CEU Electronic Theses and Dissertations, 2024
| Author | Comelli, Martino |
|---|---|
| Title | Four articles on the Political Economy of the Welfare State |
| Summary | Taken together, these four articles examine the impact of social policies on economic dynamics, focusing on how social spending is not only about redistribution, but also influences demand, reorganizes production, affects market outcomes and the financial sector - suggesting a broader role for welfare in current political economy debates. The first two articles argue that comprehensive welfare systems like those in the Nordic countries may inadvertently lead to higher levels of personal debt. Universalist welfare systems provide a sense of financial security that encourages individuals to take on significant long-term financial commitments, such as mortgages. This finding challenges the conventional wisdom linking personal debt to reductions in welfare spending. Instead, it shows that expansive welfare provision can be a catalyst for greater private borrowing. The second article enriches this argument with a case study of Italy, showing how the country's specific welfare orientation-characterized by non-inclusive, pension-focused spending-encourages financial conservatism among citizens, thereby limiting personal debt. This case study highlights the relationship between the extent of welfare coverage and its impact on household financial behavior and shows how welfare orientation can shape financial outlooks and behaviors, ultimately influencing national debt patterns. The third article shifts the lens to examine the interplay between welfare spending and capital controls, finding that welfare policies have a significant impact on financial regulations. It shows that countries with generous welfare systems tend to have more liberalized capital control regimes, suggesting a symbiotic relationship between welfare policies and economic openness. This analysis extends the discourse on capital controls by positioning welfare policies as crucial determinants of a country's financial regulatory approach. The fourth article examines the persistence of conservative welfare models in Europe, with a particular focus on the impact of European integration and Christian democratic values. It argues that these influences have pushed Central and Eastern European countries toward a conservative welfare paradigm that emphasizes employment-based entitlements. This exploration of the ideological undercurrents of welfare policy in the European Union reveals the complex interplay of political, social, and economic factors that shape the welfare systems of CEE countries. |
| Supervisor | Bruszt, László |
| Department | Political Science PhD |
| Full text | https://www.etd.ceu.edu/2024/comelli_martino.pdf |
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