Problems in the Global Welfare State

In developed countries one of the major problems in determining welfare costs is dependent on the “gradual rise, without apparent limit, of the relative costs of providing human services such as child care, education, health care and old-age care”. When these prices go up the price of welfare goes up as well. In addition it is harder for people to meet these needs when the cost of living goes up and that drives the number of people who need welfare up. Welfare is paid for by the people’s taxes and with the price of welfare going up that means that the price of taxes to pay for welfare may go up as well. Since taxes can only go up so much there may need to be some other forms of payment that the people have to use to pay for others welfare. This could be something like a specific fee for welfare or some other sort of fund to get more money for the welfare program.

Another problem that arises is that the lifespan of humans in developed countries is going up and with the retirement age at a low level it gives the elderly more opportunity to take money from the system. With the increasing lifespan of the human race there should also be an increase in age for the acceptable retirement time. More information regarding developed countries and some of the problems with the welfare state can be found at this website: http://www.global-economic-symposium.org/solutions/the-global-polity/globalization-and-the-welfare-state/strategyperspectivefolder/points-about-globalization-and-the-welfare-state

The developing and third world countries of the world rely heavily on more developed countries for their welfare. This poses a problem. “Structural Adjustment Policies (SAPs) have been imposed to ensure debt repayment and economic restructuring. But the way it has happened has required poor countries to reduce spending on things like health, education and development, while debt repayment and other economic policies have been made the priority”. Poor countries must export more to make money to make a living and they generally only export one or two items. Other countries compete against each other for the exportation of the same commodities and that makes the situations turn into a price war. The cost of the commodities then reduces to lower then it already was, making it almost impossible to get a profit. Thus the vicious cycle keeps repeating with each commodity.

The gouging of prices makes developing and third world countries stay poor and in some cases make them poorer then they were before. Most, if not all of their income is then spent on repaying back their debts to the more developed countries that support them. For a nation to succeed they need more then just money. They need good health, education, and all the other things that they can’t afford to buy because the poor countries on welfare need to pay off all their debts. “It may be that for real free trade to be effective countries with similar strength economies can reduce such protective measures when trading with one another. However, for developing countries to try to compete in the global market place at the same level as the more established and industrialized nations—and before their own foundations and institutions are stable enough—is almost economic suicide”. This makes it impossible for the underdeveloped countries to get enough money to not be so in debt and not have to rely on other more developed countries to make ends meet. http://www.globalissues.org/article/3/structural-adjustment-a-major-cause-of-poverty

The welfare system has some problems that can be worked out, but with some work. The problems are not just in the lesser developed countries either, but also in the more developed countries as well. Every system has its problems and every problem can be fixed as long as people are willing to fix it. I don’t think that it will be fixed though unless there is cooperation and compromise from both more and lesser developed countries. Until then the countries are going to have to find a way to help solve their own welfare problems.

Below are links to pictures that help to show the problems with the global welfare state...

http://www2.rgu.ac.uk/publicpolicy/introduction/IMAGES/Worldpov.gif This link shows where in the world people make less then $2.00 a day.

http://viralpolitics.com/wp-content/uploads/2008/03/welfare.jpg This link shows a picture of a shirt with a controversial saying on it about welfare. This would more then likely be the view of the more developed countries. (or the rich people)


Click HERE