How Globalization Transforms the Welfare State

Does the new wave of globalization require a reconstruction of welfare state provision and financing? How does globalization affect the welfare state? Does it reduce governments’ ability to impose taxes, while simultaneously creating more need for welfare state protection? Or does it benefit most segments of society, making welfare state protection less important with the passage of time? What are the policy implications?

What policies enable countries to reap the benefits from globalization while providing minimum levels of economic security, necessary to keep the citizens from voting for strongly protectionist policies? What constellation of welfare state policies enable us to compensate the losers from globalization without harming incentives to work and acquire skills? How can business contribute to the economic security of its employees without losing its customer focus? What policy environment would enable business to help contribute to social protection?