306837987-project-on-welfare-state (1).docx

PROJECT ON

‘‘WELFARE STATE” SUBMITTED TO

Dr. Avinash Samal (Faculty of Political Science)

SUBMITTED BY

Siddhanta Singh Section- A Roll No. - 148 Semester – I Date of Submission – 31st Aug 2012

-1-

ACKNOWLEDGEMENTS First & foremost, I would like to thank Facultyof Political Science Mr. Avinash Samal for giving me opportunity to work on this project named “Welfare State”. His guidance and support has been instrumental while making my project on this important issue. I would also like to thank all authors, writers, columnists and political thinkers whose ideas and works have been used of in my Project. My heartful gratitude also goes to all staff and administration of HNLU for the infrastructure in the form of our library and IT lab that was a great source of help in the completion of this Project. I would also like to thank my parents, my elder brother Er. MukeshDev and friends in the University, who have helped me about this work.

Siddhanta Singh Semester – I Roll. No. - 148

-2-

TABLE OF CONTENTS 1. INTRODUCTION

4

2. OBJECTIVES OF THE PROJECT

5

3. PROJECT METHODOLOGY

6

4. WELFARE STATE: DEFINITIONS

7

5. TYPES OF WELFARE STATES

8

 THE CORPORATIST WELFARE REGIME (SOCIAL INSURANCE MODEL)

8

 THE LIBERAL WELFARE REGIME

9

 THE SOCIAL DEMOCRATIC/SCANDINAVIAN WELFARE REGIME

10

6. CHARACTORISTICS OF A WELFARE STATE

11

7. FUNCTIONS OF THE WELFARE STATE

12

 COMPULSORY FUNCTIONS

13

 OPTIONAL FUNCTIONS

14

8. MERITS OF A WELFARE STATE

15

9. CRITICISM OF WELFARE STATE

17

10. WELFARE STATE IN INDIA

18

11. CONCLUSION

21

12. BIBILIOGRAPHY

22

13. WEBLIOGRPHY

22

-3-

INTRODUCTION In the nineteenth century, the state had become a democratic 'Welfare State' in many parts of the world. All human societies provide various welfare services to members who cannot earn their keep. The general masses of people suffered seriously on account of increasing poverty, inequality, economic uncertainty, unemployment etc. During this century, consequently their condition was deplorable, the immense suffering experienced by people in general brought about a very great change in the idea of stale functions. Henceforth, the state could not act as a police force maintaining law and order only. These police functions cannot serve the purposes of modern industrial society. At this stage the welfare state carne into being to solve the problems of people and relieve their suffering. The main reason for the rise of the welfare state was to recover from the devastation caused by the Second World War. It was thought that the state, instead of being a police state should be an agency for promoting the welfare of people as a whole and for their mental, physical and moral development. In the process of modernization much of these services were monetarized and came under control of the state. We see this most clearly and in welfare arrangements for the unemployed, the sick and the elderly. This societal pattern is called 'welfare state'. A welfare state is a "concept of government in which the state plays a key role in the protection and promotion of the economic and social well-being of its citizens. It is based on the principles of equality of opportunity, equitabledistribution of wealth, and public responsibility for those unable to avail themselves of the minimal provisions for a good life. The general term may cover a variety of forms of economic and social organization."1

Modern

welfare

states

include

countriessuch

as Iceland, Sweden, Norway, Denmark,

and Finland2which employ a system known as the Nordic model.The welfare state is funded through redistributionist taxation and is often referred to as a type of "mixed economy".3 The term `welfare state' is used for modern societies in which a great deal of welfare services is produced and distributed under state control. The word does not indicate the kind of services that is being provided.At present, many countries of the world including India are following the policies of the welfare state.

1

Welfare state, Britannica Online Encyclopedia

2

Paul K. Edwards and Tony Elger, The global economy, national states and the regulation of labour (1999) p, 111

3

"Welfare state."Encyclopedia of Political Economy.Ed. Phillip Anthony O'Hara.Routledge, 1999. p. 1245

-4-

OBJECTIVES OF THE PROJECT

 To study in depth the definition and evolution of welfare state.  To study the merits and demerits of welfare state.  To study the virtue and work of the welfare state.  To study the welfare state in India.

-5-

PROJECT METHODOLOGY The present study is empirical one and quantitative in approach. Apart from Primary data, Secondary and published documented data has also been collected through various sources and analyzed accordingly. To make the study more meaningful and policy oriented available literature and studies have been consulted and reviewed apart from this field observations and open ended discussion have also been equally considered and incorporated in the present study. The secondary data interpreted and analyzed while critical appreciation of pertinent literature has been ensured in the project wherever required. Books and other reference as guided by Faculty of Political Science have been primarily helpful in giving this project a firm structure. Websites, dictionaries and articles have also been referred.

-6-

WELFARE STATE: DEFINITIONS There are different opinions on the concept of a welfare state among writers who have interpreted it differently. Their interpretations are stated below. G.D.H. Cole says that, "The welfare state is a society in which an assured minimum standard of living and opportunity becomes the possession of every citizen. Arthur Schlesinger remarks that, "The welfare state is a system wherein government agrees to under writes certain levels of employment, income, education, medical aid, social security and" housing for all its citizen." Herbert H. Lehman holds the view that “the welfare state is simply a state in which people are free to develop their individual capacities to receive just awards for their talents and to engage in the pursuit of happiness, unburdened by fear of actual hunger, actual harmlessness or oppression reason of race, creed of color." Prof. Benhan is of the view that "A state where a comprehensive system of social insurance has been adopted is called a welfare state. The object of social insurance is to provide economic security to the citizens; social insurance eliminates risk arising from accidents, unemploymentand poverty in old age etc. and there by increases the welfare of the people." From the above definitions we can conclude that scholars have emphasized on the economic side of the welfare state but economic welfare is not the only duty of welfare state.Protection of civilians and their social, intellectual, moral, educational and cultural development are also the duty of welfare state so we can say that “The states based on public welfare are the welfare state.”

-7-

TYPES OF WELFARE STATES In the social sciences, there have been different approaches to studying welfare states. One such approach, which was proposed by the Swedish scholar GostaEsping-Andersen (1992; SEE BIBL), distinguishes a variety of welfare regimes. According to this conceptualization, welfare states can be classified and analyzed in terms of their regime characteristics. There are three types of welfare state. 1. The Corporatist Welfare Regime (Social Insurance Model) In continental Europe where the influence of the Catholic Church and of the authoritarian conservative state was strongest, so-called corporatist welfare states developed. Among these, the German welfare model of Chancellor Otto von Bismarck is the best known. Conservative welfare states were concerned with maintaining order and status. In order to accomplish this goal, social insurance funds (old age pension, health, unemployment, accident insurance) were set up that reward work performance and status. Traditionally, a female spouse would gain access only through the male bread winner, thus insuring the stability of the traditional family. Such public insurance funds were established and operated either by the government or, as in Germany and Austria, run by labor associations (e.g., the miners' insurance fund), which descended from the medieval guild system and 19th century mutual aid societies (note: an ordered system of selfgoverning interest associations that fulfill quasi public roles is called corporatist, hence the term corporatism). While the contributions of workers are usually matched by employers, the insurance funds are often augmented by government transfers from the budget. States have traditionally ensured that, in terms of social benefits, civil servants are the most privileged group and, as a result, social cleavages were maintained and the status of occupational groups was re-enforced. After World War II, many of these social insurance models have been expanded and left-of-center governments have sought to adjust benefit levels between the different funds. Yet, the corporatist welfare state remains a system of considerable social stratification. Original Condition of the Corporatist Welfare State: 

conservative, strong states



weak, liberal tradition



status conscious, middle and artisan class

-8-

Advantages (+) of the Corporatist Welfare State: 

enjoys high level of public support



allows benefit recipients to maintain their level of income



allows for private service system without rationing (e.g., in health care)



benefits increase as contributions increase



intermediate tax burden

Disadvantages (-) of the Corporatist welfare state: 

maintains and re-enforces social cleavages



sensitive to employment conditions and demographics



drives up labor cost (payroll taxes) and low wage unemployment (in/out groups)



tends to penalize those in unstable, non-traditional or part-time job situations



often provides few benefits for those outside the insurance model (new poverty)

2. The Liberal Welfare Regime The liberal welfare regime is characterized by means tested programs (a test to demonstrate need) and modest universal benefits which are based on public services or insurance schemes. It usually caters to a clientele consisting of the low income working class. The state generally encourages the market to act as a co-provider of benefits, partly by providing a low levelof public services. Because these benefits are also of poor quality, and carry a negative public stigma. Those welfare recipients who can often choose to opt out of the system, instead seeking a market solution that will provide high quality and stigma-free -- albeit more expensive -- health care and pension benefits. Private insurance and savings schemes are frequently supported by complementary state policies (e.g., tax credits, tax shelters). In the liberal welfare states (to which the US, Canada, Australia, and Switzerland correspond more than other western countries), the middle class was not wooed from the market to the state. The historical dominance of the liberal idea retained skepticism of a strong state long enough until the middle class was strong enough that it felt the market could better satisfy its needs. Original Condition of the liberal Welfare State: 

politically powerful middle/commercial class



liberal/anti-state political tradition



dominant position of the market

-9-



immigrant society or society with high potential to advance socially



weak state

Advantages (+) of the liberal State: 

least sensitive to demographic changes in the population



low taxes



differentiated services



stimulates job growth, especially in low-skills sector

Disadvantages (-) of the liberal State: 

high inequality, great social cleavages (two class society)



low level services for poor people



welfare state is politically unpopular and not sustainable negative stigma attached to benefit recipient

3. The Social Democratic/Scandinavian Welfare Regime As the name suggests, social democracy has been the dominating political force in developing this universalistic welfare state that pervades all aspects of people's lives. It is within this system that the concept of social rights has been most fully realized, because the enjoyment of benefits and services is least dependent on a person's performance in the market and is, instead, commensurate to need. The Scandinavian welfare state is also characterized by its extensive service orientation (day care, elder care, home help, etc.). Catering to even the most discriminating tastes of the middle class. Since the level of public services is so advanced, the state has, de facto, crowded out all private competition. In addition, the Scandinavian welfare state tends to reduce class and income differences, while ensuring the highest possible level of service. The social democratic welfare state came about as a result of a class alliance between the industrial working class and the small holders (a red-green alliance in the interest of full employment and farm price subsidies). It was expanded by a dominant social democratic party (left power mobilization) to adjust the welfare state to the growing expectations of an increasingly prosperous populace.

- 10 -

Original Condition of the Social Democratic/Scandinavian Welfare State: 

Protestant, liberal tradition with great regard for individualism and equality



cooperation between working and peasant class



dominant role of leftist parties in politics

Advantages (+) of the Social Democratic/Scandinavian Welfare state: 

universality encourages support of population



high benefits, differentiated services



employment effects (services)



reduces social cleavages

Disadvantages (-) of the Social Democratic/Scandinavian Welfare state: 

very complex to administer



expensive and bureaucratic



high tax burden



strong government orientation



pressure on budget because of high cost.

CHARACTERISTICS OF A WELFARE STATE By the above definitions the salient characteristics which a welfare state should posses are given below1. A welfare state ensures social security. In a welfare state of economy, though the traits of capitalism are also seen, it is mainly a mixed economy. Even when a combination of capitalistic and socialistic features exists, the government plays a dominant role in controlling the economic activities and in the social welfare of the people. 2. A welfare state is socialistic in nature. It is based on the principles of equality and is keen to provide equal opportunity to all. It also aims to ensure equitable distribution of wealth. 3.

It exercises control over all the economic activities. In a welfare state, all the private enterprises are regulated by the government.

4. It provides even the basic facilities to its citizens. Furnishing services to each and every individual is its duty. A welfare government is keen in providing economic and social services such as general education, public health, public transport, housing, and other financial assistance to its people. - 11 -

5. It undertakes and runs various enterprises. Ownership and operation of industrial enterprises, business and other commercial activities are also done by welfare governments. 6. It ensures justice to all. In a welfare state, common man has to deal with the authorities for many of their needs. For example; administrative officers, controlling officers, sanctioning authorities, officers of social services, executives of public sector undertakings etc. In all such dealings, a welfare state has the responsibility to ensure justice and fulfillment of their requirements. 7. Planning of activities: Economic activities include production and distribution. It is the duty of the welfare state to formulate national policies and to plan every economic activity in a balanced manner. Industrial policy, trade policy, commercial and banking policy etc are framed in order to control those activities. 8. It is the function of a welfare state to regulate and control all private enterprises engaged in economic activities. Such control includes registration, licensing, taxation etc. 9. Welfare of laborers also comes under the purview of the duties of welfare state. They are bound to make legislations to prevent exploitation of workers, and to ensure the security and welfare of those who work in industrial enterprises, factories, companies and all other sectors of employment.

FUNCTIONS OF THE WELFARE STATE The welfare state stands for the welfare of, its citizens with welfare as its primary objective. It takes care of old and sick people providing them financial assistance in the form of allowance, pension, relief etc. The unemployed receive employment from the state. The duty of the welfare state is to provide opportunities for education to all its citizens and to make education free and compulsory up to a certain standard.The main functions of a welfare state can be divided into two parts1. Compulsory functions and 2. Optional functions. The main Compulsory and Optional functions of the Welfare State are:

Compulsory Functions The compulsory functions include maintenance of law and order within the State. This is done not only by maintaining a police force but also by instituting a set of courts to administer justice. Compulsory functions are the following:

- 12 -

1) Protection of life and property: The first and the most important duty of the State are to protect the life and property of its people. Some writers are of the opinion that the State came into existence for this very purpose. The State makes laws regarding life and property. It checks others from interfering into the affairs of the individual. If any individual violates the law of the State, he is punished. The State regulates social life of the individual through laws. 2) Maintenance of peace and order: Every government should aim at securing peace and order within the country. There are be no progress of any kind unless there is peace and order in the country. It is, therefore, as much the duty of the government to make adequate arrangements for the maintenance of peace and order as it is duty of citizens to cooperate with the government in such a work. 3) Protection from external invasion or defense: External security means security from external danger either of a military invasion or of encroachment upon international rights. The State should, therefore, be in a fit condition to defend itself against foreign attacks. For this purpose, it maintains a standing army, a navy and to fight in defense of the State. In times of peace too, the State has to deal with foreign powers and looks after its international interest. It also maintains diplomatic relations with other countries. 4) Dispensing justice: It is an important function of the State that it should organize an independent and powerful judiciary. In the absence of an independent judiciary, people cannot have justice. The State must maintain civil and criminal courts to administer justice. No liberty is possible without rule of law. Those who violate law should be punished. The State should regulate the conduct and activities of individual in the interests of all. These are the most essential functions of the State. These essential functions are called the protective or police functions. The State also performs a large number of optional functions. As T.H. Green writes that "the business of the State is not merely the business of police man of arresting wrongdoers or of ruthlessly enforcing contracts but for providing for men an equal chance as far as possible of releasing what is best in their intellectual or moral natures." The State continues for sake of providing "good life" and hence arises its large variety of optional functions.

Optional Functions As the words indicate, these functions may or may not be performed by the State. However, most of the modern State try to perform these functions. These optional functions are performed by the - 13 -

modern States as per their ability and convenience. These are known as non-essentials functions. Some of these functions are given below. 1) Physical welfare: Physical welfare of citizens is considered as an optional function of modern State. It is achieved by providing medical facilities, sanitation and conservancy system. Most of the modern States perform these functions. Public health and hygiene of the people are important in every State. 2) Education: Education is the linchpin of social progress. Spread of education is necessary in a State. Intellectual development of citizens is made through education. These include provision for schools, colleges, universities, etc. Thus, educational opportunities are provided to the citizens by most of the modern States. 3) Regulation of trade, industries and development of agriculture: Most of the modem States do not leave the economic activities with individuals alone. Certain States may go ahead and nationalize the factories and other means of production. Some other States may only regulate the price, production, import, export and other things relating to the system of production, while allowing private individuals to own and operate the means of production. Certain

other States like India may follow what is called "mixed economy". In such a system, private as well as State-owned factories and other means of production function side by side. The State may provide various facilities like irrigation, suitable land tenure, co-operative farming, etc. for development of agriculture. 4) Social security functions: These activities of modern States include provision for old age pension, maintenance of orphans, provision for employment, insurance for worker, sick and disability allowance, relief, rehabilitation of distressed people, etc. 5) Management of the public utilities: Most of the modern States also own and operate the public utility services such as transport, electricity, water works, postal services, air services etc. It is neither possible nor desirable to leave public utility services at the mercy of profit-seeking private individuals who are likely to misuse them to the detriment of public interests.

- 14 -

6) Development of natural resources: The State should develop its natural resources fully in order to promote the economic lot of the people. It should exploit those resources in order to increase national income. The State should protect forests, save environment, promote fisheries and should protect wild life. It should utilize mineral wealth and should make maximum use of sea, rivers "rivulets, mountains and other resources. The States should help in the economic improvement of the people. 7) Regulation of import and export: No State is self-sufficient today. It has to import certain goods from other countries and export certain goods to other countries. The State is to frame laws relating to import and export policies. The people cannot be given complete freedom to import and export goods. Those goods should be imported from other countries, which are essential, and those goods should be exported to other countries, which are surplus. If the State does not regulate import export, the people's plight will be quite miserable and there will be imbalance of trade. 8) Social and economic security: The State is morally bound to remove poverty and unemployment. It should, therefore, provide protection against old age. Unemployment,etc. It can be done by introducing insurance schemes against accident, old age etc.

MERITS OF A WELFARE STATE The merits of a welfare state are discussed here. 1. An Instrument for Social Welfare: The welfare state is dedicated to the welfare of people. It seeks to provide minimum facilities to all people, to remove poverty, hunger and unemployment, and to bridge the gap between the rich and poor. It aims at establishing social and economic justice. 2. A Compromise between Individualisms and Socialism: The welfare state, while avoiding the two extreme theories, namely, individualism and socialism, opts for a middle path between them. It is in fact the mid-point between these two extremes; it gives equal importance to both individual and state. It values both the liberty of the individual and the interests of the society. The state is considered the friend, philosopher and guide of the individual. - 15 -

3. Equal Rights of All: It gives equal rights to all irrespective of caste, race and religion. It does not discriminate against anybody. It treats all equally. 4. Development through Planning: It believes in planning. It seeks to provide welfare to people through planned programs. It follows 'mixed economy' model of development. The state controls and regulates economy through planning. 5. Moral Development of Individual: The welfare state creates conducive environment for the moral development of individual. When the individual is able to 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 individual happy. 6. A Positive State: The welfare state is a positive state. It regards itself more as an agency of social service than as an instrument of power. It is said that in a welfare state "the individual has only to get him born, the state will do the rest". The state looks after the individual from the cradle to the grave. 8. Social welfare is the Right of Individual, not a Dole from the State: An eminent political scientist of India, Asirvadam observes, "The first important thing to remember is that welfare is not a matter of charity, but of right. Secondly, if welfare is to be genuine welfare, the ground for it should have been prepared by the various agencies at work in the state. In the third place, if the welfare state is to be a blessing and not a curse, it should not produce a pauper mentality on the part of its recipients."4 9.Eliminating poverty Empirical evidence suggests that taxes and transfers considerably reduce poverty in most countries, whose welfare states commonly constitute at least a fifth of GDP.5 Most "welfare states" have considerably lower poverty rates than they had before the implementation of welfare programs.

4

Kenworthy, L. (1999). Do social-welfare policies reduce poverty? A cross-national assessment. Social Forces, 77(3), 1119-1139. 5 EmanueleFerragina and Martin Seeleib-Kaiser (2011). Welfare regime debate: past, present, futures. Policy & Politics, vol. 39 .p. 597. - 16 -

Country

Absolute poverty rate (1960–1991) (threshold set at 40% of U.S. median household income) Pre-welfare

Post-welfare

Relative poverty rate (1970–1997) Pre-welfare

Post-welfare

Sweden

23.7

5.8

14.8

4.8

Norway

9.2

1.7

12.4

4.0

Netherlands

22.1

7.3

18.5

11.5

Finland

11.9

3.7

12.4

3.1

Denmark

26.4

5.9

17.4

4.8

Germany

15.2

4.3

9.7

5.1

Switzerland

12.5

3.8

10.9

9.1

Canada

22.5

6.5

17.1

11.9

France

36.1

9.8

21.8

6.1

Belgium

26.8

6.0

19.5

4.1

Australia

23.3

11.9

16.2

9.2

United Kingdom

16.8

8.7

16.4

8.2

United States

21.0

11.7

17.2

15.1

Italy

30.7

14.3

19.7

9.1

CRITICISM OF WELFARE STATE Writing about British government's welfare state program, R.M.Titmus admitted that "those who benefitted the most are those who have needed it the least." The danger that the welfare state may work mainly for the 'welfare of the better’ cannot be ignored.6 Some conservatives in the UK claim that the welfare state has produced a generation of dependents who, instead of working, rely solely upon the state for income and support; even though assistance is only legally available to those unable to work or who being without employment are unable to find work. The welfare state in the UK was created to provide certain people with a basic level of benefits in order to alleviate poverty, but these conservatives believe that it has been expanded to provide more people with more money from the state than it can ideally afford.7 Some British conservatives, such as Conservative Party co-chairman SayeedaWarsi, also criticize the "'something for nothing' culture" of the welfare state, claiming that the high extent of the 6

The Welfare State We're in / James Bartholomew (2004) ISBN 1-84275-063-1 Our Culture, What's Left of It: The Mandarins and the Masses / Theodore Dalrymple (2005)ISBN 1-56663-643-4

7

- 17 -

welfare state "discourages the unemployed from finding jobs".8 55% of people in England and 43% of people in Scotland believe that "benefits for unemployed people are too high and discourage them from finding jobs".9 Marxists argue that welfare states and modern social democratic policies limit the incentive system of the market by providing things such as minimum wages, unemployment insurance, taxing profits and reducing the reserve army of labor, resulting in capitalists having little incentive to invest; in essence, social welfarepolicies cripple the capitalist system and its incentive system, and the only real solution to the issues of capitalism is its replacement with a socialist economic system.10 Some socialist anarchists believe that while social welfare gives a certain level of independency from the market and individual capitalists, it creates dependence to the state, which is the institution that, according to this view, supports and protects capitalism in the first place. Nonetheless, according to Noam Chomsky, "social democrats and anarchists always agreed, fairly generally, on so-called 'welfare state measures'" and "Anarchists propose other measures to deal with these problems, without recourse to state authority."11 Some socialist anarchists believe in stopping welfare programs only if it means abolishing government and capitalism as well.12

WELFARE STATE IN INDIA In Indian context, ‘Welfare State’ denotes establishment of political democracy, provision of social and economic justice and minimizing inequalities in income, status, facilities and opportunities. The concept is embodied in Part 1V of the Indian Constitution, Directive Principal of State Policy. According to the Constitution, it is the duty of the government to follow these principles while making laws and thereby set the path towards a welfare State. The uniqueness about the concept in the Indian context is the Directive Principles containing the instructions to the government to establish a welfare State, is non justifiable and citizens cannot claim it as a right. This is because, India being developing and over populated country and it may not possible for welfare activities of the state reach every citizen of our country. Article 38 of the Constitution reads: "The state shall strive to promote the welfare the people by securing and protecting as effectively as it may, a social order in which justice-social economic and political-shall pervade all institutions of national life." provides a broad framework for the establishment of the welfare state ideal. 8

http://www.conservatives.com/News/News_stories/2011/12/Labours_something_for_nothing_culture_must_end.aspx http://ir2.flife.de/data/natcen-social-research/igb_html/index.php?bericht_id=1000001&index=&lang=ENG the British Social Attitudes Survey 10 Market Socialism: The Debate Among Socialists, by Schweickart, David; Lawler, James; Ticktin, Hillel; Ollman, Bertell. 1998. (P.60-61) 11 http://www.zmag.org/chomsky_repliesana.htm Noam Chomsky on anarchist support for 'welfare state' policies 12 J.5 What alternative social organisations do anarchists create? - 18 9

While Article 39(a) spells that all citizens, men and women equally, have the right to an adequate me of livelihood, Article 43 enjoins that the state shall endeavor to secure to all workers work, a living wage and conditions of work ensuring a decent standard of living. Provision of employment opportunities which is yet another objective of the welfare state is emphasized by Article 41 which directs the state for securing the right to work. Provision against insecurity is also incorporated in this Article which directs the state make effective provision for securing right to education, and to public assistance in ca of unemployment, old age, sickness and disablement. Protection and special care of the weaker sections of the community is provided Article 46 which directs the state to promote with special care the educational and economic interests of the weaker sections of the people, and in particular, of the scheduled castes a the scheduled tribes, and to protect them from social injustice and all forms of exploitation. As a welfare State, India is committed to the welfare and development of

itspeople,

particularly the vulnerable sections like the scheduled castes (SCs), scheduledtribes (STs), backward classes, minorities and the handicapped. This section of thesociety constitutes nearly 85% of the population.

Welfare of the SCs, STS, Backward Classes and others Almost a quarter of India's population consists of SCs and STs, who had beengrievously neglected for centuries. The government has taken several steps for theirwelfare. The representation of the SCs and STs in all Parliament and State Assembliesis assured. Under the Special Assistance scheme, nearly 300, 000 families were expected tobenefit during 1994-95. There is a Special Component Plan for the SCs. The centralgovernment participates in the share capital investment of the Scheduled CasteDevelopment Corporation, set up in the states. The National SC and ST Finance andDevelopment Corporation is a 100% government-owned no profit no loss corporationfor developing entrepreneurial and other skills of this section. Children and Drug Abuse A National Policy on Children was adopted in 1974. It states that the nurture andsolicitude of the children is the responsibility of the States. In line with theUN Declaration on the Right of the Child, India enacted the Juvenile Justice Act 1986. India became the first country to adopt that legislation. There are 359 counselingcenters for drug abuse prevention, which alsopropagate awareness. The government finances 250 NGOs which are involved in drugabuse prevention activities. A

- 19 -

tripartite agreement between the government, ILO andUNDCP has been signed to help full rehabilitation and recovery of drug addicts. The midday meal scheme provides basic nutrition to children There are over 450 day care centers, old-age homes and mobile medicare units.Over 60 units also function for the welfare of street children. A Central AdoptionResource Agency has been set up to function as the clearing house of information onchildren available for adoption. Family Welfare Programme India has 2.4% of the world's land, but rural sector supports 16% of the entire globalpopulation. According to the latest (1991) census report, India has a population of846.30 million. Since the last census (1981), the country's population has increased by150 million. Thus the task of eradicating poverty is a daunting one, indeed. But the latest census figures have also brought some hope and indicated that efforts being made in the field of family welfare have not entirely gone waste. For the first time, the growth rate of population has declined from 2.22% (in 1981) to 2.14%. The Infant Mortality Rate (IMR), which was 140 per 1000 live births in 1981, came down to 80. The death rate declined sharply from 15 per 1000 to 9.6. The Eighth Plan goal is to achieve a birth rate of 7 per 1000, IMR of 70 and death rate of 9 per 1000. The life expectancy is expected to hit 64 from 58 years at present. Rural Health Services The Government is paying increasing attention to integrated health, maternity and child care in rural areas. An increasing number of community health workers anddoctors are being sent to rural health centers. Primary health care is being provided tothe rural population through a network of over 150,000 primary health centers andsub-centers by 586,000 trained midwives and 410,000 health guides. Integrated Rural Development Programme The Integrated Rural Development Programme provides practical assistance toeconomically deprived families; the up gradation of skills via the Training for RuralYouth for Self Employment (TRYSEM) will cover 600 families in each block. In1983, ten million such families were covered. In the field of agriculture, the management of non-irrigated, rainfed agriculture (which constitutes 73 per cent of the country's cropped area) has led tothe identification of around 4, 246 watersheds. 46 of these have already been taken upby various agricultural institutions and universities. One such agricultural institutionis the National Bank for Agriculture and Rural Development (NABARD), which mobilizes resources and provides credit to theNational and State governments have been undertaking many measures in sectors like agriculture, education, public health communication, transport, rural development and housing for the welfare of the people. - 20 -

CONCLUSION In later part of the 20th century, the wave of privatization and globalization came into existence in many countries. According to the market fundamentalists and Nobel laureates like Friedrich Hayek and Milton Friedman, the welfare state is a source of trouble and an anomaly that should be stopped. However another Noble prize winning economist argues, ‘The supremacy of the market which is proclaimed with ideological fervor is a dangerous mistake’ He considers the role of the state and it’s regulating activities to be essential and believes that market mechanisms are unsuitable means for the solution of social problem. It demands some rethinking and reform of various Welfare institutions which is more essential in the developing country like India where disparities exist between different segments of the population and different regions of the country, for shortening these gaps and moving towards a more balanced development of the nation. However the welfare State is the greatest achievement of the 20th century and should be suitably adapted to the existing global condition as well as the peculiar situation of a particular country in order to lead toward overall prosperity of mankind.

- 21 -

BIBLIOGRAPHY  The Welfare State We're In by james Bartholomew  The Hidden Welfare State: Tax Expenditures and Social Policy in the United Statesby Christopher Howard  The Oxford Handbook of the Welfare State by Francis G. Castles, Stephan Leibfried, Jane Lewis, Herbert O’binger, Christopher Pierson  The New Politics of the Welfare State by Paul Pierson

WEBLIOGRAPHY  www.tourindia.com 

www.preservearticles.com/.../concept-of-a-welfare-state.html

 www.welfare-state.org/  www.ruthlesscriticism.com/welfare_state.htm  http://www.pitt.edu/~heinisch/concept.html  http://unpan1.un.org/intradoc/groups/public/documents/apcity/unpan003057.pdf  http://papers.ssrn.com/sol3/.cfm

- 22 -