scholarly journals Borrowing for social security? Credit, asset-based welfare and the decline of the German savings regime

2017 ◽  
Vol 27 (5) ◽  
pp. 474-490 ◽  
Author(s):  
Daniel Mertens

This article investigates the question to what extent Germany fits into the recent trend of credit-based social policy that has originated in Anglophone economies. In the course of the financial crisis and with its preceding increase in private indebtedness in mind, a growing number of scholars have argued that loans to households have become a central component of contemporary welfare states. Because of comprehensive savings-promotion schemes, high levels of public welfare provision and a low homeownership rate, the German welfare state conventionally figures as the paradigmatic counter case to this intensifying relation between welfare and finance. This article argues, to the contrary, that one can observe the rise of credit-based social policy in Germany due to the gradual erosion of savings promotion, the expansion of quasi-public loan schemes and the restructuring of the welfare state since the mid-1970s. Based on document and statistical analysis, the article evaluates reform trajectories in the field of pensions, education and healthcare to substantiate this claim. Within the current low-interest rate environment in the Eurozone, the developments combined might well challenge the traditional savings-oriented features of the German welfare state and its political economy.

1990 ◽  
Vol 19 (1) ◽  
pp. 1-25 ◽  
Author(s):  
Philippe van Parijs

ABSTRACTNo major reform of the welfare state has a chance of going through unless one can make a plausible case as to both its ‘ethical value’ and its ‘economic.value’, that is, that it would have a positive effect in terms of both justice and efficiency. In this essay, this rough conjecture is first presented, and its plausibility probed, on the background of some stylised facts about the rise of modern welfare states in the postwar period. Next, the focus is shifted to the current debate on the introduction of a basic income, a completely unconditional grant paid ex ante to all citizens. It is argued that if basic income is to have a chance of meeting the strong twofold condition stipulated in the conjecture, some major changes are required in the way one usually thinks about justice and efficiency in connection with social policy. But once these changes are made, as they arguably must be, the chance that basic income may be able to meet the challenge is greatly enhanced.


2021 ◽  
Vol 11 (5) ◽  
pp. 269-276
Author(s):  
Doğa Başar Sariipek ◽  
Gökçe Cerev ◽  
Bora Yenihan

The focus of this paper is the interaction between social innovation and restructuring welfare state. Modern welfare states have been reconfiguring their welfare mixes through social innovation. This includes a productive integration of formal and informal actors with support and leading role of the state. This collaboration becomes significantly important since it means the integration of not only the actors, but also their capabilities and resources in today’s world where new social risks and new social challenges have emerged and no actor can overcome these by its own. Therefore, social innovation is a useful tool in the new role sharing within the welfare mix in order to reach higher levels of satisfaction and success in welfare provision. The main point here is that this is not a zero-sum competition; gaining more power of the actors other than the state – the market, civil society organisations and the family – does not necessarily mean that the state lost its leading role and power. This is rather a new type of cooperation among actors and their capabilities as well as their resources in welfare provision. In this sense, social innovation may contribute well to the debates over the financial crisis of the welfare state since it may lead to the more wisely use of existing resources of welfare actors. Thanks to social innovative programs, not only the NGOs, but also market forces as well as citizens are more active to access welfare provisions and social protection in the broadest sense. Thus, social innovative strategies are definitely a solid step taken towards “enabling” or “active” welfare state.


1989 ◽  
Vol 31 (1) ◽  
pp. 3-24 ◽  
Author(s):  
Peter Baldwin

If a question can be mal posée, surely an interpretation can be mal étendue. This has been the fate of the social interpretation of the welfare state. The cousin of social theories of bourgeois revolution, the social interpretation of the welfare state is part of a broader conception of the course of modern European history that until recently has laid claim to the status of a standard. The social interpretation sees the welfare states of certain countries as a victory for the working class and confirmation of the ability of its political representatives on the Left to use universalist, egalitarian, solidaristic measures of social policy on behalf of the least advantaged. Because the poor and the working class were groups that overlapped during the initial development of the welfare state, social policy was linked with the worker's needs. Faced with the ever-present probability of immiseration, the proletariat championed the cause of all needy and developed more pronounced sentiments of solidarity than other classes. Where it achieved sufficient power, the privileged classes were forced to consent to measures that apportioned the cost of risks among all, helping those buffeted by fate and social injustice at the expense of those docked in safe berths.


Author(s):  
David Garland

The welfare states that enjoyed three decades of expansion after 1945 endured a challenging period in the following decades. From the late 1970s, in one country after another, opposition groups mounted a sustained attack on welfare states in the name of free markets and conservative family values. ‘Neoliberalism and WS 2.0’ describes the 1970s economic crisis and the neoliberal assault it unleashed. Despite their political dominance in the 1980s and 1990s, neoliberal reformers did not abolish the welfare state, but succeeded in changing its character, creating a less expansive, more austere version—‘WS 2.0’—based on a neoliberal style of economic government and a market-oriented reworking of social policy.


Author(s):  
Benjamin Leruth

France has established itself as one of the most ‘generous’ welfare states in the world. The Great Recession of 2007–8 confronted French social policy with escalating unemployment and deepening inequalities. Combined with major pension reforms, these led to strong levels of dissatisfaction across the country, exacerbated by tensions over immigration, Euroscepticism, and internal security problems. This chapter examines how these issues developed in political context and uses material from attitude surveys to analyse existing and future challenges for the welfare state in France. It assesses recent reforms: governments of right and left offered contrasting programmes but failed to win public trust. France now stands at a cross-roads, facing a strong presidential challenge from the anti-immigrant, anti-EU right.


1992 ◽  
Vol 22 (1) ◽  
pp. 1-17 ◽  
Author(s):  
Alan Walker

This article examines the relationship between poverty and the welfare state and attempts to answer the question as to why poverty has persisted under all welfare states. Several major reasons for the persistence of poverty are advanced, and the author argues that the main factor underlying the failure to abolish poverty is the conflict between economic policy and social policy. The challenge to welfare states from the New Right is examined—particularly the contention that welfare states themselves create poverty and dependence—in the light of evidence of the impact of the Thatcher government's policies in Britain. Finally, the author proposes an alternative approach to the abolition of poverty, one that is based on the integration of economic and social policy.


2002 ◽  
Vol 61 (2) ◽  
pp. 417-435 ◽  
Author(s):  
Gregory J. Kasza

The pacific war (1937–45) marked the most innovative period in the development of public welfare in Japan, comparable to the 1880s in Germany, the 1908–14 era in Britain, and the 1930s in the United States. Wartime welfare policy set precedents that shape many aspects of welfare provision in Japan to this day. It is a cruel paradox, but war, despite its immediate, catastrophic effects on human well-being, has played a major role in the evolution of the welfare state.


1992 ◽  
Vol 27 (1) ◽  
pp. 33-51 ◽  
Author(s):  
Abram de Swaan

WELFARE STATES ARE NATIONAL STATES, AND IN EVERY country welfare is a national concern, circumscribed by the nation's borders and reserved for its residents alone. In the course of centuries, these states have emerged from and against one another, in mutual competition, and in the past century this process of state formation in the West went in tandem with the collectivization of care. The welfare state is the national state in its latest phase. It may be succeeded by another stage which we may eventually see.


2021 ◽  
Vol 9 (2) ◽  
pp. 238-249 ◽  
Author(s):  
Adeline Otto ◽  
Alzbeta Bártová ◽  
Wim Van Lancker

In order to investigate and compare welfare states or specific welfare programmes, scientists, opinion‐makers and politicians rely on indicators. As many of the concepts or objects studied are somewhat abstract, these indicators can often only be approximations. In comparative welfare‐state research, scholars have suggested several approximating indicators to quantitatively measure and compare the generosity of public welfare provision, with a special focus on cash benefits. These indicators include social spending, social rights and benefit receipt. We present these indicators systematically, and critically discuss how suitable they are for comparing the generosity of parenting leave policies in developed welfare states. Subsequently, we illustrate how the operationalisation of leave generosity by means of different indicators can lead to different rankings, interpretations and qualifications of countries. Hence, indicator choices have to be considered carefully and suitably justified, depending on the actual research interest.


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