Theories of Functions of

State

Dr. Avinash Samal

Assistant Professor
Hidayatullah National Law University
Raipur, Chhattisgarh
Functions of State
2

 Good deal of controversies exists regarding the functions of

state.
 Ranges from anarchism to laissez-faire individualism to
socialism or welfare state
 Liberal and Marxist – Two broad theories
 Liberal views on the functions of the state have been
changing from time to time
 Change in circumstances and the changing position of the
classes
 The notion of state and its functions change with the change
in conditions and requirements of classes
 The requirements of the capitalists class in the 18th century
was quite different from 19th and 20th century that
necessitated a different role of the state
Cont…
2

 Negative Liberalism of the 18th and 19th century

supported state with minimal functions
 It changed to positive liberalism in the later half of
the 19th and early half of the 20th century (after the
Great Depression) which supported the positive state
with welfare functions
 Negative Liberalism – negative or police functions of
state such as resolving conflict, maintenance of law
and order and regulation of free competition, and
laissez faire principle – police state
 Positive Liberalism – Positive or welfare functions –
economic, social, cultural and political – welfare state
Cont…
2

 Liberal Theories
 Classical or Negative Liberalism (laissez-faire)
 Adam Smith, Bentham and Milton Friedman
 Positive Liberalism
 J S Mill, T H Green, Laski, MacIver
 Post 1926 Thinkers like Keynes, Roosevelt, Galbraith
 Marxist Theory
 Socialistic
 Welfare State
Classical or Negative
Liberalism
2

 As a socio-political theory, it is based on the ultimate value of

human personality
 Liberty is the highest human value which is adversely affected
by state regulation and control
 State – a necessary evil
 Since state and individual freedom are seen as opposite, it
argues for more and more freedom to individual by increasing
the sphere of his functions and decreasing the sphere of the
state functions
 Principle of laissez-faire - The individual to be left alone to
develop his own personality in his own way
 The main functions of the state – to check violence,
disruption, disorder and fraud
Cont…
2

 Liberal theory of negative functions of the state was

supported by the rising capitalists class during the 18th
century
 During the industrial revolution (1760-1830) the control of
the state over trade and industries were considered
unnecessary
 It was hindering free development of capitalism
 Seen as anti-developmental and retarding, interference of
state in economic matters was opposed
 Economic system to function through free competition and
exchange through the market mechanism of ‘demand and
supply’
 Negative Liberalism was thus the political requirement of the
competitive market society of the 18th century
 This was supported by Adam Smith on economic basis and
Bentham on moral or political basis
Adam Smith
 Philosopher of the emerging capitalism during the heyday of
industrial revolution
 Wealth of Nations (1776)
 The doctrine of laissez faire received a comprehensive treatment
in Adam Smith’s “Wealth of Nations”, which was largely a plea for
policy of non-interference by the state in economic matters
 Analyzed the transition from feudalism to capitalism and
established the superiority of capitalist economy over feudalistic
economy
 Capitalism – logical and progressive and can be run without any
external check
 Strong objection to state’s interference in economic affairs of the
society
 As a champion of the free market liberalism, he called for the
liberation of businessman from the restrictive regulations which
government imposed on economic activity.
Jeremy Bentham (1748-1832)
2

 A social reformer, jurist and political thinker

 Father of modern utilitarianism
 His views are based on hedonistic principles or
‘hedonism’, i.e. “all men seek pleasure and want to
avoid pain”
 Pleasure and pains are everything
 The works which give pleasure are proper and the works
which give pain are improper and do not have any utility
 “Nature has placed mankind under the governance of
two sovereign masters – pain and pleasure. It is for
them alone to point out what we ought to do and to
determine what we shall do”
Cont…
2

 The utility of anything can be measured in terms of its capacity to

cause pleasure or pain
 Pleasure – good; pain – bad
 Pleasure can be obtained by any means – religion, morality, material
things
 “Individual is the best judge of himself”
 The state has originated because of its social utility and not because
of social contract
 The objective of state is the “greatest happiness of greatest number”
and, hence, the functions of the state should be based on this
principle.
 The state and society are for individuals and hence the state should
not do those things which may cause pain to individuals
Cont…
2

 Like Adam Smith, Bentham believed in the dogma

of self-regulating and uncontrolled economy, in
which the state has virtually no role to play.
 Believed in free trade, freedom of occupation,
unrestricted competition, inviolable private property
and other individualistic reforms.
 State should have minimum functions and the
individual should be left alone – as much as
possible – to live a life of happiness and enjoy life
in his own way.
 Individual – the end of the state and society.
Herbert Spencer (1820-1903)
2

 Following the principle of ‘Social Darwinism’, Spencer argued that the

functions of the state should be bare minimum and society should be
governed by the principle of “survival of the fittest”.
 The state should not help the weak, the poor, the handicapped and
they should be allowed to die a natural death because the weak and
the unfit should perish.
 On this basis, Spencer recommended:
 Free competition among the members of the society
 State should have minimum role in socio-economic sphere
 The state should not and can not perform welfare functions and must not
give assistance to weaker sections
 Three main functions of the state according to Spencer are:
 Protection of individual against external enemies
 Protection of individual against internal enemies
 Enforcement of contracts lawfully made
Nock
2

 Power of the state is not original; it derives the power from

the society
 State turns every contingency into a resource for accelerating
the conversion of social power into state power
 This social power is the power of a class (capitalists), which
lies with the capitalists in a capitalistic social and economic
and political order and is used by the state to safeguard the
interest of this class.
Oakeshott
 There is essential unity and harmony in the society and hence the
functions of the state should be bare minimum
 Authority of the state should be limited and every individual should
have the maximum sphere of his own to act upon
 He rejects the idea of “collectivism” and maintains that it is the
“enemy of a free society”.
 The task of the state is the establishment and maintenance of
effective competition by means of an appropriate legal system.
 To safeguard the freedom of the individual, there should be effective
unregulated competition and the state must not interfere in it.
 Oakeshott opposes increase in the functions of the state on the basis
that it will lead to collectivism and would be injurious to freedom of
the individual.
Hayek, Friedman and Nozick
2

 Support the negative liberal view of the functions of state and

oppose social welfare-oriented planning and intervention of the
state in economic affairs
 State sponsored economic planning is neither desirable nor
practicable – it may lead to serfdom and will reduce democracy to
shadow without substance – Hayek
 As champions of free-market economy – strongly criticize the
welfare or regulatory functions of modern state
 Advocate a minimal state – limited to the narrow functions of
protection against force, theft, fraud, enforcement of contracts
and so on.
 Any more extensive state, they argue, will violate a person’s
rights not to be forced to do certain things, and is unjustified.
 The minimal state is inspiring as well as right.
Arguments in support of
Negative Liberalism
2

 Minimum functions of the state are argued on the economic, political,

moral, scientific and practical basis:
 Economic – Free and uncontrolled economy is necessary because for
the free economic development of the free society because every
individual knows his interests best
 Political – Increase in the functions of the state would lead to
increase in the power of the state and this will endanger individual
freedom
 Moral – By increase in the functions of the state self-dependence and
initiative of individuals will suffer and he will become a parasite on
the state which will hinder the development of his personality
 Scientific – Social Darwinism – survival of the fittest
 Practical – Government tries to do many things, but does them
badly. Since every additional function is seen as a burden imposed
on the state already charged with many functions, the result is most
things are ill-done or not done at all. Red-tapism, waste and
corruption
Positive Liberalism
2

 During 18th and 19th century the rising capitalists

class supported the ideals of negative liberalism
 State interference was opposed in order to have
free development of capitalist economy in the form
of free trade, free contract, and free enterprise
 Since state power was not in the control of
capitalists, the authority of the state was doubted
and hence its interference in trade, industry and
commerce
 It was seen as a hindrance in economic
development
Cont…
2

 Post industrial revolution, the liberal thinking with regard to

state and its functions underwent a change
 Negative liberalism was replaced by positive liberalism
 During the 18th century, the capitalists needed a negative
state – but in 19th and 20th centuries, it needed a positive
state because of the changes in time and circumstances
 Towards the close of the 19th century, negative liberal ideas
were being abandoned in favour of increasing state control
and intervention because of “moral inadequacy” of state
which failed to meet the challenge of problems created by
unregulated industrial capitalism.
Socio-Economic Conditions in
the 19 Century Europe
th
2

 Political power slipped from feudal class to the hands of the

capitalist class
 It was not afraid of increasing power of the state as it actually
meant an increase in the strength of the capitalist class
 The emergence of the working class and their problems of
poverty, working conditions, hours of work, wages and the
standard of living, etc.
 Working classes were getting organized to challenge the
privileges of the capitalists
 Extreme exploitation of the working class brought many
reactions – idealistic, humanist, utopian socialist, Marxian and
positive liberalism
Idealistic Reaction to Negative
Liberalism
2

 State is not an artificial thing; but it is “March of God on

Earth”
 Following Plato and Aristotle, Hegel made no distinction
between society and the state
 He maintained that the state is not a means but an end in
itself and that it should have unlimited powers and functions
Humanistic Reaction to
Negative Liberalism
2

 It came due to practical consequences of capitalism –

poverty, inhuman conditions, unbearable exploitation,
illiteracy and misery among the majority of population
 It disturbed the liberal writers like Arnold, Carlyle, Ruskin etc.
who attacked capitalists on moral and aesthetic grounds and
demanded more positive role of the state in the affairs
concerned with the whole of society
Utopian Socialists’ Reaction to
Negative Liberalism
2

 They criticized capitalism on the grounds of inherent injustice

in the system
 Appealed to the conscience (St. Simon) and reason (Robert
Owen) of capitalists and requested them to take care of the
majority of the working class population
Marxian Reaction to Negative
Liberalism
2

 Marxian challenge was the most formidable and came in the form
of a challenge to the capitalistic order
 As a scientific philosophy of the working class its revolutionary
message to the working class was:
 “Let the ruling class tremble at a communistic revolution. The
proletarians have nothing to lose but their chains. They have a
world to win. Working men of all the countries unite.”
 The working class organized itself and threw a formidable
revolutionary challenge to the capitalist order, which the capitalist
order was unable to resist.
 So liberalism that emerged as a revolutionary philosophy during
the 17th – 18th centuries and regarded state as a necessary evil,
became anti-revolutionary and felt the need of strengthening the
state to crush the revolutionary tide of working class movements
Emergence of Positive
Liberalism
2

 Positive liberalism thus emerged as a reaction to all these views

 Liberal views of the state and its functions changed and the liberals were
not afraid of the increasing power of state because by then the state
power was in the hands of the capitalist class
 State was regarded as a positive good – an agency for the general
welfare and as a guardian of the common interests of society
 Instead of being a necessary evil, the state was regarded as an
institution for the general welfare and became a ‘welfare state’ instead of
a ‘police state’
 Positive liberalism is variously called as the theory of ‘welfare state’,
‘theory of industrialist state’ and ‘revisionist or reformist liberalism’
 The main features of this theory of the state functions is that it entrusts
various social, economic, moral and cultural functions to the state.
 It pleads for increased state functions for promoting social welfare, for
bringing about harmony and equilibrium in the society and for satisfying
the socio-economic demands of the general masses.
Reasons for Change in the
Liberal Views
2

 The forces behind the process of historical development of ‘the

welfare state’ are varied and complex.
 Fear of a social revolution
 The need for a law-abiding labour force
 A demand to remove some of the social costs of change – industrial
accidents – from the backs of the worker, and
 The social conscience of the rich
 The struggle for power between political parties and pressure groups
 In addition to the above,
 Revolutionary movement of the working class
 Complexity of socio-economic order
 Need of a strong agency to bring equilibrium in the crisis-ridden capitalist
society, and
 Grant of democratic rights and adult franchise to the general public
(which were won by them through struggle)
Positive Liberal Thinkers
2

 J S Mill (1806-1873)
 T H Green (1836-82)
 H J Laski (1894-1950)
 R M MacIver (1882)
 Post 1926 Thinkers – Keynes, Roosevelt,
Galbraith
John Stuart Mill (1806-1873)
2

 Influenced by his father James Mill and teacher

Bentham, he inherited utilitarianism from them
 Adam Smith, Ricardo, and Malthus too had their
influence on his views of economic liberalism
 A transitional thinker, Mill began as an individualist
but switched over to positive liberalism later
 State came into existence for the individual and
social well-being and not due to any contract
 The state has to facilitate intellectual and moral
development of the individual and has to perform
the functions of social welfare
 In his Representative Government (1860), he
assigned socio-economic and cultural functions to
the state.
Cont…
2

 State has both necessary and optional functions

 Necessary functions included those functions of the state
supported by negative liberals
 Optional functions included welfare functions
 Spoke about mixed economy, compulsory education,
liberation from contracts of marriage and slavery, factory
legislation in case of children, control of monopolies,
controlling of working hours and working conditions, minimum
wages, workmen’s compensation in case of injury,
maintaining of public health, etc.
 His major contribution to positive liberal philosophy was that
he regarded the “state as a means of personal and social
development of the individual”
T H Green (1836-82)
2

 Gave a new turn to liberal philosophy by demolishing the wall

between the individual and society, self-interest and social
interest which was the greatest logical weakness of the liberal
philosophy
 Harmony in individual’s self-interest and social interest – for
the development of individual personality it is necessary that
individual should be active in social affairs.
 Looked at state as an agency for the social upliftment of man
 The primary function of the state is to remove the hindrances
in the way of development of human personality
 The function of government is to maintain conditions of life in
which morality shall be possible, and morality consists in
disinterested performance of self-imposed duty.
 The state is an institution for the promotion of common good.
Cont…
2

 Emphasized the moral aspect of man, society and state, and on this
basis, he supported the welfare functions of the state
 Provided solid ethical foundations of state by pulling it out of pure
individualism
 As the founder of the welfare state on moral basis, he argued that
the need of the welfare state was ethical rather than economic.
Green’s Views on Functions of
State
2

 The function of the state is to remove the hindrances to the

development of human personality and maintain the external
conditions required for the inner development of human personality
 Poor education, poverty, ignorance, and bad working conditions are
obstacles to the moral and intellectual development of human
personality. The state must remove these hindrances by positive
welfare activities
 To look after the common interest of the society
 The basis of the state is neither force, nor contract but the human
will
 The state is not the highest morality in itself but it is a necessary
condition for the moral development of man
The solid moral foundations of the welfare state laid down by
Green was further reinforced by the writings of Laski and
MacIver during 20th century.
H J Laski (1894-1950)
2

 As a positive liberal of the 20th century, viewed the state as

"an organisation for enabling the mass of men to realise social
good on the largest possible scale”
 Its function in society is "to satisfy common needs, to protect
the interests of men as citizens".
 Believed in the democratic state and maintained that the
functions of state have increased with the availability of
voting rights to more and more people
 Welfare functions of the state “is the price the rich have to
pay to the poor for their security”
 Societies in which the state performs welfare functions
serving the common interest of the society, a revolution will
not occur.
Laski’s Views on Functions of
State
2

 The state coordinates the interests of various associations and

institutions in society.
 The state must bridge the gap between the rich and the poor through
its economic functions.
 Industries and distribution of commodities should be controlled by
the state
 The state must perform the functions of social welfare such as
education, health and housing.
 The state must safeguard the interest of the working class and save
them from exploitation
 Rights and liberties are to be safeguarded by the state
R. M. MacIver (1882
2

 A liberal pluralist sociologist, viewed the state as one among

various associations.
 There are many associations in society which are there to
serve the different interests of the individuals, groups and
society.
 The state is one among various associations and it performs
various functions.
 "State has both negative and positive functions. State should
not seek to control opinion, morality and religion, customs,
fashion and culture.
 State's positive functions include three broad categories
-order, protection, conservation and development.
 The state cannot perform all the functions efficiently and only
general functions should be performed by it leaving the rest
to various other associations.
Post 1926 Liberals: Keynes, Roosevelt,
Galbraith and Macpherson
2

 The Great Depression dealt a severe blow to capitalist economies and

an era of state-regulated capitalism emerged in Europe & U.S.A.
 Keynesian theory was the propelling force behind Roosevelt's 'New
Deal' programmes - mainly laws concerning nationalisation.
 The whole argument of Keynes was that in order to save the whole
system, a part must be checked, and to save capitalism, capitalists
must be checked and controlled by the state.
 The State entered into trade, commerce and industry in a big way.
 Galbraith justified planned economy and a mixed economy in view of
the changed circumstances of the 20th century.
 Macpherson, a critical liberal, advocated positive welfare functions of
the state to fulfil the developmental goals of society.
 Thus the liberal theory of state functions has undergone changes
from time to time to save capitalism from decay and disintegration.
Marxian Theory of Functions of
State
2

 Marx never attempted to set out a comprehensive

and systematic theory of the state
 But discussion on the state is scattered in his
numerous writings.
 State as the product of the class struggle
 An instrument of class rule
 An organ of the economically dominant class
 Marx and his followers did not have any uniform
view regarding the functions of state
 They had different views regarding the functions of
the pre-socialist states including the capitalist state
on the one hand and the socialist (Proletarian) state
on the other.
Functions of the State in
Capitalistic Societies
2

 The nature of the capitalist state being what it is, its purpose
is the protection of private property and its function is the
oppression of the working class by the capitalists.
 State can seldom reconcile the interests of opposing classes
 No matter how many different functions are performed by the
modern state, their effect is the oppression of one class by
another
 The functions it performs are mostly political and repressive
 The capitalist state is pressurised by the working class to
make some concessions as a matter of expediency.
 By rendering welfare functions the capitalist order is
ultimately protected as the chances of a working class
revolution are minimized.
Cont…
2

 The modern capitalist state intervenes in the

economic affairs through nationalisation of key
sectors, licensing and price control etc. in order to
regulate the capitalist mode of production.
 These measures are the historical requirements of
the crisis-ridden capitalist economy in the 20th
century.
 Selective nationalisation by capitalist state does not
lead to socialisation but leads to bureaucratisation
& state monopoly capitalism.
 "State intervention in economic life largely means
intervention for the purposes of helping the
capitalist enterprise". - Miliband
Cont…
2

 The modern capitalist state mediates the conflicts between capitalists

and workers in the overall interests of the capitalist economy.
 Working class movements are crushed and strikes declared illegal by
the coercive state apparatus.
 All the elites in a capitalist society – political, bureaucratic, business,
military and intellectual – join hands to serve the system.
 The dominant economic class influences the political and social
system in various ways through money power.
 It purchases the politicians, corrupts the bureaucrats, controls the
media and influences the decision-making process.
 “The modern State, no matter, what is its form, is essentially a
capitalist machine, the State of the capitalists, the ideal
personification of the total national capital. The more it proceeds
to the taking over of productive forces, the more does it actually
become national capitalist, the more citizens does it exploit. The
workers remain wage workers – proletarians. The capitalist
relation is not done away with". – Engels
Functions of State in Socialistic
Societies
2

 A socialist society is one where the organised

working class has captured power through a
proletarian revolution and the working class state –
the dictatorship of the proletariat – has been set
up.
 The abolition of the state involves three steps:
 the overthrow of the bourgeois’ state by revolution;
 the establishment of the dictatorship of the proletariat;
and
 the withering away of the socialist (proletarian) state.
Functions of State in Socialistic
Societies
2

 Two important differences between bourgeoisie state and

proletarian sate
 The bourgeois state is an instrument for the suppression of the
majority by the minority, while the proletarian state is an
instrument for the suppression of the minority by the majority.
 While the bourgeois state must be destroyed by revolution, the
proletarian state would "wither away".
 According to Marx, the dictatorship of the proletariat is a
transitional stage between the bourgeois state and the
classless, stateless communist society.
 The functions of the state in socialist societies can be
classified under four categories:
 Political
 Positive
 International and
 Preparing the conditions for its own withering away.
Political Functions
2

 The first task of the working class revolution is to

establish a socialist state in the form of the
dictatorship of the proletariat.
 It is necessary
 For crushing the resistance of the exploiters i.e.,
suppression of the bourgeoisie, and
 For guiding the people in the work of socialist
reconstruction i.e., establishment of socialism.
 One is destructive, and the other is constructive.
 One is political and the other is economic.
Positive Functions
2

 For the establishment of socialism positive, constructive measures

are to be undertaken by proletarian dictatorship
 abolition of private property and social ownership of the means of
production, distribution and exchange
 establishment of socialist mode of production whose objective is
social welfare
 land reforms and the practice of cooperative and state farming
 establishment of planned economy and
 rendering welfare services to the working class.
 It also performs cultural, social and moral functions by making
provision for scientific education to all, establishment of social and
cultural, equality and the establishment of socialistic culture and
ethics governed by altruism and cooperative social sentiment.
 All economic, social and cultural functions are performed with due
participation of the masses at all levels.
International Functions
2

 The socialist states believe in the proletarian

internationalism - the unity and solidarity of
working men of all countries
 Socialist states provide assistance – material
and moral – to the movements of the masses
and the working classes throughout the globe
 They provide asylum to the revolutionaries of
the world.
 In the international sphere they work for the
maintenance of peace, progress and justice.
Preparing conditions for its
own withering away
2

 Guiding people for working towards the

establishment of a classless society
under communism.
 The state will gradually pass away as the
people become accustomed to observing
the codes of socialist ethics.
Weaknesses and Deficiencies
2

 Economic disparities persist

 Dictatorship of the communist party in stead of
dictatorship of the proletariat
 Party leadership has become a class in itself –
distinct from the working class
 Powerful and expanding bureaucracy and
technocracy has assumed control over
administration and economy
 Socialist states have become very powerful and
deeply entrenched and hence there is hardly any
chance of their withering away
Socialistic Theory of Functions
of State
2

 As an economic and political doctrine, socialism originated

as a protest against the evils of unbridled capitalism such
as: gross social injustice, economic inequality, rampant
exploitation, colossal poverty, mass misery and antipathy
between the 'haves' and the 'have-nots'
 It is fundamentally an ethical revolt against the terrible
dehumanisation and pervasive alienation which
characterized all institutions of capitalism.
 It can be defined as a theory and a movement aiming at
the collective organization of the community in the
interests of the mass of people through the common
ownership and collective control of the means of
production and exchange
Cont…
2

 Instead of looking at state as necessary evil, the advocates

of the theory regard it as a positive good and argue for a
maximum rather than minimum of government
 The state's mission should include the promotion of the
common economic, moral and intellectual development of
the people.
 Socialists believe that direct and positive state action can
make available social justice for the bulk of mankind.
 It does not mean that they attach any less importance to
individual freedom than the individualist theorists.
 On the contrary, they regard it as all important and hold
that it can be better secured through positive state action
than free competition.
Types of Socialism
2

 Two schools of thought – the revolutionary and the

evolutionary
 The revolutionary socialism holds that revolution or direct action
is the only effective method of bringing into existence the ideal
society;
 The evolutionary socialism believes that evolutionary,
constitutional methods are desirable and have more lasting
effects.
 Utopian socialism – Utopian socialists like Robert Owen, Saint
Simon and Proudhon were not interested in political action for
ushering in socialist society but wanted to prepare people for
a new social order through persuasion.
 Scientific socialism - Karl Marx is rightly regarded as the
harbinger of scientific socialism. He not only criticized the
evils of the capitalist system but delineated the means
(programmes of action) through which the ultimate goal of a
classless society (communism) could be achieved.
Functions of State
2

 Socialists aim at a cooperative commonwealth controlling all the

means of production and regulating distribution according to some
method of joint control
 The state should undertake all kinds of functions which are necessary for
the material and moral development of individuals
 Socialists argue that all defects of social organization – inequality of
wealth, insecurity, mass poverty, exploitation of the workers,
dehumanization etc. – arise from one root cause namely, the private
ownership of the means of production and the desire for profit.
 They advocate abolition of all forms of private capital - private property
in land, natural resources, industries - and with it the incentive to private
profit.
 Substitution of private capital with collective ownership and control
 Through comprehensive planning socialists seek to harness productive
activities of society into the most useful channels, and to increase social
good and social justice to the utmost.
 Some socialists advocate equal distribution, others equitable distribution.
 “Every socialist doctrine aims at introducing greater equality into social
conditions. Socialism is an equaliser and leveller” – Laveleye
Functions of State
2

 Socialism aims at spontaneous integration of

man with society. It seeks to unite man with his
work through community's control over the
economy.
 Society is viewed as an organic whole and the
individual is integrated with the social whole by
removing the fundamental causes of alienation
and dehumanisation which characterise
capitalist economies.
 Socialism is a society in which "the full and free
development of every individual forms the
ruling principle” - Karl Marx
Arguments in Favor of
Socialism
2

 Socialism puts emphasis on society and social good.

Individual is looked upon as an integral part of the social
whole and social welfare takes into account the welfare of
every individual
 Socialistic theory is founded on the principles of justice and
right.
 Collective ownership of the means of production and
collective management of economic enterprises are
thoroughly democratic.
 Socialists advocate the restructuring of society through
radical programmes of social and economic reforms.
 The socialistic ideal places emphasis on altruism and on the
cultivation of a desire for social usefulness.
Arguments Against Socialism
2

 The socialistic theory starts from a false premise in maintaining

that private property is not only wrong morally but also
economically.
 Socialism is not conducive to progress. Everybody's business is
nobody's business. Public enterprises suffer from this malady.
State-managed economic enterprises do not function as
efficiently as business organizations
 It is alleged that socialism involves a restriction of individual
freedom and a deterioration of individual character. State
assumes greater control over the lives of individuals in the name
of providing greater material prosperity. Expansion of state
functions results in bureaucratic control. Officials become very
powerful and opportunities for corruption, intrigue and personal
spite increase.
 Socialists err in overestimating the state's capacity and efficiency.
Critics of socialism argue that to overburden the government with
the management of the whole complex volume of economic
activity in a modern society will lead to inefficiency, if not to a
complete breakdown.
Welfare State
2

 It’s 20th century concept

 While negative liberal and socialist
theories present rather extreme views
regarding the proper sphere of state
action, most of the modern states avoid
both the extremes and strike a middle
course between individualism and
socialism by adhering to the doctrine of
welfare state.
Origin and Development
2

 The welfare state like the socialist state is the product of

unbridled capitalism.
 The evils of industrialisation were of two kinds.
 Inside the factory - long hours of work, unhealthy
surroundings, accidents, low wages, exploitation of women
and children workers.
 Outside the factory - Urbanization spread along with
industrialization and created evils outside the factories
such as overcrowding, slums, inadequate supply of pure
water, absence of drainage, accumulation of garbage on
the streets and environmental pollution.
 The state undertook legislative measures to remove such
evils. These efforts of the state marked the evolution of the
idea of welfare state in the West.
Cont…
2

 Welfare state first started in England. Trade Unions ably supported by

the socialists played an important part in developing the ideal.
 The Beveridge Report on Social Insurance released in 1942 in England
prescribed the provision of "national minimum" to every individual. It
envisaged a scheme of social security as a part of the general
programme of social policy.
 The National Health Service was launched during Attlee's Prime
Ministership. Under his stewardship a series of measures were passed
resulting in the nationalisation of railways, coalmines and steel, of the
Bank of England and of transport.
 President F. D. Roosevelt in the U.S.A. introduced the "New Deal"
Programmes to combat the great 'depression' in the early thirties
accepting the responsibility of the federal government to promote
welfare of the American people. His progressive, humanitarian measures
contributed greatly to the evolution of the concept of welfare state.
 The USA brought in the Social Security Act of 1936 – an ambitious plan
for providing old age pension, health disability and unemployment
insurance with the cooperation of federal and state governments, and of
the employers and employees.
Welfare States
2

 Sweden, Norway and Denmark have extensive

welfare schemes supported by high taxation.
 The socialist states like erstwhile USSR, China,
East Germany, Yugoslavia were also welfare
states;
 USSR has been the first modern country to
have a planned economy.
 India is committed to the realization of the
welfare state.
 The Directive Principles of State Policy under
the Indian constitution enjoin upon the union
and state governments to direct their efforts to
achieve this objective.
What is a Welfare State
2

 “A community where state power is deliberately used to

modify the normal play of economic forces so as to obtain a
more equal distribution of income for every citizen, a basic
minimum irrespective of the market value of his work and his
property" – Abraham
 “A state that provides for its citizens a wide range of social
services". – Kent
 "the welfare state is a society in which an assured minimum
standard of living and opportunity becomes the possession of
every citizen“ – J. D. H. Cole
 "Welfare state is a system wherein government agrees to
ensure certain levels of employment, income, education,
medical aid, social security and housing for all its citizens”
– Arthur Schlesinger
What is a Welfare State
2

 “A welfare state is a state in which organised

power is deliberately used (through politics and
administration) in an effort to modify the play of
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 otherwise lead to individual and
family crises; 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 of Welfare State
2

 Hobman describes the welfare state as a compromise between

communism on the one side and unbridled individualism on
the other.
 It sets a pattern for a progressive and humane society.
 It guarantees a minimum standard of subsistence without
removing incentives to private enterprise, and it brings about
a limited redistribution of income by means of graduated high
taxation.
 Yet it does not pretend to establish economic equality. All are
assured of adequate help and support by the state in case of
need.
Distinguishing Features of
Welfare State
2

 Promotion of people’s welfare.

 The welfare state is a positive state. It regards itself as an
agency of social service than as an instrument of power.
 The state looks after the individual from cradle to the grave.
 The welfare state is a compromise between the extremes of
individualism and socialism.
 It regulates the national economy through planning. It adopts
a "mixed economy" allowing both the public and the private
sectors to play their part in the development of national
economy.
 The welfare state upholds the rights of all and gives out equal
treatment to all individuals and classes without any
discrimination.
Criticisms of Welfare State
2

 An expensive state
 Kills individual initiative and may create a pauper mentality. It
can stifle individuality, creativity and willingness to work
 Activities of voluntary associations may sharply decline with
vast expansion of welfare functions
 It leads to bureaucratic despotism with the increase in the
scope and complexity of business of the government
India as a Welfare state
2

 The preamble to the constitution of India aims at establishing

a welfare state
 Justice - social, economic and political
 Directive Principles of State Policy. Article 38 of the
constitution reads:
 "The State shall strive to promote the welfare of 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 the national life".
 It provides a broad framework for the establishment of the
welfare state ideal. Removal of poverty and provision of a
minimum standard of living is one of the objectives of the
welfare state.
India as a Welfare state
2

 Article 39 (a) spells that “citizen, men and women equally, have the
right to an adequate means of livelihood”
 Article 43 enjoins that “the state shall endeavour to secure to all
workers work, a living wage and conditions of work ensuring a
decent standard of living.”
 Article 41 directs the state for securing the right to work.
 Provision against insecurity is also incorporated in this Article which
directs the state to make effective provision for securing right to
education, and to public assistance in cases of unemployment, old age,
sickness and disablement.
 Protection and special care of the weaker sections of the community
is provided in 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 and the scheduled tribes, and to protect them from social injustice
and all forms of exploitation.”