What should be the priorities of a welfare state ?

While writing my previous post on the issues facing APSRTC, I asked myself whether providing cheap public transport was a priority of the welfare state. The next logical question was what really are the priorities of a welfare state and have successive Indian governments had their priorities clear while providing governance to its people. I thought this question merited independent thinking on my part and hence this post. I would love to take my thinking & understanding process forward with feedback from people who come across this piece, so do let me know your views.

I have often thought what the concept of welfare state meant. To my mind, a welfare state means a government that works for the general welfare of its entire people, neither majority nor a minority of the people distinguished by race, region, religion, sect, caste, language or any other distinguishing factors. The welfare state need not necessarily adopt a socialist approach, indeed there are several western welfare states that are socio-capitalist in nature & provide a safety net for its peoples. The said government need not be a democracy either, though I believe that a democracy has the best chance and the greatest obligation to be a welfare state. However, a democracy will always have a majority bias. Sometimes the objectives of a welfare state for a certain section of its peoples might be contradictory to the objectives it would ascertain of another section of its peoples, then the overriding objective must be the one that provides ‘greatest good for the greatest number of people’.

The objectives of a welfare state can be broadly divided into these areas –

1. Security – The welfare state’s first & most important objective would be to defend its people & its territory from external & internal enemies. Modern nations would normally divide this role into two major ministries or departments – Internal Security (Home or State) and External Security (Defense). A crucial department linked to security departments (more external than internal) is Foreign Affairs. I have said in an earlier post that a country’s foreign affairs policy should be guided by its national interest & strategic defense & economic needs. This may sound simple & obvious, but not all countries seem to think so. Take a look at my views on India’s foreign policy over the years here.

2. Social development – The welfare state would ensure that its people have equal social rights & status and that the state & its agencies and also all its people do not socially discriminate on the basis of any of the distinguishing factors discussed above. Social development would encompass all forms of non-economic development, including education, health & living standards etc.

3. Economic development – This is where there is a lot of debate on how a welfare state should function. Capitalist welfare states stress on equality of opportunity whereas socialist welfare states stress on the equality of result in economic development. Capitalist welfare states would want to provide economic development with minimal government intervention whereas socialist states would strive to provide the same with complete ownership of all enterprise. Now that socialism as a line of economic thought & policy has failed all over the world and the success in economic development of free market economies is there for all to see, all welfare states should move to capitalism. The pace at which they move however must be guided by the idea of preventing & containing disruptions in the economy. The level of intervention of government in free market economies remains debatable and remains at different levels across various successful economies, but public investment into sectors that are not of strategic interest should be avoided. Existing investment in such sectors should be divested following the same strategy of avoiding disruptions.

4. To provide a constitution – A constitution is a rule book, something that a welfare state has in written form to ensure people know what is in it and then go by it. The rules laid down are such that they help ensure that all the other welfare objectives of a welfare state are met. The constitution once written would be the guiding force for all future governments & peoples. The judiciary’s responsibility as an independent body is to ensure rules in the constitution are adhered to by the government & its people. The police, as an agency of the government are there to punish the defaulters & desist others from flouting the rules.

The four major objectives are comprehensive to cover for every aspect. A safety net is a crucial objective of the welfare state that comes somewhere in between social & economic development; it ensures the welfare state guarantees a minimum income & standard of living for all its people. The National Rural Employment Guarantee Scheme of the Government of India, for all its faults, is a right step in the direction of providing a safey net for India's poorest.

Indian governments over the years have fallen foul of following the concept of national interest & welfare of all its peoples on many occasions.

1. Security - India has seen lapses on both internal & external security on multiple occasions over the years. On the external security front, India has failed to resolve its border disputes with Pakistan, China & Bangladesh & its relations with these & other neighbors have seen many lows & several wars. Its policy of non-alignment & failure to exercise the nuclear option for a very long time meant India remained on the fringes of decision-making at the United Nations & other global fora. Its defense preparedness was grossly inadequate till the 1960s, when India lost badly in a war against China, and even after that India's defense needs given the sensitive geo-political around India continued to be ignored as popular governments find it hard to justify greater expenditure on defense when a majority of India's population continues to suffer from hunger & poverty.

2. Social Development - Large sections of Indian people remain isolated & forgotten, basic social development goals of literacy, eradication of diseases, better standards of life are far from being met even 60 years after Indians decided to take care of themselves. India still discriminates its people on the basis of caste, gender & religion & societal taboos & prejudices have been hard to overcome. The United Nations Human Development Report on India can be seen here & here.

3. Economic Development - India might have come out of its days of hindu rate of growth but much of the growth we see these could be despite the government's best efforts, rather than because of its best efforts. Central & state governments remain confused on economic policy, often swinging between reformist & stridently anti-reform. Lack of consensus might be doing us more harm than widely accepted, but a democracy tax is perhaps inevitable & not completely undesirable for a stable, all-inclusive development on all major economic & social indices.

India now has a National Human Development Report (NHDR) that follows on the lines of United Nations Human Development Report (UN HDR) to track human development in different states in India and is a creditable exercise that can provide direction to future government policy at central & state-level on human development.

4. To provide a Constitution - India has done well in providing an excellent constitution to its people, but adherence & implementation of the same has been found wanting. These articles lay out how an excellent constitution has really not been enough to build a just society in India. Ills such as rampant corruption, vested interests, inefficient & obstructionist bureaucracy and ineffective judiciary have held India back from providing development to its people.

It is high time we all took a positive interest in the development of India & contribute in whatever way we can in awakening the India that can really make a difference.