This article seeks to explain why Denmark and the Netherlands made dramatic progress reforming their welfare systems in the 1990s and why Germany had a relatively slow start. Some possible explanations found to be incomplete are institutional differences in welfare programs, the uniqueness of circumstances (for example, German unification), and the balance of political power in governing institutions. An important part of the puzzle is an increasing perception of the need to reform that was more widespread in Denmark and the Netherlands. The social construction of an imperative to reform in these countries generated a political consensus that was elusive in Germany but that may be developing under Gerhard Schroder's government.

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Examining reforms that have taken place in the  s, this article explores the hypothesis that the most distinctive characteristic of the Scandinavian model today is the "stickiness" of its reputation, rather than the institutions and policies that make up the model. Borrowing the concept of path-dependency from institutional analysis, the article argues that because there is a strong commitment to the idea of a Scandinavian model, there is a tendency to expand conceptions of the model so that policy changes appear to be consistent with it.

This article introduces to policy studies the concept of valence, which we define as the emotional quality of an idea that makes it more or less attractive. We argue that valence explains why some ideas are more successful than others, sometimes gaining paradigmatic status. A policy idea is attractive when its valence matches the mood of a target population. Skilled policy entrepreneurs use ideas with high valence to frame policy issues and generate support for their policy proposals. The usefulness of the concept of valence is illustrated with the case of sustainability, an idea that has expanded from the realm of environmental policy to dominate discussions in such diverse policy areas as pension reform, public finance, labor markets, and energy security. As the valence of sustainability has increased, policy entrepreneurs have used the idea to reframe problems in these various policy areas and promote reforms.

In recent years Denmark and the Netherlands have made dramatic shifts from passive to active labor market policies. Though often portrayed as a necessary response to high levels of structural unemployment, such changes are more than a mere technical adjustment of welfare programs to a changing economic climate. They represent new ideas about the goals of public policy and the social rights of citizenship. This article surveys the politics of labor market policies in the two countries to demonstrate that the recent activation programs reflect a departure from the ideas and goals of the postwar welfare state.

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