The Decline of the Welfare State?

Abstract

Faced with a serious economic crisis in the early 1990s, Sweden was compelled to undertake a series of restructuring measures on its welfare state systems. For many, the economic pressure and welfare state restructuring were undoubtedly seen as firm proof of the decline of the welfare state, as had been predicted by globalization theorists. However, as the present study shows, many aspects of Sweden's welfare state systems, which underwent a formidable challenge in the early and mid-1990s, have fully recovered since the late 1990s. Several of them, in fact, are now in slightly better shape than they had been before the crisis. This shows the fundamental stability of Sweden's welfare state systems, in contrast to the fevered nature of the debate on their future. In conclusion, the globalization theory does not apply to Sweden's welfare state.