Tag Archives: social insurance

Why do we need a Fiscal Centred Perspective on Welfare State Development?

michal koreh_daniel beland

By Michal Koreh (Assistant Professor, School of Social Work, University of Haifa) and Daniel Béland (Professor and Canada Research Chair in Public Policy, Johnson-Shoyama Graduate School of Public Policy)

This post was originally published in Discover Society on 5th July 2017.

Welfare state scholarship needs a fiscal centred perspective because focusing attention on the imperatives and interests related to the fiscal, revenue side of social programmes can shed new light on the historical and contemporary politics of social policy. This is particularly the case with programmes like social insurance that are directly involved in the extraction of revenues and that, in some countries, collect more revenues than personal income taxes.

In our recent Policy & Politics article titled ‘Reconsidering the Fiscal-Social Policy Nexus: The Case of Social Insurance’, we lay the foundations for such a fiscal-centred perspective. We bring together several bodies of theoretical literature situated beyond the conventional boundaries of welfare state research and combine their insights to suggest two interlocking claims. The first is that social insurance systems financed by payroll contributions can be used by state and non-state actors to advance their fiscal and economic goals beyond the financing of social benefits and services. The second claim is that, through mechanisms such as legitimacy production, institutional design, and coalition building, the design and management of social insurance contribution policies for such fiscal purposes can have substantial ramifications for the development of social programmes. Continue reading Why do we need a Fiscal Centred Perspective on Welfare State Development?