State as Social Institution

By: Lecturer Tulasa Neupane

 Introduction
• The welfare state is an essential institution in any modern society. In
Western Europe, the first basic pillars of social protection emerged
around 1900, but the modern welfare state – a term coined in the
early 1940s – developed from the 1950s to the 1970s
• Social protection was extended to a broader range of social risks and
services, coverage was widened to most of the population, and
compensation levels came to reach well above subsistence level
• Welfare states have also developed in recently industrialized
countries and in former communist countries, following the transition
to market economy
 Meaning
Asa Brigg
• “A welfare state is a state in which organized power is deliberately used
(through politics and administration) in an effort to modify the play of the
market forces in at least three directions
• - first, by guaranteeing individuals and families a minimum income
irrespective of the market value of their work or their property;
• - second, by narrowing the extent of insecurity by enabling individuals and
families to meet certain “social contingencies” (for example, sickness, old age
and unemployment) which leadotherwise to individual and family crisis; and
• - third, by ensuring that all citizens without distinction of status or class are
offered the best standards available in relation to a certain agreed range of
social services.
 Meaning
• A welfare state is a state which provides for its citizens a wide range
of social services in such areas as unemployment, medicine,
education and housing.
• The term refers to those societies where the government has
assumed the responsibility for the wellbeing of the citizens and that
this cannot be entrusted to the individual, private corporations, or
local community
 Functions of Welfare State
Compulsory Function
• Protection of life and property
• Maintenance of Law and Order
• Welfare; The state initiates policies and programmes for the welfare
of its citizens.
• Protection from Foreign Invasions
• Establishment of Diplomatic Relations with other States
• Providing Justice to the People
 Functions of Welfare State
Optional Function
• Socialization
• Evaluation of other institutions
• To Make Regulations Regarding Trade and Industries
• To Make Regulations regarding Export and Import
• Imposition and Collection of Taxes
• Protection of Environment and Development of natural resources
• Protection of the Interests of Labourers
• To Provide Recreational Facilities
 Evolution of Positive Liberalism
• 'The latter half of the nineteenth century produced a critique of negative
liberalism. The theories of lion- interference were found to be inadequate to
achieve the social and economic aims of liberialism
• The Iaissez faire policy was based on the premise that in the good of the individual,
lies the good of the society. Negative liberalism believed that the distribution of
wealth into wage, profit and rent was not unjustified.
• However, the latter half of the nineteenth century saw the rapid concentration of
capital in a few hands, monopolistic control of trade, and emergence of big
industrial houses which created many social, economic and political contradictions
• Writers like Carlyle, Ruskill, Dickens attacked the capitalist order on moral and
aesthetic grounds. The utopian socialists like Robert Owen criticized the capitalist
order and the injustice inherent, but appealed to the conscience of the capitalists
to take care of the working class.
 Evolution of Positive Liberalism
• Karl Marx challenged the capitalist system as such and declared that
the salvation of the working class
• A thorough going revision of liberal theory required a re- examination
of the nature and functions of the state, the nature of liberty and tlie
relationship between Liberty and authority
• This revision is known as 'Positive Liberalism' and was carried out by
J.S. Mill, T.H. Green. D.G. Ritchie in the nineteenth century and
Hobson, Hobhouse, Lindsay, G.D.M. Cole, Barker, Laski, Keynes,
MacIver and Galbraith in the twentieth century.
 Evolution of Positive Liberalism
J.S. Mill's ideas of liberalism depart from those or the classical model in four
ways.
• Firstly, he opined that the value of the personality of the individual can be
realized in the actual conditions of a free society.
• Secondly, he accepted political and social freedom as good in themselves. To
live one's own life, developing one's own native traits and capacities is not
only a means to happiness, but a substantive part of happiness itself. A good
society is one which permits both freedom and opens up the opportunity for
a free and satisfying way of life.
• Third, liberty is not an individual good, but a social good.
• And fourth, the function of a liberal state in a free society is not to leave the
individual alone, but also to act as a means of creating increasing and
 Evolution of Positive Liberalism
• T.H. Green brought, about an idealist revision of liberalism. IIe made
it abundantly clear that liberalism could not be placed on narrow
foundations. He inferred that at the center of liberal philosophy was
the idea of the general good or common human well-being which is
capable of being shared by everyone and which provided a standard
for legislation.
• This standard could not be individual liberty alone. Choice means
opportunity and opportunity means a society that is not coercive
beyond need, either in its legal and political structure or in its
economic and social structure.
 Evolution of Positive Liberalism
• Green defined liberty as 'a positive power or capacity of doing or
enjoying something worth doing or enjoying'. Freedom implies not
only a legal but an actual possibility.
• Hence, it is impossible that a government should be liberal merely by
standing aside and refraining from legislation or that a liberal society
should come into being merely by political inadvertence.
• The function of a liberal government is to support the existence of a
free society and it can remove many of the obstacles that may stand
in the way of moral development such as ignorance, lack of
education, poverty, illiteracy and unhealthy sanitary conditions.
 LIBERAL DEMOCRATIC WELFARE STATE
• Positive liberalism in the twentieth century came to be identified with
the democratic welfare state. The welfare state involves a radical
transformation of the nineteenth century capitalist laissez faire state in
respect of the scope of public policy, the character of state action, the
basic assumptions concerning human nature and the idea of social good.
• The welfare state attempted to reconcile the interests of the individual
with that of the society in order the essentials of the capitalist system
were preserved while at the same time removing its illeffects
• The object of the state is not only to maintain law, order and justice, but
it is also a part of the social process, its function in the society is to serve
the common interests and perform services for the welfare of all
members of the society
 LIBERAL DEMOCRATIC WELFARE STATE
Main principles of Welfare State
• Firstly, the recognition that every member of the community, solely because he is a
human being, is entitled to a minimum standard of living.
• Secondly, the welfare state is committed to a policy of economic stability and
progress, seeking to eliminate the cycles of violent booms and busts in the economy
by public policies, whenever private enterprise is unable to prevent by itself the
threat of economic instability or decline
• Thirdly, the welfare state is committed to full employment as one of the top priorities
of public policy. The economic depression of the 1930s showed not only the
economic ravages of unemployment, but also the human degradation inflicted upon
those who though able and anxious to work, could not find jobs for reasons over
which they had no control. Adherents of the welfare state believe that free
enterprise can be preserved and strengthened by full employment policies without
going to the extremes of nationalization
 LIBERAL DEMOCRATIC WELFARE STATE
Welfare State is a Positive State
• The underlying assumption behind the welfare state is that the state
is not a necessary evil, but a desirable institution capable of
promoting positive good.
• It regarded the democratic state not as an evil force but as an
instrument that the people could and should use to further their
common interest, to ameliorate the conditions under which they
lived and worked, and to provide for their health and safety, and to
some extent, for their social and economic security.
 LIBERAL DEMOCRATIC WELFARE STATE
Welfare State is Democratic
• 'The neo-liberals categorically asserted that the welfare state is a
democratic state, possessing a certain formal institutional mechanism
which is considered essential in liberal democratic society. Any state
which may be a welfare state, but is not democratic from the
institutional point of view, cannot be regarded a liberal state.
• The state can be a welfare state only, if it manifests itself through a
formal democratic institutional attire
 LIBERAL DEMOCRATIC WELFARE STATE
Welfare State is mixed Economy
• A welfare state operates within the framework of the market economy i.e. the capitalist
mode of production. However, unlike the laissez faire capitalist economy, the welfare
state believes that unrestricted operation of the market has proved dangerous for the
individual as well as for the economy.
• The welfare state does not want to eliminate the market- based economy, but to
streamline it in a manner where it could realize the productive potentialities by
preventing crises.
• 'The welfare state believes that poverty, dependencies and economic insecurity are not
the consequences of nature and incompetence on the part or the poor, but result from
changeable institutions of society
• Economic insecurity stems from - a) inadequate compensation, b) disabilities incurred
through accident, ill health, old age etc, and c) unemployment. The welfare state believes
that these insecurities can be overcome by remodeling the Iaissez faire economy and by
 LIBERAL DEMOCRATIC WELFARE STATE
Welfare State is a Permanent Institution of Society and a Neutral Agency
• The welfare state, positive liberalism maintains, is an eternal and permanent
institution of society. The state is also a neutral instrument of power which can be
used for any purpose.
• The personnel of the government could be changed by the will of the people
through universal suffrage. The state does not belong to a particular class.
• It tries to intervene in the economy positively and reshape it in such a manner that
3 minimum of social living is created for all the citizens irrespective of the status
and class position of citizens in the society.
 JUSTIFICATION OF THE WELFARE STATE
State and the Market
• The main criticism against free trade capitalism was that it leads to monopoly
capitalism and an economy dominated by the power of trusts, combines, cartels
which in turn gives rise to a variety of social, economic and political contradictions
in society.
• In the absence of any positive interference by the state in the political economy,
the exploitation of the working class by an aristocracy of monopoly capitalism
without caring for any social responsibility, unemployment on a large scale,
inhuman working conditions in factories, competitive low wages, Iong working
hours, poverty, illiteracy and poor health are bound to result
 JUSTIFICATION OF THE WELFARE STATE
Individualist
• Welfare is not an act of morality but a compelling duty. This is embedded in the
autonomy of the individual. A person who is formally free in the sense of nor being
coerced is not virtually free, if their choices do not emanate from their
autonomous will.
• According to Albert Weale, certain material conditions 'must necessarily hold for
individual to carry out a wide range of projects'. It is not that people make wrong
choices but that in the absence of welfare, some peoples' choices are arbitrarily
narrowed. If liberalism requires the conditions of equal autonomy for individuals
and markets fail to provide, then government action is required to sustain the
liberal social order.
 JUSTIFICATION OF THE WELFARE STATE
Enhances Individual Liberty
• According to Green the function of the state can be nothing else, but of
maintaining the conditions of life in which morality is possible. The state is to help
man in realizing the ideal of self-realization as a member of society by removing
external hindrances
• Green advocated state intervention to enforce compulsory education, prohibition,
state control over health and housing as necessary for the full development of the
individual personality in and through the society. By insisting that it is the function
of the state to remove all obstacles to good life and to provide conditions in which
freedom could be pursued, Green laid the foundations of the twentieth century
welfare state.
 JUSTIFICATION OF THE WELFARE STATE
Equality
• Equality has a potent value in welfarism. It is argued that the virtues of exchange
relationship are badly compromised, if the participants in them are separated by
gross disparities of wealth. Since in [he capitalist societies, some entrants to the
market will start with an advantage for which perhaps no rational justification can
be given, this inequality will be reflected in the outcome and the results itself.
 JUSTIFICATION OF THE WELFARE STATE
Rights
• According to H.L.A. Hart, rights imply a special congruity in the use of force or
threat of force to secure that what is just or fair or someone's right to have done
shall in fact be done. It is only in these circumstances that coercion of another
human being is legitimate. If there are any welfare rights, then it can only be so if
coercion can be justified in the redistribution of resources than their possession
necessitates
• However. this could have two implications for the welfare theory: i) welfare rights
would be symmetrical with the familiar negative rights (i.e., right to forbearance
from aggressive action on the part of others), and ii) it would provide that the very
existence of welfare rights enforceable as law encourages people to adjust their
behaviour accordingly, i.e. become welfare rights' claimants.
 JUSTIFICATION OF THE WELFARE STATE
Citizenship
• Because of the objections raised against the rights theory, welfare state now grafts
on the notion of rights as a theory of citizenship. This has the advantage of limiting
the applicability , of welfare claims to particular communities and the theoretical
one of establishing the identity of persons not by their capacity to choose, but by
their membership, of the collective community
• It simply maintains that claims to resources are an extension from the legal and
political rights that have emerged in the development of liberal democracy
• Marshall identified three categories of citizenship rights: i) legal -which embraced
the traditional rights to free expression, property, equality before law and the
familiar civil liberties; ii) political --which covered the political rights in a democracy,
and iii) social -the welfare rights which give a person certain entitlement to
resources. Social citizenship was an attempt to reform capitalism through
 JUSTIFICATION OF THE WELFARE STATE
Citizenship
• John Rawls in his book A Theory of Justice insists that justice is the first virtue of a society
and that it should always take priority over other goods which may be interpreted in the
welfare sense
• While his first principle of justice is concerned with equal rights to the most extensive
basic liberties compatible with similar Iiberties of others, the second principle is
concerned with the arrangements of social and economic inequalities in such a way that
they are to the greatest benefit of the least advantaged
• The purpose of legislation is largely concerned with the achievement of long term social
and economic goals as well as to fulfill the principle that requires that 'social and
economic policies be aimed at maximizing the long term expectations of the least
advantaged under conditions of fair equality and opportunity'. At social and economic
level, Rawls is in favour of redistributive justice. He considers the proper function of
government as not only to maintain social order, but the achievement of distributive
Thank You!!!