The welfare state, however, is in a state of crisis, such that the very forces, which initiated its rise after World War II are touted to bring the same challenges it is facing today (Pierson, 1998). Among these are the neo-liberalist ideas of capitalism and globalisation. As Deacon (1997) argues, globalisation sets welfare states against each other through competition, in a manner that can undermine social solidarity. Hence, encouraging welfare states to be more adept to minimise risks and maximise returns of policies. The New Labour’s ‘Third Way’ modernization project, in turn can be considered as a response to the factors that threaten solidarity by constructing a new ‘social democracy,’ which according to Fitzpatrick (2002) is but a simplification of the old concept of social democracy.
Thus, the introduction of a neo-liberal capitalism ideologies, as well as globalization, questions the commitment of social policies towards welfare and social justice, in the context of risk management. Two policy areas that illustrates such is with regard to community care, evidenced by the recently passed Anti-Social Behaviour Act 2003; and child welfare in the context of the Mental Health Bill 2004. First, the Anti-Social Behaviour Act, has been described as more concerned with giving authorities more administrative and enforcement powers to punish offenders, without due reference to rehabilitating them, especially with regard to youth offenders (Liberty, 2003; National Children’s Bureau, 2003).