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The European Social Model: Lessons for Developing Countries

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  • Lindbeck, Assar

    ()
    (Institute for International Economic Studies, Stockholm University)

Abstract

Developing countries, in particular the least developed ones, probably have more to learn from social policies in Europe during the early 20th century than from the elaborate welfare-state arrangements after World War II. In addition to macroeconomic growth and stability, the main ambitions must be to fight human deprivation, including illiteracy, malnutrition, poor access to water and sanitation – and, in some cases, also weak, incompetent and/or corrupt governments. It is also important that informal systems in the fields of transfers and social services are not destroyed when developing countries embark on more formal systems in these fields in the future. The European experience also warns against the creation of social systems that are so generous that disincentives, moral hazard and receding social norms seriously distort the national economy, including the labor market.

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Bibliographic Info

Paper provided by Stockholm University, Institute for International Economic Studies in its series Seminar Papers with number 714.

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Length: 18 pages
Date of creation: 24 May 2002
Date of revision:
Handle: RePEc:hhs:iiessp:0714

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Keywords: Welfare state; social policy; developing economies;

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  1. Kjetil Storesletten & Chris Telmer & Amir Yaron, 1996. "Asset pricing with idiosyncratic risk and overlapping generations," Economics Working Papers 405, Department of Economics and Business, Universitat Pompeu Fabra, revised Jul 1999.
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  19. repec:fth:iniesr:466 is not listed on IDEAS
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