Globalization and Welfare Compensation: Disentangling the Ties that Bind
AbstractThe relationship between economic openness and welfare policies inindustrialized countries has long been of interest to and increasinglydivides students of politics and economics. Several lines of researchonce suggested that greater openness poses economic risks that inspiredemands for welfare policies as compensation, such that openness andwelfare are mutually reinforcing, at least for some countries and times.With the ood of attention to globalization, however, thisconventional wisdom has given way to disagreement. Some scholars worrythat globalization has unleashed political and economic forces such asexit opportunities for investors that constrain the very compensationthat legitimates it. Others counter that openness still inspires demandsfor welfare while opening few incentives to abandon generous welfaresettings, because welfare can improve factor productivity, isinseparable from other investment attractions, or underlies corporatistbargains that buy labor peace. Still others suggest thatglobalization ssupposed positive and negative effects for welfare are overstated,because openness is less extensive and poses less risk than previouslybelieved or is dwarfed by the thicket of domestic politics surroundingwelfare states. All sides of this debate back their claims with an arrayof logic and evidence, both qualitative and increasingly carefulquantitative study.
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Bibliographic InfoArticle provided by Cambridge University Press in its journal International Organization.
Volume (Year): 55 (2001)
Issue (Month): 03 (June)
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