LAISSEZ FAIRE TO WELFARE STATE: THE EVOLUTION

The term “administrative law” is not a newly coined term. The traces of administrative law can
be seen in almost every legal system of the world. In India, from Mauryas to Guptas, Guptas to
Mughals, from Mughals to the East India Company.The development of administrative law goes
hand-in-hand with the development of the society. Administrative law can more rightly be said
to be the sociology of law and not the philosophy of law.
The growth of Administrative law is to be attributed to a change of philosophy as regards the
role and function of the State.

The three main stages led to the expansion of the meaning of the term Administrative law1-
1. Laissez Faire
2. Dogma of Collectivism
3. Social-Welfare State

Laissez Faire
In the early 20th century the political gospel of laissez-faire was preached. The principles on
which the theory of laissez-faire works are as follows-

 Minimum control of government

 Free enterprise

 Law and order not counted as subjects of state

 Power said to be concentrated in the hands of the individual

Laissez Faire" is French for "leave alone" which means that the government leaves the people
alone regarding all economic activities. It is the separation of economy and state.The state was
characterized as the “law and order” state and its role was conceived to be negative as its interest
extended primarily to defending the country from external aggression , maintaining law and
order within the country , dispensing justice to its subjects and collecting taxes to finance these
activities. It was an era of free enterprise and minimum governmental responsibility and

1
MP Jain and SN Jain , Principles of Administrative Law ( 6th ed , 2010)

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functions .The management of social and economic life was not regarded as governmental
responsibility.

But the laissez faire doctrine resulted in human misery .It came to be realized that the bargaining
position of every person was not equal and uncontrolled contractual freedom led to exploitation
of the weaker by the stronger. By this the vital power was concentrated in the hands of the rich
people and the balance of economy got terribily shaken which only paved way to a debacle that
is the increasing economic disparity where the rich became richer and the poor became poorer.
On the one hand, slums, unhealthy and dangerous conditions of work , child labour ,
widespread poverty and exploitation of the masses , but on the other hand , concentration of
wealth in a few hands , becomes the order of the day.
Thus the theory of Laissez –faire met with the following pitfalls-

 Concentration of powers

 Widening the inadvertent gap between the poor and the rich

2. Dogma Of Collectivism

After the miserable consequences that the police state suffered because of the terrible failure of
Laissez-Faire, the principle of collectivism evolved which said that the state and individuals shall
work in proper synchronization. It came to be realized that the state should take active interest in
ameliorating the conditions of the poor. The state , thus, had proper control over the actions of
the individuals and the state also stood up to take the responsibility for the individual’s life
.liberty and property. The state started to act in the interest of social justice ; it assumed a
positive role.

3)Social Welfare State

The Dogma of collectivism gave birth to the being of a social-welfare state. India is a socialistic
republic as the Preamble of the Constitution articulates. The social welfare state thrives on the
principle of providing justice of all kinds be it social, economic or political and all laws and

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actions of the government to be taken keeping in mind the interests of the citizens. It lays
emphasis on the role of the State as a vehicle of socio economic regeneration and welfare of the
people.2The Constitution envisions to have an egalitarian society.

From Laissez –faire to a social welfare state, the meaning and definition of administrative law
has developed tremendously. After turning into a social-welfare state the function of state
shifted from setting the parameters or for deciding the administrative functions to following the
principles of natural justice and reasonableness.

WELFARISM IN INDIA

Before 1947, India was a police state. The ruling foreign power was primarily interested in
strengthening its own domination; the administrative machinery was used mainly with that object
in view and the civil service came to be designed as the “steel frame” .The state did not concern
itself much with the welfare of the state.3

But all this changed with the advent of independence .A conscious effort began to be made to
transform the country into a welfare state. Social welfare activities in the country find their
inspiration in constitution which postulates the goal of welfare state.

The purpose of the Directive Principles is to fix certain social and economic goals for immediate
attainment by bring about a non-violent social revolution.

1. Welfare State: The Constitution envisages the establishment of a “Welfare State” at the
federal level as well as the State level. In a Welfare State, the primary duty of the Government is
to secure the welfare of the people.

2. Social Revolution: The Directive Principles of State Policy set forth the humanitarian
socialist precepts that were the aims of the Indian social revolution, i.e., to work for an
egalitarian society, where there is no concentration of wealth, where there is plenty, where there
is equal opportunity for all, to education, to work, to livelihood and where there is social justice.

2
Maciver , The Web of Government 236 (1965)
3
MP Jain and SN Jain , Principles of Administrative Law (6th ed,2010)
3. Emphasizes the ideals of Preamble: The Directive Principles emphasizes, in amplification of
the Preamble, the goal of the Indian polity is not laissez faire, but a Welfare State, where the
State has a positive duty to ensure to its citizens social and economic justice and dignity of the
individual.

Article 38 of the Constitution enjoying that the steps shall strive to promote the welfare of the
people by securing and protecting as effectively as it may, a social order in which, social,
economic and political shall in form all the institutions of the national life.The state is required to
direct its policy towards securing that the citizens have equal rights to an adequate means of
livelihood ; that the ownership and control of the material resources of the community are so
distributed as best to subserve the common good; no concentration of wealth and means of
production to the common detriment;and equal pay for equal work.(Art. 39)

The State is obliged to provide for education and assistance in old age , in unemployment and in
other contingencies (Art. 41) .The State is to provide for free and compulsory education for
children upto age of fourteen years(Art. 45 and 21 A)

Further , in interpretation of law and the constitution , the judiciary does at time take note of the
ideals of a social welfare state even though some ideals may not be expressly incorporated in the
Constitution.4

In the case of Samatha v. State of Andhra Pradesh 5 , the Supreme Court as regards the basic
tenor of the Indian Constitution held that

“The Constitution envisions to establish an egalitarian social order rendering to every

citizen , social , economic and political justice in a social and economic democracy.”

Again , the Supreme Court has stated in Paschim Banga Khet Mazdoor Samity v. State of West
Bengal 6that

4
Ram Jawaya Kapur v. State of Punjab , AIR 1955 SC 549 , Crown Aluminium Works v. Workmen , AIR 1958 SC 30 ,
Gujarat Steel Tubes v. Its Mazdoor Sabha , AIR 1980 SC 1896
5
AIR 1977 SC 3297 at 3326
6
AIR 1996 SC 2426
 “The Constitution envisages the establishment of a welfare state at the federal as well as
the State level . In a welfarem state the primary duty of the government to secure the
welfare of the people.”

The emergence of the social welfare concept has affected the democracies very profoundly .It
has led to state activism .There has occurred a phenomenal increase in the area of State operation
; it has taken over a number of functions which were previously left to private enterprise.

Thus the State , in India today , pervades every aspect of human life ; it runs buses , railways and
postal services; it undertakes planning of social and economic life of the community with a view
to raise the living standards of the people and reduce concentration of wealth; it improves slums ,
plans urban and rural life, looks after health , morals and education of the people ; it generates
electricity , works mines and operates key and important industries. It acts as an active
investment of socio –economic policy, regulates individual life and freedom to a large extent ,
provides many benefits to its citizens , and imposes social control and regulation over private
enterprises.7

WELFARE STATE : PROS AND CONS

Justification of the Welfare State8:

 The welfare State is a halfway house between individualism and socialism. It strikes a
balance between individualism and socialism. It neither regards the State as a necessary
evil nor regards it as an all powerful institution. The State is viewed as “a friend,
philosopher and guide” of the individuals.

 The welfare State adopts “a mixed economy”. It allows both private and public sectors to
play their roles in the development of national economy.

 It believes in planning. Planning is considered as necessary and inevitable in the welfare

State. It constitutes one of the significant dimensions of the welfare State. The State
controls and regulates economic system through planning. It undertakes the
responsibility of bringing about material welfare of the people.

7
C. K Takwani , Lectures on Administrative Law , (6th edition)
8
Dr Sunita Zalpuri , Training Package on Administrative Law , Associate Professor , J & K , IMPA Jammu
  It guarantees a basic minimum to every individual. It also guarantees social security and
provides adequate opportunities for the individuals for development. The State considers
it as an obligation to try to provide employment opportunities to ail the able-bodies
citizens.

 The State takes responsibility of providing education and, of looking after the health of
its citizens. It takes measure to abolish illiteracy and poverty. It comes forward to
establish various charitable institutions. It prevents exploitation of the working class.

 It promotes social justice. Used on a wider sense, the tern social justice includes both
economic justice and social justice. It has the objective of eliminating all inequalities and
giving to all citizens in social and economic affair equal opportunities. The prevalence of
social justice make: democracy significant, purposeful, meaningful ant dynamic. Without
social justice, democracy is poor in its content. Hence the concept of the welfare State is
linked with the concept of social justice. A welfare State is expected to uphold the
principle of social justice.

 The welfare State upholds the rights of all men and women and provides equal treatment
to all individuals without any discrimination. In fact, it works “within the framework of
democratic political institution.”

Disadvantages of a Welfare State:

 One of the disadvantages of welfare is that it is a burden on taxpayers. State , to perform

these social welfare activities collects taxes from its citizens . Therefore if the ambit of
activities that comes under social activities increases , it further increases the burden and
the taxpayers .
 Absence of competition makes the system inefficient.
 Another disadvantage is that it discourages productivity.
 One last disadvantage is that sometimes people are able to find loopholes in the system
and get money for no reason.
  In theory, the disadvantages of a welfare state are that people become dependent on the
government to provide for their needs when they could instead be out trying to meet or
exceed their own needs.

SOCIAL WELFARISM IN INDIA : AN ILLUSTRATION

As already mentioned above, the State or the government in India is responsible for all the public
welfare activities like transportation , running of schools , women welfare etc. Taking the
example of the transport scenario in India , an effort is made to review the social welfarism in
India and find a suitable answer to the question of the viability and suitability of such a welfare
structure.

Transport system of a country is an area which mostly is governed , controlled and directed by
the govt. Though private players exist , the nominal share of this sector is government controlled
and thus the govt . has a monopoly over it. Since, it is govt . controlled , disparity or inequality is
seen in various states and places .There is difference between the way of governance by various
state governments. For eg : New Delhi being the capital of India , has the best transport system in
the country. All Parts of the city, irrespective of their level of development are very well
connected, either by buses or by metros. On the other hand, Pune, though being one of the
metropolitan cities and considered the educational hub of the country does not have a proper
transportation system. Various parts of the city are not at all connected by any kind of transport
system. The bus transport system is not very effective. It is thus very difficult for people
(especially students) who do not have their own conveyance to travel from one part of the city to
another .The options left, like autorickshaws are very expensive and thus not affordable to many.

Thus , in the above scenario it can be seen that the level of social welfare activities carried out by
the govt. differ from place to place and is dependent upon various economic and political factors.
This exactly cannot be said to be welfare of the country in holistic sense and the centre focuses
on some places more than the others.

Another aspect of transportation in India , is the metros. Metros are available only in a few
metropolitan cities, where it is considered one of the most important means of transportation. In
other cities, like Kochi and Pune, though various master plans have been prepared and
sanctioned for the metro project nothing has come into implementation. This shows the disparity
exercised by the govt , not only in transport but in various other social sectors and activities.

Some sectors of the transport system in India are governed entirely by the government, while
there are some which has a parallel and simultaneous private participation in it. The Bus
transport system, though majorly controlled by the various state govts does face competition
from a few private players. Railways on the other hand is one aspect of transport which in its
entirety is in the hands of the govt. The question which arises here is how effective the railways
system in India is? It is a known fact to all that our railways has been running into losses, due to
which it is being run in a very poor condition. The food served is mostly infested by pests and
not prepared in a hygienic manner, leaving the food inedible. Thus, though the govt is providing
social services, it is known being carried out in an uneffective and inefficient manner. Hence , in
such a situation is it necessary for the govt. to invite private participation to improve the
dilapidated condition our railway system is in now. Is this the need of the hour? Should the
govt, take such steps. These are the questions that everyone has been raising and it is now, the
time for the state to answer the same.

Metros, started running in New Delhi, under the realm of the Delhi Metro Rail Corporation.
Since then more than half of the Delhi’s population uses metro as their means of transport.
Though run entirely by the govt, it was a highly effective and efficient ways of transport.
However, there have been some places were the pillars cracked and fell, leading to loss of lives
and resources of many. Though repaired, the metro, at these places still runs on these pillars.
This carelessness may be a gateway to the next biggest disaster in India. This shows that,
however effective the govt . is, it does have some shortfalls .

On the other hand, one of the metro lines, connecting the Indira Gandhi International Airport to
the New Delhi Railway Station is owned by Reliance, a private player. Though the lines were
stopped for sometime due to the same problems of cracks, they have repaired it completely and
now the trains are running in a profitable manner .This expressly shows that private participation
does ensure certain standards which the state, though being the father of all social activities , is
not able to ensure .
This illustration brings about both pros and cons of the system of transportation in India, which
in turn shows how that the system of social welfare has both its advantages and disadvantages.
Governance by state does not necessarily mean bad governance and on the other hand, private
interference also does not ensure high standards. It would be cynical not to appreciate the efforts
done by the State to bring about social welfare in the country. The govt has played an important
role in the same and it is pertinent to appreciate them.

CONCLUSION

State has a lot of burden on it’s shoulders. From providing subsidies to farmers to ensuring that
every child in every govt. school gets a mid day meal, all these activities fall under the
governance of the State. Hence, the State may fall behind in ensuring the high set of standards
that the private parties are able to provide and the expectations that the general public have from
it. Even though it has so many of these shortfalls, the social welfare state of govt. is still
however, most effective in a holistic and in a larger context. It ensures that, from the richest to
the poorest, from the person with highest literacy to the illiterate everyone gets a fair share of the
resources and the rights that they have , as citizens of the country. Though there is disparity and
inequality in the way the State provides services, as illustrated above, this disparity does not lead
to concentration of wealth in the hands of few, which may be the case in other forms like laissez
faire . The Constitution in itself ensures and envisages that the state has an important and major
role to play in the governance and distribution of services. Every aspect of life has both pros and
cons it, so does the social welfare system in India. The question whether the system and structure
of welfare system is effective is like the debate about whether a democracy is effective or a
dictatorship. It does not have an express answer to it. One of the suggestions that could be
implemented by the govt. is privatize a minority share in some areas of governance like railways,
to ensure that one of the most inevitable social welfare activities does not break down .It is thus
important for us, as citizens of the country to appreciate the govt for its various positive aspects
that it provides, while criticizing it in an unprejudiced and unbiased manner about its shortfalls to
ensure that the system of social welfarism in India is not hampered in any manner.