A social contract refers to an “implicit and unsigned agreement between all members of a national community and the state”. (p. 114, Course Notes) What this entails is that the national community agrees to accept the legitimacy of the state with the understanding that private market outcomes are not consistent and that they may yield negatives as well as positives. However, the government then, in turn, agrees to provide a social welfare net to mitigate the losses sustained by market demands. Thereby, ensuring that all members of society are provided services to alleviate market negatives; these services can be defined into three categories: security, redistribution, and social integration. Security refers not only the right of protection but
