Social Justice Market and Welfare State

Child Right and Poverty in Development

Spring 12

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

Social Justice and MarketReasons 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

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

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

Rival views of the Welfare State

Positive Negative

Strong

Weak

Rival views of the Welfare State

Positive Negative

Strong Better life for everybody. Titmus; Marshall

Weak

Rival views of the Welfare State

Positive Negative

Strong Better life for everybody. Titmus; Marshall

Profit crunch. KaleckiFiscal crisis. O’Connor

Weak

Rival views of the Welfare State

Positive Negative

Strong Better life for everybody. Profit crunch. KaleckiFiscal crisis. O’Connor

Weakening of “work ethic”. Moynihan

Bureaucracy.

Weak

Rival views of the Welfare State

Positive Negative

Strong Better life for everybody. Profit crunch. KaleckiFiscal crisis. O’Connor

Weakening of “work ethic”. Moynihan

Bureaucracy.

Weak Status quo.Class, status and power

differences.Exploitation.

Rival views of the Welfare State

Positive Negative

Strong Better life for everybody. Profit crunch. KaleckiFiscal crisis. O’Connor

Weakening of “work ethic”. Moynihan

Bureaucracy.

Weak Evolutionary step towards classless society. Bernstein Debate

Status quo.Class, status and power

differences.Exploitation.

Rival views of the Welfare State

Positive Negative

Strong Better life for everybody. Profit crunch. KaleckiFiscal crisis. O’Connor

Weakening of “work ethic”. Moynihan

Bureaucracy.

Weak Evolutionary step towards classless society. Bernstein Debatte

Status quo.Class, status and power

differences.Exploitation.

Slow economic growth.Low efficiency. Washington

Consensus

Rival views of the Welfare State

Positive Negative

Strong Better life for everybody. Profit crunch. KaleckiFiscal crisis. O’Connor

Weakening of “work ethic”. Moynihan

Bureaucracy.

Weak Evolutionary step towards classless society. Bernstein Debatte

Necessary to mitigate effects of markets, but markets need strengthening (3rd way). Giddens

Status quo.Class, status and power

differences.Exploitation.

Slow economic growth.Low efficiency. Washington

Consensus

At what are markets efficient?Definition:

A market is a rationing mechanismIt is one important mechanism of

distribution but only one

Excludedq

p

D

S

Macroeconomic stability/trade reforms

+

Economic growth

+

Targeted safety net programmes

=

Human development?

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?

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.

Current Development Paradigm

Some controversial and relevant development issues:

• Privatization• Decentralization• Civil society• Participation

They are often used as rhetoric

Current Development Paradigm

Some controversial and relevant development issues:

• Role of the State• Corporations International and National,

Social responsibility.• NGOs role.

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.