Globalization and Welfarte States - Essay Example

As identified by Beveridge, W (1942, UK), five evils that were plaguing the society namely squalor, ignorance, want idleness and disease. He emphasized the formation of the welfare state as an antidote to these problems. He suggested a series of policy changes in order to give every citizen and equality of treatment, opportunity and out come. It is noteworthy to mention in this context the much successful model of the Swedish welfare state. The Swedish model is seen as an ideal welfare state as it firmly establishes the link between globalization and the welfare state.

The Swedish economy being one of the wealthiest European economies benefited hugely with the advent of globalization. As global trade barriers dropped post war, Sweden adopted globalization whole heartedly propelling it from one of the poorest nations in Europe to one of the richest economies in the world today. Sweden boosted its economy by taking advantage of the free currency convertibility and reduced trade barriers between nations. Social reform went hand in glove with new trade policy bringing about a system of institutional care for its citizens.

These changes increased both per capita and life expectancy among the Swedish, making Sweden a true egalitarian state. In simple words globalization of the Swedish economy helped generate adequate financial resource for the nation to successfully carry on its social welfare programs without the exchequer being burdened. The positive impact of globalization has been further elucidated by Schwartz. He spoke of social protection including regulatory arrangements in sectors such as telecommunication and transport.

He was convinced that some aspects of globalization do play a crucial role. He reviews a series of broad claims about the sources of pressure on the welfare state. Schwartz discussed that the effects of 3globalization are often maligned. He explained that globalization only had a modest impact on the functioning of the welfare state. (For further review:-Schwartz, H. Round up of Global Suspects: Globalization, Domestic Politics & Welfare State Changes).

The role of globalization as per this school of thought is seen to be quite minute compared to other factors. "Globalization effects are far smaller then the effects of domestic, political and economic factors". (Brady, D., Beckfield, J., Segleib-Kaiser, M. Report on:-Economic Globalization and the Welfare State in Affluent Democracy 1975-1998).The fact that globalization has an impact on the developed welfare state is unquestionable. However the extent to which globalization is affecting these countries, is not much compared to the influence of local political events.

Political changes in nations are definitely a more crucial factor than globalization for a welfare state. For example, in the case of East & West Germany, it was