Welfare Programs

Welfare Programs in Developed Countries

Introduction to Welfare Programs

Relative to the United States, and to some extent Canada, the social welfare systems in other developed countries, especially in western Europe, are far more comprehensive and better financed. In particular, the Scandinavian countries, Australia, and New Zealand have developed generous public assistance programs.

Except for the United States and South Africa, all developed countries guarantee health-care access to all citizens or subsidize national health care. Coverage often includes both sickness and maternity support. Some nations, including the United Kingdom and the Russian Federation, provide the care directly through some form of national health service, in which the government administers health care through public facilities. Other countries, such as New Zealand and Australia, distribute public funds for privately provided health care.

Several developed countries have established a variety of other programs that are available to all citizens. Money for these programs comes primarily from general government funds. Some of these programs provide support to everyone, rich and poor alike, while others are means-tested or otherwise restricted. For example, Australia, New Zealand, Israel, many western European countries (the United Kingdom, Ireland, Germany, France, and the Scandinavian countries, for example), and some in eastern Europe (for instance, the Russian Federation, Poland, and Romania) offer family allowances. These are payments made to parents to offset some of the costs of raising children. In some cases these programs provide benefits to adult dependents who do not work in the formal economy, such as homemakers, or who continue in school or apprenticeships. In much of Europe, childcare is widely available and publicly subsidized. A few developed countries-such as Australia, New Zealand, and some of the Scandinavian countries-offer universal old age, disability, and survivor benefits. Many governments also subsidize training for workers.

Since international comparisons of poverty were first begun with the Luxembourg Income Study in the early 1980s, it has been found that all other developed nations have lower poverty rates than the United States, particularly for children. For example, poverty rates for children in France have been about four times lower than those in the United States. In Sweden, less than 10 percent of children living with a single parent are poor, while over half of single-parent children in the United States live in poverty.

Achieving low poverty rates can be costly, however. Sweden and Denmark, for instance, spend slightly more than 50 percent of their gross domestic product (GDP) on forms of public support. In France, Germany, the United Kingdom, and many other countries, citizens and politicians question whether their national welfare systems can be maintained into the indefinite future.

Not surprisingly, many European countries-including the United Kingdom, France, The Netherlands, and Denmark-have recently discussed whether U.S.-style reforms that emphasize personal responsibility and work are appropriate for them. The common theme in policy proposals in Europe is to combat what many Europeans call “social exclusion,” the situation in which certain vulnerable groups do not fully participate in society. Policymakers tend to favor initiatives designed to facilitate full participation in society, not necessarily to reduce dependency on government.” (1)

Resources

Notes and References

Information about Welfare Programs in the Encarta Online Encyclopedia

Welfare Programs

Welfare Programs