I’m very happy to see the new edited volume by Dennie Oude Nijhuis, Business Interests and the Development of the Modern Welfare State, is coming out in July 2019. The volume offers “a synthesis on the question of business attitudes towards and its influence over the development of the modern welfare state.” Chapters consist of both historical country case studies and comparative chapters with country focus on Germany, Finland, the Netherlands, Switzerland, the United Kingdom and the United States. Policy aras covered include active labor market policies, educational policies, employment protection legislation, healthcare, private pension programs, and work‐family policies.
My own chapter in this volume explores how the financialization of the political economy during the last quarter of the 20th century has influenced business preferences for occupational pensions. I argue that capital funding has important ramifications for business preferences towards occupational pensions. With capital funding, the extent to which these plans can protect against the social risks associated with old age has become partially dependent on the financial risks stemming from capital funding. Financialization thus turns an influential argument in the business interests scholarship on its head, namely that, depending on size and industry, employers might be willing to incur higher risks to gain more control over social welfare provisions: as financialization reduces the possibilities for control over occupational pension provisions, employers will be more likely to adopt political preferences aimed at risk reduction. My argument builds on a comparative case study of business groups in the United States and the Netherlands.
Photo credit: Klearchos Kapoutsis
Together with Daniel Mertens, I am co-organizing one of the panels at the 2019 ECPR General Conference in Section 11: Changing Political Economies and Welfare States. Our panel aims to analyze comparatively how the welfare state and the financial system are mutually intertwined, adopting a broader conception of finance which includes not just financial actors and their interest organizations, but also financial ideas and narratives.
From the CFP: “Scholars of the welfare state have shown how traditional welfare arrangements are challenged by new kinds of risks that have emerged in the late twentieth century. Among these risks is the process of financialization. It refers to the growing influence of financial markets and financial actors over the productive economy and over society at large, affecting the welfare state in several ways. For instance, welfare provisions may rely on financial market investment for funding while financial arrangements have also been touted as alternative sources of welfare (e.g. through asset-based welfare) and governments have developed new financial activities in order to maintain current welfare provisions. Furthermore, several indirect effects of financialization affect the sustainability of mature welfare states, such as growing indebtedness and social-economic inequalities.
Against this background, the panel has two aims: First, it hopes to reintegrate scholarship on welfare and finance to come to a better understanding of how the welfare state and the financial system are mutually intertwined, both historically and comparatively. Furthermore, we hope to approach the panel theme using a broader conception of finance: to include not just financial actors and their interest organizations, but also financial ideas and narratives, norms and practices that interact at different scales of the modern polity.”
Check out the CFP here!