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Federalism and the welfare state: The German case

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  • Manow, Philip

Abstract

The comparative welfare state research regularly highlights 'federalism' as a factor that has delayed welfare state development and sets clear 'limits to welfare state growth'. Yet, apparently German federalism goes together with one of the most generous welfare states of the world. This paper argues that federalism in Germany not only has not hindered strong welfare state expansion, but actually has contributed to it. The special variant of 'cooperative federalism' has blurred political and fiscal responsibilities, and the contribution financed Bismarckian welfare state has allowed the central government and the states to come to terms at the expense of a third party. A steady process of externalizing costs out of the public budgets and into the parafiscal budgets of the welfare state has been the result.

Suggested Citation

  • Manow, Philip, 2004. "Federalism and the welfare state: The German case," Working papers of the ZeS 08/2004, University of Bremen, Centre for Social Policy Research (ZeS).
  • Handle: RePEc:zbw:zeswps:082004
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    Cited by:

    1. Mattei, Paola, 2007. "The welfare state and new challenge from the back door," TranState Working Papers 65, University of Bremen, Collaborative Research Center 597: Transformations of the State.
    2. Obinger, Herbert & Leibfried, Stephan & Castles, Francis G., 2005. "Prospects for a European welfare state: Lessons from welfare state development in six OECD-Federations," TranState Working Papers 16, University of Bremen, Collaborative Research Center 597: Transformations of the State.

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