A m s t e r d a m U n i v e r s i t y P r e s s c h a n g i n g w e l f a r e s t a t e s employment 'miracles'
CHANGING WELFARE STATE SProcesses of socio-economic change (individualising society and globalising economics and politics) cause large problems for modern welfare states. Welfare states, organised on the level of nation-states and built on one or the other form of national solidarity, are increasingly confronted with, for instance, fiscal problems, difficulties to control costs, and the unintended use of welfare programs. Such problems -generally speaking -raise the issue of sustainability because they tend to undermine the legitimacy of the programs of the welfare state and in the end induce the necessity of change, be it the complete abolishment of programs, retrenchment of programs, or attempts to preserve programs by modernising them. This series of studies on welfare states focuses on the changing institutions and programs of modern welfare states. These changes are the product of external pressures on welfare states, for example because of the economic and political consequences of globalisation or individualisation, or result from the internal, political or institutional dynamics of welfare arrangements.By studying the development of welfare state arrangements in different countries, in different institutional contexts, or by comparing developments between countries or different types of welfare states, this series hopes to enlarge the body of knowledge on the functioning and development of welfare states and its programs. The publication of this book is made possible with a grant of the gakFoundation (Stichting Instituut gak, Hilversum). All rights reserved. Without limiting the rights under copyright reserved above, no part of this book may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) without the written permission of both the copyright owner and the author of the book.
editors of the series
ContentsPreface 9
I ntroduction: Miracles, Mirages and Markets 11Herman Schwartz and Uwe Becker
PrefaceThe very positive economic and particularly employment development that took place in the decade up to 2001 (or even longer) in Denmark, Ireland, the Netherlands, Australia and, since the second half of the 1990s, Finland and Sweden has been at the centre of much recent discussion in comparative political economy. Because this development contrasts markedly with near stagnation in France, Germany and Italy, it has been characterised in terms of 'miracles' and 'models'. The Netherlands and Denmark attracted the most attention because their strong employment growth and employment stabilisation at very high levels, respectively, occurred in the framework of welfare systems that are still comparatively generous and that clearly differ from the usa and the uk. In the latter two countries, high employment and low unemployment went together with levels of inequality and poverty not (yet...