N5 – Module 1


Nations and communities began to seek for some balance between the extremes: the laissez-faire – where the rich got richer and the most entrepreneurial took all, with little or no protection of the less privileged; and socialism – where all remained poor and people had no freedom to decide for themselves. This resulted in the modern social welfare state.


The Social Welfare State is Characterised by the Following • It guarantees individual competition for entrepreneurs; • But does not guarantee a share in all things as Socialism attempts to do; • It provides only basics such as free education, health, welfare allowances, etc. and allows people greater autonomy (freedom).


This ideology tries to embrace the individual and communal groups. While the individual is encouraged to progress and develop, there is a level of protection for the collective good. A balance is sought between pure democratic methods of governing and a socialist method of administration.


Economic Welfare State (more of this in Module 2)


Experimentation with Socialism did not work, according to many. Some of the negatives, according to Gildenhuys (1993:12) were: • Large scale unemployment, inequality of wealth; • Large bureaucratic civil service with lack of sensitivity to the individual; • Centralising of authority into the hands of statist bureaucrats, who became autocratic, addressing “community needs” according to his/her own interpretation of those needs, and without much consultation with individual or communities.


Gildenhuys (1993:13) says: “In the field of public finance, this system (socialism) is characterised by excessive government spending, unprecedented increase in taxation, accumulated budget deficits and unparalleled accumulation of public debt, converting once prosperous countries into insolvency.”


As an Ideology A modern democracy might lean either towards a laissez-faire or towards a more socialist approach, but in general it attempts to: • recognise the individual as important; • recognise the state as the servant of the individual who needs to be assisted in general and personal self-actualisation;


• practise a free-market system with government intervention only when necessary; • create a system which protects the rights of all.


Case Study: The Arab Spring Since December 2010, a revolutionary wave of demonstrations and protests have been occurring in the Arab world, called the Arab Spring. To date, there have been revolutions in Tunisia and Egypt, a civil war in Libya, resulting in the removal of power of Gadaffi, and uprisings in many other countries. The protests have involved strikes, demonstrations, marches and rallies and have used social media to organise and communicate these rallies.


As of November 2011, governments have been overthrown in three countries: Egypt, Tunisia and Libya. The demonstrators have been protesting against dictatorship, human rights violations, government corruption, economic decline, unemployment and poverty. In short, they have been protesting against governments they feel do not care for them, and want their countries to institute democratic reforms.


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