Developmentalism in Korea: A Useful Tool for Explaining the Role of Social Security in the Reduction of Poverty and Inequality

It is conventional wisdom that universalism is more effective than selectivism in addressing the problems of poverty and inequality. In providing income security for the elderly, retirement pensions calculated on the principle of social insurance represent universalism and social assistance benefits on the basis of means-test selectivism. Korea has both a contributory pension scheme and social assistance program for the elderly. The social assistance began in 1961. The contributory scheme, the National Pension, started belatedly in 1988 and its coverage expanded to the entire population in 1999. We can, therefore, expect that the social security system, especially the universal pension scheme based on social insurance, has some positive impacts on the reduction of poverty and inequality. This paper, however, raises doubt as to the conventional wisdom and thus reviews the developmental process of the Korean social security system for the aged. It was found that the dominant ideological controversy revolved, not around universalism versus selectivism, but around the option between developmentalism and other strategies. Our empirical analysis showed that the public pension had little impact on the reduction of poverty and inequality, particularly in comparison with advanced welfare states. This is not surprising at all, since poverty eradication and redistribution were not major objectives of the Korean social security system. The controversy between universalism and selectivism was relatively unfamiliar in the policy process of the Korean social security system. Even though the redistributive effect is getting larger as the National Pension system becomes mature, the developmentalist model has been proved to be a more useful tool for explaining the limited role of Korean social security.     

The impact of tax-financed pensions on poverty reduction in Latin America: Evidence from Argentina, Brazil, Chile, Costa Rica and Uruguay

In many Latin American countries, tax-financed pensions (TFPs) have expanded, mainly resulting from growing informalization of employment and stagnating or declining pension insurance coverage. In the five countries examined in this article, TFPs have generally been effective in reducing poverty and indigence. In Brazil rural social assistance pensions cut the incidence of destitution among poor older people by 95 per cent. In Chile TFPs considerably improved their poverty reduction effectiveness between 1990 and 2000. Tax-financed pensions have therefore been seen as an instrument to supplement contributory pension coverage and boost overall social security coverage. A key challenge is to increase pension insurance coverage through existing statutory pension insurance or special contributory schemes targeted on workers in the informal economy. Otherwise, TFPs could become financially and socially unsustainable in the future. There are also various ways to improve the financing, administration and eligibility criteria of TFPs, particularly because it is necessary to define consistent structure and benefit policies between these and contributory schemes.     

Social Exclusion, Inequality and Social Work

This paper sets out the environment of inequality in which social work and the poor have recently operated. It explores pragmatic and idealist arguments concerning whether or not the poor need social work. Finally, policy solutions developed in consultation with social service users and carers are suggested in relation to poverty and social exclusion. Social exclusion can be linked to relative poverty as exclusion from economic and social norms. However, there is a wider brief in our own government’s publications and those of Europe, of examining how people are excluded from actions and policies of agencies who are there to support them. This paper will retain the concepts of poverty as lack of material income, and inequality as the gap between the rich and the poor, while being aware of the policy implications for social service users and carers of the more comprehensive process of being shut out partially or fully from social, economic, political and cultural systems. The debates around social work, social exclusion and inequality that follow establish: that some of the poor do need social work; that the poverty of social service users is related to policies that have restructured welfare in Britain; that the reason for individuals approaching or being referred to social services are complex but are likely to include financial deprivation as a key contributory factor; that if the poor do need social work, advocacy is essential rather than social work being seen as concerned only with social control—taking children into care, mentally ill people into hospitals, and advising the DSS on the suitability of claimants for benefits. Finally, the discussion turns to new policy agendas on social exclusion instigated by the Labour government. What positive difference can such policies make for social service users, their carers and social workers?.     

Transformation: Canadian Social Policy Since 1985

This paper sets out to document and explain the major structural changes which have taken place in Canada's social security system since the mid-1980s. Most major programs have been cut back one way or another, in response to a combination of pressures. Foremost amongst these has been the commitment to reduce federal and provincial government deficits. In addition there have been the consequences of high unemployment and increasing job insecurity, demographic and social changes, and "tax fatigue" on the part of the public. The paper documents major recent changes of social policy both in general—with regard to the changed approach evident at federal level and its effect on social transfers to the provinces—and in respect of key programs, including unemployment/employment insurance, old age pensions/the Canada Pension Plan, and child benefits. The paper next identifies "currents and undercurrents" common to all of the developments commented on: the decline of universality, the practice of "social policy-making by stealth", the evidence of the contemporary Canadian public's "collective ambivalence and loss of memory" in respect of the major, historic social programs. It concludes by urging the case for social reinvestment in genuinely sustainable social policy, in the currently more favourable fiscal climate.     

The investment of social security reserves during periods of crisis: The experience of Cameroon

The crisis which Cameroon has been going through since 1986 has affected the various sectors of its economic and social life. For the first time since its establishment, the social security system administered by the National Social Insurance Fund is experiencing serious difficulties. After a period of financial surplus during which it accumulated substantial reserves, the product of the Fund's contributions has not covered its expenditure since the 1988/89 financial year, thereby obliging it to draw upon its reserves to balance its budget. After examining the fundamental criteria which have to be followed in the investment of social security assets, in accordance with the objectives and principles governing the financing of the system, the author of this article looks at the various types of investment undertaken by the Fund during its period of prosperity. "he resulting assessment leads to a series of recommendations for the formulation of a sound investment policy and the rational management of social security investment portfolios".     

Social Security in South Korea and Singapore: Explaining the Differences

The paper sets out statutory social security arrangements in Korea and Singapore and then explains the differences between them. It finds that while Korea has a relatively advanced social security system based primarily on social insurance, Singapore has a patchwork of programmes based on forced saving, tax allowance, public assistance, and public insurance schemes run along commercial lines. Moreover, the increasing share of government expenditure devoted to social security in Korea stands in sharp contrast to the declining share in Singapore. The paper accounts for the variations in terms of the different economic objectives of the two states and the different international and societal constraints they face. In contrast to South Korea * * Republic of Korea. Hereafter referred to as Korea.
which has rapidly established an elaborate set of income maintenance and health care programmes, Singapore continues to resist expansion of such programmes. The objective of this paper is to describe the social security programmes in the two countries and then explain why the supposedly similar political economies have pursued entirely different social security strategies. The paper will argue that to understand the variations, we need to examine the varying economic objectives of the two states and the different international and societal constraints they face.     

Germany's Social Long-term Care Insurance: Design, Implementation and Evaluation

Across all industrialized countries, issues surrounding population ageing have captured the attention of policymakers. Among its manifold ramifications, disability-related poverty and the projected growth in public funding of long-term care demand close attention. Comparative studies have revealed distinct policy approaches to long-term care across different countries, but a shared interest in market-oriented policy design and cost containment. In Germany, legislation on mandatory and universal dependency care insurance came into force recently. The 1994 Dependency Insurance Act responded to limited market insurance against the financial risk of long-term care, deficiencies in servicing long-term care dependants and the fiscal crisis of German communities, which had to provide social assistance to a growing number of destitute care clients. The new social long-term care insurance scheme adopts basic features of existing German social insurance schemes even as it challenges the country's social insurance legacy in terms of cost containment strategies and consumer-directed provision. After three years of operation, the new programme is technically in place and financially healthy. However, critics point to its tight screening procedures, persistent shortages in the supply of formal care, and fraud. Equity issues, quality of care and consumer direction have also drawn critical attention. A variety of scenarios for programme improvement are conceivable. Coverage could be extended and payments offered to family caregivers. A comprehensive "cash and counselling" concept should be developed. Finally, programme efficiency depends on public accountability and quality auditing. Choice should be informed by ongoing research into long-term care and the broader impacts of long-term care policy.     

Self-Employed People in the United Kingdom: Included or Excluded?

Within the United Kingdom social security scheme, self-employed people remain excluded from some of the most valuable benefits, yet there is some evidence to suggest underuse of benefits to which they do have access. There are administrative problems in dealing with applications for benefit from self-employed people, and there is considerable undercollection of the National Insurance contributions that are due. Self-employed people in the United Kingdom are not well provided for through private pensions and insurance. The author draws on her recent research, and argues that a fundamental review of social security for self-employed people in the United Kingdom is overdue.     

近十年我国社会保障改革的历史进程与经验总结

近十年来,我国面临的国际国内形势出现了新的变化,社会保障改革在此背景下也进行了新的道路选择并取得一系列成就。2011年开展城镇居民社会养老保险试点工作,这与2009年建立的新农保制度初步构成了我国养老保障制度的基本框架,标志着我国覆盖城乡居民社会保障体系的主要制度都建立起来,是我国社会保障改革和全面建设小康社会的重大进步。总结近十年来我国社会保障改革的基本经验,有益于我们更明确的认识改革的历史与现状,为继续推进社会保障改革、发展社会保障事业奠定重要基础。     

Poland: Social protection and the pension system during the transition

This paper argues that the brunt of the transition-induced increase in Polish social protection expenditures during 1989-93 has been borne by social insurance arrangements, particularly pensions, rather than by social assistance schemes targeted to the poor or more temporary social safety net schemes. This is largely due to ease of access to social insurance and its more attractive benefit structure. Much of the recent efforts to reform social protection arrangements had an ad hoc nature and was driven by the need to alleviate looming financial distress. A major policy challenge is to avoid further burdening the social insurance system, particularly pensions, by problems that should be addressed by basic income support and emergency assistance policies or by general transfers (e.g. family allowances). Current reform needs are illustrated by using the pension system as an example.     

Objectives,Role and Functions of Social Welfare Services in Sweden

The assumption in the 1930s that poverty was the cause of all social problems was clearly not borne out in the Swedish experiment in creating social security through massive insurance and other programmes. The public debate from the middle of the 1960s has therefore been concerned with an examination and re-definition of the aims of social policies. The perception of the role and functions of the social welfare services consequently changed. In 1974 a Parliamentary Commission published its report on the principles the services should follow in the future. The report emphasizes that the social welfare services have a definite role in the restructuring of society, and it spells out ways in which this aim can be achieved.     

Explaining Social exclusion: Towards Social Inclusion for Indigenous Australians

Current policy often focuses on ‘Overcoming Indigenous Disadvantage’ by simultaneously addressing multiple deficits that many Indigenous people experience relative to other Australians. International literature often frames such issues in terms of the contested concepts of social exclusion and social inclusion. This paper attempts to analyse what Indigenous social inclusion might look like in a plural society such as Australia. In addition to contextualising Australian policy in broader debates, this paper also briefly introduces several relevant theories of justice, diversity and Indigenous rights to provide a theoretical framework for conceptualising social inclusion. The article concludes with some reflections on some practical suggestions to move the debate forward. In principle, enhancing Indigenous social and political participation in policy design should both increase inclusion and reduce disadvantage by enhancing the effectiveness of programs that have a substantial Indigenous client base.     

Social Security for the Informal Sector: A New Challenge for the Developing Countries

Informal sector workers constitute a large and increasing part of the labour force in most developing countries. Many of them are not able or willing to contribute a significant percentage of their incomes to finance formal sector social insurance benefits that do not meet their priority needs. Therefore, informal sector workers themselves need to (and have) set up health and other social insurance schemes that better meet their needs and contributory capacity. In addition, special social assistance schemes are necessary to protect the most vulnerable groups outside the labour force. This article also assesses some key implications of these developments for formal social insurance schemes.     

From Social Insurance to Social Assistance

In attempting to establish a social security system that would function to smooth the transition from a planned to market economy, the government of China has, for most of the time in the past decades, focused its efforts on setting up social insurance programs in the urban areas. Along with the emergence of urban poverty since the mid 1990s, the emphasis of the government has shifted to means-tested social assistance programs as the major means to combat poverty and maintain social stability. However, with the absence of more equitable social and economic policies that can protect people against the many risks associated with a market economy, the role of social assistance is very limited.     

Informal workers and Kenya’s National Hospital Insurance Fund: Identifying barriers to voluntary participation

This article investigates the barriers to informal workers’ voluntary participation in Kenya’s national health insurance scheme – the National Hospital Insurance Fund. Based on primary data from both qualitative and quantitative methods, we find that the key determinants of enrolment include social factors, such as marital status, which create demand for insurance, and the role of informal workers’ associations that promote the voluntary uptake of health insurance and prevent default through contribution support. Participation barriers and reasons for inactiveness stem from the nature of informal work characterized by irregular earnings, which combine with apprehension about having to pay penalty charges for the late payment of premiums, inadequate levels of knowledge about health insurance schemes, institutional constraints such as complex registration procedures, as well as premium costs and poor-quality services, all of which discourage enrolment or the reactivation of lapsed membership. There is thus a need for health insurance schemes, such as Kenya’s National Hospital Insurance Fund, to educate informal workers on insurance services and protocols and to improve services to encourage uptake and reduce default behaviour.     

Health care as a social security benefit: Institutional approaches to extending coverage

Reaching universal health‐care coverage requires an appropriate mix of compulsory contributory social insurance schemes, with mechanisms to include the informal‐economy population, and tax‐based social assistance for those whose incomes preclude their own contributions. This article urges a reversal of the trend that favours the separate development of social health insurance by separate health authorities and makes the case for the extension of health‐care coverage using existing formal‐sector social security schemes, not least because they have the necessary political backing and institutional structures. The article reviews reasons for the slow pace of coverage extension to date, and stresses the added value of incorporating health care as a social security benefit while also acknowledging the importance of retaining linkages between statutory and well‐regulated community‐based or micro health‐insurance schemes.     

黑龙江农村社会保障制度的问题及原因探析

从养老保险、合作医疗、最低生活保障、农民工保障等四个方面看,黑龙江省农村社会保障制度存在以下问题:养老保险制度覆盖面广,但保费低微,难以养老;新型农村合作医疗制度、最低生活保障制度在分别经过试点之后在全省推行,但存在很大问题;农民工保障问题日益引起政府的关注。导致这些问题的原因很多,但主要的还是产力发展不足、二元经济结构制约和社会保障意识匮乏等。     

Survey on Perceptions of Social Fairness and Their Implications for Social Governance Innovation*

At the present stage, social fairness or equity is an important area of governance in China, and increasing the level of fairness is an important theme of work. In 2016, the Chinese government laid down specific arrangements and operations relating to equity in education, social security, market competition, etc. The participatory governance model entails testing policy outcomes in relation to the sense of fairness of the mass of the people. Our survey found that perceptions of fairness are higher among middle- and high-income groups and are lower in the eastern region than in the central and western regions. In social security, however, perceptions of fairness and of improvements in the level of fairness are lower than they are for education and market competition. Overall, specific policies relating to fairness in education have been quite effective in enhancing people's perceptions of fairness. Accordingly, if we are to make effective improvements in the fairness of social governance, we need a more rational distribution system that takes into account public opinion and expands the scope of fairness in social security.     

A New Social Security Reform Consensus? The ISSA’s Stockholm Initiative

At a meeting of the ISSA Bureau in Stockholm in 1996, theInternational Social Security Association under the author's presidency launched what became known as the Stockholm Initiative, under the title "The social security reform debate: In search of a new consensus". The objective was to bring together the often contrasting views of national and international experts involved in the social security reform debate, in a first phase with particular regard to public pensions. A broad consensus emerged among specialists about the need to balance social goals and macroeconomic requirements when designing and implementing reforms. This article reviews the background to the Initiative, outlines its achievements and surveys the issues which need to be faced.     

构建适应市场经济的中国社会保障制度

社会保障制度作为市场经济运行的"安全阀"和"减震器",担负着保证社会成员的基本生活水平、保持社会稳定、协调公平与效率的使命。鉴于目前城乡社会保障的巨大反差、保障范围覆盖不全、保障基金利用效率低下的实际,构建适应市场经济的中国社会保障制度,应建立和发展多元化、多层次的社会保障体系;拓宽社会保障覆盖面,采用新的社会保障筹资比例和筹资方式;大力推进社会保障的法制建设,调节财富,以建立中国的社会保障安全网;解决好城市化进程中新型城镇人口和农村的社会保障问题。