THE BUSINESS OF WELFARE

Abstract

A common narrative in welfare state research is that Sweden exemplifies a specific model of welfare, ‘the Swedish model’, or ‘the Social democratic welfare regime’. From this perspective the emerging welfare state left little room for private initiatives – the stage was set for the development of an encompassing welfare state in the 1950s. In this article I argue that this, virtually hegemonic, perspective has hindered an analysis of how private insurance co-existed and thrived within the emerging Swedish welfare state. As an alternative approach to ‘modelling’ – the concept of welfare-formation is developed to analyse mutually sustaining practices of welfare. I show how the insurance business and its protagonists influenced the settings of public pension schemes in a way that underpinned their own interests. A close cooperation with the state apparatus was fundamental for creating a trustworthy insurance market and legitimizing the business claim of fulfilling a social mission. The business adaptability in the shifting landscape of social policy also influenced perceptions of security and welfare in general. Commercial ideals became an essential dimension of the welfare state. By exploring this marginalized history – the business of welfare – the study deepens our understanding of modern welfare societies.