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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 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
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;   Profit crunch. Kalecki
            Marshall                          Fiscal crisis. O’Connor




Weak
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
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.
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.
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
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
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
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.

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W state[1] spring12

  • 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.