Making a Market out of a Welfare State : Swedish Local Politicians’ Perspectives on Elderly Care Marketisation

Sammanfattning: Market reforms have quite notably been used as a solution to increase the quality of public services and efficiency since the 1990s. Sweden has also introduced marketisation in the field of elderly care since 1992 to cope with increasing care needs while maintaining costs at a reasonable level. Yet, the introduction of a market mechanism in the welfare state is subject to increasing political and public debates. Many are sceptical about the purported benefits of a market, such as increased quality and reduced costs, as proposed by New Public Management. There have also been increasing critiques of the profit-making in care services in recent years.After two decades of marketisation, it is worthwhile to map out local politicians’ attitude patterns, namely, how they perceive the use of a market or quasi-market in a welfare state, where the market mechanism might challenge traditional principles such as universalism, solidarity, and equality. Complementary to studies on attitudes of public welfare, this research uses a unique survey dataset from 2014 to expand current understandings of politicians’ perspectives of marketisation.To be more specific, this study analyses three different aspects of marketisation: production, regulation, and financing. The results show that attitudinal differences between left- and right-wing politicians on private for-profit providers remain distinct. Political orientations of individuals, political majority in municipalities, and the privatisation level already achieved locally are identified as important factors in explaining local politicians’ willingness to privatise further. The preference differences continue to exist between the two blocs, and political ideology plays a major role in explaining these differences, more so than individual factors such as age, gender, or working position. Self-reported answers reveal that political ideology influences attitude formation.To a large extent, left- and right-wing politicians agree on welfare principles such as universalism, and they both recognise potential impacts that the market could have on society, such as inequality. It seems plausible that welfare state pluralism is the direction of the future.This case study serves as a solid example for examining the market development of public welfare in advanced welfare states and also contributes to the discussion of the potential role of political ideology in post-austerity welfare reforms.