Economic growth and welfare state: a case study of Sweden

Luis Buendia and Enrique Palazuelos

Cambridge Journal of Economics, 2014, vol. 38, issue 4, 761-777

Abstract: In this article we analyse the relation between the dynamics of economic growth and the welfare state using the Swedish experience as a case study. We defend three theses concerning the Swedish experience: that the deep economic crisis of 1990–93 constituted the definite breaking point for the accumulation pattern in force since the 1950s (and in crisis since the mid-1970s); that the new accumulation pattern eroded the long-standing symbiotic relationships between economic growth and the welfare state; and that the welfare state has suffered retrenchments and qualitative changes of great importance, which can be fundamentally explained by the transformations in the accumulation pattern. We conclude that the changes introduced in Sweden have continued to subordinate the welfare state’s main goals, giving priority to the new accumulation pattern.

Date: 2014
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