The Political Economy of Twenty-First Century Welfare Capitalism

Around the world, political economies are in flux. Covid-19 continues to leave its mark on our economies and our societies. In many countries, policymakers and citizens accustomed to low inflation and interest rates are adjusting to new macro-economic circumstances. Climate change, of low salience for some but urgently in the foreground for others, is raising questions about the sustainability of post-war models of welfare capitalism. Welfare states must address new challenges of digitalisation while still adapting to patterns of risk associated with the knowledge economy. This Section explores welfare state politics in these turbulent times. We take a broad view of the welfare state, encompassing its redistributive and insurance functions, and public and private arrangements for managing risks. Some Papers will examine long-established features of post-industrial welfare states such as pensions and unemployment benefits. Others will look beyond these institutions to consider, inter alia, the roles of social investment, taxation, and private debt. Section Chairs seek Papers providing empirically supported explanations for welfare state variation and change, and we welcome both qualitative and quantitative work. We also welcome Papers that aim more explicitly to theorise, describe, critique or interpret welfare state politics. In exploring welfare state politics, the Panels in this Section will unpack the actions and attitudes of citizens, the behaviour of political parties, as well as the role of interest groups, policymakers, and experts. Acknowledging the biases of our field, we particularly welcome Papers that look beyond rich-country contexts to analyse welfare state politics in low and middle-income countries. Proposed Panels 1. The changing politics of welfare capitalism The twenty-first century has seen the emergence of new political cleavages, highly relevant for the study of welfare capitalism. Building on recent work in party politics and political behaviour, this Panel aims to contribute to ongoing debates about welfare populism, welfare chauvinism, and the ‘Brahmin’ left. We welcome Papers that analyse how these phenomena are shaping welfare politics, as well as Papers seeking to advance institutionalist scholarship by examining how such political forces are themselves shaped by contemporary trends in welfare capitalism (e.g. social investment, financialization, and dualization). 2. The political economy of welfare states in low and middle-income countries The pandemic and the subsequent crises of our political and economic systems impact low and middle-income countries in a particular way. The tools implemented to address old and new social risks are mainly based on the expansion of social assistance schemes. In some countries, social protection schemes have evolved into dual and segmented systems. The purpose of this Panel is to examine the social, economic, and political changes taking place in low and middle-income countries that are affecting their welfare states in the post-pandemic world. What type of social policy tools have been extended or created recently? Have welfare policy reforms been institutionalized? What is the role of local and transnational stakeholders in promoting welfare reforms? These and other issues around the political economy of welfare states in the Global South will be addressed in this Panel. Theoretical and empirical Papers are welcome. 3. Welfare states and climate change Climate change is raising questions about the sustainability of welfare capitalism in the 21st century. How has welfare capitalism contributed to climate change? How are welfare states adapting to the new social and economic risks associated with climate change? How, indeed, ought they to adapt? And what are the political prospects for such adaptation? This Panel welcomes Papers that grapple with difficult questions about the relationship between welfare states and economic growth, the politics of inter-temporal redistribution, and the politics of solidarity across countries in the face of climate change. 4. Social insurance and social solidarity in the internet age Before yet having adapted to patterns of risk associated with the knowledge economy, welfare states must address new challenges associated with digitalisation. Labour markets are changing rapidly, and new social risks are emerging as a result. Tax systems face distinct pressures in highly digitalised economies, and ‘big data’ is affecting insurance markets in ways that may threaten existing patterns of social solidarity. In this Panel, we explore the welfare state politics of the internet age. The Panel seeks Papers identifying distributional challenges resulting from digitalisation, analysing the ensuing political conflicts, and examining how existing labour markets and welfare states are being reshaped by these developments. 5. The comparative politics of inflation management in the new age of stagflation Disruption to global supply chains and Russia’s invasion of Ukraine have pushed up energy and food prices to levels unseen since the 1970s, leading central banks to tighten monetary policy and governments to embark on compensatory social and economic policies. The institutional and political context for managing inflation has, however, changed substantially since the last time Europe experienced a comparable inflation surge. The capacity of unions and employers to moderate wages through collective bargaining has been eroded, monetary policies in the EMU are now beyond the control of national governments, and decades of labour market deregulation have weakened workers’ bargaining power. How does this shape the contemporary politics of inflation management? This Panel analyses comparative responses to the common inflation shock in Europe, covering developments across Northern, Continental and Southern Europe. Papers will focus on collective bargaining developments and/or government policies to address the inflation crisis, interrogating the ideational, political and institutional dynamics shaping them.