Question

What is a welfare state? Why is A.R. Desai critical of the claims made on its behalf?

Answer 1

A.R. Desai explained three features of a welfare state. These were as follows:

(i) A welfare state is a positive state that uses its power in order to implement social policies for the betterment of society. It is an interventionist in nature.

(ii) Democracy and democratic institutions are considered the most important factors for the emergence of the welfare state.

(iii) A welfare state includes a mixed economy. It means the co-existence of both the private and state-owned enterprises. The public sector concentrates on basic goods and social infrastructure, while the private industry produces consumer goods.

Desai is critical of welfare states like Britain, the USA, and countries in Europe. He argues that the claims of these states are exaggerated, while they are not even able to provide basic social and economic security to their citizens. They are unable to reduce economic inequality. The process of development in these states is not independent of market fluctuations. A high level of unemployment alongside excess economic capacity indicates the failure of the welfare state. Therefore, A.R. Desai is critical of the claims made on behalf of the welfare state and concludes that its existence is a myth.