The welfare state model
Project Structure
The welfare state model is a model whereby a government takes over responsibilities for the betterment of citizens by ensuring that the citizenry has access to basic needs e.g. health care, housing, employment and education among others. Some of the countries that use the welfare state model as part of economic development include; France, Nordic Countries, the United Kingdom and Sweden.
Welfare State model involves; government transferring funds directly to its citizenry and funding services like education and health. This is done by redistribution of tax collected with the aim of bridging the gap between the “haves and the have nots”
In this project, various distinctive characteristics and features of welfare state model will be discussed i.e. Equal rights for all, Moral development of individuals, development and growth via planning, establishing of democracy, a positive state, as a tool for social welfare, a lesser evil compared to capitalism and socialism and as a right for citizens and note being a dole from the state.
Further, the historical background of the origin of the welfare state will be discussed under the literature review, key underlying principles in support of the model.
Literature Review
Background and History of Welfare State Model
Every country or state has different and unique social structure, national social security system, and thus unlike needs. Nevertheless, Welfare States determine policies needed by the social, economic and cultural environment and are develop legislation to enforce them.
The development of the model will be discussed by analysing three periods i.e. between 1870 and 1913 during which industrial revolution occurred. The next phase was between World War I and World War II and lastly the third phase between 1950 and 1970 which was commonly known as the Golden Age of Welfare States. The emergence of Welfare State began in 1601 after Poor Laws were put in force in the United Kingdom. During this period war veterans would go back home without socio-economical protection from risks. In 1601, the Poor Laws were effected to caution the elderly, the sick and the wounded citizenry.
However, the legislation was not adequate as the other population of the society needed protection. In 1834, there was legislative development that resulted in economic and social pressure and this led to the stigmatization of social welfare. The development of Adam Smith’s work on free-market economies influenced changes in the state policies and legislative regulations in many countries including the UK.
Other notable contributors to the development of welfare state include; John Maynard Keynes, whose approach was inadequate for reviving the economy and creating jobs after the First World War. After the end of the war, there was a strong belief that the Second World War could have been prevented by the creation of more employment opportunities, improved working and living standards.
In 1942, Lord William Beveridge in his work aimed to create health systems, provide minimum income and reduce the unemployment rate. This approach was evaluated together with Keynes’ work with the aim of creating national social welfare for all.
Bismarck established a system more composite with the support of employees and employers with coverage from the state. The system had three dimensions, i.e. individual investment, employers’ responsibilities, and private insurance with the intervention of the government. Bismarck’s reforms triggered changes in the socio, economic and political structures of countries. From Bismarck’s reform, many legislations on injuries and diseases caused by industry were put in force.
Due to industrialization, increased pressure and changes in social demographics led to the realization of the welfare state. China, Russia and Brazil experienced rapid development in the public sector and the economy. This led to the states to increase interventions while using Keynesian Approach. It was adopted to solve the hitches created by the free market economy. However, this led to countries to go into crisis occasioned by high taxes levied, increased public expenditure and government involvement in the markets. With an increase in social expenditure over capital expenditure, there was an increased uptake on insurance especially on old age, motherhood, and death insurance in numerous countries.
Welfare State has undergone changes since 1975. Before then, government interventions which rose with the occurrence of 1929 economic crises was replaced by a model immediately after the Oil Crisis. The countries adopted an opinion that the states should participate less in the development of economic and social policies. During the intervention period, there were huge budget deficits among governments caused by the pressure of social expenditures, resulting in high inflation, and high rate of unemployment and reduced economic growth.
The Neoliberal Approach was adopted as a system of liberalism, based on solution searching on gaps exhibited by the Keynesian Policies. Due to intense competition as a result of economic crisis occasioned, a new era immerged which began in the late 1970s, and Keynesian Welfare State’ went through hurdles. With globalization, states that had stable economic progress and good working conditions under welfare state came to an end and a new period where the government had less control began. These developments resulted in social policies to be affected by reduced budgetary allocation on social expenditures.
Ever since governments stated to restructure their policies with the aim of kick-starting economic growth and as a result, numerous countries have made laws to reduce social expenditure. Nevertheless, in several countries, public expenditure has increased due to changes in the demographic structure and the family structure. Economic and Social policies have mutual interactions and this any change on economic policy has an effect on social policies.
The economic condition of the welfare state is affected by the social security system adopted as well as individual behaviours acceptable in social welfare and the labour market. As the welfare state develops, the state has an important role to play in the determination of social policies. The policies of the welfare state are not only determined by economic indicators rather by also by social structure and demographic structure. The aim of the Welfare State is to redistribute income and plays a regulatory and intervention role. It advocates measures that will eradicate negativity in the workplace, undertakes social security, and determines minimum wage and welfare services which are intervened by taxes to eliminated injustices occasioned during income distribution.
The role of Social Justice is to generate equality among people without the removal of fundamental rights and freedoms and ensure the fair distribution of income. Objectively, justice should deliver services e.g., social security, fair and adequate wages, among others. Providing social justice can only be achieved by eliminating regional and social differences.
Social State advanced policies in different areas; social security, education, housing among others and pursued solutions to urban and environment complications in order to achieve welfare state. There is a varying classification of Welfare States based on different countries, i.e. Liberal Welfare State as practised in conservative Continental Europe and Social Democratic Welfare State practised in Scandinavians countries.
Principles of Welfare State
The Welfare State is based on four principles;
Welfare State is Collectivist
The state funds the services needed raises funds through National Income contribution, Treasury determine levels of pension and benefits and the state decides on the level of investment
Welfare State is Universal
Welfare State provides a range of free services for the entire population e.g. Universal Health Care, Universal Education among other
Welfare State is Comprehensive
Welfare state covers all aspects of needs i.e. Health Care, Eradication of Poverty, Illiteracy among others.
Welfare State is Equality
Welfare State advocates for equal provision of services to all.
Features of Welfare State
Welfare State is an Instrument for Social Welfare
Welfare State is committed to the wellbeing of the people. The Welfare State aims to deliver minimum acceptable services to all, i.e. kill illiteracy, end poverty, hunger and unemployment and link the ever-growing gap amid the rich and the poor.
Welfare State is a compromise between Individualism and Socialism
Welfare State opts the middle ground advocated by individualism and socialism which are extreme theories. This midpoint gives importance to both state and individual. Thus, putting into consideration the interests of the society and the liberty of individuals and the state is referred to as a philosopher, a friend and the guide of individuals.
Welfare State Establishes Democracy
Welfare State is a form of democratic State as it operates through democratic institutions and in democratic ways. Democracy is a fundamental principle for a welfare state to succeed
Welfare State proposes Equal Rights to All
Welfare State advocates for equal rights to all irrespective of race, cadre, caste or religion. There’s no form of discrimination against anyone
Welfare State does Development through Planning
Welfare State believes in planning as a tool for achieving its goals. Uses planned programmes to provide welfare to the citizenry and follow a mixed economy development model. The state regulates and controls the economy through planned programmes.
Welfare State provides Moral Development for Individual
The Welfare State enhances the conducive environment for the moral development of individuals. When a person is able to meet their basic needs and they are able to enjoy fundamental rights and freedoms, he/she grows self-confidence and personality grow and with this, there is growth in morality and this makes the person happy and the state grows.
Welfare State as a Positive State
The Welfare State is a positive state, as it sees itself as an agency of social service rather than an instrument of power. Welfare State looks after a person from birth to death and states that a person needs only to be born as it will take of the rest.
Social Welfare is a Right to Individual not a Dole of the State,
Under Welfare State, it is important to note that welfare is not a charity rather it is a right to each and everyone in this model. And for this to succeed, the base of the welfare state should be prepared by multi-agency around the state to make strong and authentic. Welfare State should never produce pauper mentality amongst its citizenry rather should be treated as a blessing.
Criticisms on the welfare state
Over time, there has been an increase in social expenditure that results in a financial crisis and states becoming bankrupt if not well managed.
Under Welfare State, there’s a surge in taxes that are used on income and capital expenditures.
Over time, unemployment and poverty rates have not reduced drawing a conclusion that the social policies have not succeeded.
The Welfare States has created negative effects on the family structure due to the opportunities provided. Such negative effects are; increased divorce rates, deterioration of moral values.
There are numerous varying opinions on the future of Welfare State. Leftists support the adoption of neo- Keynesian approaches while rightists who are solution providers to overcome the crisis, support the adoption of liberal approaches.
Conclusion
It is possible to say that Welfare State, that was modelled to scrap off shortages occasioned by liberal and socialist theories on welfare, is a new system of liberal model. This is so because it uses an interventionist approach with the aim of solving deficiencies arising in society.
Despite these advances, it is agreeable that Welfare State has an important role to play on social policies and welfare states are impervious to the economic negativities acknowledged. As noted in the discussion, the reduction of social expenditure should be the last thing to do when modelling reform interventions to achieve economic growth. Any strategy adopted should be done so by putting into consideration the below points;
- Engage and encourage the private sector to play a role in the distribution of social services.
- Consider restructuring expenditure rather than reducing social expenditure
- Stand their ground on delivery of welfare in administering services to the private sector, preserve the descriptive and regulatory state of the state.
- Attach importance on the provision of young people’s vocational education and child care money to families while putting into consideration of obstacles resulting in demographic structures.
- Reduce taxation and inflation rates to foster economic growth.
- Produce solutions to unemployment with the aim of reducing public social spending on deepening unemployment
- Come up with alternative strategies to foster economic growth rather than decreasing expenditure on social welfare as an instrument for economic growth.
- Adopt international cooperation and tactics that have a positive effect on the welfare state.
It is right to conclude that in the future, governments that adopt approaches that compromise social policies with the aim of achieving economic growth will face a reactionary charge from the society who have expectations of social welfare. Otherwise, the achievement of welfare without going astray from the goals of the social welfare policy will also differ depending on the state’s ability to adjust themselves to developments, changes and reconstructing accordingly.
All the definitions fronted in regard to Welfare State encompass the mentality to protect people who suffer from poor social and economic conditions. This protection has been enhanced by the use of social policies and thus, welfare state’s intervention is welcomed for the sake of removing negative conditions with the aim of achieving goals of social policies as it is required and appropriate.
Although scope and duties of welfare state differ based on each country’s cultural, demographic, social and economic conditions; basically, they cover protection of families, disabled persons, children, women, elderly, job creation, vocational training, education, poverty, illiteracy, hunger and improving living and working conditions.