The recent public opinion considers
essential the public policies to development and education, health and pension
guarantee. My impression is that there will be new tendencies to welfare state model
in Western Europe, which is highly influential for other countries/regions and the world economy entirely.
By expanding of industrial
development, the welfare state -being inspired by Keynesian economics after
WWII[1]- has worked as a response to
modernization and “emergence of an
industrial working class”.[2] From a point of view, “The welfare state is an essential institution in any
modern society”[3] even thought different models under market
economy pressure have had different results. The universal model
(equality-oriented) which has been implemented in Nordic Countries, has generally
considered more successful in reducing Gini and mitigating poverty, than
liberal and corporatist models. Even so after financial crisis in 2009 the
welfare state in many of developed countries faced challenge of employment deterioration
and difficulties to social expenditures, in the way that the most victims have
been the poor inhabitants and minority groups.[4] . As Stiglitz believes, the
market failures reminds us “the markets
are not efficient” and “have failed
to provide insurance against unemployment and disability, and again the welfare
state and public policy stepped in”[5].However the big Challenge in
the future of the integrated global markets is the sustainability of investment
in human resource to fight squalor, ignorance and disease[6]
among others. Demographic aging by 2050, technology and automation, the “dramatic increase in women’s labor force
participation” and “market labor
saturation” affect the new welfare state model.[7] According to Minouche Shafik,
“universal basic income transfers money
to people who are not poor”[8] and as it was concluded during another
event at LSE, “richness is a bigger
challenge than giant of poverty for achieving equality”[9], in other words by
implementing the new politics based on richness control and then wealth
redistribution, the poverty will be eradicated more efficient.
Now in the twenty-first
century, developing countries are exposure to globalisation challenges too because
of the inward FDI, industrialisation cooperation with OECD countries and debt issues. The new welfare state model in North can affect on South system tactation and other elements of economics structure in the long-term.
[1] De Regil. Alvaro (2001), Keynesian Economics and The Welfare State,
p.3
[2] Andersen. Jørgen Goul (2012),
Welfare States and Welfare State Theory,
p.5
[3] Ibid., p.4
[4] Lindbeck. Assar (2006), The Welfare State: Background, Achievements, Problems, p.18
[5] Stiglitz. Joseph (2015), The Welfare State in the Twenty First
Century, p.3-13
[6] William Beveridge (1942), Beveridge Report: Social Insurance and Allied Services
[7] Myles. John, Quadagno. Jill
(2002), Political Theories of the Welfare
State, p.51
[8] Shafik. Minouche, LSE Events: Beveridge 2.0 - Rethinking the Welfare
State for the 21st Century. Available on: https://www.youtube.com/watch?v=PtpQ_bLQE4k (min. 27)
[9] LSE Festival 2018, The Challenge of Richness? Rethinking the
Giant of Poverty. Available on:
http://www.lse.ac.uk/website-archive/newsAndMedia/videoAndAudio/channels/publicLecturesAndEvents/player.aspx?id=3996
