Financialization of Eldercare in a Nordic Welfare State

Hanna Kaisa Hoppania; Olli Karsio; Lena Näre; Tiina Vaittinen; Minna Zechner

doi:10.1017/S0047279422000137

Financialization of Eldercare in a Nordic Welfare State

Hanna Kaisa Hoppania
, Olli Karsio
, Lena Näre
, Tiina Vaittinen
, Minna Zechner

Research output: Contribution to journal › Article › Scientific › peer-review

38 Citations (Scopus)

43 Downloads (Pure)

Abstract

The increasing presence of for-profit service providers in publicly-funded eldercare has transformed care in Nordic welfare states which have a strong tradition of public care provision. Macro-level research on care policies has mainly focused on public institutions, national policies, and marketization. The financialization of eldercare has not received much scholarly attention, and existing studies mostly focus on the UK. The financialization of eldercare refers to the ways in which care is both a site of profit extraction and financial engineering. The Nordic system is relatively universal, and, with rapidly ageing demographics, there is a secured demand for eldercare services. However, these services have been heavily marketized over the past two decades, opening up lucrative possibilities for financialized actors who have established a stronghold over the markets. We analyse these processes through selected empirical examples from Finland, and argue that the financialization of eldercare in the Nordic context demands attention as we are witnessing a new configuration between the constitutional order of the welfare state, public finances, and private profit which is neither transparent, nor democratic.

Original language	English
Pages (from-to)	26-44
Journal	Journal of Social Policy
Volume	53
Issue number	1
Early online date	2022
DOIs	https://doi.org/10.1017/S0047279422000137
Publication status	Published - 29 Jan 2024
Publication type	A1 Journal article-refereed

Funding

In Finland, debates on the costs of care, the increasing level of public debt, as well as on recurring care scandals have resulted in public discussion not only about the responsibilities of public authorities in monitoring private providers, but also about how individuals could and should prepare for ageing. There is little research on the topic, yet the lobbyists of various interest groups have been active. Finance Finland, for instance, represents the Finnish financial sector and the interests of its members, and promotes the financialization of ageing. They argue: “by dissolving housing assets many older adults could release their wealth for consumption and buy private services which would help them live at home longer” (Finanssiala, ). Similarly, ETLA – an economic research institute funded by the largest Finnish employers’ association – promotes freedom of choice regarding long-term care in old age by the part-release of housing equity, and through the introduction of long-term care insurance. ETLA argues that the government should support the emergence of an insurance market by clarifying the public welfare promise related to old age care, and by promising not to seize private pension and long-term care insurance pay-outs, e.g. via higher user fees for publicly provided long-term care (ETLA, ). A gradual ideological change can be witnessed in the wider third sector, where some actors now campaign for individual preparation for old age through financial means and healthy lifestyles (VTKL, ). Here, too, older adults are discursively made responsible for preventing care needs from emerging, and in case this fails, for making personal contingency plans for future care by preparing economically and legally (for instance, in relation to housing).

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 3 Good Health and Well-being

Keywords

eldercare
financialization
financialization of care
marketization of care
Nordic welfare state

Publication forum classification

Publication forum level 3

ASJC Scopus subject areas

Social Sciences (miscellaneous)
Public Administration
Management, Monitoring, Policy and Law

Access to Document

10.1017/S0047279422000137Licence: CC BY-NC-ND

Financialization-of-eldercareFinal published version, 343 KBLicence: CC BY-NC-ND

https://urn.fi/URN:NBN:fi:tuni-202204273826Licence: CC BY-NC-ND

Cite this

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title = "Financialization of Eldercare in a Nordic Welfare State",

abstract = "The increasing presence of for-profit service providers in publicly-funded eldercare has transformed care in Nordic welfare states which have a strong tradition of public care provision. Macro-level research on care policies has mainly focused on public institutions, national policies, and marketization. The financialization of eldercare has not received much scholarly attention, and existing studies mostly focus on the UK. The financialization of eldercare refers to the ways in which care is both a site of profit extraction and financial engineering. The Nordic system is relatively universal, and, with rapidly ageing demographics, there is a secured demand for eldercare services. However, these services have been heavily marketized over the past two decades, opening up lucrative possibilities for financialized actors who have established a stronghold over the markets. We analyse these processes through selected empirical examples from Finland, and argue that the financialization of eldercare in the Nordic context demands attention as we are witnessing a new configuration between the constitutional order of the welfare state, public finances, and private profit which is neither transparent, nor democratic.",

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note = "Funding Information: In Finland, debates on the costs of care, the increasing level of public debt, as well as on recurring care scandals have resulted in public discussion not only about the responsibilities of public authorities in monitoring private providers, but also about how individuals could and should prepare for ageing. There is little research on the topic, yet the lobbyists of various interest groups have been active. Finance Finland, for instance, represents the Finnish financial sector and the interests of its members, and promotes the financialization of ageing. They argue: “by dissolving housing assets many older adults could release their wealth for consumption and buy private services which would help them live at home longer” (Finanssiala, ). Similarly, ETLA – an economic research institute funded by the largest Finnish employers{\textquoteright} association – promotes freedom of choice regarding long-term care in old age by the part-release of housing equity, and through the introduction of long-term care insurance. ETLA argues that the government should support the emergence of an insurance market by clarifying the public welfare promise related to old age care, and by promising not to seize private pension and long-term care insurance pay-outs, e.g. via higher user fees for publicly provided long-term care (ETLA, ). A gradual ideological change can be witnessed in the wider third sector, where some actors now campaign for individual preparation for old age through financial means and healthy lifestyles (VTKL, ). Here, too, older adults are discursively made responsible for preventing care needs from emerging, and in case this fails, for making personal contingency plans for future care by preparing economically and legally (for instance, in relation to housing). Publisher Copyright: {\textcopyright} The Author(s), 2022. Published by Cambridge University Press.",

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N2 - The increasing presence of for-profit service providers in publicly-funded eldercare has transformed care in Nordic welfare states which have a strong tradition of public care provision. Macro-level research on care policies has mainly focused on public institutions, national policies, and marketization. The financialization of eldercare has not received much scholarly attention, and existing studies mostly focus on the UK. The financialization of eldercare refers to the ways in which care is both a site of profit extraction and financial engineering. The Nordic system is relatively universal, and, with rapidly ageing demographics, there is a secured demand for eldercare services. However, these services have been heavily marketized over the past two decades, opening up lucrative possibilities for financialized actors who have established a stronghold over the markets. We analyse these processes through selected empirical examples from Finland, and argue that the financialization of eldercare in the Nordic context demands attention as we are witnessing a new configuration between the constitutional order of the welfare state, public finances, and private profit which is neither transparent, nor democratic.

AB - The increasing presence of for-profit service providers in publicly-funded eldercare has transformed care in Nordic welfare states which have a strong tradition of public care provision. Macro-level research on care policies has mainly focused on public institutions, national policies, and marketization. The financialization of eldercare has not received much scholarly attention, and existing studies mostly focus on the UK. The financialization of eldercare refers to the ways in which care is both a site of profit extraction and financial engineering. The Nordic system is relatively universal, and, with rapidly ageing demographics, there is a secured demand for eldercare services. However, these services have been heavily marketized over the past two decades, opening up lucrative possibilities for financialized actors who have established a stronghold over the markets. We analyse these processes through selected empirical examples from Finland, and argue that the financialization of eldercare in the Nordic context demands attention as we are witnessing a new configuration between the constitutional order of the welfare state, public finances, and private profit which is neither transparent, nor democratic.

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SP - 26

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Financialization of Eldercare in a Nordic Welfare State

Abstract

Funding

UN SDGs

Keywords

Publication forum classification

ASJC Scopus subject areas

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