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The Virtuous Circle of Sustainable Welfare as a Transformative Policy Idea

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  • Tuuli Hirvilammi

    (Faculty of Social Sciences, Tampere University, 33100 Tampere, Finland)

Abstract

Welfare states are highly dependent on the economic growth paradigm. Especially in social democratic welfare states, growth dependence has historically been accompanied by the notion of a virtuous circle, which ensures that social policy measures do not conflict with economic growth. However, this policy idea ignores the environmental impacts that are now challenging human wellbeing and welfare goals. In this conceptual research article, I reframe the virtuous circle of the welfare state by revealing its unintended consequences and internal contradictions before introducing a more sustainable policy idea. I argue that this new concept—a virtuous circle of sustainable welfare—could have transformative potential in designing a planned and socially sustainable degrowth transformation. Drawing on historical institutionalism, degrowth, social policy and sustainable welfare state research, I advocate for the virtuous circle as a heuristic tool to provide an appealing and convincing narrative for sustainable welfare state beyond growth. The policy idea of virtuous circle addresses interrelated institutional reforms and positive feedbacks between different institutions and policy goals. It also emphasizes that a holistic approach is necessary to avoid trade-offs and contradictions between social, environmental, and economic policies.

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  • Tuuli Hirvilammi, 2020. "The Virtuous Circle of Sustainable Welfare as a Transformative Policy Idea," Sustainability, MDPI, vol. 12(1), pages 1-15, January.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:1:p:391-:d:304992
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    Cited by:

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    2. Gyeongcheol Cho & Younyoung Choi & Ji-Hyun Kim, 2020. "Investigating the Unintended Consequences of the High School Equalization Policy on the Housing Market," Sustainability, MDPI, vol. 12(20), pages 1-9, October.
    3. Virna Emily Tobing-David & Isbandi Rukminto Adi & Mu’man Nuryana, 2024. "Conditions of Sustainable Welfare: A Cross-Case Empirical Analysis of 22 Locality-Based Welfare Systems in Decentralised Indonesia," Sustainability, MDPI, vol. 16(4), pages 1-27, February.
    4. Patrizia Ghisellini & Renato Passaro & Sergio Ulgiati, 2021. "Revisiting Keynes in the Light of the Transition to Circular Economy," Circular Economy and Sustainability, Springer, vol. 1(1), pages 143-171, June.
    5. Kristian Kongshøj, 2023. "Social policy in a future of degrowth? Challenges for decommodification, commoning and public support," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-11, December.
    6. François, Martin & Mertens de Wilmars, Sybille & Maréchal, Kevin, 2023. "Unlocking the potential of income and wealth caps in post-growth transformation: A framework for improving policy design," Ecological Economics, Elsevier, vol. 208(C).
    7. Koch, Max, 2022. "State-civil society relations in Gramsci, Poulantzas and Bourdieu: Strategic implications for the degrowth movement," Ecological Economics, Elsevier, vol. 193(C).
    8. Matt Wilder & Ruth Rosalle & Alyssa Bishop, 2024. "Eco-welfare States and Just Transitions: A Multi-method Analysis and Research Agenda," Circular Economy and Sustainability, Springer, vol. 4(3), pages 2241-2265, September.
    9. Smith, Thomas S.J. & Baranowski, Mariusz & Schmid, Benedikt, 2021. "Intentional degrowth and its unintended consequences: Uneven journeys towards post-growth transformations," Ecological Economics, Elsevier, vol. 190(C).
    10. Jari Lyytimäki & Hanna-Liisa Kangas & Erkki Mervaala & Suvi Vikström, 2020. "Muted by a Crisis? COVID-19 and the Long-Term Evolution of Climate Change Newspaper Coverage," Sustainability, MDPI, vol. 12(20), pages 1-15, October.
    11. Mariana Oliveira & Remo Santagata & Serena Kaiser & Yanxin Liu & Chiara Vassillo & Patrizia Ghisellini & Gengyuan Liu & Sergio Ulgiati, 2022. "Socioeconomic and Environmental Benefits of Expanding Urban Green Areas: A Joint Application of i-Tree and LCA Approaches," Land, MDPI, vol. 11(12), pages 1-16, November.
    12. Engler, John-Oliver & Kretschmer, Max-Friedemann & Rathgens, Julius & Ament, Joe A. & Huth, Thomas & von Wehrden, Henrik, 2024. "15 years of degrowth research: A systematic review," Ecological Economics, Elsevier, vol. 218(C).
    13. Xiaoran Zheng & Yuzhuo Cai, 2022. "Transforming Innovation Systems into Innovation Ecosystems: The Role of Public Policy," Sustainability, MDPI, vol. 14(12), pages 1-26, June.
    14. García-García, Pablo & Buendía, Luis & Carpintero, Óscar, 2022. "Welfare regimes as enablers of just energy transitions: Revisiting and testing the hypothesis of synergy for Europe," Ecological Economics, Elsevier, vol. 197(C).
    15. Tuuli Hirvilammi & Max Koch, 2020. "Sustainable Welfare beyond Growth," Sustainability, MDPI, vol. 12(5), pages 1-8, February.

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