ABSTRACT
This chapter focuses on how marketisation has influenced the provision of welfare, and may do in the future, including impacts on who has access to welfare services and benefits and under what conditions. The market has historically been used mainly to exchange goods and services. The risk of monopolistic or quasi-monopolistic dominance is greater in areas where there may be obstacles to entering the market. A common example is pollution, where the cost of pollution is not reflected in market prices. Market failure has been a core argument for public sector intervention in the economy, and for that there should be a welfare state. Public sector intervention and regulation can thus be a way of achieving certain societal development goals. The financial market can have an impact on the lives of many individuals and families, and as the latest financial crisis has shown, also for spending in welfare states.
