Meeting of theMeeting of theSlovenian Sociological SocietySlovenian Sociological Society

Portoroz, 25-27 October 2001Portoroz, 25-27 October 2001

“Sociological Aspects “Sociological Aspects of New Technologies”of New Technologies”

CAWCAW Computer Aided Welfare StateComputer Aided Welfare State

Revival by Technology?Revival by Technology?

presented by Peter Fleissner

EUMC and University of Technology, Vienna, Austria

OutlineOutline• The welfare state

– Definition and scope– Costs– Crisis factors

• Targeted Intelligence Networks (TINs)– Peer group care– Study circles– Workers’ health assurance groups– Intrapreneurial Groups

• Problems of Implementation

The European welfare stateThe European welfare state

Michel Camdessus, former director of the International Monetary Fund:

”The twentieth century has seen countless achievements and changes. As historians look

back on this period, two developments are likely to stand out as being among the most definitive

of our time.….in Europe, this has led to the emergence of the welfare state. The other

development … is globalization.”

The scope of the welfare stateThe scope of the welfare state

Main areas for provisions• retirement and old age

• sickness / accident compensation and health insurance and delivery

• education

• full employment and unemployment compensation

The economic relevance of the The economic relevance of the welfare state up to 2010welfare state up to 2010

Expenditure Share of GDP

• Pensions and old age 5 - 13%

• Health Care 7 - 11%

• Education 5 - 8%

• Unemployment support 3 - 5%

• Active employmt policy 0.4 - 3.2%

Total range 20.4 - 40.2%

Crisis factorsCrisis factors• Demographic factors

– declining fertility rates– longer life expectancy– demographic pyramids convert to rectangles

• Economic factors– Reduced economic growth rates – Increased income levels – Chronically high unemployment - less solidarity

• Political factors and public discourse– Decline of political movements defending the traditional

welfare state– Decline of traditional grand narratives

• Societal and institutional factors – Mosaic society; singles increase– over-bureaucratization

Example Austria: Example Austria: The shaken welfare stateThe shaken welfare state

June 2001Reorganisation of the Austrian Social Insurance

Holding Organization by the new Austrian government

Before: exclusively controlled by workers’ representatives

Now: equal representation of enterprises and workers in the new management board.

October 2001A group of highly reputable persons started a

referendum to have the welfare state moved into the constitution

Example: AustriaExample: AustriaWage Income over National Income

(Austria 1991-2000)

0.6

0.605

0.61

0.615

0.62

0.625

0.63

0.635

0.64

0.645

0.65

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

Example: AustriaExample: AustriaNon-wage Income over National

Income (Austria 1991-2000)

0.385

0.39

0.395

0.4

0.405

0.41

0.415

0.42

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

The changed assessment of The changed assessment of bureaucracybureaucracy

Max Weber:• Bureaucracy is

“the most efficient form of exerting power”• success to compensate for demographic changes

Today:• High costs, lack of effectiveness• Rigid, not flexible enough• “Coldness”• Taking responsibility away from people

Is there a way out?Is there a way out?

New possibilities come up by new technologies and new societal trends

Transaction costs can be reduced

New forms of organizations can emerge Hierarchy levels can become less Responsibility back to people

Look for examples already in place

Transaction costsTransaction costs

Consist of the following costs for• Activities of communication

– E.g. the preparation, transmission, reception, interpretation of messages between two or more parties

• Activities of coordination– E.g. related to the processes of fining an agreement,

planning, and decision making processes

• Activities of information– E.g. processes of browsing, searching, retrieving,

interpreting, verifying

Transaction costs go down: Transaction costs go down: Moore’s LawMoore’s Law

Targeted Intelligence NetworksTargeted Intelligence NetworksCommon features• Voluntary cooperation in small groups towards a

shared goal• Supported by new technologies• Institutional framework has to be created within that

these new forms can emerge• Needed are financial, infrastructural, material and

educational resources to empower people to take over their new tasks voluntarily.

• This implies also certain ways of compensation and remuneration for their efforts and their contribution to society.

Targeted Intelligence NetworksTargeted Intelligence Networks

Empirical examples (“Keimformen”)• "Peer Group Care“

– complementary structure for the elderly, poor, disabled and other outsiders;

• "Study Circles" – to complement traditional schools;

• "Workers' Health Assurance Groups" – to improve the occupational ill-health status, and

• "Intrapreneurial Groups" – against alienation on the workplace are examples to

illustrate how

Side conditions for implementationSide conditions for implementation

The examples show that it is not impossible to implement TINs

• It will depend – on the level of income, – on the amount of leisure time left over after the

necessities of work.– on the psychological status of the majority of people.– on increased experience of crisis symptoms, – on increased feelings of anxiety and stress, – On the availability of political support

• TINs make possible the more direct experience of the dark side of life, of the destructive tendencies of societal change.

Challenges of ImplementationChallenges of Implementation

• In the first stages the welfare functions should be complemented by TINs, not replaced

• Society’s responsibility should not be taken away, but increased (in particular financial resources should be available, private–public partnerships)

• Identification of NGOs needed• Move the pendulum of history away from

nationalisation one step further towards socialisation (“Vergesellschaftung statt Verstaatlichung”)

• Experiencing directly the darker side of life can lead to more precise political engagement

• Important issue: how to monitor and control the TINs to create a process of self-improvement

Thank you for your attention!

If you would like to contact me, please use:

fleissner@arrakis.es

Homepage:

http://www.arrakis.es/~fleissner