Recurrent economic instability, the insecurity of individuals, exploitation of the weak, gross inequalities, and sometimes the ruinous exploitation of natural resources had always been serious problems of pure capitalism.
As these factors create many crucial problems, ultimately the solutions and proposal were put forward by think thanks and policy makers.
One of the key solutions is public private partnership in different economic spheres.
Government and private enterprises had learned to function together peacefully, the former being concerned with general guides, aggregative accomplishments, and goals, the, latter remaining more of less fully in charge of production and commerce.
In effect, the ship of state had been given rudder.
These economic conjectures contribute in shaping a welfare state.
In a welfare state, it is assumed that a democratically elected government, together with a business system dominated by private enterprises, can and should work in consonance, to achieve certain economic objectives.
Perhaps to a modern ear, the assumption sounds innocuous or even vaguely exhortary.
Yet, particularly when appropriate emphasis is placed on the underlined words, it is laden with content that not so long ago had seemed revolutionary.
Historically, it is but a short jump back to the early 1930's.
Up to the point in time, or for a century or two previously, a more or less "pure" capitalism, economic activity and economic decisions were the exclusive province of individuals.
Government intervention of economic scene was practically unknown.
In economic affairs generally, a public authorities confined themselves to protecting property or enforcing contracts.
But in modern welfare states it is considered a primary responsibility of state to provide food, shelter and housing to its citizens.
Without hesitation it can be said that advanced countries has reached such positions yet the Third world have to make along journey to achieve these gadgets.