Universally or selectively? If a welfare state is acting on behalf of the community at large, it can distribute resources on the same basis to every member of that community, or it may operate selectively, providing resources only to those who need or deserve help.
A case can be made on efficiency ground for either approach. If benefits and services are available on the same basis to everybody, this ensures that everybody is guaranteed the necessary minimum level of help to secure their wellbeing;
Because everybody gets the same, no stigma can attach to receiving that help and nobody need be deterred from seeking help; and those people who do not need the help they receive will, if the system is funded by progressive taxation, be able to pay back what they have received, as well as contributing to the help received by other members of the community.
If, on the other hand, benefits and services are made available only to those who need or deserve them, this will ensure that such resources as are available will be put to the most effective use;
optimum rather than minimum levels of help may be afforded to those in the greatest need; those people who do not require help will neither be deterred from helping themselves, nor made resentful by unnecessarily high levels of taxation.
Which of the following country is not the best example of the Institutional Redistributive Model of Welfare?