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Jan Wouters, Philip De Man and Rik Hansen

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Analysing inequality and disadvantage from a capability perspective

Fighting Inequality Through Capability Oriented Policy

Jean-Michel Bonvin, Beno"t Beuret and Stephan Dahmen

This chapter emphasizes the various possible ways to conceive inequality and disadvantage, as well as the multiplicity of individual, social, economic, cultural, institutional, and so on, dimensions involved. The challenge in terms of public policies is then to select one informational basis of inequality, that is, to identify which dimensions of inequality are to be tackled via public policies and which ones can be discarded as less significant. In this selection process, the participation of vulnerable people, directly affected by disadvantage, makes a huge difference, as it can allow a more adequate identification of the inequalities to be tackled. The chapter sheds light on the complex intricacies between inequality and participation, and emphasizes the prerequisites for a full and effective participation of vulnerable people in the design and implementation of public policies struggling against inequality and disadvantage.

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Brett Fiebiger and Marc Lavoie


In late 2008 a consensus was reached amongst global policymakers that fiscal stimulus was required to counteract the effects of the Great Recession, a view dubbed as the New Fiscalism. Pragmatism triumphed over the stipulations of the New Consensus Macroeconomics, which viewed discretionary fiscal actions as an irrelevant tool of counter-cyclical macroeconomic policy (if not altogether detrimental). The partial re-embrace of Keynes was however relatively short-lived, lasting only until early 2010 when fiscal consolidation came to the forefront again, although the merits of fiscal austerity were questioned when economic recovery did not really materialize in 2012. This paper traces the ups and downs of the debate over the New Fiscalism, especially at the International Monetary Fund, by analysing IMF documents and G20 communiqués. Using fiscal policy as a means to exit the crisis remains contentious even amidst recognition of secular stagnation.

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Marc Lavoie and Mario Seccareccia

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Benton E. Gup

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Stefania Sabatinelli and Michela Semprebon

Public responsibility for social policies in Europe has been extensively ‘re-scaled’ in the last decades, both upwards, from the national state towards the EU, and downwards, towards the local level. In this complex process, ambivalent traits and impacts are emerging: on the one side re-scaling may be associated with more participatory, place-specific and effective processes and programmes; on the other it may entail blame avoidance, opacity and reduction in accountability. Moreover, re-scaling processes are not uniform: they take different forms in different national contexts and – within each context – in different policy fields. This chapter tackles the ambivalences of the varying patterns of change in the vertical division of responsibility and their implications for the delivery of social services. It explores the room for manoeuvre available to local bodies for pursuing quality, efficiency and innovation; the emerging forms of local governance; and the spaces for citizens’ participation and empowerment. All these aspects ultimately affect territorial and social cohesion and equal opportunities for accessing welfare resources in each country. The analysis is based on case studies produced within the COST Action IS1102 SO.S. COHESION – Social services, welfare states and places, referring to three policy fields: early childhood education and care, long-term care, and the social inclusion of migrants and Roma. The chapter is organized in three sections: in the first, the theoretical debate on re-scaling processes is briefly recalled to frame the trajectories observed in European welfare systems; in the second, the possible repercussions of changes in the vertical division of responsibility are discussed, taking into consideration the case studies; in the third, some conclusions are drawn, highlighting critical policy issues.

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The two sides of institutional innovation

Promises and Limits of Democratic Participation in Latin America

Leonardo Avritzer

The introduction defines political/democratic innovation as the capacity of government to express political will and civil society inputs in several formats. Usually, these inputs are linked to the introduction and/or implementation of public policies, through which civil society and the state interact in order to democratize the state itself. It based on this definition that different experiences of innovation will be analysed.

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Table of Treaties

The Evolution of Australian Policy on Trade and Investment

Andrew D. Mitchell, Elizabeth Sheargold and Tania Voon

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Social services, welfare states and places: an overview

Changes, Challenges and Policy Implications for Europe in Times of Austerity

Flavia Martinelli

The chapter provides an overview of the debates on social services, a key component of both the service sector and the welfare state, highlighting the different socioeconomic underpinnings of these activities and proposing a number of analytical tools. In the first section, social services are positioned within the contemporary discussion about the service economy, the welfare state, social and territorial cohesion, as well as the post-Keynesian restructuring process. The specificities and key social and economic implications of these activities are stressed. In the second section, the importance of a time- and space-sensitive approach to analysing changes and understanding the great variety of national and regional restructuring trajectories is emphasised, and the notions of welfare ‘regimes’ and ‘models’ are reviewed. In the third section, the main restructuring trends at work since the 1980s and the effects of the 2008 financial crisis are ‘unpacked’, highlighting their key features and socio-economic implications and identifying relevant analytical dimensions. The importance of the ‘vertical’ division of authority within the state and of the ‘horizontal’ division of responsibility among providers is discussed, stressing the need to distinguish among the main ‘functions’ involved in delivering public social services: regulation, funding, coordination, production.

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Social services in post-industrial Europe: an incomplete success story and its tragic moments

Changes, Challenges and Policy Implications for Europe in Times of Austerity

Ingo Bode

The chapter provides a general reading of recent European developments in social service provision with a focus on cross-country commonalities. The analysis sets out the main thread of the story that can be written about the evolving social service sector for a period covering the last two or three decades, with particular attention to governance issues. It reveals that there are inconsistencies in this story: on the one hand, social services have (more or less) become an institutionalised feature of European welfare states over the last decades, with a robust extension of service supply in mere quantitative terms, at least until the outbreak of the financial crisis in 2008; Europe has thus witnessed a success story. On the other hand, as this institutionalisation proves selective in various respects, this success story has always been, and continues to be, incomplete. The social service sector exhibits loopholes and limitations; and there are tragic moments in its recent history as major promises have not been kept and ‘organised’ social service provision has often become subject to what can be labelled ‘disorganisation’. Hence, while the success story is not history, its happy end is yet to come.