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This volume, the second of a twin-set grouping articles based on papers presented at seminars in Sigtuna, Sweden 1994-1996, deals with the largest spending programmes of the welfare state - old age pensions and medical care - and their place within the debate about the desirability and affordability of modern social programmes. The chapters are divided into four parts. The first deals with general welfare, sociology and economics; part two groups papers dealing with old age pension reform in a variety of countries; part three takes up a number of topics under the heading of health care reform; and part four deals with the effect of increased longevity and population ageing, as well as predicted disability and frailty on the future of modern welfare states. Taken together, these chapters range widely in tone and orientation, but their topics cover the issues facing welfare states among the industrial democracies.