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HOW TO MAKE THE UTOPIA OF THE SOCIAL WELFARE STATE IN ALL
THE COUNTRIES OF THE WORLD REALIZE
Fernando Alcoforado*
This article represents the continuation of the article whose title is Como fazer com que
as utopias planetárias se realizem visando a construção de um mundo melhor (How to
make planetary utopias come true with a view to building a better world) [1]. This article
is the fifth of 12 articles that address the 12 planetary utopias that need to be realized in
order to build a better world and contribute to the achievement of happiness for human
beings, individually and collectively. This article aims to present how to make the
construction of the Welfare State a reality in all countries of the world to eliminate the
growing global economic and social inequalities. The Welfare State is characterized by
State intervention in social and economic life with the State intervening in the economy
to guarantee equal opportunities for all citizens through income distribution and the
provision of public services such as, for example, health and education. The main
characteristic of the Welfare State is the defense of citizens' rights to health, education,
social security, etc. The Welfare State opposes liberal and neoliberal capitalism in favor
of state intervention in the economy.
The Social Welfare State defends the nationalization of companies in strategic sectors,
the creation of free and quality public services. With the Social Welfare State, the State
interferes in the course of the economy, regulating it to generate jobs and income, prevent
monopolies and build infrastructure, prevent child labor and ensure workers are provided
with unemployment insurance and assistance with health services health and social
security. The Social Welfare State is seen as a way to combat economic and social
inequalities, as it promotes access to public services for the entire population. The Welfare
State was implemented in Western Europe because of the crisis of liberal capitalism, a
model that preached market freedom and non-intervention of the State in the economy
and was dominant in the world until the outbreak of the 1929 crisis that led to bankruptcy
of the world economy. The Welfare State was also a response to the threats posed by
labor movements and Soviet socialism that rivaled capitalism after World War II.
The article A social democracia é a solução para a construção de uma ordem política
viável? (Is social democracy the solution for building a viable political order?) [2]
informs that, since the 19th century, the Marxist thesis of implanting the dictatorship of
the proletariat and building socialism through social revolution has existed among the
supporters of socialism, as occurred in the Soviet Union and other supporters of the
construction of democratic socialism based on reforms. This last current gave rise to
social democracy, which is a political ideology whose objective is the establishment of
democratic socialism. It is a political ideology that emerged at the end of the 19th century
by adherents of Marxism who believed that the transition to a socialist society should take
place without a revolution, but rather through a gradual political reform of the capitalist
system in order to make it more egalitarian. Social democracy thus deviated from Marxist
socialism, generating supporters of the idea of a democratic welfare state, incorporating
elements of both socialism and capitalism.
The Social Welfare State consists of a mode of economic and political organization in
which the State acts as an organizer of the economy and an agent of social promotion.
The Social Welfare State acts in order to ensure the interests of the capitalists who own
the means of production and guarantee the protection and public services to the people.
In other words, it seeks to reconcile the interests of those “at the top” with those “at the

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bottom” of the social pyramid. With the Social Welfare State, social democrats attempt
to reform capitalism democratically through state regulation and the creation of programs
that lessen or eliminate the social injustices inherent in capitalism. This approach differs
significantly from Marxist socialism, which aims to replace the capitalist system entirely
with a new economic system characterized by collective ownership of the means of
production under the direction of workers.
The article Capitalismo, socialismo e social democracia ao longo da história
(Capitalism, socialism and social democracy throughout history) [3] reports that, when
analyzing the model of social democracy implemented in the world with the Social
Welfare State, it appears that it was in Scandinavia (Sweden, Denmark, Norway , Finland
and Iceland) where the most successful of them all took place. Scandinavia is the
birthplace of the most balanced and egalitarian model of society that humanity has ever
known. Its origin dates back to Sweden in the 1930s, when the social democratic
hegemony in the government of the Nordic country was taking shape, begining a series
of social and economic reforms that would inaugurate a new model of society in
opposition to the liberal capitalism of previous decades, whose final act it was the 1929
crisis that led to the bankruptcy of the world economy. The initiative of Swedish
economists was decisive, led by Gunnar Myrdal, who would provide the theoretical
foundation for an alternative social democratic economic policy. The Stockholm School,
as this branch of heterodox economic thought would be baptized, denounced the ills of
liberal capitalism and demonstrated the primacy of the families' demand to resume cycles
of economic bonanza, as opposed to the innocuous supply stimuli that characterized (and
still characterize) the conservative view of liberal and neoliberal capitalism.
This was how the so-called Scandinavian model of social democracy was born with the
Social Welfare State [7], which would quickly go beyond Swedish borders to become
influential in northern Europe, but also an important reference in the formulation of
heterodox (progressive economic policies ) across the planet. The success of this model
was due to the combination of a broad Social Welfare State with rigid mechanisms for
regulating market forces, capable of putting the economy on a dynamic trajectory, while
at the same time achieving the best social welfare indicators between countries in the
world [6]. The Nordic or Scandinavian model of social democracy could best be described
as a kind of middle ground between capitalism and socialism. It is neither fully capitalist
nor fully socialist, being the attempt to merge the most desirable elements of both into a
"hybrid" system. In 2013, The Economist magazine declared that the Nordic countries
are probably the best governed in the world. The UN's World Happiness Report 2023
shows that the happiest nations are concentrated in Northern Europe. Nordics have the
highest ranking in real GDP per capita, the longest healthy life expectancy, the greatest
freedom to make life choices, and the greatest generosity.
Among the Scandinavian or Nordic countries, Norway is the most prosperous in the
world, with the Social Welfare State characterized by a lot of equality and a lot of social
justice [4]. In Norway, the inequality, selfishness and individualism characteristic of
liberal capitalism and neoliberal capitalism do not prosper. 100 years ago, Norway went
from being one of the poorest countries in Europe, living with ice and darkness for half
the year, to being synonymous with wealth and social justice with a per capita GDP of
US$ 89,089.98. Norway prioritizes spending on education that is guaranteed for the entire
population. In 30 years, Norwegians have reduced their working hours by 270 hours,
gaining more than ten days of vacation a year, and a significant part of workers is now
able to work only four days a week. According to the UN, no society has ever reached a

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level of human development equal to that of Oslo, capital of Norway. Furthermore,
Norway translated oil into prosperity and equality.
Even in an era of austerity and global crisis, the Social Welfare State system in Norway
has remained intact, with a minimum wage of US$ 2,581 (about R$ 12,803) and
unemployment is 3.70% . Norway was the country that least felt the global crisis that
erupted in 2008 in the United States. In Norway's elections the only debate is what to do
with the money left in the public coffers. Norway has the largest sovereign wealth fund
on the planet, estimated at US$ US$ 1.4 trillion and the state coffers are full. The
Norwegian state has bought 1% of shares on exchanges around the world and invests in
3,200 companies. In Norway, the presence of the State is strong in virtually all fields of
the economy, since after the 2nd World War, when the government nationalized
companies linked to Nazi Germany, which occupied the country militarily. The State has
44% of the shares of Norsk Hydro, has a 37% stake in the Oslo Stock Exchange and in
dozens of companies. Today the State of Norway controls the oil company Statoil, the
telecommunications group Telenor, the fertilizer manufacturer Yara, and the country's
largest bank DnBNor [4].
In Norway, unions negotiate their salaries each year, depending on the needs of the export
sector and to ensure that the national product remains competitive in the global market.
In Norway's elections, political parties promise not to cut taxes. In Norway's Social
Welfare State men take care of their babies and each year the government allocates 2.8%
of GDP to support families in everything they need to have children. Parents who decide
not to take their children to daycare receive a check for US$200 each month to help with
expenses. There, citizens who receive social benefits from the state are not called
vagabonds. It is a legitimate right [4].
In Norway, maternity leave is 9 months for the mother and four months for the father. In
these months, the state pays the parents' salary. The government considers that this
incentive for women and laws to guarantee gender equality are positive for the economy.
Companies are required to give 40% of seats on their boards to women. 75% of women
work outside the home and for the government this means more activity in the economy
and more people paying taxes. In Norway income tax reaches 42% being higher than in
Brazil. There is consensus that the value is fair to maintain the system. The state pays
from nursery to burial, finances students and even pays for vacations. The Norwegian
model of society is the minimum that is expected for a just society. The rest is barbarism
[3].
The adoption of Keynesian economic thinking has contributed to the success of the
Welfare State in Scandinavian countries. The article Urge o Keynesianismo global e
governo mundial para ordenar a economia mundial (Urges global Keynesianism and
world government to order the world economy) [5] informs that John Maynard Keynes
was the greatest exponent of neoclassical liberal economic thought linked to the Swedish
Neoclassical School who, with his works, promoted a revolution in economic doctrine,
opposing draws mainly on Marxist thought and classical liberal thought. His main work
was The General Theory of Employment, Interest and Money launched in 1936. Keynes'
economic thought defends the State as an active agent against recession and high
unemployment. By demanding a larger government as a decision-maker in the economy
of a country, Keynesianism positioned itself against classical liberal thought and other
schools of neoclassical liberal thought that defend a State as small as possible. Keynes
believed that capitalism could overcome its structural problems as an economic system
provided significant reforms were made as he proposed given that liberal capitalism,

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which dominated the world economy until 1945, had proved incompatible with
maintaining full employment and stability economical.
Keynes advocated moderate state intervention to achieve economic stability and ensure
full employment in a country's economy [5]. Keynes affirmed that it is up to the State to
encourage the increase of the means of production and the good remuneration of their
holders. Keynesian thinking left some trends that prevail to this day in the current
economic system. Among the main ones, the adoption of macroeconomic models,
moderate state interventionism and the use of mathematics in economic science.
Neoclassical liberalism had great success with Keynesianism after World War II when it
contributed decisively to the economic development of most countries in the world from
1945 to the 1970s and is succeeding in the Scandinavian countries that are currently
situated as the countries of greatest political, economic and social progress. Faced with
the failure of neoliberalism and its inability to deal with the global crisis of capitalism,
the Social Welfare State with the use of Keynesianism could be the solution as long as it
was applied globally, that is, it operated in economic planning, not only at the national
level to achieve economic stability and full employment of factors in each country, but
also at the world level to eliminate the global economic chaos that prevails today with
neoliberalism. The adoption of Keynesianism on a planetary level would require, in turn,
the existence of a world government to order the world economy. It is important to note
that, in order to build democratic socialism to replace capitalism, there must be a
transition stage with the construction of the Social Welfare State. The Welfare State and
the democratic socialism of the future to be built in the world must be adjusted to the
specific conditions of each country.
REFERENCES
1. ALCOFORADO. Fernando. Como fazer com que as utopias planetárias se
realizem visando a construção de um mundo melhor. Available on the website
<https://www.academia.edu/104881861/COMO_FAZER_COM_QUE_AS_UT
OPIAS_PLANET%C3%81RIAS_SE_REALIZEM_VISANDO_A_CONSTRU
%C3%87%C3%83O_DE_UM_MUNDO_MELHOR>.
2. ALCOFORADO, Fernando. A social democracia é a solução para a construção
de uma ordem política viável? Available on the website
<https://www.slideshare.net/falcoforado/a-social-democracia-a-soluo-para-o-
fracasso-do-liberalismo-do-socialismo-e-do-neoliberalismo-na-construo-de-
uma-ordem-poltica-vivel>.
3. ALCOFORADO, Fernando. Capitalismo, socialismo e social democracia ao
longo da história. Available on the website
<https://www.linkedin.com/pulse/capitalismo-socialismo-e-social-democracia-
ao-longo-da-alcoforado/?originalSubdomain=pt>.
4. VIOLIN, Tarso Cabral. Noruega, um paraíso com muito Estado Social,
serviços públicos e impostos. Available on the website
<https://www.cspb.org.br/news/print.php?id=17357>.
5. ALCOFORADO, Fernando. Urge o Keynesianismo global e governo mundial
para ordenar a economia mundial. Available on the website
<https://blogdefalcoforado.com/2022/04/13/urge-o-keynesianismo-global-e-o-
governo-mundial-para-ordenar-a-economia-mundial/>.
6. LEITE, Pedro. Escandinávia: modelo de desenvolvimento, democracia e bem-
estar. Available on the website

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<https://www.academia.edu/40098789/ESCANDIN%C3%81VIA_MODELO_D
E_DESENVOLVIMENTO_DEMOCRACIA_E_BEM-ESTAR>.
7. WIKIPEDIA. Modelo nórdico. Available on the website
<http://pt.m.wikipedia.org/wiki/Modelo_n%C3%B3rdico>, 2017.
* Fernando Alcoforado, awarded the medal of Engineering Merit of the CONFEA / CREA System, member
of the Bahia Academy of Education, of the SBPC- Brazilian Society for the Progress of Science and of
IPB- Polytechnic Institute of Bahia, engineer and doctor in Territorial Planning and Regional Development
from the University of Barcelona, college professor (Engineering, Economy and Administration) and
consultant in the areas of strategic planning, business planning, regional planning, urban planning and
energy systems, was Advisor to the Vice President of Engineering and Technology at LIGHT S.A. Electric
power distribution company from Rio de Janeiro, Strategic Planning Coordinator of CEPED- Bahia
Research and Development Center, Undersecretary of Energy of the State of Bahia, Secretary of Planning
of Salvador, is the author of the books Globalização (Editora Nobel, São Paulo, 1997), De Collor a FHC-
O Brasil e a Nova (Des)ordem Mundial (Editora Nobel, São Paulo, 1998), Um Projeto para o Brasil
(Editora Nobel, São Paulo, 2000), Os condicionantes do desenvolvimento do Estado da Bahia (Tese de
doutorado. Universidade de Barcelona,http://www.tesisenred.net/handle/10803/1944, 2003), Globalização
e Desenvolvimento (Editora Nobel, São Paulo, 2006), Bahia- Desenvolvimento do Século XVI ao Século
XX e Objetivos Estratégicos na Era Contemporânea (EGBA, Salvador, 2008), The Necessary Conditions
of the Economic and Social Development- The Case of the State of Bahia (VDM Verlag Dr. Müller
Aktiengesellschaft & Co. KG, Saarbrücken, Germany, 2010), Aquecimento Global e Catástrofe Planetária
(Viena- Editora e Gráfica, Santa Cruz do Rio Pardo, São Paulo, 2010), Amazônia Sustentável- Para o
progresso do Brasil e combate ao aquecimento global (Viena- Editora e Gráfica, Santa Cruz do Rio Pardo,
São Paulo, 2011), Os Fatores Condicionantes do Desenvolvimento Econômico e Social (Editora CRV,
Curitiba, 2012), Energia no Mundo e no Brasil- Energia e Mudança Climática Catastrófica no Século XXI
(Editora CRV, Curitiba, 2015), As Grandes Revoluções Científicas, Econômicas e Sociais que Mudaram o
Mundo (Editora CRV, Curitiba, 2016), A Invenção de um novo Brasil (Editora CRV, Curitiba,
2017), Esquerda x Direita e a sua convergência (Associação Baiana de Imprensa, Salvador, 2018), Como
inventar o futuro para mudar o mundo (Editora CRV, Curitiba, 2019), A humanidade ameaçada e as
estratégias para sua sobrevivência (Editora Dialética, São Paulo, 2021), A escalada da ciência e da
tecnologia e sua contribuição ao progresso e à sobrevivência da humanidade (Editora CRV, Curitiba,
2022), a chapter in the book Flood Handbook (CRC Press, Boca Raton, Florida United States, 2022) and
How to protect human beings from threats to their existence and avoid the extinction of humanity (Generis
Publishing, Europe, Republic of Moldova, Chișinău, 2023).