The Three Worlds of Welfare Capitalism
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Few discussions in modern social science have occupied as much attention as the changing nature of welfare states in Western societies. Gøsta Esping-Andersen, one of the foremost contributors to current debates on this issue, here provides a new analysis of the character and role of welfare states in the functioning of contemporary advanced Western societies. Esping-Andersen distinguishes three major types of welfare state, connecting these with variations in the historical development of different Western countries. He argues that current economic processes, such as those moving toward a postindustrial order, are shaped not by autonomous market forces but by the nature of states and state differences. Fully informed by comparative materials, this book will have great appeal to all those working on issues of economic development and postindustrialism. Its audience will include students of sociology, economics, and politics.
wortd was to preserve ~n essentially modest universalism.in the state, and allow the market to reign for the growing social strata. demanding superior welfare. Due to . the political power of .such groups, the dualism that emerges is not merely one between. state and market, but also between fonns of welfare-state transfers: in these nations, one of the fastest growing components of public expenditure is tax subsidies for so-called 'private' welfare plans. And the typical political effect is t.he
notwithstanding its phenomenal growth .(Sawyer, 1982; Kenneth Hansen, 1987). It appears that the role of tax systems is gradually replaced by social transfers as the major weapon for redistribution. This is a trend clearly evident in the Scandinavian welfare states (Esping-Andersen, 1985a; Kenneth Hansen, 1987). The reasons for this~ shift are fairly straightforward: as welfare states get large, their financial requirements are such that they need to imp.ose heavy taxes, even on modest-income
inter-war years, the rural classes were the linchpin of a broad popular alliance, and the socialists tried with varying success to mobilize the agrarian classes. Where the socialist ghetto model was weak - as in Scandinavia - their capacity to make inroads in the rural social structure was vastly better. Where socialism was concentrated in urban working-class enclaves, such as 'Red Berlin' 'a nd 'Red Vienna', ideology and rhetoric was more likely to retain its traditional revolutionary, workerist
exist depends, then, on the extent to which regime-specific features are exclusively present only in one type. To give an example, we would not expect a conservative-type system (with strong corporatism and/or civil-service privileges),.to al§o ha,rbor liberalist traits (such as a large private market) or socialist trai~ ' (s'lich~as individualism). Since, however, the real world '" , =. 3.1 Degree of corporatism, etatism, means testing, market influence, universalism, and benefit equality in
legislation on private-pension growth is in no way clear cut, however. The social security reforms that were introduced before World War II offered very meager benefits and incomplete coverage, and, where the insurance model was adopted, the contribution requirements entailed that ·basically oQly future generations would have a chance of benefiting. Thus in Britain, the 1908 law benefits to aged citizens beyond the age of provided o~iy me~.n~:-test~d .. , . , ., 96 THE THREE WELFARE-STATE