The Significance of Major Public Health Intervention
Social policy continues to capture the interest of public health scholars. Some of us may regard this as the key area of public health, the most upstream and macro, the area with the greatest potential to shape a societyâs standards of living and determinants of population health. In Part I we begin with Vicente Navarroâs critique of Nobel laureate (in economics) Amartya Senâs Development As Freedom. Progressive scholars were enthusiastic about this book, as it seemed to herald a departure from neoclassical economics. Navarro suggests that Senâs work, while representing a major break with the dominant neoliberal position reproduced in most national and international development agencies, is insufficient to explain the key relationship between freedom and development. Thus, the absence of an analysis of the power relations that cause and reproduce underdevelopment through national and international political institutions leaves Senâs work wanting. Navarro shows how Senâs interpretation of events and the conclusions derived from them (such as an explanation for famine in Bangladesh) are insufficient. He also critically analyzes the U.N. Development Program reports, which, while documenting the nature and consequences of underdevelopment, barely touch on the political context in which underdevelopment occurs. Amartya Sen himself is the next contributor (Chapter 2), with a discussion of the relationship between high fertility rates and the low decisional powerâindeed subjugationâof women.
Four chapters on economic inequality and social policy follow. Three of themâby Bo Burström and colleagues; Olli Kangas; and Timothy Smeeding and Peter Gottschalkâdeal with cross-national comparisons; while the fourth, by Robert Chernomas, tackles the U.S. economy. Burström and coauthors, in a comparative study of British and Swedish labor markets (Chapter 3), test two opposing hypotheses: (1) that the increasingly flexible, deregulated labor market in Britain would result in an increased number of new jobs and thus better employment opportunities for unskilled workers, including those with chronic illness; (2) that the more regulated labor market in Sweden, with the associated health and social policies, would provide greater opportunities for jobs and job security for workers with chronic illness. The analysis of data on men from the British General Household Survey and the Swedish Survey of Living Conditions, 1979â1995, shows that employment rates are higher and rates of unemployment and economic inactivity are lower in Sweden than in Britain, and that differences in these rates across social class and between those with and without chronic illness are smaller in Sweden. The results support the hypothesis that active labor market policies and employment protection may increase the opportunities for people with chronic illness to remain in work.
Kangas tests the âtrickle-downâ theory, according to which wider income differences are good for economic growth, growth is good for the poor, and therefore widening income disparities benefit the poor (Chapter 4). His study presents a preliminary refutation of this theory, with income data for 21 countries obtained from the Luxembourg Income Study for the period 1985â95. The results do not show clear associations between inequality and economic prosperity. The wider the inequality, the worse is the absolute income of the poor. In this respect the theory is falsified. However, Kangas sees some beneficial effects of economic growth for the poor under capitalism: the absolute income level of the poor is dependent on what is happening in the national economy, while the incidence and depth of poverty in advanced countries are not so much associated with economic factors as a result of national social policy programs.
Smeeding and Gottschalk add to the cross-national analysis of income distribution (Chapter 5). A secular growth of income inequality took place over the last two decades of the 20th century, affecting almost every rich nation; this growth was matched by a growth in comparable household income inequality data, which made possible cross-national comparisons of income distribution. While finding clear patterns of disposable-income inequality differences in both level and trend, the authors argue that we are still a long way from explaining why these differences came about, whether they will continue to grow or stabilize, and what the social consequences of these changes might be.
Next, Chernomas describes how U.S. capitalism emerged from its crisis in the 1990s (Chapter 6). Capitalism entered an economic crisis in the late 1960s due to a fall in the rate of profit. With falling profits, corporations were compelled to find means of reducing costs by lowering wages and taxes and/or raising productivity. Attacks on the welfare state (in the form of the war on deficits and debts), unions, and government in general resulted in falling wages, longer hours of work, and increased poverty. Only in 1997, despite years of exaggeration about its macroeconomic recovery, did the United States finally have a true boom yearâlike something from the Golden Age of the 1950s or early 1960s: GDP, investment, productivity, employment, and even wages grew. Chernomas shows that this tentative recovery was accomplished in part by the state and corporate sectorsâ ability to generate inequality over the last quarter of the 20th centuryâand shows how these macroeconomic policies changed the context for health and the health sector.
These six chapters provide convincing arguments on the importance of political choices at different levels of economic development, even during periods of slow growth. That is, they challenge economic determinism in social policy and for the most part point to social democratic policies as the means to reverse the negative impact of growing economic inequality. Interestingly, Chernomas seems to adopt a more critical perspective by pointing to the incompatibility between economic equality and capitalist growth.