In the last quarter of the twentieth century, the global political economy has undergone a profound transformation. Democracy has swept the globe, and both rich and developing nations must compete in an increasingly integrated world economy.How are social welfare policies being affected by this wave of economic globalization? Leading researchers explore the complex question in this new comparative study. Shifting their focus from the more commonly studied, established welfare states of northwestern Europe, the authors of Globalization and the Future of the Welfare State examine policy development in the middle-income countries of southern and eastern Europe, Latin America, Russia, and East Asia. Previous investigations into the effects of globalization on welfare states have generally come to one of two conclusions. The first is that a global economy undermines existing welfare states and obstructs new developments in social policy, as generous provisions place a burden on a nation's resources and its ability to compete in the international marketplace. In contrast, the second builds on the finding that economic openness is positively correlated with greater social spending, which suggests that globalization and welfare states can be mutually reinforcing.Here the authors find that globalization and the success of the welfare state are by no means as incompatible as the first view implies. The developing countries analyzed in Globalization and the Future of the Welfare State demonstrate that although there is great variability across countries and regions, domestic political processes and institutions play key roles in managing the disruptions wrought by globalization.

An analysis of the welfare state from a political economy perspective that examines the effects of aging populations, migration, and globalization on industrialized economies. In The Decline of the Welfare State, Assaf Razin and Efraim Sadka use a political economy framework to analyze the effects of aging populations, migration, and globalization on the deteriorating system of financing welfare state benefits as we know them. Their timely analysis, supported by a unified theoretical framework and empirical findings, demonstrates how the combined forces of demographic change and globalization will make it impossible for the welfare state to maintain itself on its present scale. In much of the developed world, the proportion of the population aged 60 and over is expected to rise dramatically over the coming years—from 35 percent in 2000 to a projected 66 percent in 2050 in the European Union and from 27 percent to 47 percent in the United States—which may necessitate higher tax burdens and greater public debt to maintain national pension systems at current levels. Low-skill migration produces additional strains on welfare-state financing because such migrants typically receive benefits that exceed what they pay in taxes. Higher capital taxation, which could potentially be used to finance welfare benefits, is made unlikely by international tax competition brought about by globalization of the capital market. Applying a political economy model and drawing on empirical data from the EU and the United States, the authors draw an unconventional and provocative conclusion from these developments. They argue that the political pressure from both aging and migrant populations indirectly generates political processes that favor trimming rather than expanding the welfare state. The combined pressures of aging, migration, and globalization will shift the balance of political power and generate public support from the majority of the voting population for cutting back traditional welfare state benefits.

A common belief is that the European welfare states are in a position of crisis or heading towards one with the process of globalization removing any hopes of eventual worldwide welfare. This book challenges this assumption arguing that a proper understanding of the future role of the welfare state requires a broader social perspective that encompasses the interaction of economic, political and social processes. The Future of the Welfare State provides an interdisciplinary analysis of the practical and theoretical challenges which the welfare state (and progress towards world welfare) can and must meet in the future.

Written by one of the world's leading policy researchers, this book seeks to assess the threat posed to modern welfare states by globalization and demographic change. Using empirical methods, and bringing together insights from across the social sciences, Castles interrogates a range of theories suggesting that the welfare state is in crisis. Systematically using data for 21 advanced OECD nations, he distinguishes crisis myths from crisis realities, locating, in the process, likely trajectories of welfare state development in coming decades. The findings of this book confront many of the basic assumptions of contemporary scholarship. Economic globalization has not led to a 'race to the bottom'. Analogous processes within the European Community have not led to a 'downward harmonization' of social spending. There is no 'new politics of the welfare state', with the Left still outspending the Right. Over the past two decades, spending has been increasing and converging across the OECD. Rather than being in a state of crisis, western welfare states have achieved a steady state. The supposed impact of population ageing on social welfare budgets also turns out to be myth, with differences in spending actually being a function of the structure of welfare systems, not of any demographic imperative. The only potentially real threat is of rapidly declining fertility, but Castles argues that welfare state spending in the form of family-friendly public policy is, in fact, our best defence against this problem. This is a book with significant policy implications. It identifies the factors likely to mould welfare state growth and decline in future years, and the diverse problems and challenges confronting welfare state policy-makers in different families of nations. It is a book for those who like assessing evidence before jumping to unwarranted conclusions, and a book for those who wish to see 'the shape of things to come'.

This title was first published in 2001: Examining the future of the welfare state in four globalizing economies - Sweden, UK, Japan and US - this book presents a detailed analysis of the ways in which social and economic aspects of these welfare states have altered under growing market-first ideology and economic globalization. The book will be essential reading for all those interested in the present and future of the welfare state, both through its theoretical perspectives and because of the thorough attention paid to the health of society today.

The welfare state plays a key role in people’s everyday lives in developed societies. At the same time, the welfare state is contested and there are constant discussions on how and to what degree the state should intervene, influence and have an impact on the development of society. Recent years have seen an accelerated transformation of the welfare state in the light of the global financial crisis, demographic change and changes in the perception of the state’s role in relation to social welfare. This raises fundamentally new issues related to social policy and welfare state analysis. This book provides: an introduction to the principles of welfare a conceptual framework necessary for understanding social policy at the macro-level a comparative approach to welfare states globally an overview of new ways to organise and steer welfare states an introduction to welfare state politics and underlying economic framework an account of equality and inequality in modern societies new directions for welfare states The book’s focus on core concepts and the variety of international welfare state regimes and mechanisms for delivering social policy provides a much needed introduction to the rapidly changing concept of welfare for students on social policy, social studies, sociology and politics courses.