Societies, Facts and Challenges: lecture 6

unity in diversity: varieties of welfare states

Bismarckian welfare state

named after Otto Von Bismarck (late 19th-century Germany), this model focuses on wage earners. Social insurance is tied to the labor market; both contributions (premiums) and benefits depend on the individual’s wage. Its historical objective was to connect workers to the state and build a new nation under pressure from socialism

Beveridge welfare state

named after Lord William Beveridge (1942 UK Report), this model covers all citizens, regardless of their employment status. It is funded through general taxation and provides flat-rate (lump-sum) benefits aimed at providing a minimum safety net. Historically, it aimed to fight the “Five Giants”; idleness, Want, Disease, Ignorance and Squalor

welfare triangle

a tool used to represent the division of tasks and responsibilities in a society between three basic instiutions: families (informal/private), firms (formal/private/for-profit) and Government (formal/public). A society’s position in the trangle shows its specific “welfare mix”

commodification

the transformation of a labor into a ‘commodity’ that must be sold on the market for an individual to survive

decommodification

the process of withdrawing labor from the market so that individuals can maintain a decent standard of living without being entirely dependent on the market

social democratic welfare state

characterized by a large government role, high levels of decommodification and universal benefits provided to all social classes. it emphasized equality, personal autonomy and high redistribution (e.g. Nordic countries like Sweden)

conservative welfare state

characterized by a large role for families and moderate decommodification. Benefits are generous but often sustain occupational hierarchies (Bismarckian influence). It often features a Catholic legacy and the principle of subsidiarity, where the state only intervenes if other actors cannot (e.g. Belgium, Germany, France)

Liberal welfare state

characterized by a large role for firms and the market, with low decommodification. benefits are usually low and means-tested, meaning they are targeted only at the poor (residual welfare). (e.g. US, Canada, Australia)

informal welfare state

common in the Global South where the nation-state is weak or contested. Welfare relies heavily on informal family and community networks, religious institutions or NGOs (e.g; Latin America, South Asia)

productive welfare state

foundin East Asian “Tigers” (e.g. Singapore, South Korea). The focus is on economic growth and human capital formation (social investment) rather than redistribution. It emphasizes self-reliance and labor participation

Ethnic diversity

societies with higher ethnic diversity tend to have lower social spending and less political support for redistribution

belief in role of effort

societies that believe effort determines income (rather than luck) prefer less redistribution and lower taxes, often resulting in high persistent inequality (the “US equilibrium”)

belief in upward mobility

linked to the “American Dream”, the belief that any individual can climb the social ladder through hard work. If mobility is perceived as high, there is often less support for a large welfare state

power resource theory

this theory argues the welfare state is the historical result of working-class power and class mobilization through labor unions or left-wing political parties

path dependancy

the concept that the current welfare state is heavily shaped by past decisions

trodden path dependency

suggest that reform is difficult because insitutions and “losing parties” create hurdles to change

critical junctures

are key historical moments (like WWII) where major policy paths are chosen.