Merriam Webster defines ‘Welfare system’ as, ” a social system in which a government is responsible for the economic and social welfare of its citizens and has policies to provide free health care, money for people without jobs, etc.; also : a country that has such a system.”
Started after the Industrial revolution, the notion of a welfare state is of providing its citizens with economic and social-wellbeing; the state safeguards the basic necessities such as health, education and human rights. In the 21st century, welfare states are facing challenges due to lack of resources and consequently an ambiguous sustainable development. The fact that a large amount of economy is contributed to the welfare causes lesser chances of generating revenue. On the other hand, welfare states also benefit the people even on the grass-root level; they help the helpless and also provide them with a substantial lifestyle. Nevertheless, the welfare state system does face challenges either way.
Challenges for the welfare states in 21st century:
One of the most known welfare state systems in the world is of Nordic countries that comprise the North Atlantic and the North Europe. These include Finland, Denmark, Sweden, Iceland and Norway. The countries of Nordic model have some common features, such as social system and history. The Nordic model accentuates the concepts such as social cohesion, egalitarianism and security for all its citizens. It also acknowledges the vulnerable and socially challenged people of a society and helps them. Other than that, health issues, gender equality and services for the senior citizens are also catered by this model.
The Scandinavian model (comprising the North Europe; Norway and Sweden), being a welfare system emphasizes on international cohesion, socio-economic welfare and caters to a large democratic and egalitarian system. These systems also strive to focus on immigration.
Yet another model under the paradigm of welfare state is the ‘liberal welfare model’. This model is somewhat contrasting with the Nordic and Scandinavian model since it does not cater to such services. Its policy defines the state with a very restricted role. Moreover, the services provided to the citizens come along with stimulus incentives and targeted goals in order for them to participate and rather achieve the reward. (M.Anderson, 2004). Other than that, the Liberal welfare model is more individual-based in regards to providing them with basic insurances, yet the degree of intervention and average skill level is low as compared to other models. The Liberal model is found in U.K and U.S.A.
Another model, I would like to mention here is the ‘corporatist model’ that is organized to deliver social services to employers and families. It denotes the participation of workers in various establishments. Consequently, this model does not encourage individuals as such but relies on labour force.
Although the welfare state...