Evolution of Administrative Law & Welfare State

Administrative Law has grown dramatically over the last century. To understand why this occurred, we must examine the changing philosophy of statehood itself.

1. The Shift from Laissez-Faire to Social Welfare State

In the 19th century, the dominant political philosophy was Laissez-Faire (free-market capitalism). Under this system, the state was considered a "police state" or "night-watchman state," with extremely limited functions:

• Maintaining internal law and order.
• Defending borders against foreign aggression.
• Collecting basic revenue.

However, the Industrial Revolution brought massive social crises—child labor, unsafe working conditions, poverty, and corporate monopolies. This forced a transition to the Social Welfare State, which actively seeks to promote social security, economic justice, and public welfare. Today, the state acts as a regulator of private interest, a provider of essential services (education, healthcare, public transport), and a planner of social development.

2. The Rise of the "Fourth Branch" of Government

To execute welfare policies, traditional branches of government (Legislature, Executive, Judiciary) proved inadequate. The legislature lacked the technical expertise and time to draft highly specialized regulations, and traditional courts were too slow and expensive to resolve thousands of daily welfare disputes.

Consequently, wide powers were delegated to administrative authorities, combining legislative functions (rule-making), executive functions (enforcement), and judicial functions (adjudication). This has led modern scholars to term administration as the virtual fourth branch of government.