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By Ian Gough, Alfred Pfaller, Goran Therborn

The authors study how the united states, nice Britain, France, Sweden and Germany have answered to the expanding problem of overseas festival because the mid-1970s. except in Sweden, the pursuit of competitiveness has undermined fiscal and social citizenship rights, and this has, in Britain and the united states, engendered an attack upon the belief of the welfare country. unity and social self-discipline should be critically verified if the welfare nation is to stay economically and politically plausible in a hugely aggressive smooth world.

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Extra resources for Can the Welfare State Compete?: A Comparative Study of Five Advanced Capitalist Countries

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If we ignore the European Management Forum index, they comprise negative associations between several measures of welfare statism and Alfred Pfaller with Ian Gough 41 rates of economic growth, and between tax levels and export growth and productivity growth in manufacturing. There are no even modestly positive correlations between our measures of welfare statism and economic competitiveness in the 1980s. On the other hand, the significantly negative correlations amount to only seven out of many, and all the others are inconclusive.

54). 11, supports an alternative hypothesis that enterprises respond to rising welfare state costs with increased efforts to improve productivity, including increased substitution of capital for labour. But we might also venture the hypothesis that those countries who experienced a satisfactory growth of productivity were more inclined to extend their welfare state, while in the different ideological climate of the 1980s such ambitions had vanished. In any case, the contradictory findings for the 1970s and 1980s cast further doubt on the notion of 'iron law' -type unconditional economic mechanisms which link welfare statism to a nation's competitiveness.

In any case, the contradictory findings for the 1970s and 1980s cast further doubt on the notion of 'iron law' -type unconditional economic mechanisms which link welfare statism to a nation's competitiveness. By and large the productivity data might suggest that as a recent phenomenon welfare statism has come to be associated with competitive decline. But again, we should be cautious in drawing definitive conclusions. fl. , c: "''" :J ·.... 0 :oo. V> .... 11 Changes in social expenditure and manufacturing productivity growth in the 1970s sector does not do away with all the above-mentioned ambiguities.

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