<P> The welfare state is a concept of government in which the state plays a key role in the protection and promotion of the social and economic well - being of its citizens . It is based on the principles of equality of opportunity, equitable distribution of wealth, and public responsibility for those unable to avail themselves of the minimal provisions for a good life . The general term may cover a variety of forms of economic and social organization . The sociologist T.H. Marshall described the modern welfare state as a distinctive combination of democracy, welfare, and capitalism . </P> <P> Modern welfare states include Germany, France, Belgium and the Netherlands, as well as the Nordic countries, such as Iceland, Sweden, Norway, Denmark, and Finland which employ a system known as the Nordic model . Gøsta Esping - Andersen classified the most developed welfare state systems into three categories; social democratic, conservative, and liberal . </P> <P> The welfare state involves a transfer of funds from the state to the services provided (i.e. healthcare, education, etc .) as well as directly to individuals ("benefits"), and is funded through taxation . It is often referred to as a type of mixed economy . Such taxation usually includes a larger income tax for people with higher incomes, called a progressive tax . </P> <P> The German term sozialstaat ("social state") has been used since 1870 to describe state support programs devised by German sozialpolitiker ("social politicians") and implemented as part of Bismarck's conservative reforms . In Germany, the term wohlfahrtsstaat, a direct translation of the English "welfare state", is used to describe Sweden's social insurance arrangements . </P>

The concept of welfare state is defined in