Can the Welfare State Compete? A Comparative Study of Five Advanced
The authors examine how the USA, Great Britain, France, Sweden and Germany have responded to the increasing challenge of international competition since the mid-1970s. Apart from in Sweden, the pursuit of competitiveness has undermined economic and social
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Also by Ian Gough and published by Macmillan THE POLITICAL ECONOMY OF THE WELFARE STATE
Can the Welfare State Contpete? A Comparative Study of Five Advanced Capitalist Countries
Edited by
Alfred Pfaller Friedrich Ebert Foundation, Bonn
and
Ian Gough Senior Lecturer in Social Policy University of Manchester
and
Goran Therborn Professor of Sociology at Goteborg University
M
MACMILLAN
© Alfred Pfaller, Ian Gough and Göran Therborn 1991 Softcover reprint of the hardcover 1st edition 1991 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London W1P 9HE. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. First published 1991 by THE MACMILLAN PRESS LTD Houndmills, Basingstoke, Hampshire RG21 2XS and London Companies and representatives throughout the world ISBN 978-1-349-10718-6 ISBN 978-1-349-10716-2 (eBook) DOI 10.1007/978-1-349-10716-2 A catalogue record for this book is available from the British Library. Reprinted 1993, 1994
Contents List of Tables
vi
List of Figures
viii
Preface
X
1 The Issue Alfred Pfaller, with Ian Gough and Goran Therborn
1
2 The Competitiveness of Industrialised Welfare States: A Cross-country Survey Alfred Pfaller, with Ian Gough
15
3 The United States
45
Alfred Pfaller
4 The United Kingdom
101
5 France
153
Ian Gough
Xavier Greffe
6
The Federal Republic of Germany Michael Kruger and Alfred Pfaller
187 229
7 Sweden
Goran Therborn
8 Welfare Statism and International Competition:
The Lesson of the Case Studies Alfred Pfaller, with Ian Gough and Goran Therborn
271
Notes
299
Bibliography
311
Index
333
v
List of Tables 2.1 3.1 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 5.1 5.2 5.3 5.4 5.5 5.6 6.1 6.2 6.3 6.4
Synthetic index of welfare statism for 16 OECD countries, 1979-83 Selected OECD countries' shares of exports in R&D intensive manufacturing, 197{}-84 (%) UK: output, employment and productivity Manufacturing industry in four countries, 1979-87 UK: balance of payments, 1973-88 (% of GDP) UK: indices of cost competitiveness in trade in manufactures, 1973-88 R&D expenditure in five countries UK: public expenditure and taxation, 1975-87 UK car industry: selected statistics UK: telecommunications industry: selected statistics UK: employment and unemployment, 1979, 1983 and1987 UK: social expenditure, 1973-87 UK: income distribution and redistribution, 1976, 1979 and 1984 France: external and domestic competitiveness: main indicators, 1979-86 (1979 = 100) France: main results of foreign exchange, 1980-6 (billion French francs) France: export/import ratios, 1977-86 Comparative levels