ASSESSING THE ROLE OF SOCIAL WELFARE PROGRAMS IN REDUCING INCOME INEQUALITY: A GLOBAL PERSPECTIVE

Abstract

This paper investigates the role of social welfare programs in reducing income inequality across different global contexts. With a focus on fiscal policy instruments such as progressive taxes, government transfers, and social spending, the study analyzes the effectiveness of these programs in mitigating income disparities in both developed and developing nations. Using data from various international sources, including the World Bank and ILO, the research employs a quantitative approach to assess the relationship between social welfare spending and income inequality. The findings reveal that while advanced economies show substantial reductions in inequality through well-designed welfare programs, developing countries struggle to achieve similar outcomes due to factors like inefficient targeting and limited fiscal capacity. The paper provides valuable insights into the complexities of income redistribution and calls for targeted policy reforms to enhance the effectiveness of social welfare interventions, particularly in developing nations.