Welfare States Mitigate Rise of Right-Wing Populism

Introduction: Globalization and the Rise of Right-Wing Populism

In recent decades, Western Europe has witnessed the growing electoral success of

. These parties have gained significant support by capitalizing on the economic insecurities and anxieties associated with globalization. However, the researchers behind this study argue that comprehensive and generous welfare states can actually help mitigate the appeal of these far-right parties.

The researchers set out to examine the relationship between globalization and the electoral performance of RRWP parties across 16 Western European countries from 1981 to 1998. They wanted to understand the precise mechanisms linking globalization to the rise of right-wing populism, and the role that welfare state policies can play in shaping these dynamics.

The Impacts of Globalization

Globalization has brought about significant changes in Western Europe over the past several decades. These include increased international integration of markets, greater cross-border capital flows, and higher levels of immigration. While the actual economic impacts of these trends have been relatively modest, the researchers argue that there is a widespread perception among electorates that globalization is a major driver of adverse economic outcomes.

This perception, combined with the support for liberalization among mainstream political parties, has provided an opening for RRWP parties to gain support. These parties have been able to capitalize on the economic insecurities and anxieties faced by those who feel threatened by the changes associated with globalization, such as the decline of traditional manufacturing jobs. RRWP parties have offered programmatic solutions and opposed further international integration as a way to appeal to these voters.

The Role of the Welfare State

However, the researchers found that the domestic political impacts of globalization can vary significantly depending on the institutional context, particularly the nature of the welfare state. They compared two broad welfare state models: the

and the

corporatist conservative welfare state

A social welfare system that provides benefits and protections based on a person's occupation and employment status, rather than providing universal coverage.

 

.

Universal welfare states are characterized by comprehensive coverage, generous social benefits, and well-developed

. In contrast, corporatist conservative welfare states provide less support for workers with weak or intermittent employment records, and are more vulnerable to attacks and less able to address new risks and insecurities.

The researchers found that universal welfare states had significantly higher mean total active labor market spending per unemployed worker compared to corporatist conservative welfare states in the late 1980s. This suggests that universal welfare states are better equipped to cushion the economic impacts of globalization and provide a sense of security and stability for citizens.

The Mitigating Effect of the Welfare State

The study's key finding is that the structure of the welfare state plays a crucial role in shaping the impact of globalization on the electoral success of RRWP parties. Specifically, the researchers show that a more universal welfare state, with greater coverage, generosity, and active labor market programs, significantly reduces the vote share of RRWP parties.

Furthermore, the analysis reveals significant negative interactions between various dimensions of globalization (

,

capital mobility

The ease with which money and investments can move across national borders, which can be influenced by factors such as exchange rates, regulations, and tax policies.

 

, and foreign immigration) and the welfare state structure. This means that as the welfare state becomes more universal, any positive association between globalization and RRWP party support diminishes or even becomes negative.

For example, in countries with low social protection, increases in trade openness are associated with a small decline in RRWP vote share, while increases in capital mobility and foreign immigration lead to a rise in RRWP support. In contrast, in countries with high social protection (universal welfare states), these globalization effects are either negligible or significantly reduced.

Implications and Conclusions

The researchers conclude that comprehensive, generous, and employment-oriented welfare states can help mitigate the domestic political consequences of globalization by dampening the appeal of right-wing populist parties. More developed labor market policies, social supports, and generous social protection systems may offset the costs of globalization and promote economic and political stability, thereby reducing the attractiveness of the far right.

These findings have important implications for understanding the relationship between globalization, welfare state policies, and the rise of right-wing populism. They suggest that the way a country's social safety net is structured can play a crucial role in shaping the political impacts of economic integration and structural changes. By providing a sense of security and stability, universal welfare states may be able to undermine the electoral success of RRWP parties that seek to capitalize on the insecurities and anxieties associated with globalization.