Professional Documents
Culture Documents
WELFARE STATE
SUBMITTED TO
SUBMITTED BY
Siddhanta Singh
Section- A
Roll No. - 148
Semester I
Date of Submission 31st Aug 2012
ACKNOWLEDGEMENTS
First & foremost, I would like to thank Facultyof Political Science Mr. Avinash Samal for giving me
opportunity to work on this project named Welfare State. His guidance and support has been
instrumental while making my project on this important issue.
I would also like to thank all authors, writers, columnists and political thinkers whose ideas and
works have been used of in my Project.
My heartful gratitude also goes to all staff and administration of HNLU for the infrastructure in the
form of our library and IT lab that was a great source of help in the completion of this Project. I would also
like to thank my parents, my elder brother Er. MukeshDev and friends in the University, who have helped
me about this work.
Siddhanta Singh
Semester I
Roll. No. - 148
TABLE OF CONTENTS
1.
2.
3.
4.
5.
INTRODUCTION
4
OBJECTIVES OF THE PROJECT
5
PROJECT METHODOLOGY
6
WELFARE STATE: DEFINITIONS
7
TYPES OF WELFARE STATES
8
THE CORPORATIST WELFARE REGIME (SOCIAL INSURANCE MODEL)
8
THE LIBERAL WELFARE REGIME
9
THE SOCIAL DEMOCRATIC/SCANDINAVIAN WELFARE REGIME
10
6. CHARACTORISTICS OF A WELFARE STATE
11
7. FUNCTIONS OF THE WELFARE STATE
12
COMPULSORY FUNCTIONS
13
OPTIONAL FUNCTIONS
14
8. MERITS OF A WELFARE STATE
15
9. CRITICISMOFWELFARESTATE
17
10. WELFARESTATEININDIA
18
11. CONCLUSION
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12. BIBILIOGRAPHY
22
13. WEBLIOGRPHY
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INTRODUCTION
In the nineteenth century, the state had become a democratic 'Welfare State' in many parts of
the world. All human societies provide various welfare services to members who cannot earn their
keep. The general masses of people suffered seriously on account of increasing poverty, inequality,
economic uncertainty, unemployment etc.
During this century, consequently their condition was deplorable, the immense suffering
experienced by people in general brought about a very great change in the idea of stale functions.
Henceforth, the state could not act as a police force maintaining law and order only. These
police functions cannot serve the purposes of modern industrial society. At this stage the welfare state
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carne into being to solve the problems of people and relieve their suffering. The main reason for the
rise of the welfare state was to recover from the devastation caused by the Second World War. It was
thought that the state, instead of being a police state should be an agency for promoting the welfare of
people as a whole and for their mental, physical and moral development.
In the process of modernization much of these services were monetarized and came under
control of the state. We see this most clearly and in welfare arrangements for the unemployed, the sick
and the elderly. This societal pattern is called 'welfare state'.
A welfare state is a "concept of government in which the state plays a key role in the protection
and promotion of the economic and social well-being of its citizens. It is based on the principles
of equality of opportunity, equitabledistribution of wealth, and public responsibility for those unable to
avail themselves of the minimal provisions for a good life. The general term may cover a variety of
forms of economic and social organization."1
PROJECT METHODOLOGY
The present study is empirical one and quantitative in approach. Apart from Primary data, Secondary
and published documented data has also been collected through various sources and analyzed
accordingly.
To make the study more meaningful and policy oriented available literature and studies have
been consulted and reviewed apart from this field observations and open ended discussion have also
been equally considered and incorporated in the present study. The secondary data interpreted and
analyzed while critical appreciation of pertinent literature has been ensured in the project wherever
required.
Books and other reference as guided by Faculty of Political Science have been primarily
helpful in giving this project a firm structure. Websites, dictionaries and articles have also been
referred.
allows for private service system without rationing (e.g., in health care)
drives up labor cost (payroll taxes) and low wage unemployment (in/out groups)
often provides few benefits for those outside the insurance model (new poverty)
benefits. Private insurance and savings schemes are frequently supported by complementary state
policies (e.g., tax credits, tax shelters).
In the liberal welfare states (to which the US, Canada, Australia, and Switzerland correspond
more than other western countries), the middle class was not wooed from the market to the state. The
historical dominance of the liberal idea retained skepticism of a strong state long enough until the
middle class was strong enough that it felt the market could better satisfy its needs.
Original Condition of the liberal Welfare State:
weak state
low taxes
differentiated services
welfare state is politically unpopular and not sustainable negative stigma attached to
benefit recipient
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Protestant, liberal tradition with great regard for individualism and equality
provide equal opportunity to all. It also aims to ensure equitable distribution of wealth.
It exercises control over all the economic activities. In a welfare state, all the private enterprises
manner. Industrial policy, trade policy, commercial and banking policy etc are framed in order
to control those activities.
8. It is the function of a welfare state to regulate and control all private enterprises engaged in
economic activities. Such control includes registration, licensing, taxation etc.
9. Welfare of laborers also comes under the purview of the duties of welfare state. They are bound
to make legislations to prevent exploitation of workers, and to ensure the security and welfare of
those who work in industrial enterprises, factories, companies and all other sectors of
employment.
Compulsory Functions
The compulsory functions include maintenance of law and order within the State. This is done
not only by maintaining a police force but also by instituting a set of courts to administer justice.
Compulsory functions are the following:
the government to make adequate arrangements for the maintenance of peace and order as it is duty of
citizens to cooperate with the government in such a work.
3) Protection from external invasion or defense:
External security means security from external danger either of a military invasion or of
encroachment upon international rights. The State should, therefore, be in a fit condition to defend
itself against foreign attacks. For this purpose, it maintains a standing army, a navy and to fight in
defense of the State. In times of peace too, the State has to deal with foreign powers and looks after its
international interest. It also maintains diplomatic relations with other countries.
4) Dispensing justice:
It is an important function of the State that it should organize an independent and powerful
judiciary. In the absence of an independent judiciary, people cannot have justice. The State must
maintain civil and criminal courts to administer justice. No liberty is possible without rule of law.
Those who violate law should be punished. The State should regulate the conduct and activities of
individual in the interests of all.
These are the most essential functions of the State. These essential functions are called the
protective or police functions. The State also performs a large number of optional functions. As T.H.
Green writes that "the business of the State is not merely the business of police man of arresting
wrongdoers or of ruthlessly enforcing contracts but for providing for men an equal chance as far as
possible of releasing what is best in their intellectual or moral natures." The State continues for sake of
providing "good life" and hence arises its large variety of optional functions.
Optional Functions
As the words indicate, these functions may or may not be performed by the State. However,
most of the modern State try to perform these functions. These optional functions are performed by the
modern States as per their ability and convenience. These are known as non-essentials functions. Some
of these functions are given below.
1) Physical welfare:
Physical welfare of citizens is considered as an optional function of modern State. It is
achieved by providing medical facilities, sanitation and conservancy system. Most of the modern
States perform these functions. Public health and hygiene of the people are important in every State.
2) Education:
Education is the linchpin of social progress. Spread of education is necessary in a State.
Intellectual development of citizens is made through education. These include provision for schools,
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colleges, universities, etc. Thus, educational opportunities are provided to the citizens by most of the
modern States.
3) Regulation of trade, industries and development of agriculture:
Most of the modem States do not leave the economic activities with individuals alone. Certain
States may go ahead and nationalize the factories and other means of production. Some other States
may only regulate the price, production, import, export and other things relating to the system of
production, while allowing private individuals to own and operate the means of production. Certain
other States like India may follow what is called "mixed economy". In such a system, private as well
as State-owned factories and other means of production function side by side. The State may provide
various facilities like irrigation, suitable land tenure, co-operative farming, etc. for development of
agriculture.
4) Social security functions:
These activities of modern States include provision for old age pension, maintenance of
orphans, provision for employment, insurance for worker, sick and disability allowance, relief,
rehabilitation of distressed people, etc.
5) Management of the public utilities:
Most of the modern States also own and operate the public utility services such as transport,
electricity, water works, postal services, air services etc. It is neither possible nor desirable to leave
public utility services at the mercy of profit-seeking private individuals who are likely to misuse them
to the detriment of public interests.
imported from other countries, which are essential, and those goods should be exported to other
countries, which are surplus. If the State does not regulate import export, the people's plight will be
quite miserable and there will be imbalance of trade.
8) Social and economic security:
The State is morally bound to remove poverty and unemployment. It should, therefore, provide
protection against old age. Unemployment,etc. It can be done by introducing insurance schemes
against accident, old age etc.
Country
Post-welfare
Post-welfare
Sweden
23.7
5.8
14.8
4.8
Norway
9.2
1.7
12.4
4.0
Netherlands
22.1
7.3
18.5
11.5
Finland
11.9
3.7
12.4
3.1
4Kenworthy, L. (1999). Do social-welfare policies reduce poverty? A cross-national assessment. Social Forces,
77(3), 1119-1139.
5EmanueleFerragina and Martin Seeleib-Kaiser (2011). Welfare regime debate: past, present, futures. Policy &
Politics, vol. 39 .p. 597.
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Country
Denmark
26.4
5.9
17.4
4.8
Germany
15.2
4.3
9.7
5.1
Switzerland
12.5
3.8
10.9
9.1
Canada
22.5
6.5
17.1
11.9
France
36.1
9.8
21.8
6.1
Belgium
26.8
6.0
19.5
4.1
Australia
23.3
11.9
16.2
9.2
United
Kingdom
16.8
8.7
16.4
8.2
United
States
21.0
11.7
17.2
15.1
Italy
30.7
14.3
19.7
9.1
CRITICISMOFWELFARESTATE
WritingaboutBritishgovernment'swelfarestateprogram,R.M.Titmusadmittedthat"those
whobenefittedthemostarethosewhohaveneededittheleast."Thedangerthatthewelfarestatemay
workmainlyforthe'welfareofthebettercannotbeignored.6
Some conservatives in the UK claim that the welfare state has produced a generation of
dependents who, instead of working, rely solely upon the state for income and support; even though
assistance is only legally available to those unable to work or who being without employment are
unable to find work. The welfare state in the UK was created to provide certain people with a basic
level of benefits in order to alleviate poverty, but these conservatives believe that it has been expanded
to provide more people with more money from the state than it can ideally afford.7
Some British conservatives, such as Conservative Party co-chairman SayeedaWarsi, also
criticize the "'something for nothing' culture" of the welfare state, claiming that the high extent of the
welfare state "discourages the unemployed from finding jobs".8 55% of people in England and 43% of
people in Scotland believe that "benefits for unemployed people are too high and discourage them
from finding jobs".9
Marxists argue that welfare states and modern social democratic policies limit the incentive
system of the market by providing things such as minimum wages, unemployment insurance, taxing
profits and reducing the reserve army of labor, resulting in capitalists having little incentive to invest;
in essence, social welfarepolicies cripple the capitalist system and its incentive system, and the only
real solution to the issues of capitalism is its replacement with a socialist economic system.10
Some socialist anarchists believe that while social welfare gives a certain level of independency
from the market and individual capitalists, it creates dependence to the state, which is the institution
that, according to this view, supports and protects capitalism in the first place. Nonetheless, according
to Noam Chomsky, "social democrats and anarchists always agreed, fairly generally, on so-called
'welfare state measures'" and "Anarchists propose other measures to deal with these problems, without
recourse to state authority."11 Some socialist anarchists believe in stopping welfare programs only if it
means abolishing government and capitalism as well.12
WELFARESTATEININDIA
In Indian context, Welfare State denotes establishment of political democracy, provision of social
and economic justice and minimizing inequalities in income, status, facilities and opportunities. The
concept is embodied in Part 1V of the Indian Constitution, Directive Principal of State Policy.
According to the Constitution, it is the duty of the government to follow these principles while making
laws and thereby set the path towards a welfare State. The uniqueness about the concept in the Indian
context is the Directive Principles containing the instructions to the government to establish a welfare
State, is non justifiable and citizens cannot claim it as a right. This is because, India being developing
8http://www.conservatives.com/News/News_stories/2011/12/Labours_something_for_nothing_culture_must_end.aspx
9http://ir2.flife.de/data/natcen-social-research/igb_html/index.php?bericht_id=1000001&index=&lang=ENG th
e British Social Attitudes Survey
10Market Socialism: The Debate Among Socialists, by Schweickart, David; Lawler, James; Ticktin, Hillel;
Ollman, Bertell. 1998. (P.60-61)
11http://www.zmag.org/chomsky_repliesana.htm Noam Chomsky on anarchist support for 'welfare state'
policies
12J.5 What alternative social organisations do anarchists create?
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and over populated country and it may not possible for welfare activities of the state reach every
citizen of our country.
Article 38 of the Constitution reads: "The state shall strive to promote the welfare the people by
securing and protecting as effectively as it may, a social order in which justice-social economic and
political-shall pervade all institutions of national life." provides a broad framework for the
establishment of the welfare state ideal.
While Article 39(a) spells that all citizens, men and women equally, have the right to an adequate me
of livelihood, Article 43 enjoins that the state shall endeavor to secure to all workers work, a living
wage and conditions of work ensuring a decent standard of living.
Provision of employment opportunities which is yet another objective of the welfare state is
emphasized by Article 41 which directs the state for securing the right to work.
Provision against insecurity is also incorporated in this Article which directs the state make
effective provision for securing right to education, and to public assistance in ca of unemployment, old
age, sickness and disablement.
Protection and special care of the weaker sections of the community is provided Article 46
which directs the state to promote with special care the educational and economic interests of the
weaker sections of the people, and in particular, of the scheduled castes a the scheduled tribes, and to
protect them from social injustice and all forms of exploitation.
As a welfare State, India is committed to the welfare and development of
itspeople,
particularly the vulnerable sections like the scheduled castes (SCs), scheduledtribes (STs), backward
classes, minorities and the handicapped. This section of thesociety constitutes nearly 85% of the
population.
agriculture, the management of non-irrigated, rainfed agriculture (which constitutes 73 per cent of the
country's cropped area) has led tothe identification of around 4, 246 watersheds. 46 of these have
already been taken upby various agricultural institutions and universities. One such agricultural
institutionis the National Bank for Agriculture and Rural Development (NABARD), which mobilizes
resources and provides credit to theNational and State governments have been undertaking many
measures in sectors like agriculture, education, public health communication, transport, rural
development and housing for the welfare of the people.
CONCLUSION
In later part of the 20th century, the wave of privatization and globalization came into existence
in many countries. According to the market fundamentalists and Nobel laureates like Friedrich Hayek
and Milton Friedman, the welfare state is a source of trouble and an anomaly that should be stopped.
However another Noble prize winning economist argues, The supremacy of the market which is
proclaimed with ideological fervor is a dangerous mistake He considers the role of the state and its
regulating activities to be essential and believes that market mechanisms are unsuitable means for the
solution of social problem.
It demands some rethinking and reform of various Welfare institutions which is more essential in the
developing country like India where disparities exist between different segments of the population and
different regions of the country, for shortening these gaps and moving towards a more balanced
development of the nation.
However the welfare State is the greatest achievement of the 20th century and should be suitably
adapted to the existing global condition as well as the peculiar situation of a particular country in order
to lead toward overall prosperity of mankind.
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BIBLIOGRAPHY
The Welfare State We're In by james Bartholomew
The Hidden Welfare State: Tax Expenditures and Social Policy in the United Statesby
Christopher Howard
The Oxford Handbook of the Welfare State by Francis G. Castles, Stephan Leibfried, Jane
Lewis, Herbert Obinger, Christopher Pierson
The New Politics of the Welfare State by Paul Pierson
WEBLIOGRAPHY
www.tourindia.com
www.preservearticles.com/.../concept-of-a-welfare-state.html
www.welfare-state.org/
www.ruthlesscriticism.com/welfare_state.htm
http://www.pitt.edu/~heinisch/concept.html
http://unpan1.un.org/intradoc/groups/public/documents/apcity/unpan003057.pdf
http://papers.ssrn.com/sol3/.cfm
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