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Symposium 2008

How Globalization Transforms the Welfare State

The Challenge

What are the implications for welfare state eform? What constellation of welfare state policies enables us to compensate the losers from globalization without harming incentives to work and acquire skills? What are the appropriate roles of the state, firms, housholds and civic organizations in the provision of welfare services?

The current phase of globalization along with the associated technological advances has led to the geographic decomposition of businesses´ value chain and far-reaching changes in the organization of production and work. These changes, along with other demographic and social changes, have called the effectiveness of the traditional welfare state into question. New demands are made of welfare services and new segments of the population have become vulnerable. The need to transform the welfare state is becoming progressively more urgent.

    Solutions

    Solution
    Symposium 2008

    Do not help the losers from globalization by protecting specific jobs or industries. Instead, use hiring and training vouchers to subsidize hiring or retraining of workers within firms.

    Do not help the losers from globalization by protecting specific jobs or industries. Instead, use hiring and training vouchers to subsidize hiring or retraining of workers within firms.

    Do not help the losers from globalization by protecting specific jobs or industries. Instead, use hiring and training vouchers to subsidize hiring or retraining of workers within firms.

    Polity, Business
    Solution
    Symposium 2008

    Encourage research to clarify the attributes of efficient and active labor market policies, including “individual welfare accounts.”

    Encourage research to clarify the attributes of efficient and active labor market policies, including “individual welfare accounts.”

    Encourage research to clarify the attributes of efficient and active labor market policies, including “individual welfare accounts.”

    Academia
    Solution
    Symposium 2008

    Make increased use of value-added taxes, property taxes and carbon taxes to finance the welfare state without giving incentives for a brain drain of high-income workers.

    Make increased use of value-added taxes, property taxes and carbon taxes to finance the welfare state without giving incentives for a brain drain of high-income workers.

    Make increased use of value-added taxes, property taxes and carbon taxes to finance the welfare state without giving incentives for a brain drain of high-income workers.

    Polity

    Proposals

    Proposal
    Symposium 2008

    How Globalization Transforms the Welfare State

    Supporting the Losers from Globalization The globalization process creates winners and losers. Democratically elected governments must ensure that the losers can count on a social safety net and that ...

    Supporting the Losers from Globalization The globalization process creates winners and losers. Democratically elected governments must ensure that the losers can count on a social safety net and that their numbers remain limited. However, a traditional welfare state safety net may destroy incentives to adapt to globalization and thereby forego the gains to be had from rising flows of goods, financial assets, people, and ideas. Therefore, the challenge is to design a social safety net that is compatible with adaptability, so that the losers from globalization can turn themselves into winners through their own efforts. This perspective implies a

    Polity, Academia, Business, Civil Society
    Proposal
    Symposium 2008

    Some ideas about "How globalization transforms the welfare state"

    Globalization creates better growth and employement opportunities but also inequalities. Together with technological change increases mobility and less stable professional careers. Free movement of ca ...

    Globalization creates better growth and employement opportunities but also inequalities. Together with technological change increases mobility and less stable professional careers. Free movement of capital gives incentives to lowering direct taxes and put limits to progressive tax systems. Ageing puts additional pressure on public finances. Taking into account all these elements, financing the welfare state requires some important changes. Employability -increasing the human capital stock of each individual- becomes more important than passive unemployment protection. Life long learning is of the essence, to update and adapt the initial formation provided by the educational system. Life cycle is changing: entrance in

    Polity
    Proposal
    Symposium 2008

    Points about globalization and the welfare state

    In the media discussion, contemporary and expected future problems for welfare-state arrangements in developed countries are often blamed on the internationalization (globalization) process. In fact, ...

    In the media discussion, contemporary and expected future problems for welfare-state arrangements in developed countries are often blamed on the internationalization (globalization) process. In fact, however, the most serious problems for the welfare state are related to domestic economic and social trends in the developed countries themselves. Indeed, the two most important challenges for welfare-state arrangements in developed countries are (i) the gradual rise, without apparent limit, of the relative costs of providing human services such as child care, education, health care and old-age care; and (ii) the implicit tax wedges in social-insurance arrangements and the related tendencies to

    Polity, Academia
    Proposal
    Symposium 2008

    Globalisation and Europe's social model: Challenges and policy responses

    Introduction The integration of emerging Asian economies, such as China, India, and others, and of the former communist countries in Central and Eastern Europe into the world economy has added roughly ...

    Introduction The integration of emerging Asian economies, such as China, India, and others, and of the former communist countries in Central and Eastern Europe into the world economy has added roughly 1.5 billion workers to the global workforce, putting pressure on the remuneration and employment perspectives of workers in the developed world, particularly the low-skilled. The mobility of capital and, increasingly, skilled workers has led to fears that redistributive policies are becoming increasingly restricted. These developments have raised questions about whether the European “social model” with its high levels of equity, insurance and social protection paid for by high

    Polity
    Proposal
    Symposium 2008

    Globalization and the welfare state

    How Globalization Transforms the Welfare State Before responding to the specific questions raised for this panel, I think it is important to highlight three points: First, the tendency in thinking abo ...

    How Globalization Transforms the Welfare State Before responding to the specific questions raised for this panel, I think it is important to highlight three points: First, the tendency in thinking about this topic is to focus on certain aspects of globalization: the globalization of the world’s labor market, such that low cost labor in low income and emerging market countries very much restrains wage demands and creates competitive pressure on labor markets in advanced countries; the potential for a “race to the bottom” on tax rates that at least may put limits on the potential for using certain tax instruments

    Polity, Academia, Business, Civil Society
    Proposal
    Symposium 2008

    Protecting Citizens Not Stakeholders - The Welfare State Under Globalization

    In contrast to the commonly-held fears, economic efficiency and social equality are advancing together today when the engine of globalization is allowed to drive conditions. It is only the protection ...

    In contrast to the commonly-held fears, economic efficiency and social equality are advancing together today when the engine of globalization is allowed to drive conditions. It is only the protectionist self-defense of lesser-skilled white males, the workers in the heavy older industries and self-employed in small businesses, that acts as a brake on this progress. Unfortunately, however, that self-defense has been very effective politically in the US, not least because of the skillful co-opting of the image of the middle-class by these reactionary forces to build support for efforts to limit economic change. Of course, the result of such protectionist efforts when successful

    Polity, Academia, Business, Civil Society
    Proposal
    Symposium 2008

    Contributions for Discussion

    I. The background for these contributions The advent of globalization has strongly influenced the paradigm of the historically based Welfare State, driving its objective and politic guidelines towards ...

    I. The background for these contributions The advent of globalization has strongly influenced the paradigm of the historically based Welfare State, driving its objective and politic guidelines towards a new path. The characteristics of such a new path have much to do with the latitude of empowerment of sovereign states and with their ability to determine social cohesion and prevent adverse social effects of global competitiveness. Therefore, whereas on the one hand the role of the State and the legitimacy and effectiveness of social programs is one of the central aspects when dealing with the relationship between Welfare State and

    Polity, Business