The future of the welfare state
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Budapest, September 16th, 2009. The future of the welfare state. Prof. Dr. Wolfgang Schroeder Budapest, September 16th. Prof. Dr. Wolfgang Schroeder Fachbereich 05 Politisches System der BRD. 1. Budapest, September 16th, 2009. Structure:. The welfare state

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The future of the welfare state

Budapest, September 16th, 2009

The future of the welfare state

Prof. Dr. Wolfgang Schroeder

Budapest, September 16th

Prof. Dr. Wolfgang Schroeder

Fachbereich 05

Politisches System der BRD

1


Structure

Budapest, September 16th, 2009

Structure:

The welfare state

The challenges of the welfare state

II. The crisis and its impacts on the welfare state

IV.Rebuilding the welfare state

Prof. Dr. Wolfgang Schroeder

Fachbereich 05

Politisches System der BRD

2


I the welfare state

Budapest, September 16th, 2009

I. The welfare state

Prof. Dr. Wolfgang Schroeder

Fachbereich 05

Politisches System der BRD

3


I the welfare state1

Budapest, September 16th, 2009

I. The welfare state

Typology (Esping-Andersen)

conservative

contribution-financed, acquisition-centered

social democratic

high tax volume, based on infrastructure

liberal

taxfinanced public basic pension, supplemented by private coverage

Prof. Dr. Wolfgang Schroeder

Fachbereich 05

Politisches System der BRD

4


I the welfare state2

Budapest, September 16th, 2009

I. The welfare state

Social expenditure (percentage of GDP) in Germany 1960-2007

(source: Sozialbudget 2007, BMAS 2008)

Prof. Dr. Wolfgang Schroeder

Fachbereich 05

Politisches System der BRD

5


I the change of the welfare state

Budapest, September 16th, 2009

I. The change of the welfare state

EU-27 average

Social expenditure (percentage of GDP) in the EU-27 (2006)

(source: Eurostat) wird ersetzt/ergänzt durch Langzeitvergleich

Prof. Dr. Wolfgang Schroeder

Fachbereich 05

Politisches System der BRD

6


Ii the challenges of the welfare state

Budapest, September 16th, 2009

II. The challenges of the welfare state

Prof. Dr. Wolfgang Schroeder

Fachbereich 05

Politisches System der BRD

7


I the change of the welfare state1

Budapest, September 16th, 2009

I. The change of the welfare state

Change of the

age pyramid

1910-2050 (est.)

In Germany

Prof. Dr. Wolfgang Schroeder

Fachbereich 05

Politisches System der BRD

8


Ii the challenge of the welfare state

Budapest, September 16th, 2009

II. The challenge of the welfare state

percentage of population elder than 65 years 1998-2008 (Source: Eurostat)

Prof. Dr. Wolfgang Schroeder

Fachbereich 05

Politisches System der BRD

9


Ii the challenge of the welfare state1

Budapest, September 16th, 2009

II. The challenge of the welfare state

  • Unemployment rates in Germany & Hungary 1999-2007 (source: destatis.de)

Prof. Dr. Wolfgang Schroeder

Fachbereich 05

Politisches System der BRD

10


Ii the challenges of the welfare state1

Budapest, September 16th, 2009

II. The challenges of the welfare state

Structural change in the employment market in Germany 1992-2007: rapid growth of the third sector (yellow line)

(source: Statistisches Jahrbuch 2008)

Prof. Dr. Wolfgang Schroeder

Fachbereich 05

Politisches System der BRD

11


Ii the challenges of the welfare state2

Budapest, September 16th, 2009

II. The challenges of the welfare state

Numbers of employees subject to social insurance contribution decline…

…and low wage employment rates rise

Prof. Dr. Wolfgang Schroeder

Fachbereich 05

Politisches System der BRD

12


Ii the impact of increasing low wage sectors

Budapest, September 16th, 2009

II. The impact of increasing low wage sectors

Rapid growth of low wage jobs, slow growth of minimum wage jobs

Women and younger people are above average in low wage jobs

Prof. Dr. Wolfgang Schroeder

Fachbereich 05

Politisches System der BRD

18


Ii the challenges of the welfare state3

Budapest, September 16th, 2009

II. The challenges of the welfare state

Growth of female employment rates and decline of male employment rates over the last 40 years

Prof. Dr. Wolfgang Schroeder

Fachbereich 05

Politisches System der BRD

13


Ii the challenges of the welfare state4

Budapest, September 16th, 2009

II. The challenges of the welfare state

Rise of poverty in Germany 1998-2007

(source: Hans-Böckler-Stiftung)

Prof. Dr. Wolfgang Schroeder

Fachbereich 05

Politisches System der BRD

14


Ii the crisis and its impacts on the welfare state

Budapest, September 16th, 2009

II. The crisis and its impacts on the welfare state

Political crisis

Neoliberal direction: competitive ability – weaken of the state und strnegthen of self responsibility

Weaken of trade unions

Bureaucracy-control-criticism: More quality, less paternalism

Destabilization of the coordinated market economy

Rhenish capitalism vs. anglo-saxon capitalism

Prof. Dr. Wolfgang Schroeder

Fachbereich 05

Politisches System der BRD

17


Iii the crisis and its impacts on the welfare state

Budapest, September 16th, 2009

III. The crisis and its impacts on the welfare state

Prof. Dr. Wolfgang Schroeder

Fachbereich 05

Politisches System der BRD

15


Iii the crisis and its impacts on the welfare state1

Budapest, September 16th, 2009

III. The crisis and its impacts on the welfare state

Decline of economic growth

Temporary keynesianism

Financial problems of the state

cut-back programs concerning

social expenditure

education

subventions

pensions

Prof. Dr. Wolfgang Schroeder

Fachbereich 05

Politisches System der BRD

16


Iv rebuilding the welfare state

Budapest, September 16th, 2009

IV. Rebuilding the welfare state

Prof. Dr. Wolfgang Schroeder

Fachbereich 05

Politisches System der BRD

19


Iv rebuilding the welfare state1

Budapest, September 16th, 2009

IV. Rebuilding the welfare state

Hybrid structure of German Welfare State

Financing of social welfare in % 2006(source: bmas.de)

Prof. Dr. Wolfgang Schroeder

Fachbereich 05

Politisches System der BRD

20


Iv rebuilding the welfare state2

Budapest, September 16th, 2009

IV. Rebuilding the welfare state

  • Reforming the German Welfare State from 1989 on, accelerated under social democratic government 2001-2003

    • New definition of German social policy

      • Transformation of the social insurance state:

      • New (early) education policy, family policy, integration of migrants and even inclusion policy as important parts of social policy

  • New pluralism and new relationship by the main actors of welfare policy:

  • State, social insurance, welfare groups, private companys, households

  • self responsibility is getting more important: but it needs a strong social state

Prof. Dr. Wolfgang Schroeder

Fachbereich 05

Politisches System der BRD

21


Iv rebuilding the welfare state3

Budapest, September 16th, 2009

IV. Rebuilding the welfare state

  • Reforming the German Welfare State from 1989 on, accelerated under social democratic government 2001-2003

  • New main focus of social policy

    • Changing focus to more infrastructure (Kindergarden, schools etc.) and activating policy

  • New mixture of social support

  • Less increase in monetary transfer to more increase by institutional support

Prof. Dr. Wolfgang Schroeder

Fachbereich 05

Politisches System der BRD

22


Iv rebuilding the welfare state4

Budapest, September 16th, 2009

IV. Rebuilding the welfare state

Obstacles: implementing social reforms

Party competition:

Social democratic party is the first victim of cut back benefits and new activation policy: Building up a another left party

Generational and Demographic problems:

fewer young working people have to support more and more old people

Status orientation:

people are oriented to their occupations;if this is not longer the reference for the unemployment policy

Prof. Dr. Wolfgang Schroeder

Fachbereich 05

Politisches System der BRD

23


Iv rebuilding the welfare state conclusion

Budapest, September 16th, 2009

IV. Rebuilding the welfare state: conclusion

Prof. Dr. Wolfgang Schroeder

Fachbereich 05

Politisches System der BRD

24


Thank you for your attention

Budapest, September 16th, 2009

Thank you for your attention!

Prof. Dr. Wolfgang Schroeder

Fachbereich 05

Politisches System der BRD

25


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