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Inclusion of the European Nordic model in the debate concerning social protection reform: the long-term development of Nordic welfare systems (1890-2005) and their transferability to Latin America in the twenty-first century

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  • Carroll, Eero
  • Palme, Joakim
Abstract
What is the relevance of the Nordic model of social and labor market policy in Latin America today? This issue is explored by an examination of how the Nordic systems of social protection developed institutionally, and what role has been played by the labor market context. The report also discuss what best practices" of a "Nordic model" may be imported into a Latin American context. Further, how does globalization affect possibilities thereto? This report provides the following kinds of evidence on these questions. Firstly, the Nordic model has developed gradually, from mainly voluntarist origins, not least in sickness and unemployment insurance. The Nordic model has also generally been supported by its labor market context— universalism was enabled by full employment. Secondly, regarding policy transfer, differences between the Nordic countries and Latin America are major but not insurmountable—not least GDP/capita levels in Nordic countries were low when the universalism of Nordic model was established, and Latin American GDP/capita levels of today compare favorably to these initial levels. Finally, regarding globalization's role and "best practices", there is little indication that Nordic social policy programs would be predicated on lack of openness to the global economy. However, Latin American decision makers may need to critically re-evaluate emphases on occupationally segregated benefit administration and targeting in their own social security systems. Particularly regarding targeting, high implementation costs, uncoordinated gaps in coverage and take-up, as well as segregation of poor service and benefit recipients may be institutional features which inflate overall costs of targeting on the margins, and also hurt the poor."

Suggested Citation

  • Carroll, Eero & Palme, Joakim, 2006. "Inclusion of the European Nordic model in the debate concerning social protection reform: the long-term development of Nordic welfare systems (1890-2005) and their transferability to Latin America in ," Financiamiento para el Desarrollo 5147, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    • Handle: RePEc:ecr:col035:5147
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    References listed on IDEAS

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    8. Joakim Palme & Walter Korpi, 1998. "The Paradox of Redistribution and Strategies of Equality: Welfare State Institutions, Inequality and Poverty in the Western Countries," LIS Working papers 174, LIS Cross-National Data Center in Luxembourg.
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    Cited by:

    1. Guillermo Cruces & Quentin Wodon, 2007. "Risk-adjusted poverty in Argentina: measurement and determinants," Journal of Development Studies, Taylor & Francis Journals, vol. 43(7), pages 1189-1214.
    2. Cruces, Guillermo & Galiani, Sebastian, 2007. "Fertility and female labor supply in Latin America: New causal evidence," Labour Economics, Elsevier, vol. 14(3), pages 565-573, June.
    3. Palmer, Edward, 2006. "Public policy for pensions, health and sickness insurance: potential lessons from Sweden for Latin America," Financiamiento para el Desarrollo 5156, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    4. James, Vanus, 2007. "New directions for development banking in the Caribbean: financing to take advantage of unlimited supplies of labour skills and entrepreneurship," Financiamiento para el Desarrollo 5172, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    5. Bebczuk, Ricardo N., 2007. "Access to credit in Argentina," Financiamiento para el Desarrollo 5163, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    6. Sandiford, Wayne, 2007. "Development banking in the Eastern Caribbean: the case of Saint Lucia and Grenada," Financiamiento para el Desarrollo 5171, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    7. Collister, Keith R., 2007. "A new approach to development banking in Jamaica," Financiamiento para el Desarrollo 5173, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    8. Paddison, Oliver, 2006. "Social security in the english-speaking Caribbean," Financiamiento para el Desarrollo 5152, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    9. Cruz-Martinez, Gibran, 2019. "Older‐Age Social Pensions and Poverty: Revisiting Assumptions on Targeting and Universalism," SocArXiv y9uk6, Center for Open Science.

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