Globalization and Welfare States
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Questions and Answers

What global phenomenon is the yellow vest movement associated with?

Globalization

The yellow vest protesters are considered the 'losers of _____.'

globalization

Match the following characteristics with their descriptions:

Economic Alienation = Feeling disconnected from economic opportunities Political Alienation = Feeling unrepresented by mainstream political parties Class Divide = Disparity between different socioeconomic groups Urban/Rural Divide = Tensions between city and country populations

What is one of the main advantages of communism?

<p>Equality (A)</p> Signup and view all the answers

Market transition theory suggests that economic success is prioritized over political loyalty.

<p>True (A)</p> Signup and view all the answers

According to the power conversion thesis, individuals in high political positions can convert their political power into __________.

<p>economic power</p> Signup and view all the answers

Which of the following is a predicted outcome of transitioning to a market economy in China?

<p>Growth of the middle class (C)</p> Signup and view all the answers

Match the theorist to their respective theory or concept.

<p>Victor Nee = Market transition theory Walder = Power conversion thesis</p> Signup and view all the answers

Stratification under communism primarily depends on the family background of individuals.

<p>False (B)</p> Signup and view all the answers

What leads to increased efficiency and innovation in an economy, according to the content?

<p>Market signals such as competition and consumer behavior</p> Signup and view all the answers

Which dimension of welfare regimes indicates the level of income inequality?

<p>Inequality (D)</p> Signup and view all the answers

Welfare regimes with a universal selectivity dimension are typically more supportive of policies directed at the poor and the unemployed.

<p>True (A)</p> Signup and view all the answers

What are the three criteria of deservingness mentioned in relation to welfare regimes?

<p>Deviance, need, and control</p> Signup and view all the answers

The Scandinavian welfare states aim to reduce market __________.

<p>inequality</p> Signup and view all the answers

Match the welfare regime type with its characteristics:

<p>Social-democratic = Highest solidarity and tolerance Conservative = Moderate support for policies directed at the poor Liberal = Least supportive of poor and unemployed Scandinavian = Focus on reducing market inequality</p> Signup and view all the answers

Which welfare regime is expected to show the highest levels of solidarity among majority populations?

<p>Social-democratic (C)</p> Signup and view all the answers

In liberal welfare regimes, majority populations tend to view immigrants as less deviant.

<p>False (B)</p> Signup and view all the answers

What does the labor market trajectory dimension refer to in welfare regimes?

<p>Opportunities for low-skilled employment</p> Signup and view all the answers

What is a significant factor in the decline of global inequality after 2002?

<p>Economic growth in China and India (D)</p> Signup and view all the answers

Inequality was at its highest between 1950 and 2000.

<p>True (A)</p> Signup and view all the answers

What are the three phases of global inequality?

<p>Phase I: Industrial Revolution to 1950; Phase II: 1950-2000; Phase III: 2000-Present</p> Signup and view all the answers

After 1980, rich countries grew ______ faster than poor countries.

<p>on average</p> Signup and view all the answers

Match the country or region with its inequality characteristics:

<p>Sweden = Very low index of inequality Brazil = Exemplary of excessive inequality China = Rapid growth and population size United States = Higher inequality than global average</p> Signup and view all the answers

What does 'true' global inequality account for?

<p>Actual incomes adjusted for price levels (A)</p> Signup and view all the answers

The world population income distribution is a smooth process.

<p>False (B)</p> Signup and view all the answers

What roles do China and India play in global economic trends?

<p>They are pivotal due to their large populations and rapid economic growth.</p> Signup and view all the answers

Which of the following is not one of the four traps that keep a country poor?

<p>Technological Trap (C)</p> Signup and view all the answers

Core countries are characterized by their wealth and dominance in global trade.

<p>True (A)</p> Signup and view all the answers

What is the main consequence of the Natural Resource Trap?

<p>Poor economic management and corruption due to over-reliance on natural resources.</p> Signup and view all the answers

Countries without access to the sea can face challenges in trade, which is referred to as the ______ Trap.

<p>Landlocked</p> Signup and view all the answers

Match the following types of countries with their descriptions:

<p>Core = Wealthy and developed nations dominating global trade Semi-Periphery = Developing nations with some economic influence Periphery = Poorer countries exporting raw materials</p> Signup and view all the answers

What does de jure globalization refer to?

<p>Policies and regulations related to globalization (A)</p> Signup and view all the answers

Globalization has been shown to decrease inequality within countries.

<p>False (B)</p> Signup and view all the answers

Name one benefit of globalization according to the studies reviewed by Potrafke.

<p>Positive impact on economic growth or improvement of human and women's rights.</p> Signup and view all the answers

What is the definition of risk?

<p>The probability of a dangerous event multiplied by the amount of expected damage connected to this event. (A)</p> Signup and view all the answers

High risk always means high vulnerability.

<p>False (B)</p> Signup and view all the answers

What are social risks primarily a result of?

<p>System failures or social constructs.</p> Signup and view all the answers

Before industrial capitalism, welfare was primarily provided by _____ and _____ instead of the state.

<p>families; communities</p> Signup and view all the answers

Match the following components of the welfare state with their descriptions.

<p>Social risk = Risk produced by the system Welfare capitalism = Synergy between social policy and economic growth Friendly societies = Private self-help and unions formed by industrial workers Disability and old-age insurance = Programs developed after WWI for male breadwinners</p> Signup and view all the answers

Which of the following is an effect of industrial capitalism?

<p>Concentration of urban poverty and low wages (D)</p> Signup and view all the answers

Social insurance programs were initially developed to support single mothers.

<p>False (B)</p> Signup and view all the answers

What did the term 'commodification of labor' refer to during the emergence of industrial capitalism?

<p>The transformation of labor into a market commodity.</p> Signup and view all the answers

Flashcards

Risk

The probability of a dangerous event occurring multiplied by the amount of expected damage connected to it. It represents something undesirable that could happen.

Vulnerability

The absence of resources to protect oneself from harm when something undesirable happens. It represents vulnerability to risk.

Social Risks

Risks that are rooted in social systems and structures, rather than individual choices or failures. These risks are often associated with poverty, unemployment, and inequality.

Welfare State

A system of social risk management that aims to protect individuals and families from economic hardship and vulnerability. It typically involves social insurance programs, welfare benefits, and public services.

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Informal Security Regime

The informal system of support and care provided by families and communities before the rise of industrial capitalism. It relied on personal relationships and shared responsibilities to address risks.

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Life-Course Risks

The emergence of new risks associated with the transition to industrial capitalism. These included risks related to wage labor, unemployment, sickness, and old age.

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From Informal to Formal Security Regime

The period in which the welfare state emerged as a response to industrial capitalism. It involved the shift from informal to formal systems of social security, with the government playing a central role in risk management.

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Welfare Capitalism

A system that emphasizes the synergy between social policies and economic growth. It promotes social programs aimed at improving the well-being of citizens, contributing to a more stable and productive economy.

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Four Traps Theory

Countries with potential for growth struggle to escape poverty due to four main traps: conflict, natural resources, landlocked location, and bad governance.

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Conflict Trap

Violence and instability disrupt economic activities, hindering development in countries affected by civil wars or conflicts.

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Natural Resource Trap

Countries with abundant natural resources may become overly reliant on them, leading to poor economic management and corruption, while hindering broader development.

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Landlocked Trap

Countries without access to the sea face difficulties trading goods, limiting their economic growth potential.

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Bad Governance Trap

Poor leadership and corruption can hinder economic progress since resources are not utilized effectively for the benefit of the population.

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World Systems Theory

This theory divides the world into core, semi-periphery, and periphery countries based on economic power and level of development.

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Core Countries

Wealthy, developed nations that dominate global trade and possess strong economies.

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Semi-Periphery Countries

These are developing nations with some influence and economic power, situated between core and periphery countries.

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Market Transition

The shift away from a centrally planned, communist economy towards a market-based system, as seen in China.

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Market Transition Theory (Nee)

This theory argues that economic success in a transitioning market is driven by individual talent, skill, and effort, rather than political connections.

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Economic Achievement Over Political Loyalty

The idea that individuals' economic achievement in transitioning markets often outweighs the importance of their political affiliations.

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Power Conversion Thesis (Walder)

This theory suggests that political power remains influential even after a market transition, with those who held power in the communist system converting it into economic power.

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Stratification

The process of creating distinct social classes based on wealth, income, and social status, which often arises in transitioning markets.

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Rise of a Middle Class

The emergence of a significant middle class in a society, typically associated with market transitions and economic growth.

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Social Mobility

The situation where individuals have more opportunities to improve their economic standing based on their skills and abilities, rather than their family background.

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Reduction in Poverty

The reduction in the number of people living in poverty, typically a result of economic growth and market transitions.

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Rising Inequality in Globalization's Early Stages

The gap between rich and poor countries widened significantly during the early years of globalization (around 1980). Richer nations experienced faster economic growth than poorer ones.

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Globalization's Impact on Global Inequality

During the globalization era, there was a trend towards greater income equality across the world, primarily driven by the rapid economic development of large, populous countries like China and India.

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Measuring Global Inequality

Global inequality is measured by considering individuals' actual incomes, not just average income per country. This accounts for the fact that some countries have a much larger population than others, influencing the overall distribution of wealth.

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Phase I: Industrial Revolution - 1950

The period before the Industrial Revolution saw little development and relatively stable income inequality. However, with the onset of the Industrial Revolution, income inequality skyrocketed, particularly due to the exploitation of colonial territories. This period is characterized by a growing divide between the West and the rest of the world.

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Phase II: 1950 - 2000

This phase (1950-2000) saw a surge in income inequality, reaching its peak. Inequality between countries widened due to the West's dominance, while inequality within countries started to decline as welfare states and education systems developed in Western nations.

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Phase III: 2000 Onwards

The current phase (2000 onwards) is characterized by a convergence of incomes globally, with decreasing inequality between nations and rising inequality within nations. This is attributed to the rapid economic growth of developing countries like China and India, which are driving down the gap between nations.

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Clusters of Income Distribution

The global distribution of income is not uniform. It tends to cluster into three distinct zones: low, middle, and high-income countries. This pattern is consistent with the world-systems theory, which suggests that countries can move between these zones, as illustrated by Japan's rise from a lower income category.

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Global Inequality vs. National Inequality

Global inequality is significantly higher than inequality in countries like Brazil, often considered an example of high inequality. It is almost twice as high as inequality in the United States, while Sweden enjoys a much lower inequality index.

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Yellow Vests: Alienation

The Yellow Vest movement highlights the economic and political alienation of certain groups, particularly feeling excluded from the benefits of globalization. They feel unrepresented by traditional political actors and struggle with economic hardship.

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Globalized Protest

The Yellow Vests movement spread rapidly and organically, fueled by social media and a shared sense of grievance. This demonstrates the impact of globalization in connecting individuals across borders and fostering collective action.

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Globalization: Winners & Losers

The Yellow Vests movement reflects a tension between the needs of different socioeconomic groups. Globalized economic policies can create winners and losers, leading to resentment and social unrest.

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Urban-Rural Divide

The Yellow Vests movement exposed a deep urban-rural divide, reflecting different experiences of economic globalization and political representation. It challenges the traditional power structures and highlights the need for more inclusive policies.

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Challenging the Status Quo

The Yellow Vests movement illustrates the impact of globalization on traditional power structures. It led to a rise of new actors challenging the established political and economic order, fueled by feelings of exclusion and disenfranchisement.

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Selectivity in Welfare Regimes

The extent to which a welfare state focuses on providing benefits to specific groups in need (means-tested), or provides universal benefits to all citizens.

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Inequality Dimension of Welfare Regimes

The degree to which a welfare regime aims to reduce income inequality between citizens.

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Labor Market Trajectory Dimension of Welfare Regimes

The extent to which a welfare regime provides opportunities for low-skilled workers to find and maintain employment.

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Deviance in Welfare Deservingness

The perception held by the majority population about whether immigrants are different from them, potentially leading to feelings of 'us vs. them'.

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Need in Welfare Deservingness

The perception held by the majority population about the level of need experienced by immigrants, influencing their willingness to support welfare assistance.

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Control in Welfare Deservingness

The perception held by the majority population about immigrants' ability to control their own employment situation, influencing attitudes towards welfare support.

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Welfare Chauvinism

The belief that immigrants are less deserving of welfare benefits than native citizens, leading to a rejection of policies that support them.

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Study Notes

Globalization and Welfare States

  • Risk: The probability of a dangerous event multiplied by the expected damage. Social risks include a lack of basic security, vulnerability to harm, and insecure circumstances. Socioeconomic factors like unemployment, sickness, and disability increase poverty risk.

Social Risks Before Industrial Capitalism

  • Risk was primarily an individual's responsibility. Families and communities provided welfare, with states playing a limited role.
  • Poor relief was often conditional and based on perceived deservingness.

Industrial Capitalism and Life-Course Risks

  • Industrialization created new risks like slum dwelling, low wages, and mass poverty. The informal welfare system collapsed, and social problems became recognized as system-produced rather than individual failures.
  • Collective responses emerged, like friendly societies (private self-help groups) and unions, leading towards welfare states.

Welfare Capitalism

  • Synergy between social policy and economic growth.
  • First regulations and centralization of friendly societies.
  • Social insurance programs like disability and old-age insurance.
  • National welfare provision (universalism).

Welfare State Variation

  • Contributory schemes: Funded by employee and employer contributions.
  • Non-contributory schemes: Funded by general taxes.
  • Liberal regimes: Low protection, individual, and low decommodification (reliance on private insurance). High poverty and inequality.
  • Conservative Corporatist regimes: Medium protection, high if employed, state and family. Inequality.
  • Social democratic regimes: Strong protection, state, and individual. High redistribution, low inequality.

Intergenerational Risks

  • Transmission of social risks due to inheritance (housing and education). Creates cycles of poverty and inequality

Globalization and Welfare States

  • Globalization causes increased interdependence and complex interactions globally.

Types of Risks

  • Life-course risks: Risks faced at different stages of life (work, parenthood).
  • Class risks: Unequal distribution of risks based on socioeconomic class. Stratification.

Globalization

  • What is: Transplanetary process with increased interconnectedness, flows of people, information, and objects.
  • Impact on welfare: Mixed effects (inequality, both within and between countries, displacement, etc.). Some argue it leads to greater divergence, while others indicate convergence over time.
  • Phases of globalization: Different phases reflect distinct trends - regulation, deregulation, and financial deregulation are three distinct phases.
  • Globalization index: Attempts to quantify globalization using indicators for trade, migration, political influence, etc.

Globalization and Inequality

  • Global inequality, measured as income inequality, has declined between countries.
  • But a rise in within-country inequality is apparent.

Globalization and Welfare State

  • Compensatory effect: Expansion of welfare state to address rising inequality.
  • Dualization: Distinctions between labor market insiders (benefiting from globalization) and outsiders (restrained by market flexibility).
  • Politicization: Social and political conflicts over resource allocation and globalization's impact rise.
  • The structure, or configuration of welfare states changes in the wake of globalization, reflecting a need for responses to address the challenges.

Welfare Chauvinism

  • The belief that welfare benefits should be restricted to nationals, not immigrants.

Welfare Regimes

  • Characteristics: differ in terms of selectivity (means-tested or universal), labor market trajectories, and inequality.
  • Social Democratic regimes: High generosity and equal access (e.g., Scandinavian countries).
  • Conservative Corporatist regimes: Strong worker protection and wage regulations (e.g., some Continental European countries).
  • Liberal Regimes: Active labor markets with less social protection (e.g., Anglo-Saxon countries)

Power Conversion

  • The political power of elites persists despite the transition to a market-oriented system.

Political Cleavages

  • Conflicts create deep divisions around social issues like economic inequality, and social groups react.

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Explore the evolution of social risks and welfare states from pre-industrial times to the rise of industrial capitalism. Understand how industrialization transformed individual responsibilities into collective responses, culminating in the development of welfare capitalism. Delve into the interplay between socioeconomic factors and the state's role in providing security.

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