A Comparison of Welfare Regimes (Germany UK and Sweden )

A comparison of welfare regimes (Germany UK Sweden)

By Bünyamin Güler

CONTENT   

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What is welfare ? Esping Andersen analysis Welfare regime in Germany (History Goals and problems) Welfare regime in U.K (…) Welfare regime in Sweden(…) Comparison’s and graphs Conclusion Discussion

What is Welfare ? A

social welfare provision refers to any program which seeks to provide a minimum level of income, service or other support for many marginalized groups such as the poor, elderly, and disabled people. Social welfare programs are undertaken by governments as well as non-governmental organizations (NGO's). Social welfare payments and services are typically provided at the expense of taxpayers generally, funded by benefactors, or by compulsory enrollment of the poor themselves. Sources :R.M. Blank (2001). "Welfare Programs, Economics of," International Encyclopedia of the Social & Behavioral Sciences

What is welfare ?   

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Examples of social welfare services include the following: Compulsory pension savings programs. Compulsory social insurance programs, often based on income, to pay for the social welfare service being provided. Pensions or other financial aid, including social security and tax relief, to those with low incomes or inability to meet basic living costs, especially those who are raising children, elderly, unemployed, injured, sick or disabled. Free or low cost nursing, doctor medical and hospital care for those who are sick, injured or unable to care for themselves Sources :http://en.wikipedia.org/wiki/Social_welfare (19.02.2009)

What is welfare ? 



Welfare money paid to persons, from a government, who are in need of financial assistance but who are unable to work for pay. Free or low cost public education for all children, and financial aid, sometimes as a scholarship or pension, sometimes in the form of a suspensory loan, to students attending academic institutions or undertaking vocational training.

Sources :http://en.wikipedia.org/wiki/Social_welfare

Gøsta Esping-Andersen’s analysis Gøsta Esping-Andersen (born 1947) is a Danish sociologist and author of many books on the subject. His primary focus in the field is on the welfare state and its place in capitalist economies. EspingAndersen is a professor at Pompeu Fabra University in Barcelona and member of the Scientific Committee of the Juan March Institute(Madrid).

Sources. http://www.ucc.ie/social_policy/notes_welfare%20regimes1.htm (13.02.2009)

Gøsta Esping-Andersen’s analysis

Sources. http://www.ucc.ie/social_policy/notes_welfare%20regimes1.htm (13.02.2009)

Describing welfare states  Three   

types pf welfare states Liberal Social democratic Conservative

Liberal welfare states  Market-based

social security schemes  Private schemes  Means-testing  Limited benefits  ‘A blend of a relative equality of poverty among state-welfare recipients, market differentiated welfare among the majorities.’ (Esping Anderson)  Examples: USA, UK

Social-Democratic welfare states  Universalism

and equality  Redistribution of wealth  High benefits  State organized childcare  Encourage women to work  Examples: Scandinavian countries

Conservative welfare state  Maintain

the differences between social

classes.  No distribution of wealth.  Traditional role models are protected.  Examples: Germany

Welfare in Germany (History)      

1883 Workers’ health insurance 1884 Industrial accident insurance 1889 Invalidity and old-age insurance 1911 Reich insurance system extended to civil servants / white-collar workers 1927 Unemployment insurance Characteristics:  Contribution financed, not tax financed, no pay-as-you-go  Contributions shared: 50% paid by employer, 50% by employee  Widely supported by middle class Sources: http://www.pitt.edu/~heinisch/ca_germ.html (14.02.2009)

Welfare in Germany  Unemployment

insurance  Health care insurance  Pension insurance  Long-term care insurance  Social

assistance

Welfare in Germany (Problems) 

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Capital flight is a problem as German companies increasingly invest abroad. Germany's cash-transfer/benefit social system has the added disadvantage that German recipients can consume these benefits abroad (e.g., retired Germans living in Spain). Germany's chief problem is that its reliance on contributions, especially for pension and unemployment, coupled with unfavorable demographics (aging population) and persisted high unemployment makes it increasingly difficult to finance the system. Mandated by European Union rules and fiscal prudence, the government can no longer as easily service these social security deficits through government transfers from the budget as in the past. Sources: http://www.pitt.edu/~heinisch/ca_germ.html (14.02.2009)

Welfare in UK 

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The United Kingdom's current welfare system began to take shape after World War II and has continued to change for the following thirty years. Welfare benefits in the U.K. include five separate groups of services, which are cash benefits, health care, education, housing, and the personal social services. The most widely used form in the U.K. are cash benefits that make up around 10% of the Gross Domestic Product (GDP). Health care is the second major part of the U.K.‘ s welfare system. It is organized through the National Health Service (NHS) and financed by taxes. Education is available to all school age children through the ages of five to sixteen. Yet, as children reach the age of sixteen, fewer lower class children move on to further their education and move, instead, directly into the work force.

Sources: http://www.pitt.edu/~heinisch/ca_brit.html (14.02.2009)

Welfare in U.K (Problems) 

As in most other western countries, the aging of the population is one of the biggest challenges for the welfare state in the U.K.

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Problem in the U.K. have been the low benefit levels. For example, pension benefits are less than half of a person's active salary.

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Another very important issue affecting social policy is the level of unemployment.


Welfare in Sweden  

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The welfare state in Sweden was established in the 1930s It is usually categorized as a mean way between a capitalist economy and a socialist economy. Some have referred to it as the most developed form of capitalism. Health care and social welfare services are regarded as very important parts of the total Swedish welfare system. Both are seen as public sector responsibilities, which are supported by a national social insurance system. If a person is ill, or must stay home to care for sick children, he/she receives a taxable daily allowance, 65-90% of lost income, depending on the length of the absence.


Welfare in Sweden 

When a child is born, the parents are legally entitled to a total of twelve months paid leave from work, which can be shared between them and used any time before the child's 8th birthday. They also receive a tax-free child allowance, equal for everyone, until the child's 16th birthday.

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A basic old-age pension, financed by both employees and employers, is payable to everyone from the age of 65. The State also pays an income-related supplementary pension financed from employer payroll fees

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Nine years of schooling are compulsory for all children from the age of 6 or 7. Over 90% go on to the upper secondary school, which offers both vocational and academic courses. Schools are run by municipalities and provide free instruction, books and lunches. Sources: http://www.pitt.edu/~heinisch/ca_brit.html (14.02.2009)

Graph’ s and Comparison

Sources:http://www.uarctic.org/Paper_by_Douglas_Durst_WYU7L.pdf.file (19.02.2009)







Discussion  Does

population have any effect on welfare? And What would happen when Germany changes welfare system to social democratic ? (Would it be better or worse ?)

References R.M. Blank (2001). "Welfare Programs, Economics of," International Encyclopedia of the Social & Behavioral Sciences http://en.wikipedia.org/wiki/Social_welfare http://www.ucc.ie/social_policy/notes_welfare%20regimes1.htm http://www.pitt.edu/~heinisch/ca_germ.html http://www.uarctic.org/Paper_by_Douglas_Durst_WYU7L.pdf.file

Gracias por su atención

A Comparison of Welfare Regimes (Germany UK and Sweden )

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