Development, Democracy, and Welfare States

Stephan Haggard, Univ. of California, San Diego
Robert R. Kaufman, Rutgers University
Princeton Univ. Press 2008
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Introduction [HTML] or [PDF format]

This is the first book to compare the distinctive welfare states of Latin America, East Asia, and Eastern Europe. Stephan Haggard and Robert Kaufman trace the historical origins of social policy in these regions to crucial political changes in the mid-twentieth century, and show how the legacies of these early choices are influencing welfare reform following democratization and globalization.

After World War II, communist regimes in Eastern Europe adopted wide-ranging socialist entitlements while conservative dictatorships in East Asia sharply limited social security but invested in education. In Latin America, where welfare systems were instituted earlier, unequal social-security systems favored formal sector workers and the middle class.

Haggard and Kaufman compare the different welfare paths of the countries in these regions following democratization and the move toward more open economies. Although these transformations generated pressure to reform existing welfare systems, economic performance and welfare legacies exerted a more profound influence. The authors show how exclusionary welfare systems and economic crisis in Latin America created incentives to adopt liberal social-policy reforms, while social entitlements from the communist era limited the scope of liberal reforms in the new democracies of Eastern Europe. In East Asia, high growth and permissive fiscal conditions provided opportunities to broaden social entitlements in the new democracies.

This book highlights the importance of placing the contemporary effects of democratization and globalization into a broader historical context.

Stephan Haggard is the Lawrence and Sallye Krause Professor of Korea-Pacific Studies at the University of California, San Diego. Robert R. Kaufman is professor of political science at Rutgers University.

Endorsements:

"While many authors cannot see beyond the borders of their own country, Haggard and Kaufman masterfully compare Latin America, East Asia, and East Europe from a global perspective. These two great scholars analyze urgent contemporary problems, the status and future fate of the welfare state, and the relationship of changes with the creation and development of democracy with remarkable expertise, precision, and human empathy."--János Kornai, professor emeritus, Harvard University and Collegium Budapest

"This ambitious book extends the theoretical framework of the literature on welfare states in the advanced capitalist countries, and situates the experience of these countries in a broader comparative context. Haggard and Kaufman bring out the multifaceted implications of development models and regime types for social policy. Their synthetic account is truly a tour de force and a testimony to the fruitfulness of cross-regional comparison."--Jonas Pontusson, Princeton University

"A masterly analysis of how political interests, economic circumstances, development strategies, and local history have shaped what are surprisingly different versions of the welfare state across the developing world. The authors combine fine-grained country analyses with intelligent use of data, and explain and extend the theory and literature on the modern welfare state. The book is both scholarly and readable."--Nancy Birdsall, president of the Center for Global Development

"This book has no equal in the welfare-state literature, a truly impressive achievement. Haggard and Kaufman combine meticulous scholarship with sophisticated theoretical guidance in this study of welfare state evolution in Latin America, Asia, and East Europe. The book not only fills a huge void in our knowledge, it also compels us to seriously rethink prevailing theory."--Gøsta Esping-Andersen, Universitat Pompeu Fabra, Barcelona

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Table of Contents

List of Figures xi
List of Tables xiii
Preface and Acknowledgments xvii
Abbreviations xxiii

INTRODUCTION: Toward a Political Economy of Social Policy 1
PART ONE: The Historical Origins of Welfare Systems, 1945-80 25
CHAPTER ONE: Social Policy in Latin America, East Asia, and Eastern Europe, 1945-80: An Overview 27
CHAPTER TWO: The Expansion of Welfare Commitments in Latin America, 1945-80 79
CHAPTER THREE: The Evolution of Social Contracts in East Asia, 1950-80 114
CHAPTER FOUR: Building the Socialist Welfare State: The Expansion of Welfare Commitments in Eastern Europe 143

PART TWO: Democratization, Economic Crisis, and Welfare Reform, 1980-2005 179
CHAPTER FIVE: The Political Economy of Welfare Reform 181
CHAPTER SIX: Democracy, Growth, and the Evolution of Social Contracts in East Asia, 1980-2005 221
CHAPTER SEVEN: Democracy, Economic Crisis, and Social Policy in Latin America, 1980-2005 262
CHAPTER EIGHT: The Legacy of the Socialist Welfare State, 1990-2005 305
CONCLUSION: Latin America, East Asia, Eastern Europe, and the Theory of the Welfare State 346

APPENDIX ONE: Cross-National Empirical Studies of the Effects of Democracy on Social Policy and Social Outcomes 365
APPENDIX TWO: Fiscal Federalism and Social Spending in Latin America, East Asia, and Eastern Europe 370
APPENDIX THREE: A Cross-Section Model of Social Policy and Outcomes in Middle-Income Countries, 1973-80 372
APPENDIX FOUR: Regime-Coding Rules 379
APPENDIX FIVE: A Cross-Section, Time-Series Model of Social Spending in Latin America, East Asia, and Eastern Europe, 1980-2000 382
APPENDIX SIX: Social Security, Health, and Education Expenditure in East Asia, Latin America, and Eastern Europe, 1980-2005 387

References 399
Index 449


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