For a long time the Nordic welfare model has epitomised a possible `middle way' between predominantly state and market ideologies, a balance between economic growth and social justice. However, the economic crises, in  Denmark in the 1980s and more recently in Sweden and Finland, have raised  questions about the sustainability of this type of welfare state. The  desirability of a generous welfare system has even been debated within the  Nordic countries themselves. Elsewhere the recent economic crises in Sweden  and Finland have been interpreted as signs of the imminent collapse of the  Nordic model; and market-based solutions and policies have become  increasingly prominent. The fate of Nordic social policy is therefore of  importance not only to Nordic countries, but also to social policy more  widely. This book, filled with rich empirical analysis, is a timely  contribution to the debate. Nordic Social Policy looks in depth at the  changing preconditions for social policy, the changes in social policies  and the development in the welfare of the people. In other words, the focus  is on what has actually happened in social policies and the impact on the  welfare of individuals and families. Taken as a whole, the various analyses  in the book provide a good basis for deciding whether the Nordic welfare  states have given up their `middle way`. The book is a result of the  collective and coordinated work of more than 20 Nordic social researchers  over many years. It is organized into three parts. The first reviews the  changing preconditions for the welfare state, the second consists of  analyses of the social policies themselves, and the third examines welfare  outcomes. The changing preconditions include citizens' support for the  welfare state, changing demographic and family structures and the political  and economic development. The empirical analysis studies policies such as  labour market activation and social security in cash and kind, as well as  welfare outcomes such as income inequality, poverty, marginalization, and  social exclusion.The results of the analyses are striking, although at  times underplayed by the authors. Broadly speaking, the insights can be  summarised in three points. First main conclusion: 'yes, preconditions and  political rhetoric have indeed changed'. Second: 'but no social policies  have changed fundamentally, although some have been trimmed and others  expanded'. Third, and most importantly: 'there are no signs that economic  downturns have gone hand in hand with increasing inequalities'. Relatively  stable and successful welfare policies are thus the hallmark of Nordic  social policy in the 1990s. "Business as Usual in an Unusual World" would  therefore be a more appropriate subtitle for Nordic Social Policy than the  somewhat misleading "Changing Welfare States".This is not to say that  important changes have not occurred. Indeed the authors note that the  policies have changed towards a greater emphasis on activation in social  security, and some benefits in both cash and kind have been cut and others  improved. This, however, may be seen as trimming and adapting, rather than  a wholesale departure from the principles of universal, generous benefits,  and a large role remains for the state vis-á-vis other actors. Another  change is that young people in Finland, Sweden and Norway are encountering  increasing financial difficulties relative to other age groups -  particularly older people who can no longer be regarded as among the most  economically vulnerable groups in the Nordic countries.    The book is a  rare contribution to comparative social policy in bringing together  researchers from different countries and asking them collaborate under a  common research framework and with original data. The authors effectively  destroy the myths from both the left and right about the crisis of the  welfare state and the worsening social problems.However, it would have  been instructive to explore how social policies work to prevent social  problems from occurring in adverse economic circumstances. Indeed the book  as a whole shows that the Nordic welfare state prevented widespread poverty  resulting from the sudden and very deep recessions in Sweden and Finland,  and also suggests that their comprehensive welfare systems have contributed  to their fast recovery. Although the study points to the inadequacy of  statements on the fate of the welfare state and welfare outcomes based on  aggregate measures, it fails to identify the mechanisms at play. For  example, relatively unchanged income distributions do not mean that nothing  of importance has changed. As an illustration, imagine that the whole  population or major segments of it become worse off, as was more or less  the case in Finland in the early 1990s. Such a situation does not show up  dramatically in statistics on income inequality. However, the economic  position of benefit recipients has generally deteriorated relative to  people with earned income in the 1990s, not only in Finland, but also in  Sweden and Denmark. Hence, detailed studies of tax/benefits systems may  help to reveal the impact on the wellbeing of people and - from a more  economic perspective - on questions of work incentives. Another way forward  might be to contrast the Finnish and Swedish experience with that of other  countries with economic difficulties, but with different types of welfare  state, if any. In general, it would be interesting to put the whole study  into perspective and compare the developments in non-Nordic countries, and  so identify alternative routes to, and outcomes of, welfare. However, the  editors note that it is an on-going research project which plans to include  more countries in its next phase. With at least Britain and Germany among  them, this would facilitate comparisons with two other archetypical welfare  states in similar settings.Overall, this book is an excellent collection  of analyses which bring much new material and together provide a unique  foundation for assessing the state of social policy and welfare in the  Nordic countries. The book deserves to be read by everyone interested in  social policy in a comparative perspective.

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