Welfare versus poverty in the views and theories of the laureates of the Alfred Nobel Prize in Economic Sciences

Abstract

The motive for choosing the topic in the presented article is the deep dichotomy between prosperity and poverty that still exists in the modern world. After World War II, this problem did not decrease, given the clear economic, social and political division into highly-, medium- and under-developed countries. The latter in the UN nomenclature are described as “developing” rather than the previously used name: Third World countries. The main aim of the study is to indicate the scientific achievements in these areas of Nobel Prize winners affecting welfare policy and eradication of poverty within the dynamically developing “welfare economics”. Considerations in this regard—in a reasoned way—are preceded by a discussion of the population theory of T. R. Malthus, as well as a presentation of income disparities in the light of the theory of distribution. Even before World War II, the authors V. Pareto, A. C. Pigou and A. Bergson made achievements in analyzing welfare economics in pioneering theoretical studies. Contemporary research on these topics is also presented, which was carried out by last year’s Nobel Prize winners E. Duflo, A. Banerjee and M. R. Kremer dealing with the economics of the development of the poorest countries. An outline of the welfare state concept adopted after World War II in some Western countries is presented. Welfare policy and eradication of poverty in the poorest countries is described, based largely on the results of research by Nobel Prize winners.

Keywords

• nobel laureates in economics
• welfare
• poverty
• theories of welfare and poverty economics
• welfare policy and eradication of poverty
• welfare state