Private Sector Provider Power in Welfare State Politics

Do private sector providers become powerful actors in political processes? Previous research gives ambiguous answers to this question. The argument outlined in this chapter states that they have developed a stake in certain social policies and can be expected to become powerful in the politics of welfare state reform because of the special position of business as an interest group. However, the power of these actors is constrained by a number of factors, ranging from issue salience to institutional settings. What is more, private sector providers will not be successful on their own but need allies and favourable institutional and structural conditions.