A Mixed Economy?• Clearly since WWII, the state took control of the

economy—nationalization of companies nationalization of companies for both security and economic reasons (coal, electricity, gas, transport, iron, steel, communications, broadcasting)

• Keynesian rationale (state intervention to guarantee the demand and a virtuous economic cycle)– Accounted for 10% of the GDP in 1979Margareth Thatcher—privatizations (reduction to the 6%

of the GDP & 750,000 workers fired)-Rationale (Hayek & Friedman): expenditure generates

inflation—Restriction of the money supply and anti-inflationary (measureshttp://www.pbs.org/wgbh/commandingheights/shared/video/real/mini_p01_13_220.html)

The British Welfare State

• Comprehensive Welfare State (Health, education, social services).

• ““From craddle to grave”From craddle to grave”

• The 1942 Beveridge Report

• Reduced by the Conservatives (Thatcher, Major) and Tony Blair’s “New Labour”

Education SystemFree compulsory education for children 5 to 16.Regional Differences

Schools: Public – Private – Private with state subsidies

Four Levels:• Nursery (3-4)• Primary (5-11)• Secondary (11-18)• Post-Secondary Education (college and university)

Central Gvt (legislative framework) (increasing power since the 1980s, introducing a shift towards the market)

Local Gvt. (structure and organization)

9 geographic areas (divided into districts, each one in charge of a different inspector)

Funding: Central govt (80%). The rest is provided by local gvts, private foundations, and parents.

Education System• Early 19th century: the church• 1856 creation of the State education department• 1870 First Education Act (state funding for primary

education)/School boards with power to collect taxes/Fees• 1902 Education Act: creation of LEAs (Local Education

Authorities) with responsibility for education and power to subsidize private (churches) schools

• 1918 Fisher Act (standards for elementary schools)• The 1942 Beveridge Report (warned against the “giant” of

ignorance). The Labour Party proposed state universal provision of education.The Conservatives emphasized on individual freedom to choose in matter of education.

• 1944 Butler Act: Universal education system aiming to incorporate the children of the working class. Creation of the Ministry of Education (control), abolition of all old elementary schools, provision of free and compulsory education until age 15 (extended until age 16 in 1973). Grammar, technical, and Grammar, technical, and secondarysecondary schools (class biased placement)

• 1970s Comprehensive schools

Education From Thatcher to Blair• -1970 Margaret Thatcher, minister of education.• 1978 Legislation introduced parental intervention in governing and

controlling schools and in school selection.• 1981 Thatcher’s minister of education Keith Joseph proposed cuts in

education• (Pilot plan for a national voucher systemnational voucher system). Schools had to

compete for “clients.”• Weakening of LEAs and introduction of LMS (Local

Management of Schools) to make schools responsive to consumer needs—Similar policy followed with secondary schools and colleges.

• Introduction of tests at 6, 11, 14, and 16 to guarantee national standards

• 1990s Extension of the reach of the market into education—League tables of performance of primary schools, introduction of a voucher system for nursery places.

• 1997 “New” Labour party’s policies continued the Conservatives’. Blair’s “Zero Tolerance” to school underperformance.

• Introduction of fees at universities and abolition of grants provided by LEAs (now loans)

British Public Health• Universal Access to Health Care for all citizens• 80% paid through general taxation (plus

individuals’ regular contributions plus co-payments)

• NHS, internal market made up of purchasers and providers. State central control

• DHAs buy services from public, private, or semi-private providers

• 2002 Integrated care, groups practitioners in local community groups

• Health gap (mostly geographical)

British Public Health• The Poor Laws (workhouses/poorhouses)• 1911 National Health Insurance (all manual workers

over 16 earning small salaries). Weekly payment• Until 1948, administered through voluntary associations

and a few public facilities (medicine was mostly private)• WWII and post-War: expansion of the system• 1942 Beveridge Report: recommended the creation of a

comprehensive national health system• 1946 National Health Service Act (NHS): nationalization

of all hospitals, creation of health centers, redistribution of physicians across the country, teaching facilities, physicians could have private practice. Funded through taxes.

• 1974 Attempt to integrate the national with the regional with the local levels. Creation of Regional Health Authorities (RHA) and District Health Authorities (DHA)

• 1980 NHS becomes more autonomous and specialized. More power for RHAs

• 1982 Elimination of RHAs. DHAs become fully responsible for the administration of health

• 1979 Margareth Thatcher (inspired by Milton Friedman and von Hayek) believed that privatization would improve the performance of the system

– 1983 Griffith Report, recommended to move to an insurance-based health system. Did not workDid not work

British Public Health

Health: The 1990s and New Labour

• 1989 the NHS in crisis

• 1990 National Health Service and Community Act (encourages competition within the health industry)

• Since 1997 New Labour has maintained the system

• 1990s—the State imposed a Market into 1990s—the State imposed a Market into the state-administered systemthe state-administered system

British Public Health• The Poor Laws (workhouses/poorhouses)• 1911 National Health Insurance (all manual workers

over 16 earning small salaries). Weekly payment• Until 1948, administered through voluntary associations

and a few public facilities (medicine was mostly private)• WWII and post-War: expansion of the system• 1942 Beveridge Report: recommended the creation of a

comprehensive national health system• 1946 National Health Service Act (NHS): nationalization

of all hospitals, creation of health centers, redistribution of physicians across the country, teaching facilities, physicians could have private practice. Funded through taxes.

• 1974 Attempt to integrate the national with the regional with the local levels. Creation of Regional Health Authorities (RHA) and District Health Authorities (DHA)

• 1980 NHS become more autonomous and specialized. More power for RHAs

• 1982 Elimination of RHAs. DHAs become fully responsible for the administration of health

• 1979 Margareth Thatcher (inspired by Milton Friedman and von Hayek) believed that privatization would improve the performance of the system

– 1983 Griffith Report, recommended to move to an insurance-based health system. Did not workDid not work

British Public Health

The Health SystemThe Health System• Universal Access to Health Care for all citizens• 80% paid through general taxation (plus

individuals’ regular contributions and co-payments)

• NHS, internal market made up of purchasers and providers. State central control

• DHAs buy services from public, private, or semi-private providers

• 2002 Integrated care, groups practitioners in local community groups

• Health gap (mostly geographical)

Health: The 1990s and New LabourHealth: The 1990s and New Labour

• 1989 the NHS in crisis

• 1990 National Health Service and Community Act (encourages competition within the health industry)

• Since 1997 New Labour has maintained the system

• 1990s—the State imposed a Market into 1990s—the State imposed a Market into the state-administered systemthe state-administered system

Social Security

• National Insurance Plan (contributions of employers and workers with Gvt. Support, 10%)

• Largest area of Gvt. Spending• Covers unemployment (1 year), sickness,

maternity, retirement, work accidents, and death. Also child allowances, school meals, housing subsidies, widower support.

• Social security spending = 9% GNP

• Great Britain evolved from a monarchy to a parliament dominated by an oligarchic elite to a democracy.

• Impressive stability (geography? political culture? ability to accommodate change?)

• Which kind of explanations does Lane’s Which kind of explanations does Lane’s book provide us with?book provide us with? Which one do you find more convincing?