Transformation of Social Welfare System

The dominance of the Nordic countries as the "Mecca" for the welfare state has waned since the mid-1980s.

A welfare state system, as in the illustration of Gosta Esping-Andersen (1990) in which the state is the only provider of welfare programs, faces internal and external pressure. Internal pressure arises because of declined state revenue from the workforce to finance the welfare scheme, while the burden from the budget for pensioners has increased.