Is the welfare state jeopardized by demographic and economic pressures (ageing, globalization, technological progress)? In fact, it is even more needed in a globalized economy, and it can be adapted to enhance its effectiveness in promoting more inclusive growth. This involves: developing pre-market and in-market forms of pre-distribution that reduce inequalities in market incomes and lower the need for redistribution; investing in education and health to develop productivity, civic capacities and well-being; seeking more efficient tax bases such as externalities and rents; breaking intergenerational transmissions of inequalities and boosting social mobility by investment in human capital and wealth redistribution; preparing safety nets for large technological waves; developing international cooperation on tax and social norms. These recommendations are equally relevant for developing and emerging economies and should be considered against the broad challenge that such countries face of establishing a sustainable welfare system.
Task Force: Social Cohesion, Global Governance and the Future of Politics