Welfare states come in different sizes and shapes. The origin of the Western welfare state dates back to the last quarter of the 19th century. The great societal transformations of the time were conducive to a "new thinking" about the role of the state: Should the state play a more active social role and, if so, in what way? On entering the 20th century, social policy and welfare emerged to become a crucial issue on the political agenda, and the Western countries adopted varied approaches.

The Nordic welfare state is about "stateness, universality, equality", and "a system of governance" conducive to stable, continuous reform efforts and decisions.

The Nordic welfare model is based on the prevalence of the state and the public sector in welfare arrangements. The "stateness" of the Nordic countries has long historical roots. The principle of social rights is extended to the entire population. Services and cash benefits are to a greater extent than elsewhere universal in character, covering also the middle-and high-income classes, and those without income.

In short, all benefit and all who are able to must pay. Progressive income tax and universal, generous, social security and welfare systems have made for redistribution, little poverty and egalitarian income distributions. The system of governance provides a pattern for conflict resolution and policy legitimacy through political processes prior to authoritative political decision making. Civil society organizations, most particularly through triangular relationships between government, trade unions, and employers' associations, are actively involved before decisions are formally made. This system of governance may be called "consensual governance".

The Nordic experience of welfare, politics and economic development－the "middle way"－can be of interest for China and for developing economies and embryonic welfare states in a globalized world.

The author is a professor of comparative politics, University of Bergen, Norway, and a visiting professor at Fudan University, Shanghai.