Challenges to the Welfare State:

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1 A Challenges to the Welfare State: Internal and External Dynamics for Change Edited by Henry Cavanna Director, Forum International des Sciences Humaines, Paris, France Edward Elgar Cheltenham, UK Northampton, MA, USA

2 List of figures List of tables List of contributors Introduction Acknowledgements ix x xi xii xiv 1 Challenges to the welfare state 1 Sir Samuel Brittan 1.1 Main challenges Two kinds of claim Minimum income guarantee Relevance of globalization 4 2 The American welfare state: exceptional no longer? 7 Nathan Glazer 2.1 Federalism and its significance Diversity, ethnicity, race The voluntary and private sector The present moment in the American welfare state 19 3 The waning of solidarity? Securing work and income and welfare statism at present 21 Hans Keman 3.1 Introduction: crisis and growth of welfare statism Models of welfare statism The logic of capitalism, industrialism and modernization The impact of'objective conditions' on welfare statism Politics, ideology and political movements Does politics matter? The impact of Christian democracy and social democracy The impact of parties in government on welfare statism Political institutions as crucial mechanisms for the welfare state? Policy features and welfare statism Rates of welfare statism and securing work and income 43

3 4 Political reconstruction of the European welfare states 49 Stein Kuhnle 4.1 Introduction Status of European welfare states Common European welfare challenges Towards a European social security system? Whither the Scandinavian (or Nordic) welfare model? Reshaping welfare in different institutional contexts United Kingdom: minimum security with targeted tampering at the margins Germany: status maintenance with minor curtailments and consolidated expansion Sweden: generous universal welfare model under heavy pressure Norway: cautious fine-tuning of a sustainable model in an oil economy Poland: in search of a new concept of social protection The future European welfare state: (again) a model for the world? 71 5 Welfare state and welfare mix in a new labour market 78 Peter Scherer 5.1 Employment distribution Adults Youth Older workers Demand for labour Household employment patterns Social policy implications 96 6 The welfare state backlash and the tax revolt 98 Kenneth Newton 6.1 A tax revolt and welfare state backlash of the middle mass? Government overload? A legitimacy crisis? A rational choice revolt? A new political agenda? Subtlety and sophistication: citizens are not fools A tax revolt? Ill 6.8 The West European pattern Conclusions 119 VI

4 1 Welfare reform in Southern Europe: institutional constraints and opportunities 123 Maurizio Ferrera 7.1 A distinct model? Some common traits of the South European welfare states The institutional predicament of the Southern model Reform or disintegration? The uncertain prospects of the Italian welfare state From the Communist welfare state to social benefits of market economy: the determinants of the transition process in Central Europe 138 Vladimir Rys Summary Introduction Early orientations in social reform The lessons of experience Dismantling the Communist welfare state - or how to walk on a tightrope The rise and fall of unemployment benefits Social reform and political ideology The Czech Republic Hungary Poland Conclusions The crisis of the welfare state: a game-theoretic interpretation 154 Egon Matzner 9.1 The guiding idea: during epochs of change, fiscal crises manifest themselves also as crises in applying old methods Origins of the state and of state activity External sources Internal sources Symbiosis of external and internal sources Reasons for the growth of public expenditures - ways out of crisis The new socio-economic context From systems rivalry to competition among locations and national currencies 161 vu

5 9.3.2 International monetary order and deregulation of capital markets Surplus of private savings, public debt and the erosion of the multiplier effect of public expenditures The creation of the European economic and monetary union The revival of laissez-faire ideology The new socio-economic context On the prospering and decline of institutions Which institutions survive? An (unconventional) attempt in the light of game theory Inter-war period. World War II. Cold war. The end of the post-war period? The predominance of monetary stability targets as main danger to the welfare state The staging of positive-sum games as primary objective in politics Assigning new tasks to politics, economics and society A new agenda of public tasks Five difficulties in introducing the co-operation mode Contours of a socio-economic context encouraging co-operation How to continue from here? Doing good without the idea of Good: on policies for 'the fight against poverty' 188 Philippe Beneton Index 195 vm

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