Austerity through rescaling and layering in the Swedish welfare state

Abstract

It is often claimed that Nordic welfare states are characterized by universalism–however, such claims ignore the persistent duality of social service provision in these states between the central state and municipalities, the lowest political-administrative level. This paper investigates the Swedish welfare state, by looking at the rescaling of welfare services from national to municipal level and its (negative) effects on both municipalities and service users. The aim is to expand the understanding of austerity measures and their local impact by analyzing the transformation processes of responsibilities between national and municipal institutions in the Swedish welfare system based on rescaling and policy layering. Two cases of rescaling are analyzed through public reports and statistics: transfer from national sickness insurance to municipal social assistance, and personal assistance for people with disabilities. The two cases illustrate the vulnerability of Swedish municipalities, in cases of national austerity measures, as the municipalities have the ‘ultimate responsibility' for marginalized groups such as unemployed people and people with disabilities. Given the differences between municipalities, in terms of factors such as size and economic situation, and the extensive discretion of municipalities in determining services, rescaling to municipalities increases inequalities between people living in Sweden based on municipal residence.