What is social policy? Welfare State Reforms: Theoretical Background. Welfare State. What does Welfare mean?
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1 What is social policy? Welfare State Reforms: Theoretical Background What does Social Policy and Welfare State mean? Where does it come from? Theories, Explanations and Types of Welfare States Basic Data!... the study of the social relations necessary for human wellbeing and the systems by which wellbeing is promoted. (Dean, Social Policy, 2006: 1)! political institutions, processes and policies to protect people in case of poverty / need or against risks overstraining individuals and their relatives (security, income, health, age, housing, education, etc.)! in a broader understanding to control and reduce social inequality (not natural, illegitimate) 2 What does Welfare mean? Welfare State! Welfare refers to 'well-being and also to the range of services which are provided to protect people in a number of conditions! Welfare is associated with needs, but it goes beyond what people need;! to achieve well being, people must have choices, and the scope to choose personal goals and ambitions (Spicker et al. 2007)! Enjoyment/Pleasure, freedom /responsibility and thinking (Aristotle), Capabilities (Sen) to be a part of human society (Inclusion) (Dean ibd.)! State with policy to create a social and legal order, based on social security, equality and justice! Institutions, regulations and processes to assure, correct and supplement markets, e.g. work, income and living conditions! ideal model, where the state accepts responsibility for the provision of comprehensive and universal welfare for its citizens (Spicker et al. 2007)! the Degree of Citizens social rights in sense of property rights, meaning the degree of De-Commodification (welfare beside markets and families) and social stratification (redistribution) (Esping-Andersen 1990) 3 4 1
2 Modern Miracle / trinity of state, market and family Markt Wettbewerb/Exklusion Unternehmen Staat Recht, Hierarchie bürokratische Verwaltung Gleichheit Intermediärer Bereich Gemischte Regulierung NPO etc. Gemeinschaft Solidarität Informell, Familie! Development from informal (Gift-Exchange, see Mauss) to formal exchange, civil society and organised solidarity with state regulation! Modern anonymous and functional differentiated conditions require and enabling welfare-state! Background:! Decline of Feudalism <-> Growing Mobility, Freedom, Anonymity and longer chains of Interdependencies (Cities, International commerce ) (s. Elias)! Growing Independence and Interdependencies with functional differentiated Economy and Society (division of labour) (e.g. Household Firm, Weber)! Concentration of Power, Absolutism and State-Building! there s no free market without state and civic culture (trust, norms, values) (non contractual basics of contract, Durkheim)! 5 6 Welfare State Theory: Functionalism! Welfare State as social institution to create and solve social problems in relation to social order (social integration) (see slides before)! Independent Variables:! social and economic requirements / needs! demography, urbanisation, industrialisation, capitalism, enlightenment, rationalisation, modernisation, social problems...! enforce and enable welfare states! Different Accents:! Economic/technical, cultural/social or policy/politics Conflict-theory and political interests! Welfare State (dependent Variable) as De-Commodification, Stratification(see def. of Esping-Andersen)! Social and political interests, conflicts, movements determine / enforce welfare states! independent variables: Strength and structure of Worker movement / organisations, trade unions, socialist-parties (also Christian democrats and centre) and governments! Modifications! Political market-competition (Median-voter-model in rational choice and economic theories)! Logic of Inclusion / momentum (see also Institutionalism below) 7 2
3 Institutionalism! Welfare State as Institution / social order / regulation as autonomous and powerful ( polity -dimension) beside social functions or conflicts! Self-interest / -logic (momentum) of institutions / bureaucracies, government-/ voting-system! majority/proportional, 2-party/multi-party-systems, corporatism...! Institutional competition and policy-learning, isomorphism! Path-dependency and policy-feedback (problem-solution-more problems) --> vicious circle Source: Own Creation, based on Dean (ibd.) and Bourdieu 9 10 Welfare State Research: Measurement! Traditional: Social Expenditures <--> neglect of services, reduction/ no differentiation, problems of values, comparability...! Better: Social Rights, De-Commodification (s. Esping-Andersen)! Universality <-> Restriction, Pre-conditions, Contributions, meansadjustment/testing, Exit/Duration, volume of benefits! Pension, Sickness, Unemployment --> Index (weighted per-capita of people in need)! In praxis primarily: replacement ratio (of wages)! Stratification / Social Inequality, Poorness! What is with families, informal solidarity, love... (?!)! welfare / quality of life (Index) 11 Types of Welfare States / - capitalism (Esping-Andersen)! Social democratic (e.g. Sweden)! High Degree of De-Commodification and low stratification (unequality), universalistic social welfare for all citizens, high benefits ( folkhemmet / people s home), social services mainly by state org., positive welfare culture, tax-financed, social exp %/GDP! Liberal (e.g. USA)! low de-commodification, high inequality as incentive, minimal state, marketorientation, free civic culture (donations/foundations), pluralism; social security for poor (less-eligibility/workfare; tax financing, less spending/provision of services but regulation, 10-20% / GDP! Conservative (e.g. Germany)! middle de-commodification/stratification; principle of subsidiarity, familialism, paternalism (patron/client) to assure authority; status-/worker-orientation, social insurance, coroporatism, self-organisation! {Residual or rudimental (South)} 12 3
4 Determinants of welfare-state-development! Social Problems (poorness, unemployment, age, sickness...)! Social and political disorder / conflicts! Culture (z.b. rationalisation, values)! Economic Development! Demographic change! parties, trade unions, interest associations! Corporatism / structures of interest-organisation! Institutions, Elites, bureaucracies! path dependency, institutional dynamic, selfishness of institutions! veto-points / joint-decision making system Hypotheses / Evidence of welfare state research! the strength of left parties and ratio of elderly population are positive correlated with de-commodification and social democratic regimes! strength of conservative and catholic parties and authoritarian / statist structures are positive correlated with conservative regime and negative correlated with de-commodification! Concerted Action of corporative-state-relations and corporatism are positive related to de-comodification! federalism / veto-players constraining central welfare state interventionism and de-commodification! weakness of left parties combined with economic strength encourage liberal welfare-state/capitalism regimes Evidence: Social Exp. are the higher...! the higher they have been in previous periods! the more left-parties and christian democrats/middle-parties in government! the higher economic development! the higher unemployment and population ageing! the higher the ratio of civil servants! the more parties participating in government! the fewer/weaker veto-players are (e.g. federalism)! the older democracy (Schmidt, 2003, 199 with OECD-data) Public Health Expenditures are the higher...! the higher the GDP-per-capita in a state! the higher the ratio of seniors per population! the higher the number of physicians per capita! the higher the ratio of state expenditures to GDP and public health services! the older democracy! if less cost containment like National Health Service Vgl. Schmidt, M.G., Warum die Gesundheitsausgaben wachsen. Befunde des Vergleichs demokratisch verfasster Staaten, in: Politische Vierteljahresschrift 2/1999, S
5 Some Welfare State Research-Critics! Unclear or implicit theory (e.g. ideal- or real-types?)! Neglect of political decision making and unintended effects! Neglect of religion and state-church-relations Problems to compare Social Expenditures...! Transfer- and state-bias / disregard of regional differentiation, social services and informal services! Macro-Bias (z.b. sectoral and regional differences)! disregard of associations! disregard of inter- und intra-state-/cultural-heterogenity Quelle: Alber Social Spending and economic development ( ) Growth of Social Spending / GDP and GDP in GE Quelle: BMAS, Sozialrecht 2006: 953 R 2 =0,51, Quelle: Schmidt 199:
6 Ageing and Expenditures on LTC (2000) Social Spending and avoiding poverty Quelle: OECD poverty rate of population in the EU25 (2001) Ungleichheit der Einkommen (2001) Note: SK (2003), EE, LV (2002), MT SI (2000), CY (1997) Source: EU-Comm. Social Situation 2004, Eurostat 23 Anm.: Verhältnis des Gesamtäquivalenzeinkommens von 20!% der Bevölkerung mit dem höchsten Einkommen (oberstes Quintil) zum Gesamteinkommen der 20!% der Bevölkerung m.d. niedrigsten E. (unterstes Quintil). Quelle: Eurostat 24 6
7 Welfare State Spending and Political Parties Quelle: Obinger/Starke PVS Sonderheft 2007: Social Expenditures as Percentage of GDP Sweden 2,6 30,5 2, 31,3 France 20, 25,3 27,6 2,7 Denmark 25,2 25,5 25, 27,6 Germany 23,0 22,5 26,3 27,3 Belgium 23,5 25,0 25,3 26,5 Austria 22,6 23,7 25,3 26,1 Norway 16,9 22,6 22,2 25,1 Italy 1,0 19,9 23,2 24,2 Portugal 10, 13,7 20,2 23,5 Poland - 15,1 21,2 22,9 Hungary ,6 22,7 Finland 1,4 24,5 21,3 22,5 Luxembourg 23,6 21,9 20,4 22,2 Greece 11,5 1,6 21,3 21,3 Czech Republic - 16,0 20,3 21,1 Netherlands 24,1 24,4 19,3 20,7 United Kingdom 16,6 17,2 19,1 20,6 Switzerland 13,9 13,5 1,0 20,5 Spain 15,5 20,0 20,4 20,3 Iceland - 14,0 15,3 1,7 New Zealand 17,1 21, 19,1 1,0 Australia 10,9 14,1 17,9 17,9 Japan 10,3 11,2 16,1 17,7 Slovak Republic - - 1,1 17,3 Canada 14,1 1,4 16,7 17,3 United States 13,3 13,4 14,6 16,2 Ireland 16, 15,5 13,6 15,9 Mexico - 3,6 5, 6, Korea - 3,0 5,1 5,7 Turkey 4,4 7,6 - - OECD - Total 15,9 17,9 19,4 20,7 26 GDP per capita in PPP (2005) (EU15=100) Population in EU-25 (2002) Source: EU-Comm. Social Situation 2004, Eurostat PPP=Purchasing Power Parity Source: Eurostat
8 Sozialstaatliche Finanzierungssysteme in Europa Ratios of Social Expenditures EU (diff. functions) ( ) Quelle: EU-Kommission, Germany 10,6 Greece Total Expenditure on Health % of GDP 9,7 France Source: OECD Health Data ,3 Denmark,4,2,1 Netherlands Italy Austria ,7 31 7,3 United Kingdom Finland 6, Germany Public Expenditure on Health as % of GDP France 7,2 Source: OECD Health Data 2004 Denmark 6, Italy 5,9 5,9 United Kingdom Austria 5,6 5,5 Netherlands Finland 32 5 Greece 4,6
9 Out-of-pocket payments as a percentage of total expenditure on health, * Percentage of total health expenditure (taxation against social insurance) in EU Note: *Except B: 1996; E, D, I, L, P: 1997; Source: OECD Health Data ,0 2,5 2,0 1,5 3 LTC-Expenditures LTC-Expenditure/GDP a. Public LTC-Exp./GDP in % ('92-'95) 2,5 Public LTC-Expenditure/GDP in % ('92-'95) Publ. LTC-Expenditure /GDP in % (2000) 1,7 1,6 LTC-Provision in OECD 1,0 0,5 0,9 0,7 0,7 0,6 0,0 Denmark Netherlands United Kingdom Finland Source: OECD/Jacobzone 1999 (Data ), European Economic Policy Committee 2001 (Data 2000 exc. GER), Comas-Herrera et al (Data Germany, 2000) 35 Germany Austria France Italy Greece 36 9
10 Supply with Nursing-Homes /100 aged ca ca Netherlands Sweden Finland Canada Denmark Luxembourg Australien New Zealand Norway France Belgium Japan United States Germany United Kingdom Ireland Austria Italy Spain Portugal Greece Quelle: Hennessy 1995; Jacobzone 1999; OECD 1999, Statistisches Bundesamt 37 LT-Home-Care-Services / 100 elderly (65+) 25 ca ca Austria Denmark Canada Norway United States Finland Netherlands Australien Sweden Germany France Quelle: Hennessy 1995; Jacobzone 1999; OECD 1999 United Kingdom Japan Belgium Ireland Italy Spain Portugal New Zealand 3 Ratio of Elderly (65+) in % (1990 u. 1995) Life-Expectancy by Birth (2002) (Female) Sweden Italy Belgium Norway United Kingdom Greece Germany Denmark Spain Austria France Japan Portugal Finland Luxembourg Netherlands United States Canada Australien New Zealand Ireland Turkey Quelle: Eurostat
11 Life-Expectancy by Birth (2002) (Male) Demographic Burden (young and old / working-popul.) (1999) Quelle: Eurostat ratio of childs in day-care Education Expenditure in OECD (Perc. GDP) Public Public and Private private % of GDP % of GDP % of GDP 1995 = 100 Australia 5,97 4, ,44 Austria 5,7 5, ,22 Belgium 6,36 5,97.. 0,39 Canada 6,14 4, 107 1,31 Czech Republic 4,5 4, ,3 Denmark 7,10 6, ,2 Finland 5,4 5, ,10 France 5,9 5, ,3 Germany 5,26 4, ,9 Greece 4,06 3, ,23 Hungary 5,1 4, ,57 Iceland 6,70 6,15.. 0,56 Ireland 4,49 4, ,35 Italy 5,31 4, ,44 Japan 4,63 3, ,15 Korea,20 4,79.. 3,41 Luxembourg 3,64 3, Mexico 5,7 5, ,75 Netherlands 4,90 4, ,39 New Zealand.. 5, Norway 6,37 6, ,25 Poland.. 5, Portugal 5,5 5, ,09 Slovak Republic 4,11 3, ,12 Spain 4,9 4, ,56 Sweden 6,46 6, ,21 Switzerland.. 5, Source: OECD Source: OECD Turkey 3,51 3, United Kingdom 5,4 4, ,2 United States 7,34 5, ,26 Country mean 5,62 4,96.. 0,
12 References! Alber, Jens (2003): Recent developments in the German welfare state: basic continuity or paradigm shift? In: Neil, Gilbert/Van Voorhis, Rebecca (Ed.): Changing patterns of Social Protection, London: Transaction, p 9-74.! Arts, Wil/Gelissen, John (2002): Three Worlds of Welfare Capitalism or more? A state-of-the-art report, Journal of European Social Policy 12(2), ! Bäcker, G./Bispinck, R./Hofemann, K./Naegele, G. (2000): Sozialpolitik und soziale Lage in Deutschland, Bd. 1, Opladen: Westdeutscher Verlag, S ( Bundesministerium für Arbeit und Sozialordnung (2006): Übersicht über das Sozialrecht, Nürnberg: BW-Verlag.! Dean, Hartley (2006): Social Policy, Cambridge: Polity Press.! Esping-Andersen, Gösta (1990): The Three Worlds of Welfare Capitalism, Cambridge: Cambridge University Press.! Hennessy, P., (1995): Social Protection for Dependent Elderly People: Perspectives from a Review of OECD Countries (Labour Market and Social Policy, Occasional Papers No. 16), OECD, Paris.! Jacobzone, S., (1999): Ageing and care for frail elderly persons: An overview of international perspectives (OECD, Labour Market and Social Policy, Occasional Papers No. 3), OECD, Paris.! OECD (Organisation for Economic Cooperation and Development), (Hg.) (1999): A caring world. The new social policy agenda, OECD, Paris.! OECD (2005): Long-Term Care for Older People, Paris.! Schmidt, M.G. (199): Sozialpolitik in Deutschland: Historische Entwicklung und internationaler Vergleich, Leske+Budrich.! Schmidt, M.G. (2003): Sozialpolitik, in: Jesse, E./Sturm, R. (Hg.), Demokratien des 21. Jahrhunderts im Vergleich, Leske+Budrich, Opladen, S ! Spicker, Paul, et al. (2007): Introduction to Social Policy,
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