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Heft36 1 - SFB 580 - Friedrich-Schiller-Universität Jena

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THE POLITICS OF LABOUR MARKET ADJUST-<br />

MENT IN POST-1989 POLAND<br />

because they facilitate the identification of a<br />

shift of welfare regime. The idea of ‘welfare<br />

regime’ entails a societal and socio-political<br />

embeddedness resulting from the politics of<br />

social policy in modern democratic welfare<br />

states. The concept is heavily contextualised,<br />

however. The development of the welfare state<br />

is closely linked to the rise of the industrial<br />

society in Western Europe when ‘its promise<br />

was not merely social policy to alleviate social<br />

ills and redistribute basic risks, but an effort to<br />

rewrite the social contract between government<br />

and the citizenry’ (Esping-Andersen 1999: 33).<br />

With a view to represent the limited crosscountry<br />

diversity of welfare capitalism, and<br />

building on an earlier distinction between the<br />

residual and the institutional welfare state by<br />

Titmuss (1958), Esping-Andersen (1990)<br />

identified ‘three worlds of welfare capitalism’.<br />

In a residual welfare state, the state assumes<br />

responsibility only when the family or the<br />

market fails; it seeks to limit commitments<br />

to marginal and deserving social groups.<br />

On the contrary, the institutional welfare<br />

state addresses the entire population, is<br />

universalistic and embodies an institutionalised<br />

commitment to welfare; therefore, in principle,<br />

it extends welfare commitments to all<br />

areas of distribution necessary for societal<br />

welfare. The divide between Bismarckian and<br />

Beveridgean systems is often used to contrast<br />

two fundamentally opposed ways of<br />

organising social protection: work-<br />

page 124 related entitlements based on statute<br />

that reproduce income differentials<br />

in the former, and universal flat-rate<br />

benefits that equalise income, especially upon<br />

retirement, in the latter (Arza 2006: 2). While<br />

several waves of reforms in many European<br />

countries from the 1990s onward have blurred<br />

these institutional differences, the two types of<br />

welfare systems remain useful as a cognitive<br />

and historical reference, including in the minds<br />

of contemporary actors. Besides, these regimes<br />

provide a conceptual framework for the analysis<br />

of other empirical cases.<br />

Situating Central and Eastern European<br />

welfare regimes with respect to these seminal<br />

categories is often problematic. On the one<br />

hand, some historical features of their welfare<br />

arrangements dating back to the interwar<br />

period were inspired by Bismarckian welfare<br />

states: Polish territories belonging to the<br />

German Empire inherited Bismarckian-type<br />

social insurance. On the other hand, eligibility<br />

and benefits became universal with socialistera<br />

full employment after 1945. Nevertheless,<br />

in the 1990s, the dependence of welfare rights<br />

upon employment or occupation was still<br />

reflected in the relatively high share of social<br />

expenditure financed through contributions.<br />

The most recent reforms, however, tended<br />

to mirror post-industrial welfare reforms<br />

in Western Europe and a liberal-oriented<br />

perspective emphasizing benefits targeting and<br />

social safety nets (Barr 1994 & 2005). Given<br />

generally poor achievements of the welfare<br />

state in the CEECs, social outcomes may<br />

instead resemble some observations made on<br />

Southern Europe (Ferrera 1996).<br />

The macro-typology is most useful when<br />

understood as a frame of reference of idealtypical<br />

configurations or a repertory of<br />

possible ways in which social protection<br />

may be organized (Palier 2005a), rather<br />

than a classification in which all empirical<br />

cases should fit. 3 One key assumption in the

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