A 'socialist' country like Sweden has a highly articulated welfare state; Denmark and New Zealand (which are not highly industrialized) were among th… - Nicholas Barr

Unless the countries of East Asia are very different, rising incomes and the weakening of extended family ties will lead to demands for rising social expenditure.

First, the welfare state is not a subject apart, but fits naturally into the framework of economic analysis. Secondly,the theoretical arguments support the existence of the welfare state not only for well known equity reasons but also - and powerfully - in efficiency terms.

Education to the extent that it raises an individual's future earnings, increases her future tax payments; in the absence of any subsidy, an individual's investment in education confers a 'dividend' on future taxpayers.