Pavroz, A. V. The Welfare State: the Nature of Politics and Fundamental Contradictions

Abstract: The article is devoted to a critical analysis of the phenomenon of the welfare state in developed capitalist countries. The author of the article describes the genesis, theoretical bases, models and experiences of the welfare state policy. The author also traces the infl uence of the welfare state policy on social and economic parameters of developed capitalist countries. Much attention is paid at the analysis of modern problems and challenges the welfare state is faced with. In particular, such problems as the negative infl uence of redistribution policy on economic growth and dilution of the fi nancial base due to demographic trends which are the demotivating factors of labor and entrepreneurial activities leading to bureaucratization of economic life due to excessive activity of professional unions and associations. At the end of the article the author concludes that the welfare state policy has a rather destructive infl uence on modern societies. It is also concluded that there is a certain need in a completely new paradigm of social and economic development within which the social functions would be performed on the basis of market principles of economic organization.

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