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KMID : 1124020040200030001
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Korean Social Security Studies
2004 Volume.20 No. 3 p.1 ~ p.25
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The Developmental Relation between Economic Globalization and National Welfare Policy
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Choi Sung-Ho
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Abstract
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The relation between national welfare policy and the economic globalization is not an oppositional but a complementary one. Welfare policy is certainly necessary because it relaxes the economic pressure of globalization and because it can regulate the danger of increasing competition. This article investigates welfare states` changes in response to economic globalization as follows. First, there are four types of social payment structures, i.e., `a type of wage-labour centered on a high level`, `a type of wage-labour centered on a low level,` `a universalistic type focused on a high level`, and `a universalistic type focused on a low level`(Vobruba, 1997). A real existing welfare state has a policy dominated by one of the four types and composed of various mixtures of social payments. Second, it shows two types of policies, i.e., for the reduction of unemployment, in general, there are two sorts of employment policy, the Anglo-American labor-market-flexibility strategy and the continental European social-consensus model. In conclusion, this paper argues that the changing policies of welfare states must not be interpreted as a decline of the welfare state but as a readjustment of social expenditure. For a nation state desiring a global strategy that aims not only at the reinforcement of competition in the process of globalization but also at social integration by its welfare policy, such a strategy may be determined by a national project dealing not only with economic functions but also with economic conditions, structures of the labor market, social tradition, and its own developmental path, among other things.
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KEYWORD
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economic globalization, national social policy, welfare expenditure, labor market flexibility, active labor market policy
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