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Political economics

Political economics. Comparative Politics and the Welfare State Lectures 5-6 AY 2009-2010 Paolo Graziano. Building the welfare state. consequence of social rights expansion from social assistance and employment protection… … to health care and pension policies

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Political economics

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  1. Political economics Comparative Politics and the Welfare State Lectures 5-6 AY 2009-2010 Paolo Graziano

  2. Building the welfare state • consequence of social rights expansion • from social assistance and employment protection… • … to health care and pension policies • golden age of welfare state: 1945-1973 • where does the welfare state come from? • Bourgeoisie pressures • workers and trade unions pressures • bureaucratic expansion

  3. Three worlds of Welfare capitalism • Different problems for different welfare states. • Liberal (Uk, USA): poverty and inequality • Christian democratic (Italy, Spain): unemployment • Social democratic (Sweden, Denmark): high public expenditure

  4. Pressures on the welfare state Exogenous pressures: • globalisation • Europeanisation Endogenous pressures: • productivity growth slowdown • ‘growth to limits’ of governmental commitments (high social expenditure) • population ageing • household restructuring

  5. Globalisation • the internationalisation of economies... • … rise of new international competitors… • …especially from new industrialised countries… • ...determines… • …’race to the bottom’... • i.e. welfare state retrenchment

  6. Europeanisation • role of supranational institutions... • … and policies (ex: EMU) • creation of a multilevel system of governance • interaction among countries and subnational authorities • i.e. welfare state retrenchment?

  7. Globalisation vs. Europeanisation? • market orientation (negative vs. positive integration) • modes of governance (intergovernmental vs. multilevel) • decision making mode (closed vs. open) • Towards an European social model?

  8. Permanent austerity • massive shift in employment from dynamic manufacturing activities… • … to less dynamic service provision… • … and lower wages… • … mean lower taxes... • … i.e. shrinking welfare states.

  9. Welfare state maturation • expansion of governmental commitments • increasing generosity in… • public pension systems … • … and health care systems. • High fiscal costs … • … and increasing social insurance charges… • … determine increasing labour costs.

  10. Population ageing • life expectancy increase • pressures on pension policy… • … but also on health care policy… • … and social assistance. • overall increase in social public expenditure

  11. Transformation of household structures • increase in women’s labour force participation • falling fertility rates • rise in single-parent households • change in the ‘male-breadwinner’ household structure • increase in costs … • … and in variety of social services provision.

  12. Challenges for policy-makers • variety in pressures… • … political demands… • … and processes of mobilization. • changes in interest group and party preferences • different policy menus… • … and policy opportunities for political actors.

  13. Structure of political cleavages • winners … • … and losers from welfare state reforms. • increasing conflicting interests of different types and generations of workers • general pressure towards cost contaiment • towards an anti and pro-welfare state cleavage?

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