Abstract：The western "Welfare States" have reformed substantially the welfare economic system because of political, economic and social factors since 1980's. Most of their reforms pay more attentions to adjusting the welfare economic system in accordance with the changes of economic situations. Though these countries have achieved considerable headway, their reforms have paid some prices such as the economy growth rate falling, the unemployment rate rising, the difference between the rich and the poor enlarging, strikes increasing. Furthermore, the reforms of the welfare economic system in the "Welfare Sates" have brought some problems how to deal with the relationship between equality and efficiency, whether the welfare economic system forms according to pulling of "supply" or "demand", how to improve the efficiency in the public administration sector, etc. The reforms of the welfare economic system in the developed countries have an important signification not only in perfecting the welfare economic system, but also in reforming the social security system in China.
