Globalization and the institutional underpinnings of social welfare: An analysis of traditional and emergent theoretical perspectives

Abstract

Over the course of the 20th Century three approaches to welfare reform—a political economy, a moral economy and a mixed economy approach—informed the way social welfare systems were conceptualized, theorized and studied. Based on differing understandings about the relationship between the state, society, and economy, these approaches have developed alternative, and in some senses competing frameworks for analyzing globalization and its relevance for, and impact on, contemporary social welfare systems in the 21st century. In the discussion that follows, I place each of these approaches in historical context, comparing and contrasting their theoretical contribution to our understanding of the relationship between globalization and welfare reform. I then introduce an emergent fourth approach which stems from a growing body of literature on institutional innovation within the European third sector. In addition to analyzing the distinctive conceptual and analytic contribution of this so-called social economy approach, I draw on insights from contemporary studies of European social enterprises to illustrate the value added of this approach for appreciating the constructive role that emerging welfare networks play in reconfiguring globalizations’ impact on the character and quality of social welfare.