CASE STUDY

Denmark: Globalization and the Welfare State



Table of Contents

Introduction4

Literature Review5

Critical Analysis7

The Efficiency Theory of Welfare Spending7

The Compensation Approach8

Towards an Integrated Theory of the Welfare State12

Conclusion14

Executive Summary

Services and goods now move fort amongst the countries more freely as compared to in the past.

the continuous decline in the costs of long-distance transportation and communication and in the nationwide limitations on international investment and trade have allowed the economics all over the world to become gradually more incorporated, thus has enhanced the groeth of productivity and expanded the choices of the consumer. in some of the areas of the developed world, especially East Asia, globalization is escorted by an enhancement in the standards of living which was not even imagined a few generations before. Simualtaniuosly, the globalization has became the centerpoint of a world wide controversy. Partuicularly there have been apprehensions regarding the unpleasant outcomes for the distribution of income. these concerns have resulted in the initiatives of the polices that are a threar to turn back the clock. however, in the centre of all this wolrd wide recession, Denmark and their counterparts have welcomed the advantages of the globalization in regards to the efficiency in productivity, low process and an increase in the choices of the consumers.

Denmark: Globalization and the Welfare State

Introduction

Globalization refers to the changing nature of the world economy. The changes are associated with the growth in economic interactions across state borders. The main changes are generally thought to be increasing trade flows, greater mobility of finance capital, and the internationalization of production chains. Many observers associate these changes with the rapid development of information technology (Rosecrance, 2009). Although globalization carries an aura of energy and excitement, critics argue that it has negative consequences. From a sociological standpoint, globalization might imply greater cultural conformity, perhaps even a type of cultural imperialism by the major western economies. From a political standpoint, globalization is often seen as part of a neoliberal program that forces governments to adopt a severely restricted and arguably unjust set of public policies. Such criticisms illustrate how debates about globalization often relate economic and technological issues to changing patterns of international and national governance (Frieden, 2001).

The new governance is, indeed, often portrayed as a response to globalization. In this view, globalization has eroded the importance of national barriers and even the state itself; it has increased the economic interdependence of states, thereby undermining the ability of each state to govern its own economy. However, despite the ubiquity of talk of globalization, notably in the rhetoric of policy-makers, there remains a lack of general consensus on its extent and its implications for governance. Globalization can refer, in narrow terms, to increased volumes of transnational trade. Or it can refer to a broader pattern of global economic integration (Burgoon, 2004). Or it can refer to the activities of those firms that have scattered their production activities across a number of states, and those states that have promoted a liberal world order (Spiro, ...