Welfare State

The expression welfare state denotes a number of policies through which the government provides protection against a predetermined set of social risks and needs. The term made its appearance in the political vocabulary of English-speaking countries during the 1930s and early 1940s. State activism in the social sphere dates back, however, to the second half of the 19th century and was essentially prompted by the modernization process and its accelerating pace throughout Western Europe.

From an institutional viewpoint, the essence of the welfare state is the rights-based character of protection. Through social policies, the government defines rules and standards regarding resources and opportunities, which are considered to be highly relevant for individual life conditions and thus worthy of being “guaranteed” by state authority. In contemporary democracies, such rules and standards are typically incorporated in the notion of social citizenship. Being a citizen means to enjoy not only certain civil and political rights but also specific social rights—that is, entitlements to obtain resources such as a pension or opportunities (e.g., access to medical or employment services) that uphold life chances. Social citizenship thus contributes to the concrete realization of the great normative ideals of Western modernity: freedom, equality, solidarity, and security.

A welfare state does not only limit itself to defining citizens' entitlements (and, of course, the corresponding financial obligations) but also typically organizes the production and distribution of social protection, for example, through public insurance schemes or health services. Welfare administrations occupy the center stage of contemporary bureaucratic systems (e.g., in terms of staff employed), while social spending makes up around 50% of the public budget in the Organisation for Economic Co-operation and Development (OECD) area. In the European Union (EU), social-protection expenditures amount to about 27% of GDP (gross domestic product; 27 average, mid-2000s). State programs funded by tax money are not the only providers of welfare: markets, families, and intermediary associations are other important spheres and channels of provision. Each society has its own composite welfare “mix” or “regime.” In the course of the 20th century, however, the state has extended and strengthened its regulatory power over all forms of welfare provision (e.g., through family or labor law) and has affirmed itself not only as the most salient but also as the ultimate “social sovereign.” By expanding its sovereignty in the social sphere, the state has fundamentally transformed its own structure, function, and legitimation basis, prompting the appearance of novel political actors and dynamics. The following sections of this entry will illustrate the main stages of development of the welfare state, from its early origins to the present phase of crisis and reform.