What Is the Evidence of Welfare State Retrenchment ?

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What is the evidence of welfare state retrenchment in western welfare states? 1. Introduction 1. Crisis of Welfare State At the end of the 1970’s, the welfare state moved into crisis (OECD, 1981; Rosanvallon, 1981). As the period of high economic growth ended and stagflation appeared, governments couldn’t afford the social expenditure which had been expanded before. Fiscal deficit appeared and unemployment rate started to increase with economic depression. The idea shared by neo-Marxists and neoliberals was that the redistributive logic of the welfare state was contradicted by the logic of capitalism and that the welfare activities of the state would have to be rolled back or reconfigured so as to…show more content…
There has been relatively rapid decrease in Net Replacement Rate among some western countries after 1975. . 3. Conclusion As we can see the graph above, it seems that the long increase in social rights has been turned into a decline considering Averaged Net Replacement Rate. However, averaged decreases cannot be described as an overall dismantling of these social insurance programs. There are considerable differences among countries in these three social-insurance programs. It’s because the existing institutions and social interest which are different among countries affect the country’s decision on a social policy.[7] Thus, we can conclude that there has been overall decrease in western countries in terms of welfare benefit, but significant retrenchment has taken place in several countries. New developments taken together -globalization, European Union integration, aging national populations, major societal changes, technological progress- pointed to the need for a thorough overhaul of state welfare systems and it would have made the countries reform their own welfare systems.[8] It’s just the process to be adapted to the new economic and social conditions. Although it’s clear that major countries have focused on the reforming welfare policies and
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