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Globalization and the Decline of the Welfare State in Less-Developed Countries

  • Rudra, Nita
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    Is the welfare state withering away, or will it survive currentglobalization trends? Recent literature framing this academic debatehas extolled the resilience of this institution, despite the pressuresof international market integration. These studies have reverseddoomsday scenarios from the 1980s and 1990s that contemplated theultimate demise of the welfare state. Yet trends in welfare spending indeveloped and developing countries have diverged. During the pastquarter century, globalization penetrated both groups. However, whilethe more developed countries were expanding resources devoted to thisform of safety net, the average share of gross domestic product (GDP)allocated in a sample of fty-three less-developed countries (LDCs)began much lower and fell lower still (see Figure 1). My analysis goesbeyond existing studies by providing an original model of thedeterminants of welfare spending in LDCs. I focus on how globalizationcan affect rich and poor countries differently and present a model thatincludes a new measure of labor strength.

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    File URL: http://journals.cambridge.org/abstract_S0020818302441756
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    Article provided by Cambridge University Press in its journal International Organization.

    Volume (Year): 56 (2002)
    Issue (Month): 02 (March)
    Pages: 411-445

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    Handle: RePEc:cup:intorg:v:56:y:2002:i:02:p:411-445_44
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