Rediscovering social investment in developmental welfare state ...
Rediscovering social investment in developmental welfare state ...
Rediscovering social investment in developmental welfare state ...
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R E D I S C O V E R I N G S O C I A L I N V E S T M E N T I N D E V E L O P M E N T A L W E L F A R E S T A T E P O L I C I E S :<br />
B A C K T O T H E F U T U R E<br />
It supports a view that one cannot dichotomize <strong>social</strong> policies as either <strong><strong>in</strong>vestment</strong>s or costs <strong>in</strong> and<br />
of themselves. Policies may simultaneously have <strong><strong>in</strong>vestment</strong> and consumption aspects (Esp<strong>in</strong>g-<br />
Andersen, 2002, 2003) whose effects may vary <strong>in</strong> comb<strong>in</strong>ation (i.e., cumulatively or<br />
<strong>in</strong>terdependently) with other policies. Developmentalism suggests a need to take <strong>in</strong>to account the<br />
potentially synergistic nature of policies and recognize that policies must be considered <strong>in</strong> terms of<br />
the way they <strong>in</strong>teract, not discretely. Economic performance and efficiency do not come exclusively<br />
from cutt<strong>in</strong>g costs but rather expand<strong>in</strong>g <strong><strong>in</strong>vestment</strong>s (Andersson, 2005). For <strong>in</strong>stance, if <strong>social</strong> risks<br />
entail associated costs and <strong>social</strong> <strong><strong>in</strong>vestment</strong>s are synergistic, perhaps this argues aga<strong>in</strong>st selective<br />
assistance to those <strong>in</strong> need and <strong>in</strong> favor of prevent<strong>in</strong>g need. Further, rather than argu<strong>in</strong>g aga<strong>in</strong>st<br />
entitlements on the basis that they simply reflect passive consumption, it may be that this short-term<br />
consumption also reflects a long-term <strong><strong>in</strong>vestment</strong>. A policy-relevant <strong>in</strong>terpretation of <strong>welfare</strong><br />
<strong>developmental</strong>ism suggests that the economic and <strong>social</strong> are often fundamentally related <strong>in</strong> the same<br />
policy, expenditures, and benefits of various sorts are not <strong>in</strong>herently at odds with <strong>social</strong> <strong><strong>in</strong>vestment</strong>,<br />
and <strong>developmental</strong>ist policy is <strong>in</strong>teractive and synergistic. What does this view of <strong>welfare</strong><br />
<strong>developmental</strong>ism suggest about the nature and beneficiaries of <strong>developmental</strong>ist policies?<br />
Midgley (1999) offers examples of what productive <strong>social</strong> development programs should focus on,<br />
<strong>in</strong>clud<strong>in</strong>g cost effectiveness, human capital <strong><strong>in</strong>vestment</strong>s, <strong>social</strong> capital formation, <strong>in</strong>dividual and<br />
community assets, economic participation through productive employment and self-employment,<br />
removal of barriers to economic participation, and the creation of a <strong>social</strong> climate conducive to<br />
development (e.g., Midgley, 2001; Midgley, 2003a; Midgley & Tang, 2001). Related work is<br />
suggestive of when and for whom <strong>social</strong> policies should be focused. It may be especially important to<br />
target benefits to key groups of people at critical periods of time. For example, Esp<strong>in</strong>g-Andersen<br />
(2002, 2005) identifies three vulnerable groups: (1) children and their families, (2) those <strong>in</strong> the midst<br />
of work life, who may experience tensions between family life and paid work, and (3) the elderly.<br />
Relatedly, new and stochastic risks complicate traditional actuarial <strong>in</strong>surance (Esp<strong>in</strong>g-Andersen,<br />
2000b; Hacker, 2008; Newman, 2008; Taylor-Gooby, 2004; Vandecasteele, 2011). 33 F<strong>in</strong>ally, with<br />
respect to how <strong><strong>in</strong>vestment</strong>s should be made, Gough (2000, 2001b) suggests that there are tradeoffs<br />
and constra<strong>in</strong>ts <strong>in</strong>volved <strong>in</strong> <strong>welfare</strong> <strong>state</strong> effort and effects and contends, for example, that programs<br />
need to be directed at improv<strong>in</strong>g the supply of capital and/or labor rather than merely provid<strong>in</strong>g<br />
resources to some <strong>in</strong> need.<br />
Based on the revised view of <strong>social</strong> development adapted from Midgley, the central premise of<br />
Myrdal‘s unified socioeconomic plann<strong>in</strong>g approach, and <strong>in</strong>sights from the <strong>welfare</strong> statist/<strong>social</strong><br />
adm<strong>in</strong>istration approach, I propose several policy-relevant <strong>developmental</strong>ist pr<strong>in</strong>ciples that are<br />
suggestive of the type of <strong>social</strong> policies that are likely to yield both productive and protective<br />
outcomes. While these pr<strong>in</strong>ciples rema<strong>in</strong> somewhat vague at this stage of theoretical development,<br />
their implications become more precise when applied to th<strong>in</strong>k<strong>in</strong>g about major <strong>social</strong> policy<br />
categories <strong>in</strong> developed <strong>welfare</strong> <strong>state</strong>s. These pr<strong>in</strong>ciples <strong>in</strong>clude the follow<strong>in</strong>g:<br />
33 In particular, <strong>in</strong>tergenerational risks (i.e., risks transmitted from parents to children) are difficult to deal with. Esp<strong>in</strong>g-<br />
Andersen (2000b, p. 4) writes: ―In conventional <strong>social</strong> policy thought, unpredictable and stochastic risks have been<br />
relegated to (often ad hoc) <strong>social</strong> assistance programmes. The sharp rise <strong>in</strong> <strong>social</strong> assistance caseloads almost everywhere<br />
<strong>in</strong> developed countries mirrors the decl<strong>in</strong><strong>in</strong>g efficacy of the conventional <strong>in</strong>surance approach.‖ He adds that the risk<br />
view tends to <strong>in</strong>dividualize <strong>welfare</strong> issues, as opposed to recogniz<strong>in</strong>g <strong>welfare</strong> <strong>in</strong>terplays. The Cross-National Research on<br />
the Intergenerational Transmission of Advantage (CRITA) project is one attempt be<strong>in</strong>g led by Tim Smeed<strong>in</strong>g to explore<br />
the issue.<br />
C E N T E R F O R S O C I A L D E V E L O P M E N T<br />
W A S H I N G T O N U N I V E R S I T Y I N S T . L O U I S<br />
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