There were two concepts have been identified to understand welfare states in the better manner, ‘decommodification and the workfare state also called competition state (Holden, C., 2003). It is directly related to the process of recommodification. These concepts have enabled us to make stronger analysis of the several ideas and policies of new labor government in the UK. Administrative recommodification process had restructured State welfare services to make it more effective to meet the needs and requirements of the market.
Decommodification has been recognized as a core concept for many years to demonstrate the existence of welfare states among advanced capitalist economies. In the recent time states are playing a vital and active role in the process of recommodifying labor as per the theories of the workfare or competition state. This view is closely related to the burgeoning literature on political economy of Globalization.