Which society can best handle the global economic crisis?

‘Is it the case that an economic crisis also can trigger a crisis for the democracy?’ asks political scientist Joakim Palme.

The global economic crisis that started in 2008 in the US with the Lehman Brothers’ bankruptcy has had far-reaching consequences in several parts of the world. In a five-year project Joakim Palme, professor of political science, will investigate which consequences the crisis has had for social institutions, welfare, people’s behaviour and, in the end, democracy.

The research will be conducted by political scientists in Uppsala and researchers at the Institute for Social Research at Stockholm University. Focus lies on the EU’s 27 member states, but Canada, Australia, New Zeeland, Japan and the US will be part of the research material.

‘How a country reacts to the crisis can vary, depending on how it was organised before the crisis. By using comparative methods to study the consequences of the crisis we hope to find answers to which types of societal organisations hold up the best, both economically, socially and politically’, says Joakim Palme.

For example, the US and Great Britain have both been forced to launch special rescue packages, while Sweden and Germany have not had to take any actions to reach the same goals.

‘Our welfare systems seem to act like an automatic stabiliser, but we will closely study how they have worked as a safety net’, says Joakim Palme.

The organisation of a society also has consequences for people’s living conditions regarding poverty, inequality and behaviours. Because of this, they will also try to find patterns in the connection between vulnerability and welfare systems.

‘We are also interested in how the crisis can affect how people value the social security system of a welfare state.’

Increased layoffs in Sweden have been connected to increased support for the Sweden Democrats, which by many is considered xenophobic. Joakim Palme is curious to see if there are similar structures in other parts of Europe and if the structures vary with the stability of a country’s social security systems and state finances.

‘Is it the case that an economic crisis also can trigger a crisis for the democracy and have certain countries been more successful when it comes to political stability? By studying patterns it may be possible to learn what distinguishes a durable society’, says Joakim Palme.

The project is called ‘Global economic crisis, institutional change and inequality in a comparative perspective: changed welfare states and labour markets in the Western world since the global economic crisis 2008.’

Annette U Wallqvist