CAPITALIST WELFARE SOCIETIES' TRADE-OFF BETWEEN ECONOMIC EFFICIENCY AND SOCIAL SOLIDARITY

Starting in the 1980s and 1990s, in various European welfare reforms, parts of the social insurance systems and the related resources were transferred to the financial market. In this sense, one can speak of privatisation and marketisation, both examples of a neo-liberal tendency. Now, after 'the Fall of Finance Capitalism', it is often stated that 'the years of neoliberal triumph have come to an end'. This paper argues that there had already been a contrasting and powerful development previously, which might now be reinforced. This political and institutional development was moving towards extensive regulatory policies, in particular after the stock market crisis in 2001, and towards solidarity, two examples of a neo-etatistic tendency. I argue that the traditional exclusionary categorisation significantly underestimates the continuously changing mix. I will introduce a more complex approach which will be much more helpful to comprehend current developments in pension protection, and which might also be considered for providing an understanding of change in social protection schemes and welfare states in general. To my view, current changes in capitalist welfare societies are system-inherent substantiations of complexly intertwined dynamics, which can be comprehended by analysing changes in flows of resources and in the rights over these resources. These changes are manifest in what is termed social citizenship. Consequently, I will come to the conclusion that the observed changes promote new forms of social citizenship.