1. Social Justice Market and
Welfare State
Child Right and Poverty in
Development
Spring 12

2. Social Justice and Rights
Social Justice : distribution of good,
money and services
•State & Market & Social Networks
• Market = Exchange of goods and
services
•Market is one important mechanism for
distribution of social goods but only one.
•Fairness is not the guiding principle
Objective to ensure life & freedom

3. Social Justice and Market
Reasons for Justice
•Development as Freedom: Social
development & individual freedom
•Link between social responsibility and
effective power: If some one has the power
to make changes that influence social justice
MUST do it.
•Mutual benefit of cooperation

4. Welfare State
•A welfare state is a concept of
government where the state plays the
primary role in the protection and
promotion of the economic and social
well-being and rights of its citizens.
• It is based on the principles of equality
of opportunity, equitable distribution of
wealth, and public responsibility

5. Welfare State
•“There is a kind of basic human equality
associated with the concept of full
membership of a community” T. H. Marshall
• Full citizenship = enjoying Human
Rights

6. Rival views of the Welfare State
Positive Negative
Strong
Weak

7. Rival views of the Welfare State
Positive Negative
Strong Better life for everybody. Titmus;
Marshall
Weak

8. Rival views of the Welfare State
Positive Negative
Strong Better life for everybody. Titmus; Profit crunch. Kalecki
Marshall Fiscal crisis. O’Connor
Weak

9. Rival views of the Welfare State
Positive Negative
Strong Better life for everybody. Profit crunch. Kalecki
Fiscal crisis. O’Connor
Weakening of “work ethic”.
Moynihan
Bureaucracy.
Weak

10. Rival views of the Welfare State
Positive Negative
Strong Better life for everybody. Profit crunch. Kalecki
Fiscal crisis. O’Connor
Weakening of “work ethic”.
Moynihan
Bureaucracy.
Weak Status quo.
Class, status and power
differences.
Exploitation.

11. Rival views of the Welfare State
Positive Negative
Strong Better life for everybody. Profit crunch. Kalecki
Fiscal crisis. O’Connor
Weakening of “work ethic”.
Moynihan
Bureaucracy.
Weak Evolutionary step towards Status quo.
classless society. Bernstein Class, status and power
Debate differences.
Exploitation.

12. Rival views of the Welfare State
Positive Negative
Strong Better life for everybody. Profit crunch. Kalecki
Fiscal crisis. O’Connor
Weakening of “work ethic”.
Moynihan
Bureaucracy.
Weak Evolutionary step towards Status quo.
classless society. Bernstein Class, status and power
Debatte differences.
Exploitation.
Slow economic growth.
Low efficiency. Washington
Consensus

13. Rival views of the Welfare State
Positive Negative
Strong Better life for everybody. Profit crunch. Kalecki
Fiscal crisis. O’Connor
Weakening of “work ethic”.
Moynihan
Bureaucracy.
Weak Evolutionary step towards Status quo.
classless society. Bernstein Class, status and power
Debatte differences.
Exploitation.
Necessary to mitigate effects of Slow economic growth.
markets, but markets need Low efficiency. Washington
strengthening (3rd way). Consensus
Giddens

14. At what are markets
efficient?
Definition:
A market is a rationing mechanism
It is one important mechanism of
distribution but only one
p S
D
q
Excluded

15. Macroeconomic stability/trade reforms
+
Economic growth
+
Targeted safety net programmes
= ?
Human development

16. Macroeconomic & Social Policy
• Macroeconomic framework is usually set up first
– Fiscal deficit and inflation targets, with no regard for issues
like unemployment, constrains on social spending, etc.
• Afterwards: Social Policy
– Sector policies and Safety Nets to mitigate effects of
macroeconomic policies
Why is social policy a residual category?

17. Washington Consensus
• Fiscal discipline.
• Redirect spending priorities from things like indiscriminate
subsidies to basic health and education.
• Lower marginal tax rates and broaden the tax base.
• Interest rate liberalization.
• A competitive exchange rate.
• Trade liberalization.
• Liberalization of FDI inflows.
• Privatization.
• Deregulation, i.e. abolishing barriers to entry and exit.
• Secure property rights.

18. Current Development Paradigm
Some controversial and relevant
development issues:
• Privatization
• Decentralization
• Civil society
• Participation
They are often used as rhetoric

19. Current Development Paradigm
Some controversial and relevant
development issues:
• Role of the State
• Corporations International and National,
Social responsibility.
• NGOs role.

20. Current Development
Paradigm
Some key issues in some LA countries’
model :
• Strong role of the State.
• Promote and ensure human rights:
political and social rights.
• Privilege national over international +
regional strategy and cooperation.
• Long term economic growth necessary
but not sufficient condition for economic
welfare. ‘Descent job’ creation
• Redistribution, reduction of inequality.