Path Dependence Theory Applied to Social Security Development

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In 1889, Germany created the first nation pension system in the world. It can be argued that this event changed the world concerning the establishment of social security, as this implementation became the first domino to fall in a series of events that influenced pension systems to be created in countries around the globe. By applying Path Dependency theory, the idea that policy implementations are rooted and dependent upon previous policy implementations, to this event in Germany, this paper will attempt to demonstrate that historical context and circumstance are often the prime movers for the implementation of change to new, large-scale schemes across the globe. Path dependency theory will also be examined in the developments of the social security systems during the events of the Great Depression of the United States. Also, the effect of a world war will be applied to other countries such as France, Japan, and Australia and their pension schemes.