The Challenges Posed to Welfare States by Globalization

Abstract

When the debate on globalization started in the early 1990s, the dominant assumption was that globalization was a shocking new phenomenon. Moreover, this new development was seen as an attempt to undermine the sovereignty and economic functions of the nation state, hence undermining the fundamental basis of the welfare state. According to this perspective, the welfare state was expected to collapse as a result of economic constraints. Some influential publications promoted the idea that countries would find themselves captured in a global trap. At least in the field of social sciences, this thesis was interpreted differently: the weakening of the nation state by globalization was considered a myth that served as an excuse for cutting government budgets. Since then, the social sciences have developed an approach to globalization as a long-term trend within the capitalistic framework, driven by economic and political developments and dependent on pre-existing social conditions.