We explain what the welfare state is, its origin, characteristics and models in different countries. Also, how it got into crisis.
What is the welfare state?
In political science, we speak of a welfare state or welfare state, as well as a providential state or benefactor state, to refer to a general model of State administration, according to which the latter must provide the inhabitants of a country with the basic services, in compliance with the social rights of citizens.
In other words, the welfare state is a sociopolitical and economic model that is based on the idea of social justice. That is, it aims for the State to manage the rules of the game in society, to guarantee that the smallest possible number of citizens are deprived of their minimum fundamental rights.
Its defenders see it as the best model for combating poverty and inequality, through the democratic exercise of state power committed to the quality of life of people. On the other hand, it is highly criticized by the most liberal sectors of society, who interpret it as an unfair model, which takes away from the productive sectors to give to the unproductive ones.
In principle, the welfare state is understood as “the transition from social security only for some, to social security for all citizens”: that is, the right to pensions, health care, protection against unemployment , to education, culture and public services (electricity, water, gas).
Origin of the welfare state
The term “welfare state” comes from a literal translation from English welfare state, used by the Archbishop of Canterbury, William Temple in 1945 at the end of World War II. With the term Welfaresought to oppose Keynesian economic policies to the so-called “state of war” (Warfare state) carried out by Nazi Germany.
However, before there was talk of the need for a model that would improve the living conditions of the population. Especially during the 19th century, when The labor movements of Western Europe encouraged governments to legislate in their favor, guaranteeing minimally acceptable living conditions for the working class.
This objective has been very partially achieved, in part due to the advent of the reactionary dictatorships of the mid-20th century. However, the influence of socialist and reformist movements, as well as liberal and social Christians, together with union forces, managed to impose much more benevolent socioeconomic conditions after the Second World War, which would come to be called “the golden age of capitalism.”
However, There are debates regarding what economic recipe accompanied such an emergence of the welfare state.. Some advocate Keynesianism, others ordoliberalism, and there are those who point out the similarities between both philosophies.
Characteristics of the welfare state
The welfare state was characterized by:
- He managed to harmonize the tensions inherent to the capitalist system through an administration aimed at solving poverty, inequality, discrimination, unemployment, modern forms of slavery, war and criminal cruelty.
- Deepened democracy through the recognition of the rights and needs of many traditionally marginalized sectors of the working class.
- It gave the State a more active economic role in order to obtain social well-being and economic growth.
- He dismissed the need for war promoting internal commercial exchange as a necessity in Europe at that time.
Social models of welfare state
The welfare state is a concept that was not achieved in the same way everywhere, but rather engendered various social models, throughout Europe, that are traditionally opposed to the American liberal model. It could even be said that there are many possible states of well-being, such as:
- The Nordic model. Carried forward by Sweden, Denmark, Norway, Iceland, Finland and the Netherlands. This model was possible thanks to the relative cultural homogeneity of the peoples of northern Scandinavia, and its pillars are financing through tax collection, high standards of public investment and social universalism.
- The continental model. Carried out in Austria, Belgium, France, Germany and Luxembourg. Very similar to the Nordic one, but with a greater orientation towards the payment of pensions, it is based on social assistance and security, partially subsidized by the State.
- The Anglo-Saxon model. Developed in Ireland and the United Kingdom. With fewer preventive measures and a last resort assistance model, it directs the largest amount of subsidies to the working class of working age, and to a lesser extent towards pensions. It is considered one of the most efficient, after the Nordic, in reducing poverty and combating unemployment.
- The Mediterranean model. Native to Greece, Italy, Spain and Portugal. This model was achieved later than the rest (between the 70s and 80s), and consists of a greater investment in pensions, with very low social assistance expenses, for a population that presents a great social segmentation, and whose work receives more protection than the workers themselves.
Welfare state crisis
Towards the end of the 20th century, the welfare state entered into crisis and was gradually replaced by neoliberalism. This new model was dismantling the previous system and strongly liberalizing societies, especially in Latin America and the Third World.
These changes were intended to resolve the financing difficulties of a welfare model through privatization, the reduction of the State and public spending, to allow the action of the “invisible hand of the market.”
Initially, immediate advances were made under the administrations of Ronald Reagan in the United States and Margaret Thatcher in England, to name two of its great defenders. However, the effects of neoliberalism contradicted in the long run what was expected.
Its result was an increase in debt and generating greater impoverishment of society, especially in Latin America. It is estimated that the world economic growth rate, which was around 3% annually between 1950 and 1973, has been reduced from then on (1973-2000) to less than 1.5% annually.
In 2010, the International Monetary Fund published figures that, for many, prove that the effects of the change in model produced a slowdown in global economic growth, with the notable exception of the Asian continent, especially China.
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References
- “Welfare state” on Wikipedia.
- “Political sciences: Welfare state” (video) in Educatina.
- “What is the welfare state” (video) in UnProfesor.
- “What we talk about when we talk about the welfare state” by Liliana Beatriz Costante at the University of Buenos Aires (Argentina).
- “Welfare state definition” in Investopedia.
- “Welfare state” in The Encyclopaedia Britannica.
