Is there an Asian Welfare State Model?

Report
An Asian Welfare State Model?
East and South Asian
trajectories and approaches
Gabriele Köhler
Development economist
Conference on Re-Thinking Asia II
“Building New Welfare States:
What Asia and Europe can learn from each other”
Protestant Academy Tutzing
28-29 October 2013
I.) Premises of the discussion
• Growing social inequalities in Asia and Europe
– Despite commonly accepted fundamental values and ideals
• Need for a progressive counter-narrative to
–
–
–
–
Tackle social inequalities
Make social justice available to all
Reduce income inequality and unequal opportunities
What role do comprehensive social security systems play
• Hence: revisit the welfare state
Source: FES invitation
II.) Preliminaries
socio-economic trends
Vulnerability, poverty, informality
20.0
10.0
0.0
23.0
24.0
25.0
25.6
34.0
33.4
30.9
30.9
31.6
32.0
30.3
27.0
36.8
34.3
32.4
29.3
30.0
37.6
40.0
48.3
44.5
45.1
46.4
46.9
42.0
42.5
43.7
40.2
50.0
49.2
60.0
56.4
63.6
High income inequalities
Gini coefficient
70.0
Asia-Pacific: people deprived
Source: Asia-Pacific Regional MDG report 2011/12 (ESCAP/ADB/UNDP)
III. Welfare state trajectories
Welfare state definitions
Two -three – four – five pillars
1. Education
2. Health access
3. Social security and social
assistance
4. Active labour market policies
5. Family policy - welfare services
A welfare state model
Social
Insurance,
including
health
insurance
Social
assistance
Pillar I:
Education
Pillar III:
Social security
Labour
market
policies
Forms of
Child
micro credit, protection
micro
insurance, services/tra
area-based
nsfers
schemes
Pillar II:
Health
9
Welfare state politics
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Nation building
Demographic factors
Economic progress
Productivity enhancement
Economic compensation – anti-poverty
Enhancing the domestic market
Political co-optation of subordinated classes by elites
Guilt or security concerns of the elites
Political stability
Political pressure from trade union movements or “grassroots”
Socio-cultural values and changing welfare provision arrangements
Norms
Peer competition
Copycatting
….
 Social policy as a process driven by power relations
The North: welfare state history
•
•
•
•
•
Germany Bismarckian reform: 1870s
US New Deal: 1930s
Japan interventionist welfare state: post WWII
UK: Keynes and Beveridge 1950s
Northern, Central Europe, Southern Europe
welfare states: since 1950s
The South: welfare state history
• Latin America in 1910-1920s
– Uruguay, Argentina, Chile, Brazil, Costa Rica
• Sri Lanka 1930s
• South Asia – Constitutions of 1940s/1950s
The South: recent developments
IV. Four types of welfare states?
“Developmental welfare state I”
Japan, Republic of Korea 1st phase, Taiwan PoC,
Hong Kong SAR, Singapore, Malaysia
• Social policy subordinate to
economic development
• Low government spending
• Means tested, frequently conditional
“Developmental welfare state II”
Korea:
• New social contract after 1997 – democracy
and response to Asian financial crisis
• National Basic Livelihood Security Act 1999:
– right to social assistance
– universalised
– guaranteed social minimum
Indonesia: recent social assistance programmes
BLT
Raskin
Jamkesmas
BSM
PKH
Program Unconditional
Conditional
Rice for the
Health
Scholarship
Cash Transfer
Cash
Name
Poor
Protection for the Poor
(2008-09)
Transfer
Type
Cash
Transfer
Health
Subsidized
service fees
Rice
waived
Target
Poor & near Poor & near Poor & near
group
poor HHs
poor HHs
poor HHs
(HHs)
Number of
17.5 Mn
18.2 Mn HHs
beneficiari 18.7 Mn HHs
HHs
es
Benefit
level
IDR 100,000 15 kg rice
per month
per month
Key
Ministry of
executing Social Affairs
(MoSA)
agency
Unlimited
Bureau of
Ministry of
Logistics
Health (MoH)
(BULOG)
Cash
Cash &
Conditions
Students
from poor
HHs
Very poor
HHs
8 Mn
Students
1.5 Mn HHs
IDR
IDR 480,000
1,287,000
per year
per year
MoNE &
MoRA
MoSA
17
Philippines: conditional cash transfer
o To raise the average food
o
o
o
o
expenditure of poor
households
To increase school enrollment
and attendance
To improve preventive health
care for pregnant women and
young children
To reduce child labor
To encourage parents to invest
in their children’s (and their
own) human capital: health
and nutrition, education, and
participation in community
activities
Selection Procedures of
Target Households
Geographical Targeting
Household Assessment
(Enumeration)
Selection of Poor Beneficiaries
using Proxy Means Test
Eligibility Check
18
“Developmental welfare state II”
China:
• Disconnect between urban and rural coverage
• Selective social contract: Minimum Subsistence
Guarantee
– for urban populations in 1999 – response to market
reforms
– extended to rural populations in 2008
– does not cover migrants
• Rural cooperative medical insurance scheme
– universalised 2013
“Developmental welfare regime III”
South Asia: Bangladesh, India, Maldives, Nepal,
Pakistan, Sri Lanka
• Norms-based
• Strong social inclusion angle
• Mixture of means-tested and universal
• Rights-based
• Justiciable (notionally)
Social protection panorama
South Asia
Food-related
measures
•Cooked
school meals
(IND)
•Subsidized
PDS (IND,
NPL, BGD)
•Subsidized
grain prices
Social
Assistance
•Universal old
age pension
(NPL)
•Benazir Income
Support Program
(PAK)
•Child benefit
(NPL)
•Unorganized
sector health
insurance (IND)
Public
works
•National Rural
Employment Guarantee
(IND)
•Employment Generation
Programme for the
Poorest (BGD)
•Karnali Programme;
Employment Guarantee
Act (NPL)
•Employment generation
for rural unskilled
workers (PAK)
Affirmative
action
•Secondary
school stipend
for girls (BGD)
• Education for all
(NPL)
•Child grants for
girls (IND)
•Rural
development and
community based
interventions
(IND)
Human
rights
•Right to
food/National Food
Security Act (IND)
•Mid-day meal (IND)
•Right to education
(all)
•Right to health
services (all)
•Right to work (IND)
•Right to information
(IND, BGD, NPL)
“Developmental welfare state IV”
Dismantling: Europe 2005 onwards
• Partial deterioration of entitlements
• Means testing reintroduced
• Conditionalities
Examples:
• Hartz IV in Germany
• Child benefit in UK
V. Welfare expenditures
Total Social Protection Expenditure, as % of GDP
25
% of GDP
20
19.2
15
10
7.9
5.4
5
0
4.7
3.7
3.6
3.5
3.2
2.5
2.1
1.4
1.2
V. Propositions
Proposition
I
Each country has a trajectory of a
developmental welfare state, but its
characteristics differ as a function of power
politics
– Some are purely instrumental for nation building,
growth, social appeasement
– Others are progressive, as outcome of pressure
from formal sector trade unions, informal sector
or rural cooperatives, women's movements, social
or faith-based CSOs
Proposition
II
Common perception: welfare states were
invented in Europe
• In fact, types of welfare states existed in the
South before the North
– Latin America had welfare state elements in the
1910s
– Sri Lanka
– “Zeitgeist” for welfare states: see post-war
Europe, independent South Asia
Proposition
III
Convergence in Asia:
• 1st new wave: East Asia post 1998 economic
crisis with new social policies
• 2nd new wave: rights-based or notionally
universal welfare states South Asia, South
Korea, Southeast Asia and China, since early
2000s
Proposition
IV
Divergence South-North:
• While “Asia” is moving towards nascent
universalist developmental welfare states (at
modest level of coverage and benefit levels)
• Europe is moving towards a top-down welfare
state (with remaining high coverage, but
decreasing real entitlements, more
conditionalities, and widespread public
resentment)
Selected references
Asian Development Bank, 2013. The Social Protection Index. Assessing Results for Asia
and the Pacific. ADB Manila.
Köhler, Gabriele and Deepta Chopra, eds., 2014. Development and Welfare Policy in
South Asia. London
Mkandawire, Thandhika, ed., 2005. Social policy in a development context. UNRISD.
Geneva, London
Pierson, Chris 2005. Late industrializers and the development of the welfare state, in
Mkandawire, op. cit.
Porsche-Ludwig, Markus 2013. Sozialpolitik in Asien. Ein Handbuch der Staaten Asiens
von A-Z. LitVerlag Berlin: W Hopf
Ringen, Stein and Kinglun Ngok, 2013. What Kind of Welfare State is Emerging in China?
UNRISD working paper 2013. www.unrisd.org
Ringen, Stein, Huck-ju Kwon et al, 2011. The Korean State and Social policy. Oxford: OUP
UNRISD, 2010. Combating Poverty and Inequality. Structural Change, Social Policy and
Politics. Geneva
Wehr, I., Leubolt, B. and Schaffar, W. 2012. ‘Welfare regimes in the Global South: A short
introduction’, Austrian Journal of Development Studies, Welfare Regimes in the
Global South, 28(1), pp. 6-13 .
Contact information
Gabriele Köhler
Website: www.gabrielekoehler.net
Email: [email protected]
Development and Welfare Policy in South Asia
Edited by Gabriele Koehler and Deepta Chopra
Routledge, February 2014
http://www.taylorandfrancis.com/catalogs/environment_and_su
stainability/1/2/

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