ABSTRACT

During the past hundred years, Western democracies have developed a model of the welfare state that is considered appropriate to reconciling the principles of ‘democracy’ and ‘market society’. Thus, economic dynamics and social justice are combined. However, criticism concerning the sclerotic consequences of expansionist welfare programmes, which impede economic growth, and criticism concerning the patronizing attitudes of authorities, which threaten individual freedom, is receiving more and more attention. Since the 1970s, liberal ideas attempting to restrict government activities and to promote the free economic action of individuals have gained some force in capitalist countries. Moreover, after the decline of the planned economic systems in Eastern Europe, the Western paradigm, which is depicted as a model of pronounced economic and political liberalism, is being recommended to the post-socialist countries as an institutional opportunity to attain the income level of the most developed industrialized nations within a short period of time.