The paradox of the investment state: Why did poverty not decline?

Despite the favourable social-economical, demographical and policy parameters, we haven’t booked any progress in the fight against poverty during the last 20 years. The result of the welfare state based on activation policy and an attempt to nullify the so-called “new social risks” was less successful than envisaged. At the same time, the level of protection of the “old social risks” couldn’t keep up with the overall increase in prosperity. The inequalities are growing larger, as well as the part of the social security funds that are attributed to higher social groups.

Bea Cantillon, Universiteit Antwerpen and CSB, explains why that is, and how we can turn it around.