In this chapter I apply my individualist, teleological (normative) account of social institutions to welfare institutions or, at least, to one kind of welfare institution, namely, international institutions concerned with global poverty. I do so in the context of the assumption that, speaking generally, basic needs, such as for food, clean water, shelter, and medicines, are, and ought to be, provided for by nonwelfare institutions, notably, by business organizations operating in competitive markets. Nevertheless, given the manifest and ongoing failure on the part of such organizations, including in relation to global poverty, there is a need for welfare institutions. In addition, as will become evident below, there is a need to redesign markets, and market-based organizations, so that they are better able to provide for basic needs.

There are, of course, a plethora of welfare institutions concerned with the provision of a variety of types of welfare, including poverty alleviation, health care, aged care, unemployment benefits, and family allowances for children. Some of these welfare institutions provide targeted assistance, such as disability benefits; others provide general assistance, such as government financial assistance to the poor. Again, some of these institutions are to be understood as means by which the citizenry cater to the needs of their fellow citizens, such as those that are part of the so-called welfare state; other institutions cater to the needs of those who are not fellow citizens or otherwise members of the same state, for instance, nongovernmental organizations such as Oxfam providing assistance to the needy in developing countries.