The welfare state, which evolved during the 20th century, was a product of industrialisation. By century's end economic inequality, capital flight, bureaucratic inertia, harm to citizens, and the emergence of social markets eroded the credibility of the welfare state. Subsequently, a successor has emerged around quite different themes: capability, employee benefits, evidence-based interventions, democratic institutions, and social inclusion. Together, these comprise an investment state.
David Stoesz, PhD, is Fulbright Distinguished Chair in Applied Public Policy at Carnegie Mellon University-Australia and Flinders University. Previously, he was appointed Fulbright Distinguished Chair in Social Policy at the University of Birmingham in the UK. At the moment he is writing the sequel to The Dynamic Welfare State, Thrive! How Social Investment Promotes Wellbeing.