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A tale of two countries: Social policy responses to globalisation in Australia and New Zealand

Outline. Globalisation: impact on social policy Policy changes in each countryOutcomes: change in poverty and inequality over timeConclusion: do governments matter?. Globalisation and social policy. Does globalisation lead to policy convergence or do countries have choices?International competi

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A tale of two countries: Social policy responses to globalisation in Australia and New Zealand

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    1. A tale of two countries: Social policy responses to globalisation in Australia and New Zealand Alison McClelland, La Trobe University and Susan St John Auckland University

    2. Outline Globalisation: impact on social policy Policy changes in each country Outcomes: change in poverty and inequality over time Conclusion: do governments matter?

    3. Globalisation and social policy Does globalisation lead to policy convergence or do countries have choices? International competitiveness and �race to the bottom� Differential impact on social policy: pressure to contain and increase social expenditure But countries differ

    4. Convergence? Total Public Social Expt %GDP 1980 2001 Australia 11.3 18.0 New Zealand 17.2 18.5 OECD 17.7 22.0

    5. But differences in outcomes %

    6. Governments and globalisation Countries engage with and construct globalisation English speaking countries more market oriented response (Pakulski 2004) Interested in different responses between Australia and NZ given similarities and differences between them

    7. Similarities Wage earner welfare states ? Economic dependence on Britain Labour governments during initial period of globalisation � to late 1980s

    8. Differences Different institutional arrangements (NZ unitary government) NZ unique retirement incomes sand accident compensation policies Differences in policy approaches of governments of similar and different political persuasion

    9. Different party affiliations of governments in NZ and Australia 1980 to early 200s

    10. Questions How governments in Australia and NZ responded to globalisation with social policies that either reinforce or ameliorate market-based inequalities? What has affected adoption of policy trajectories?

    11. The New Zealand Story Labour 1984 -1990 paves the way for National�s 1991-1999 neo-liberal reforms Social welfare cuts User pays health and education Market rents Regressive tax reforms Labour 1999-2005 Work not welfare

    12. Proportion of children with net-of-housing incomes below the 60 percent line (benchmarked to 1998 median), 1988 to 2004

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