emerge at the frontline of the digital agenda. The article argues that digitalised welfare agencies simultaneously sustain existing lines of social stratification and enhance these by producing new forms of digital exclusion. Taken together, the article contributes with new knowledge on the impact of digitalisation policies and their exclusionary consequences for disadvantaged citizens.     

Beyond benevolence – solidarity and welfare state transition in Sweden

For many decades the Swedish welfare system has served as an archetype of the modern comprehensive welfare state. When economic recession hit Sweden in the beginning of the 1990s, a period of half a century of continuous expansion and reforms in the welfare sector came to an end. The economic downturn enforced rationing measures in most welfare programs and was accompanied by a move towards privatisation of local welfare services and an endeavour to initiate market incentives in the care-giving systems. The focus was increasingly directed on welfare as a financial burden, and the issue of how diminishing resources should be allocated ranked high on the political agenda. In this article we depart from the concept of solidarity and discuss the development of Swedish welfare and welfare opinion. First, we articulate various representations of the concept of solidarity – societal cohesion, individual support for comprehensive welfare and the amount of universality in the provision of care. Second, we describe some fundamental traits in the route taken by Swedish welfare during the 1990s, focusing especially on care of elderly and the demographic challenge of an ageing population. Third, we summarise the evolution of public opinion regarding welfare provision and discuss the determinants of its variations. The article concludes with a discussion of how the (once salient) features of universalism have been affected by the development during the past decade, and the role of popular support in the route ahead for Swedish welfare.     

From welfare state to welfare society: toward a viable system of welfare in Japan and England

Laratta R. From welfare state to welfare society: toward a viable system of welfare in Japan and England
Int J Soc Welfare 2010: 19: 131–141 © 2009 The Author(s), Journal compilation © 2009 Blackwell Publishing Ltd and the International Journal of Social Welfare. This article compares the impact that public welfare reforms during the 1980s and 1990s had, and are still having, on the relationship between statutory organisations and the non‐profit sector in two developed countries, England and Japan. The author argues that the failure of these reforms clearly shows that, although non‐profit organisations may not be able to effectively replace the state in the provision of welfare services, they can contribute, working closely with the statutory organisations, to the shaping, financing and delivery of public services in a variety of ways. It is also interesting to note that, while the public welfare reforms of the late 1990s in England produced a shift away from a culture based on privatisation and contracting‐out toward a partnership culture of collaboration between state and non‐profit entities, similar reforms in Japan have resulted instead in an uncertain area of deregulation and privatisation.     

The Choice Revolution: Privatization of Swedish Welfare Services in the 1990s

During the 1990s, the Swedish welfare state was declared by some to be in a “crisis”, due to both financial strain and loss of political support. Others have argued that the spending cuts and reforms undertaken during this period did slow down the previous increase in social spending, but left the system basically intact. The main argument put forward in this article is that the Swedish welfare state has been and is still undergoing a transforming process whereby it risks losing one of its main characteristics, namely the belief in and institutional support for social egalitarianism. During the 1990s, the public welfare service sector opened up to competing private actors. As a result, the share of private provision grew, both within the health‐care and primary education systems as well as within social service provision. This resulted in a socially segregating dynamic, prompted by the introduction of “consumer choice”. As will be shown in the article, the gradual privatization and market‐orientation of the welfare services undermine previous Swedish notions of a “people's home”, where uniform, high‐quality services are provided by the state to all citizens, regardless of income, social background or cultural orientation.     

Health insurance system financing reforms in the Netherlands,Germany and France: Repercussions for coverage and redistribution?

For a number of years, the Dutch, German and French health insurance systems have been attempting to contain costs and diversify their sources of finance, which traditionally have come mainly from social contributions. Diversification may involve broader‐based public finance, as well as greater recourse to private resources and operators. In the case of the Netherlands and Germany, the reforms go hand in hand with efforts to introduce competition between health insurance bodies. In France, private complementary insurance has become indispensable for adequate access to health care. However, these measures have repercussions for redistribution, which social assistance programmes have difficulty in addressing.     

The reform of the developmental welfare state in East Asia

This article examines social policy reforms in East Asia and whether the welfare states in the region became more inclusive in terms of social protection while maintaining their developmental credentials. It draws on findings from the United Nations Research Institute for Social Development (UNRISD) project on social policy in East Asia, covering China, Hong Kong Special Administrative Region of China, Japan, Malaysia, the Republic of Korea, Singapore, Taiwan Province of China, and Thailand. It shows that East Asian economies responded differently to the crisis in terms of welfare reform. While Singapore and Hong Kong maintained the basic structure of the selective developmental welfare state, Korea, Taiwan, and, to a lesser extent, Thailand implemented social policy reforms toward a more inclusive one. Despite such different responses, policy changes are explained by the proposition of the developmental welfare state: the instrumentality of social policy for economic development and realization of policy changes through democratization (or the lack of it).     

Towards Neo-Bismarckian Health Care States? Comparing Health Insurance Reforms in Bismarckian Welfare Systems

Germany, France and the Netherlands all have specific ‘Bismarckian’ health insurance systems, which encounter different and specific problems (and solutions) from those of national health systems. Following a relatively similar trajectory, the three systems have gone through important changes: they now combine universalization through the state and marketization based on regulated competition; they associate more state control (directly or through agencies) and more competition and market mechanisms. Competition between insurers has gained importance in Germany and the Netherlands and the state is reinforcing its controlling capacities in France and Germany. Up to now, continental health insurance systems have remained, however, Bismarckian (they are still mainly financed by social contribution, managed by health insurance funds, they deliver public and private health care, and freedom is still higher than in national health systems), but a new ‘regulatory health care state’ is emerging. Those changes are embedded in the existing institutions since the aim of the reforms is more to change the logic of institutions than to change the institutions themselves. Hence, structural changes occur without revolution in the system.     

Explaining Different Paths in Social Health Insurance Countries – Health System Change and Cross‐border Lesson‐drawing between Germany,Austria and the Netherlands

The issues of ‘policy diffusion’ or ‘policy transfer’ and ‘mutual learning’ have become important topics in comparative research on social policy and health systems. In current debates on explaining reform in ‘Bismarckian’ social (health) insurance systems, however, these issues have been neglected. In particular, the role of ‘negative lesson‐drawing’ in the sense of avoiding mistakes of others has not often been considered. This article compares health system change in Germany, Austria and the Netherlands, three countries with health systems of the social insurance type. In contrast to the existing literature, our analysis stresses that these countries have taken different reform paths since the 1990s. By applying a most similar systems design, we analyze how far cross‐border lesson‐drawing has contributed to health system divergence in the three countries. The empirical basis of the analysis is semi‐structured qualitative expert interviews, a method appropriate for tracing processes of lesson‐drawing. We argue that in order to fully understand the diverging reform trajectories, we need to take into account how political decision‐makers refer to (negative) experiences of other countries. Generally, national driving forces for health system change were at the heart of many crucial reforms during the period studied. Nevertheless, we claim that it was the German bad practice role model that kept the reform paths of Austria and Germany apart in the Austrian health reform discussion between 2000 and 2005.     

China's health insurance system in transformation: Preliminary assessment, and policy suggestions

As long ago as the 1980s, in tandem with its gradual implementation of market economy reforms, the Chinese central government also began to introduce changes in the field of social security as part of a move away from the dominant principle of state provision towards a greater espousal of the insurance principle. For demographic reasons, but also in an effort to get the private sector to pay a greater share of the cost, the intention was that future social security should be shaped in a way which combined universal, pay-as-you-go basic provision with individually funded supplementary provision. While the first half of the 1990s saw the establishment of a broadly uniform system of basic pensions, the 1998 attempt to introduce a general system of basic health insurance has not yet proved comprehensively successful, even for the population of the towns and cities, despite the success of pilot projects. This article, based on wide-ranging field studies, seeks to assess progress to date and future prospects for success, from a Chinese and an international perspective. Consideration is given to the situation of both the urban and rural populations.