Changes of Electoral Politics under the Growing Wealth Gap in East Asia since the Global Financial Crisis: South Korea and China’s Taiwan in Comparison

Abstract

The economic recession caused by the global financial crisis of 2008 affected political change across the world in different ways. Economic and social problems turned into political crises in North Africa. In Europe and America, dissatisfaction over such problems caused social unrest but did not imperil the political order. In East Asia, where competitive party politics have just emerged, the financial crisis sparked a correlative political and economic reaction model involving economic recession—growing wealth gap—public policy transition in electoral politics. Major electoral campaigns over the past five years in China’s Taiwan, the Republic of Korea and other economies in East Asia indicate that prioritizing economic growth and equitable distribution are emerging to be common core issues in different parties’ electoral competition despite remnant historical questions and highly politicized issues. The new electoral politics based on public policy competition has gained greater space for development against the background of an economic recession and a growing wealth gap, and is exerting a profound influence on the political and economic development process in East Asia.     

Changing Welfare Regimes in East and Southeast Asia: Crisis, Change and Challenge

The Asia‐Pacific region is a latecomer to the development of the welfare state. However, in some countries, governments have implemented ambitious programmes to extend social security systems and to enlarge the institutional structure of their welfare states. Comparative study of the welfare systems in East and Southeast Asia is, however, underdeveloped and there still is a relative lack of accurate knowledge about welfare systems in the region. Since the Asian financial crisis, more attention has been paid to the social policies of the countries. This paper examines features of welfare regimes in Indonesia, Malaysia, the Philippines, Singapore, South Korea, Taiwan and Thailand, and undertakes a systematic review of the development, levels and patterns of welfare regimes in the region. Two core questions are answered: can the existing welfare systems help mitigate the social impact of the financial and economic crisis? What are the needs, challenges and developmental perspectives that inform the future of welfare regimes in this region?     

中国—东盟经济关系与地区整合的前景

中国与东南亚国家经济合作近年来呈现出较快发展的态势,正成为东亚地区整合的重要模式。这不仅体现在中国与东盟以及日本、韩国为预防东亚金融危机的再次发生,努力推进清迈倡议多边化的进程中,更体现在双方建立自由贸易区的过程中。中国与东盟的经济关系促进了双方关系在更多领域的发展,对构建东亚地区整合具有积极意义。中国对支持东盟在地区合作中发挥领导者作用的立场不仅稳定了双方关系,对构建东亚新秩序也具有积极意义。     

Threats,chances and opportunities: social capital in Europe in times of social and economic hardship

The 2008 financial and economic crisis, characterized by an economic breakdown unparalleled since the Great Depression, provides a unique opportunity to study the relationships between economic developments and social capital by asking: How does social capital change in times of social and economic hardship? In order to explore the trends of social capital development, data from the European Social Survey 2002–2016 are used. The results suggest that economic decline – particularly increasing unemployment – is associated with a decline in social capital, especially in southern European countries. Furthermore, increasing long-term interest rates as an indicator of government future debt sustainability appear to be detrimental for social capital development. The impact of economic decline, however, appears to be contingent upon the functioning of state institutions: especially in countries characterized by well-functioning governments social capital is significantly less affected by economic decline than other countries.     

The social impact of the global financial crisis in Australia

The Australian economy has weathered the storm that followed the global financial crisis (GFC) better than most other OECD countries. The reasons for this are complex, although the fiscal stimulus measures introduced by the federal government in 2008 and 2009 boosted domestic consumption and investment and helped to sustain economic growth. However, even with these measures, concerns have been raised over the social impact of the financial crisis, with a number of studies suggesting that those with lowest incomes and/or reliant on welfare services for support were most adversely affected. This paper presents new estimates of the social impact of the GFC using data from two national surveys, conducted in 2006 and 2010 – before and after the crisis hit Australia. The impact is assessed using a range of different approaches, including people's own perceptions of the impact, changes in their subjective wellbeing, reported changes in financial stress and changes in deprivation and economic exclusion. The results suggest that the social impact of the crisis has been small, although some evidence suggests that those already facing the most severe levels of social disadvantage were most adversely affected. In this sense, the GFC may have led to greater inequality in living standards, at least in some dimensions.     

Growth and trade in the United States and the world economy: Overview

After the slow recovery from the 2008–2009 global financial crisis, the world economy faced slower growth than in the previous decade and even the prospect of a new global financial crisis. This paper starts by examining the reasons for the slow economic recovery and growth in the after the 2008–2009 global financial crisis and "great recession". Then, it examines the reasons the United States grew faster than other advanced countries (especially Europe and Japan), the slowing growth of emerging market economies (and even economic crisis in some of them), and whether the world is now (February 2020) sliding toward a new global financial crisis and recession.     

Financial crisis and the developmental states: A case study of Hong Kong

Studies taking a mediation perspective have highlighted how the actual impact of economic globalisation is mediated by institutions that include welfare regimes. Some have examined how the welfare systems of East Asian developmental states have changed and adapted since the Asian financial crisis of 1997/1998. Using Hong Kong as a case study, this article examines how the developmental state of Hong Kong mediated the impact of the global financial crisis of 2008, particularly on disadvantaged groups. Hong Kong's welfare regime has provided insufficient support to ‘non‐productive’ groups despite incidents of social crisis. The government's welfare responses have been characterised by long‐term strategies to improve the competitiveness of the economy, and short‐term measures to boost the spending power of the general public. Measures targeted at disadvantaged groups have been piecemeal and minimal. The government's approach towards crisis management after 2008 has been similar to that taken after the 1997/1998 financial crisis.     

Same same but different? Comparing institutional performance in the long-term care systems of Japan and South Korea

Responding to a rapidly aging population, Japan and South Korea introduced social insurance-based long-term care systems (LTCSs) in 2000 and 2008, respectively. Korea studied and took up key features of Japan's system while evolving along its own trajectory in line with its healthcare system. The aim of the present study is to unpack the broad category of ‘social insurance’ to explore how distinct system inputs and designs in Korea and Japan related to outcomes in performance measured in terms of coverage, quality of care, and sustainability. In doing so, the study serves as an important starting point for advancing a new stream of social policy research on the comparative performance of LTCSs. Our findings demonstrate that despite adopting a common system type, differences in implementation of the social insurance model (particularly in terms of financing and governance) contributed to divergent performance, with Japan outperforming Korea on most indicators during the observed period. This bears contrary implications for policymaking in the two countries: Whereas Japanese policymakers are faced with the challenge of promoting quality while containing spending, in Korea greater investment is required to strengthen the workforce and build up community care.     

Effectiveness of Social Welfare Programmes in East Asia: A Case Study of Taiwan

Using the 2008 Family Income and Expenditure Survey, this study examined the effectiveness of social welfare programmes in Taiwan. The empirical evidence shows that most types of social welfare spending were limited in 2008. However, the social welfare programmes that were in place substantially reduced income inequality in Taiwan. Using the Organisation for Economic Co‐operation and Development (OECD) poverty threshold, the results reveal that 14 per cent of the sample's families were poor in terms of market income, but this figure decreased to 7 per cent after government intervention. Income inequality in Taiwan was similar to that of other East Asian countries such as Japan and South Korea, but Taiwan spent much less money on social welfare programmes than OECD countries, and therefore Taiwan's reduction of poverty was much lower as well.     

美国“重返亚太”战略的发展及其影响

本文从美国重返亚太入手,分析近年美国对亚太政策的调整、变化及其根源,在此基础上探讨美国重返亚太政策对地缘政治的影响。在当前的国际形势下,美国重返亚太反映了美国重视与亚洲各国的合作,而不仅仅是在亚太搞对抗。当然,加强与亚洲各国,尤其是与中国的合作才最符合美国的国家利益。美国在重返亚太的过程中,受到经济实力因金融危机而削弱的影响,露骨地使用军事硬实力、挑唆亚洲一些国家对华敌视情绪,不利于亚洲各国的发展,也对美国当前的经济恢复没有好处。     

The reform of the developmental welfare state in East Asia

This article examines social policy reforms in East Asia and whether the welfare states in the region became more inclusive in terms of social protection while maintaining their developmental credentials. It draws on findings from the United Nations Research Institute for Social Development (UNRISD) project on social policy in East Asia, covering China, Hong Kong Special Administrative Region of China, Japan, Malaysia, the Republic of Korea, Singapore, Taiwan Province of China, and Thailand. It shows that East Asian economies responded differently to the crisis in terms of welfare reform. While Singapore and Hong Kong maintained the basic structure of the selective developmental welfare state, Korea, Taiwan, and, to a lesser extent, Thailand implemented social policy reforms toward a more inclusive one. Despite such different responses, policy changes are explained by the proposition of the developmental welfare state: the instrumentality of social policy for economic development and realization of policy changes through democratization (or the lack of it).     

试析印度加强与亚太国家战略合作及其影响

近年来,印度加大了与美国、俄罗斯、日本、韩国和越南等国家的战略合作,主要手段包括深化发展战略伙伴关系、经贸合作以及军事交流.印度加强与亚太国家战略合作的动因是复杂的,既有经济战略上的考虑,同时也有地缘政治上的战略安排.从近期来看,印度与亚太国家的战略合作可能会对中国以及中印关系造成一定影响.印度加强与亚太大国的合作可能意味着亚太地区战略格局发生深远变化.     

Increasing Poverty in Japan: Social Policy and Public Assistance Program

Until quite recently, the problem of poverty was largely “invisible” in Japan, since the poverty rate was relatively low and issues surrounding poverty received little attention. However, the recent financial and economic crisis caused such an increase in the poverty rate that it could no longer be ignored. When the government announced a poverty rate for the first time in 2009 (15.7% for the year 2007), the nation was shocked. Poverty is now widely discussed and “visible” in Japan, and Japanese policy makers have been forced to formulate and implement strategies to help the poor. The contribution of changing international and national economic and social conditions to increased poverty, including population changes in Japan, is also noted. This paper aims to provide an overview of the poverty situation and the nature of social policy that addresses poverty. It describes in particular the national public assistance program, which is a major public income‐support program and is considered as the ‘last safety net’ available for the poor in Japan. In conclusion, the paper explores the key problems faced by the program and discusses the challenges associated with tackling a dramatic increase in poverty.     

Child poverty in Taiwan during the global financial crisis: from the perspective of new social risks

The economic conditions of families with children during the 2008 financial crisis became worse. The factors affecting child poverty in Taiwan can be explained from the perspective of new social risks. This study analyzed the poverty reduction effects of public transfers and taxes in order to evaluate the government role in the economic downturn. From the viewpoint of the protection of children's rights, new policies must be created in response to new social risks and future financial crises.     

试析美国金融危机中的政府行政干预

金融危机是市场经济发展过程中的一个现象。宪政秩序是美国政府行政行为需要遵循的框架,政府行政干预是解决经济危机的有效手段,金融立法是政府行政干预的行为依据。创新必须要有监管,稳健的金融立法是稳定金融市场、防范金融危机的有效工具。金融立法应考虑效率与安全的平衡,有利于金融的长期发展。不同国家有不同的历史文化传统和现实政治经济情况,会选择不同特色的社会制度和行政运行机制,这是一个自然的过程。     

Social capital and the impact of the recent economic crisis: Comparing the effects of economic and fiscal policy developments

In this contribution, we offer an analysis that evaluates the impact of the recent financial and economic crisis on social capital. An economic crisis offers a unique chance to study people's associational lives, volunteering, network-making, and trust-building under duress. Theoretical perspectives on the relationship between social capital and economic development emphasize a reciprocal relationship between the two. Therefore, we hypothesize that if economic performance is compromised, this might lead to an erosion of social capital. More importantly, however, we also argue that states can actively intervene by means of fiscal policy measures. We will illustrate our approach by comparing 29 Organisation for Economic Co-operation and Development countries before and after the crisis. Using qualitative comparative analysis, we demonstrate that imperatives related to fiscal policy stimuli provide leverage on social capital development.     

Revisiting the welfare state system in the Republic of Korea

Abstract   The Republic of Korea's welfare system has undergone radical institutional expansion since the 1990s, largely as a consequence of the financial crisis of 1997. In spite of these changes, public social expenditure remains extremely low — particularly with regard to all other OECD countries — with the result that the overall social insurance system and social welfare service sector remain underdeveloped. Thus, the current welfare system can best be characterized as a residual model, in that state intervention as a provider of welfare remains highly limited and the family and the private market economy play the central roles in offering a social safety net. This situation is largely the legacy of the so-called 'growth-first' ideology, which has remained the dominant approach favoured by the majority of the country's political and economic decision-makers since the period of authoritarian rule (1961-1993). The adoption of Western European-style neo-liberal restructuring, implemented following the 1997 financial crisis, has also played a role.     

The Public's Changing Perceptions of the Condition of Social Welfare in Hong Kong: Lessons for Social Development

In the aftermath of the Asian financial crisis, the Hong Kong government introduced welfare reforms to ease the pressure from fiscal challenges and swelling welfare rolls; at the same time, to maintain its development credentials, it made an effort to adhere to its colonial tradition on the provision of welfare. The government adopted various strategies to garner popular support for promoting economic development as the primary goal and for promoting social harmony under the concept of ‘helping people to help themselves’. This article examines Hong Kong people's changing perceptions of the condition of social welfare in the past decade. Using a multidimensional developmental welfare approach and data from two opinion surveys conducted in 1997 and 2008, the study finds that Hong Kong people expressed a relatively high level of satisfaction about their own lives, but varying degrees of reservation about the problem of poverty, government provision of social welfare, and opportunities for social mobility. As a result of the sectorally unbalanced welfare reforms, which are biased against the disadvantaged, some of these perceptions have become more negative in recent years. Socially vulnerable people, especially the lower classes, are now more critical of the condition of social welfare, and such feelings seem to be intensifying. It is thus suggested that special attention to the issue of class should be paid in social development programmes to ensure social equality and social justice.     

Impact of finance on growth: Does it vary with development levels or cyclical conditions?

Financial systems are complex and may support economic growth differently at various stages of economic development. This study of 90 countries extends the financial development-economic growth literature by using four proxies of financial development (banking, stock market, bond market and insurance), and considering a country’s level of economic development, on both a full and pre-global crisis sample. As expected financial markets have different effects on growth where the level of economic development vary. Policy makers should find that the insurance sector offers the most benefit for economic growth at all levels of development. Stock markets promote growth for middle income countries. Similarly bond markets promote growth with middle and high income countries. Some bond market and stock market results differed in the pre-crisis sample. Policies which promote trade but limit other areas such as inflation, government consumption and crises, should also support growth.