Abstract
This paper aims at understanding welfare in the socialist order comprehensively and systematically. With three analytical concepts, i.e., social policy, economic policy, and societal policy which consists of the former two, welfare was examined as a kind of socio-economic system, a "welfare system". In the socialist order, societal policy had the grand purpose of creating a new society to realize "the well-being of the people". However, due to coincidence of financial crisis and increase in the necessity of social policy, the conflict between social policy and economic policy increased. As a result, societal policy became difficult to pursue its purpose, so that the purpose was reduced to a limited area of social policy and lost its priority. This meant the collapse of the welfare system. "The well-being of the people" in the socialist order was undoubtedly the ideology and the purpose to be achieved in the initial stage, but its realization failed halfway.
