Decentralized Welfare Capitalism: The Case of Employment and Industrial Policies

The article has a threefold aim: At first we argue against a generalized, ahistorical and functionalistic welfare state concept which cannot dif ferentiate between different policy arenas and national ‘destinies’ We then argue for the fact that for more than a decade the Nordic welfare states have been under transformation towards increased decentralized and municipal policy responsibility We try to demonstrate concretely the implications of this for welfare state policies in the employment and industrial policy areas. State interventionism is being overtaken by a municipal interventionism, which operates more market orientated, bargaining organized and inequality making. Politically-administratively this decentralized welfare capitalism develops a permanent coordination and control deficit. It is concluded finally that welfare state objectives must be differentiated according to the national, regional and local will and ability to realize them.