Understanding the Modern Welfare State and Neoliberal Shifts

The Welfare State

This term refers to the democracies of industrialized countries, which were not significantly developed until the 1970s. The state intervenes decisively in economic and social life, seeking to unite economic growth and respect for capitalist market rules with social justice and wealth redistribution.

In 1942, the theoretical political framework received a major boost in Britain with the Social Security Report and related services, known as the Beveridge Report. This report presented a broad program of social insurance policies aimed at ensuring a minimum standard of comfort and protection for all citizens, especially the most humble workers.

The Welfare Democracies: Features

• Imitation of the U.S. and Britain.
• Parliamentary traditions and liberal political forces.
• Alliance between peace and social stability.

Perestroika

Reform introduced into the Soviet Union by Gorbachev. Perestroika was a series of laws intended to liberalize the country.

Features of Perestroika

• Glasnost: Openness and transparency of information.
• Economic Perestroika: It was catastrophic; the economy declined, and the cost of living became very poor.
• Perestroika Policy: Greater acceptance of political pluralism and democracy.

Implications of Perestroika

It failed in its aim of reforming existing socialism in the USSR. Ultimately, it destroyed the system of centralized planning and the politics of the CPSU.

Neoliberalism

From the victory of Margaret Thatcher in Britain and Reagan in the U.S., neoliberal formulas were extended by European governments. Great Britain was the country with the most intensive and longest application of neoliberalism, driven by Conservatives. Margaret Thatcher conducted a total dismantling of traditional industries (steel, mining, etc.). She privatized most public companies and allowed the middle classes access to popular capitalism.

De Gaulle and the Fifth Republic

The new French constitution was characterized by a very strong presidentialism, embodied in the figure of the President of the Republic, De Gaulle, who was directly elected every 7 years. The president stood above parties, directed foreign policy according to his convenience, and could freely appoint the head of Government.