I'm not sure I see the correlation between social welfare and racism. Although I wouldn't want to make a sweeping assumption about whole countries, I do imagine that more homogenous areas are more resistant to people who don't look like them, although I am sure there are many exceptions. Xenophobia has been on the rise lately as it is a convenient wedge that politicians and wealthy media owners can use to get people to blame their problems on 'foreigners' rather than politicians and the wealthy. But the openly hatefully racist are still usually a minority, and among the young - especially young women - they are bucking this trend and this gives me hope.