Welfare State

Welfare State
Meaning of Welfare State : -
 It is a state which comprises of a range of social services which aim to provide

basic services such as health, education, unemployment benefits, poverty
alleviation schemes etc. , to the needy citizens, free of charge and with the help of
state funds.
 It is a form of state which provides extensive social services to all its citizens,
protect the weaker sections, ensure economic and social security and tries to
minimize the gap between the rich and the poor.
Rise of Positive Liberalism
 Difference between negative and positive liberalism

 Downfall of negative liberalism in the late 19th century due to – concentration of wealth in a few
hands; inhuman conditions of work and exploitation of labourers; widening gap between the haves-
haves not; increase of the monopolistic control of trade by private organizations; rise in
unemployment and illiteracy.
 Therefore, classical liberalism was challenged by humanists, utopian socialists and Marxists alike.
J.S. Mill : – On Liberty (1859)

•The personality of an individual can be realized in a free society through the exercise of choices.
•To live one’s own life and develop one’s capacities is a substantive part of happiness.
•Liberty is a social good (not an individual one).
•The function of a liberal state is not to leave the individual alone, but rather to act as a means of
creating an increasing and equalizing opportunity.
Notions on Positive Liberalism: -
T. H. Green
John Galbriath
 Liberty is the ‘positive power or capacity of doing
 Adopting socialistic methods and reforms
and enjoying something worth doing and
enjoying’. in order to get rid of the cycles of
economic crises that were an indelible
 The function of the liberal state is not to not- part of capitalist nations and developed
interfere, but rather to remove obstacles that countries.
may stand in the way of moral development of
human beings.
Bosanquet
J. M. Keynes
 The assertion and maximization of the self becomes
 There is an inherent imbalance within capitalism possible in and through society.
which grows with the expansion of capitalism.  The duty of the state is to ensure conditions for good life
of all its citizens, which are linked to their rights as
 Rise of unemployment, economic instability, citizens.
gaps between production and consumption etc.  It is a ‘higher sense of liberty since it presents the
 greater area of activity and the more extensive choice of
Capitalism and Socialism are not antithetical.
self-determination’.
Difference between Negative and Positive Liberalism
Negative Liberalism Positive Liberalism
16th - 19th century Late 19th and early 20th century
Individualistic Man is a part of the social whole; Society is the ‘potential, harmonious
and ordered structure in which all social classes work for the common
good’.
Absence of Constraints Liberty is about mutual claims - systems of rights and reciprocal duties or
restraints. It signifies the conditions which are necessary for the free and
full development of the self within the state.
Equality before law and Equality of opportunity and outcome (substantive notion)
equality of opportunity
Laissez Faire Regulated Capitalist Economy
Capitalistic Nature of the state – Democratic (does not belong to a particular class but
Rise of Liberal Democratic Welfare State:
-
 The objective of the state in the19th century expanded from preservation of the capitalist
systems to getting rid of its ill-effects. The object of the state move beyond maintenance
of law and order to serve the common interests and perform services for the welfare of
all the members of the society.
 Principles of a Liberal Democratic Welfare State: -
 Every member of the community is entitled to minimum standards of living.
 Bring about economic stability through public policies and reforms and get rid of the
cycles of inflation and deflation.
 Focus on full employment or unemployment benefits.
 Collective bargaining between labour and management.
 Providing social security cover to all.
Attributes of Welfare State: -
1. Positive Role of the State
2. Democratic – any state which takes up welfare policies but does not have a democratic
institutional framework or political and civil liberties to support its structure, cannot be
considered a welfare state.
3. Mixed Economy
4. Welfare state is a permanent institution of the society and a neutral agency (Impartial –
focusing not only on the poor and needy sections but on all the classes).
Justification for the Welfare State: -
 After the economic depression of 1929-30 and the world wars, there was an unprecedented
rise in poverty and unemployment. The Beveridge Report of 1942, identified 5 major
sufferings of the people – want , disease, ignorance, squalor and idleness.
Different Justifications for a Welfare State: -

1. Free trade capitalist economy is the enemy of socio-economic equality as it gives rise to
problems like widening gap between the rich and poor classes, unemployment and poverty,
hunger, inhuman working conditions, poor health and sanitation, no social security etc.
Market economy is powered by self interest.
2. Market forces undermine individual autonomy as they neglect the provisioning of basic need
of all individuals which is necessary for them to carry out their respective projects .
(Fulfillment of Needs- Moral autonomy of individuals).
 Welfare state enhances liberty. The duty of the state is to enhance the conditions which help in
the self realization of the citizens. If external impediments are removed, exercise of freedom by
individuals becomes possible. T.H. Green advocated the intervention by state in order to enforce
compulsory education, health facilities, unemployment monetary compensation and other
benefits. (Laski, Keynes, Roosevelt, Galbriath)
 Promotion of Equality: Market economies are prone to inequalities in opportunities or at the entry
level, which might result in inequalities in outcomes.
 Rights: H.L.A. Hart laid down that coercion on liberties of other individuals can only be justified in
the redistribution of resources. Welfare cannot be justified in benevolence rather in entitlements
and justice.
 Citizenship: Welfare claims can only be made and utilized on the basis of individuals’ membership
in the collective community. T.H. Marshall – Three Types of Citizenship Rights (Legal, Political and
Social). Social citizenship attempted to reform capitalism through provisions and legislations. The
gradual development of universal provisions for basic education , health and social security,
changed the nature of the nexus between Capital and Labour. The three forms of citizenships are
interrelated and interdependent.
 Justice: John Rawls’ A Theory of Justice: - Justice is the first virtue of any society and it is
concerned with distribution of good in the society based on certain principles. The proper
function of the state is not only to ensure social order and provide security, but also to safeguard
the needs and liberties of the least privileged sections of the society.
Challenges to the Welfare State
 Robert Nozick – Anarchy. State and Utopia : Distributive policies in the name of welfare end up
violating individual rights. This amounts to seizing the labour of others and challenging their
sovereignty. Violation of the rights of those who are taxed in order to fund the policies and
schemes designed for the poor, deprivileged sections of the society.
 Too much role of the state might also lead to increased bureaucratic control and inefficiency in
governance.
 How far is the welfare state able to provide social justice? Often well intentioned social welfare
schemes help on group and unknowingly harm others.
 Excessive welfare policies produce a dependency culture.
 Treatment of distribution of social benefits should not be treated as social rights. It must be
accompanied with duties on the part of the beneficiaries as well.
 Welfare states are expensive ; Population is increasing uncontrollably along with unemployment
and therefore less tax is collected, thus reducing the corpus of state related funds.
The End……..

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Meaning of Welfare State : -

 It is a state which comprises of a range of social services which aim to provide

 Difference between negative and positive liberalism

J.S. Mill : – On Liberty (1859)

Negative Liberalism Positive Liberalism

16th - 19th century Late 19th and early 20th century

1. Positive Role of the State

Different Justifications for a Welfare State: -

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