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Abstract The welfare states of the affluent democracies now stand at the centre of political discussion and social conflict. In this book, which grew out of two conferences held at the Center for European Studies, Harvard University, in November 1997 and October 1998, an international team of leading analysts reject simplistic claims about the impact of economic ‘globalization’. Whilst accepting that economic, demographic, and social pressures on the welfare state are very real, they argue that many of the most fundamental challenges have little to do with globalization. In contrast to many popular accounts, the authors detect few signs of a convergence of national social policies towards an American‐style lowest common denominator. The contemporary politics of the welfare state takes shape against a backdrop of both intense pressures for austerity and enduring popularity. Thus, in most of the affluent democracies, the politics of social policy centre on the renegotiation, restructuring, and modernization of the post‐war social contract rather than its dismantling. The authors examine a wide range of countries and public policy arenas, including health care, pensions, and labour markets. They demonstrate how different national settings affect whether, and on what terms, centrist efforts to restructure the welfare state can succeed. The 13 chapters of the book are arranged in four main sections, each with three chapters, and a concluding section: I. Sources of Pressure on the Contemporary Welfare State; II. Adjustment Dynamics: Economic Actors and Systems of Interest Intermediation; III. Adjustment Dynamics: Parties, Elections, and Political Institutions; IV. Comparing Policy Domains; and V. Conclusions.