Welfare State and Subsidies

Candra Fajri Ananda
Special Staff of the Minister of Finance of the Republic of Indonesia

COUNTRY Welfare (welfare state) is a model of government in which the state holds the main responsibility for ensuring the welfare of its people. The concept of a welfare state is an idea of ​​a state that uses a democratic government system that is responsible for the welfare of its people.

The welfare state concept aims to reduce people’s suffering such as poverty, unemployment, health problems and so on. Therefore, the welfare state does not only include ways of organizing welfare or social services, but also emphasizes that everyone gets social services as their right.

Through a variety of comprehensive public services and strong social security, the government seeks to ensure that every citizen has adequate access to basic needs such as health, education, housing and social protection. So in general, the welfare state concept aims to create a just and prosperous society, reduce social and economic disparities, and ensure equal welfare for all levels of society.

In realizing the concept of a welfare state, the role of the state is very crucial, requiring a strong government, good governance and capable development administration. A strong government is the foundation of an effective welfare state.

Government strength in this context does not mean authoritarianism, but rather the ability to carry out government functions effectively and efficiently. Without a strong government, efforts to create a just and equitable welfare state will be hampered by challenges such as corruption, inefficiency and political instability.

Apart from that, good governance is also the key to implementing the welfare state. This is because good governance involves principles such as transparency, accountability, public participation and justice.

Good governance ensures that public resources are managed efficiently and effectively, and used for the benefit of all the people. Transparency in budget management and welfare programs allows the public to know how public funds are used, thereby reducing the potential for misuse and corruption.

Accountability ensures that public officials are responsible for their actions and decisions, while public participation allows citizens to be involved in decision-making processes that affect people’s lives. Likewise, development administration is also an important element in implementing the welfare state.

A capable administration must be able to formulate policies based on data and evidence, manage resources effectively, and have a strong monitoring and evaluation system to ensure that the programs achieve the targets that have been set.

It cannot be denied that the concept of a welfare state, which bases the success of a country on its ability to provide protection and improve the welfare of life for all its citizens, is a noble idea.

The reason is, without a strong government and good governance, the idealism of the welfare state can easily be eroded by narrow political interests, and welfare policies can be politicized to become a tool for the interests of certain parties or groups.

As a result, policies that should improve the social conditions of society are actually distorted or ignored. Furthermore, the desired welfare goals are increasingly moving away from the targets that have been set, leaving disappointment and uncertainty for people who hope for positive change.

The Role of Subsidies in the Welfare State

Apart from the role of government, social programs also play a crucial role in forming a solid foundation for the welfare state. Social programs are not only a supportive effort, but also a symbol of commitment to ensuring that no one is marginalized.

The reason is, the welfare state is not just about providing financial assistance to people in need. The welfare state carries an inclusive vision, where every citizen has fair access to basic services such as education, housing, health and decent work. The goal is to create a fair, balanced and just society.

The reason is that subsidies are often considered an effective instrument in achieving welfare state goals. By providing financial assistance or subsidized prices, governments hope to ensure that essential services such as food, energy, transportation and housing remain affordable for those on low incomes or vulnerable people.

In fact, subsidies are like a double-edged sword. On the one hand, subsidies are considered an effective tool in ensuring more equitable access to basic services such as education, health and housing for citizens in need. Subsidies can help reduce social and economic inequality by providing direct financial assistance to those in difficult economic situations.