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The European Social Model: Lessons for Developing Countries

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  • Lindbeck, Assar

    (The Research Institute of Industrial Economics)

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.

Suggested Citation

  • Lindbeck, Assar, 2002. "The European Social Model: Lessons for Developing Countries," Working Paper Series 581, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0581
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    Cited by:

    1. Buttler, Friedrich & Schoof, Ulrich & Walwei, Ulrich, 2006. "The European Social Model and eastern enlargement," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 39(1), pages 97-122.
    2. Buttler, Friedrich & Schoof, Ulrich & Walwei, Ulrich, 2006. "The European Social Model and eastern enlargement," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 39(1), pages 97-122.
    3. Buttler, Friedrich & Schoof, Ulrich & Walwei, Ulrich, 2006. "The European Social Model and eastern enlargement," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 39(1), pages 97-122.

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    More about this item

    Keywords

    Welfare state; Social policy; Developing economies;
    All these keywords.

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General

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