Financialized accumulation, neoliberal hegemony, and the transformation of the Swedish Welfare Model, 1980–2020

• Drawing on a Gramscian Regulation Approach and Harvey’s accumulation by dispossession thesis, this article discusses the structural and hegemonic mechanisms of the neoliberal transformation of Sweden’s welfare sectors. Providing new longitudinal data on welfare retrenchment, corporate governance, wealth shares, and private economic power, the article further analyzes how the transformation of the Swedish post-war universal welfare model is related to class struggle and accumulation regime change in the Swedish economy. Following a decade-long countermobilization of Swedish capital and a severe economic crisis in the early 1990s, neoliberal economic common sense was cemented among social democratic policy elites that manifested itself in an institutionalized austerity polity, leading to a slow but steady dismantling of the Swedish welfare project. Roughly a fifth of employees in the three largest welfare sectors work in private welfare companies that generate tax-financed profits on politically created welfare markets. Welfare profits are in turn defended by a welfare–industrial complex and undergirded by a hegemonic bloc consisting of capital elites and sympathetic policymakers. In the virtual absence of vocal antihegemonic forces, many social democratic leaders have limited criticism against welfare profits throughout the last decades. On the contrary, austerity measures practiced by Swedish social democrats have thereto led to deteriorating social cohesion and spawned distrust among core social democratic voters.

Subject headings

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Nationalekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Economics (hsv//eng)

SAMHÄLLSVETENSKAP  -- Sociologi -- Sociologi (hsv//swe)

SOCIAL SCIENCES  -- Sociology -- Sociology (hsv//eng)

SAMHÄLLSVETENSKAP  -- Statsvetenskap -- Studier av offentlig förvaltning (hsv//swe)

SOCIAL SCIENCES  -- Political Science -- Public Administration Studies (hsv//eng)

SAMHÄLLSVETENSKAP  -- Social och ekonomisk geografi (hsv//swe)

SOCIAL SCIENCES  -- Social and Economic Geography (hsv//eng)

SAMHÄLLSVETENSKAP  -- Sociologi -- Socialt arbete (hsv//swe)

SOCIAL SCIENCES  -- Sociology -- Social Work (hsv//eng)

SAMHÄLLSVETENSKAP  -- Sociologi (hsv//swe)

SOCIAL SCIENCES  -- Sociology (hsv//eng)

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business (hsv//eng)

Keyword

accumulation by dispossession

commodification

hegemony

neoliberalism

privatization

Sweden

the regulation approach

welfare regimes

Hållbar stadsutveckling

Publication and Content Type

ref (subject category)

art (subject category)