WELFARE IDEOLOGY, THE MARKET AND SOCIAL SECURITY: Towards a Typology of Market-Oriented Reform

The global shift towards the market in the provision of social security is typically associated with the values of the New Right, but we take issue with this view. An examination of the main welfare ideologies that have influenced the development of contemporary social security systems suggests that the market and individualism have a role to play in a range of approaches to reform. Whilst some approaches unreservedly endorse the market – in a way which accords with the ideas of the New Right – other approaches adopt a pragmatic orientation based on a recognition of two public policy dilemmas, “market failure” and “state failure.” This attempt to define a middle way typifies many of the recent social security reform initiatives. Drawing upon Esping‐Andersen's recent work on de‐commodification, we construct a typology of normative approaches to the provision of social security which may be used to contextualise market‐oriented social security reform initiatives. This we argue is necessary to avoid the over‐simplified dichotomy between individualism and collectivism which is typical of so much recent work on social security reform.