Social policy development and global financial crisis in the open economies of Botswana and Mauritius

Abstract

The manner in which open economies in a globalized world shape social policy development is highly disputed, as is the impact of the current financial crisis on social policy. One argument is that globalization and economic austerity force social policy dismantling. Alternatively, it is proposed that open economies -facing greater volatility, especially during crisis -push for greater social protection. Using the examples of Botswana and Mauritius, two open middle-income countries, this article suggests that, in fact, both arguments may be correct. The impact of globalization and economic crisis depends on the character of the welfare system already in place and the organized interests underpinning it. In Botswana a main social policy thrust is to increase efficiency in spending, whereas issues of job security and compensation are more prevalent in Mauritius. The findings imply that divergence across welfare systems persists and that, even in crisis, countries often use tried social policy solutions.

Building a conservative welfare state in Botswana

“…Social assistance programmes were introduced, in the first instance, to tide peasants through periods of drought, and later to protect those specific groups (the elderly, orphans, 'destitutes') who fell through the cracks of agrarian society. Ulriksen (2011Ulriksen ( , 2012 underestimates the extent of the welfare state in Botswana, by neglecting drought relief and peasant-support programmes. Under the BDP, a welfare state was built, but it was a conservative one.…”

“…Under the BDP, a welfare state was built, but it was a conservative one. Ulriksen (2011Ulriksen ( , 2012 also exaggerates the reach of 'neo-liberalism' in Botswana in the 2000s. The government did reintroduce school fees, but then exempted the poor.…”

“…Bar-On (2001) emphasized the parsimony of the country's welfare policies, and concluded that 'Botswana's social assistance scheme fails many of the very poor completely, and those who do benefit from it are receiving steadily less of the nation's increasing prosperity' ( Bar-On 2001: 264). Ulriksen (2011Ulriksen ( , 2012Ulriksen ( , 2016 contrasted Botswana with Mauritius. Both were multi-party democracies with open, middle-income economies and competent state institutions.…”

Institutional Constraints, Parties and Political Competition in Brazilian States, 1987-2006

“…To this, Skocpol and Amenta add previously established social policies' ability to define the public agenda and patterns of group conflict, thus influencing subsequent policy (ibidem: 149). Reinforcing the argument, recent analyses show that the impact of globalization and economic crisis depend on the characteristics of previously established Welfare States and organized systems (Ulriksen, 2011).…”

Impact of the politics of austerity in the quality of healthcare: ethical advice

“…Several authors have shown, on the one hand, that there is a significant correlation between spending on social protection in a country and the death rate (Esu & Inyang, ). On the other hand, the severe economic crisis that affected Finland at the beginning of the nineties had no negative effect on health or on inequalities in health because of the strength of this country's Welfare State (Ulriksen, ). These studies show that the harmful impact on health is related to the level of protection of citizens.…”