Definition of Welfare State
A welfare state is a government system where the state plays a key role in ensuring the economic and social well-being of its citizens. It provides public services like healthcare, education, and social security, funded through taxation, to reduce inequality and improve living standards, aiming to protect individuals from economic hardships and promote social justice.
The welfare state is a state of kind of governing system, during which the government plays an essential role in the security and betterment of the economic and social well-being of its people, primarily for those in financial or social need, employing grants, pensions, subsidies, and other interests.
The state of welfare is a government program built up with the purpose of the welfare of its people.
As its name suggests, the government’s main aim is to enhance the livelihood of its general people. Most of the modern democratic countries are welfare states.
To understand more about it, let’s dive in:
Characteristics of the Welfare State
The distinct features of the welfare state are:
An instrument for social welfare
The welfare state is dedicated to the well-being (welfare) of its citizens. It seeks to provide basic amenities to all people, remove poverty, hunger, and unemployment, and bridge the gap between the rich and poor. It aims to establish social and economic equality.
A compromise between individualism and socialism
The welfare state chooses itself to be at an id-point between the two extreme theories and practice of individualism and socialism and opts for a between them.
It gives equal importance to both individual and state which means that it values both the liberty of the individual and the interests of the society. The state is considered the friend and guide of the individual and the society.
Based on a democratic principle
The welfare state is a democratic state. It functions through democratic institutions and in a democratic way where people have all the rights to determine their political and socio-economic fate.
Guarantees equal rights to all
The welfare state ensures every citizen with equal rights irrespective of caste, class, religion, etc. This provision of rights enhances a step towards fulfilling duty by its citizens.
Development through planning
The welfare state seeks to provide welfare to its people through planned programs. It follows the mixed economy model of development.
The state controls and regulates the economy through planning. Industrial policy, trade policy, commercial and banking policy, etc. are framed to control economic activities.
Agent of moral development of citizens
The welfare state creates a conducive environment for the moral development of individuals.
When the individual can meet his basic needs of life and enjoys fundamental rights and freedoms, his self-confidence grows and his personality develops. The development of social morality makes the state strong and individuals happy.
Objectives of Welfare State
The objectives of the welfare state include;
- To provide Social Equality
- To Provide Economic Security
- To provide Political Security
- To Achieve International Cooperation
- To Seek Public Welfare
- Cultural Development
Read More: Social Capital
Functions of Welfare State
Some of the important functions of a welfare state are compulsory, social, and economic functions. Describing these functions,
Compulsory Functions:
The compulsory functions include the public safety and security duties of the state. In modern times, the responsibilities and functions of governments have increased beyond limits.
Some of the main functions are as follows;
Maintenance of law and order
Protection from internal disturbances, disorders, civil wars, and settlement of disputes among the people. For this purpose, the state maintains policies, police, etc. maintain peace, law, and order in society by controlling crimes, anti-social elements, and malpractices.
Protection from foreign invasion
Protection from external threats, aggressions, terrorism, and war. For this purpose, the state maintains armed forces such as the Army, Navy, etc.
Providing justice to the people
For this purpose, the state establishes and maintains a network of courts in all parts of the state.
Establishment of diplomatic relations with other nations
The state always is conscious about maintaining international relations and fulfilling duties as a member of the international forums.
Protects rights and freedom of the people
The state works towards protecting the rights of people by institutionalizing them. Human rights are another important part of the state’s function.
Governing natural resources
The state makes arrangements for the preservation, protection, and systematic exploitation of the country’s natural resources to create development.
Regulating national monetary policy
The state regulates national monetary policy to balance the inflation rate in the state.
Read More: Social Control
Social Functions:
Besides the compulsory functions of the Welfare State, there are also other social and economic functions as follows;
The welfare state acts as a very important agency of social transformation. For this, it carries out the following functions;
Creating social equality
The Welfare State works to create social and gender equality by granting equal rights and freedoms, and equal opportunities to people. It does not discriminate between citizens based on religion, caste, color, sex, race, wealth, and place of birth.
Creating social justice
The State tries to secure a just and fair society by giving special facilities and opportunities to the poorer and backward sections of society.
E.g. untouchability is considered a crime punishable under law. Special facilities have been provided to women, children, marginalized groups, and the poor through reservation benefits to provide social justice.
Social security
The state enacts laws and implements policies and programs for the elderly, physically disabled, and unemployed people.
So, the state attempts to provide benefits to the weaker sections of society. The programs and policies for poverty eradication are other important functions of the state.
Control of social evils
The progress and prosperity of society need, the eradication of social evils. For this purpose, the state makes laws and acts to eradicate social evils such as child marriage, dowry, child labor, bonded labor, prostitution, untouchability, etc.
To provide public utility services
To provide services to its people, the state makes arrangements for the supply of amenities such as electricity, water, roads, transport services, post, telephone services, radio, T.V., etc.
Provision of education and health facilities
Education and health are considered the most important necessities of the people. So, to make these sectors viable and accessible to all, the state provides educational institutions assistance and scholarships to poor and meritorious students.
Similarly, the state established hospitals, dispensaries, maternity homes, child health care centers, etc., and also made medical services less costly to poor and disabled people.
Environmental protection
The state formulates and implements necessary policies, laws, and programs for environmental protection.
Moral reform
The state welfare activities help citizens in need and therefore teach them humanity and feelings of kindness and helpfulness thus helping them to be moral citizens.
Read More: Meaning of Caste
Economic functions:
The economic functions of the welfare state include the following;
Economic security
The State acts as an important agency for raising the standard of living of its citizens. The state makes arrangements for the provision of basic needs such as food, clothing, housing, health, and education to its people.
It is one of the primary functions of the state to solve problems of poverty and unemployment so as to raise the living standards of its people.
Planning functions
Another important function of the state is to formulate and implement development plans. The state makes plans to utilize its resources for the benefit of the common people.
In Nepal, the three-year plan has been in practice that has prioritized economic development by focusing on different sectors such as tourism, agriculture, poverty eradication, health, education, etc.
Make regulations regarding trade and commerce
The state regulates trade (both domestic and foreign trade) and commerce to bring economic development.
The state formulates and implements the import-export policy for promoting foreign trade, fixes custom duties, formulates monetary policy, and regulates banks, and all financial institutions. The state also works to protect the interests of the consumers and laborers.
Imposition and collection of Tax
The source of state revenues is tax collection. The imposition of tax and its collection is done to carry out development activities within the state.
Read More: Pros and Cons of Joint Family
Advantages of Welfare State
Social welfare systems or policies of the state have a wide range of advantages concerning the population’s well-being.
Equitable distribution of resources and opportunities
To ensure social and economic equity, welfare states make policies and arrangements for the equitable distribution of resources to their people be it physical resources or opportunities.
Social insurance
Social insurance is the basis for the social welfare system of most countries across the globe. Under social insurance for example adequate support is provided to lower-income households.
Provision of necessities of life
The provision of services, particularly education, health, and housing, and, in some countries, a range of caring and community services are the basic components of a welfare state.
Help to the weaker section of the society
The welfare state provides caring services to children, the old aged, and the disabled, and subsidies and grants to the poor weaker sections of the society to help them enjoy their lives and live with dignity.
Maintains peace and order
The welfare state introduces various laws and policies to maintain social order.
Welfare programs can help reduce crime
People will do whatever it takes to have their basic needs met. If there is a lack of basic human needs, then the crime becomes an option.
Well-designed welfare programs work to meet the basic needs of people making it possible to reduce crimes resulting from desperation.
It has some micro-level implications
While there are obvious macro-level benefits of welfare, it also has a few micro-level implications. E.g. people who would lose their jobs and become unemployed temporarily can take advantage of welfare and sustain their livelihood until they find their next work.
Without such a program, those who are recently unemployed would be compelled to sell their homes or other assets, as there might be fewer opportunities to retain back to normal situations.
Read More: Meaning of Religion
Disadvantages of Welfare State
Risk of fraud
There are chances that the welfare scheme may not serve those who truly need it but rather is exploited by the powerful ones. So, welfare schemes are always at risk of fraud.
Make people dependent
Providing money to the unemployed can encourage the feeling of dependence on the state resulting in less motivated workers and a deterioration of skills and knowledge.
Many welfare programs don’t address the root cause of poverty
There is no permanent solution to poverty unless the root cause of it is addressed by the welfare state because the welfare programs may not continue for eternity as all welfare nations are not economically strong enough.
It might not be able to sustain long-term support
Some welfare programs cannot help people in the long run because of the insufficient budget. In fact, there are not enough welfare programs, that exist today, that can sustain the population’s growing needs.
Costly administration
As the welfare state has to put lots of economic efforts into the well-being of the needy, the funds are surprisingly huge, and therefore the welfare system is costly, and poor countries with this system may be at risk.
Read Next: 4 Ps of Marketing Mix
Sujan Chaudhary holds a BBA degree. He loves to share his business knowledge with the rest of the world.