Liberalising trends in welfare reform : inside the dutch miracle
By: COX, Robert Henry
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ArticlePublisher: UK : Policy Press, jan. 2000Subject(s): ChinaPolicy & Politics 28, 1, p. 19-31Abstract: One of the most dramatic changes in the character of welfare states is the shift from public programmes that provide benefits for specific categories of need or entitlement, to programmes that encourage individuals to place part of their income in special savings accounts. This article argues that in countries where the welfare state has historically been defined in collectivist terms, the impact of the new savings schemes creates the potential for moral hazard. Focusing on recent reforms in The Netherlands, the article demonstrates how the new schemes provide greater advantage to high-income earners than to low-income earners and encourage egoistic behaviour among those who make use of the schemes. Take-up rates for the Dutch programmes have exceeded the government's expectations and demonstrate how such liberalising reforms have altered the character of a welfare state that once was believed to be predicated on collectivist principles
One of the most dramatic changes in the character of welfare states is the shift from public programmes that provide benefits for specific categories of need or entitlement, to programmes that encourage individuals to place part of their income in special savings accounts. This article argues that in countries where the welfare state has historically been defined in collectivist terms, the impact of the new savings schemes creates the potential for moral hazard. Focusing on recent reforms in The Netherlands, the article demonstrates how the new schemes provide greater advantage to high-income earners than to low-income earners and encourage egoistic behaviour among those who make use of the schemes. Take-up rates for the Dutch programmes have exceeded the government's expectations and demonstrate how such liberalising reforms have altered the character of a welfare state that once was believed to be predicated on collectivist principles
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