Economic Policy and Social Policy: Policy-linkages in an Era of Globalisation

This article argues that changes in the role of the state in economic affairs will affect the process of social policy. Growing economic integration caused by globalisation now places a greater constraint upon the discretion of the nation state, bringing about a transformation into a more competitive state. States are increasingly having to compete against each other in order to promote competitiveness and attract foreign direct investment (FDI) from international capital markets. This competition influences in turn the social policy formation requiring the redesigning of social policy. Thus, welfare states may need to reform their social policy towards a "business-friendly social policy". The analysis of social policy inputs and outputs presented here suggests that there are common trends in most welfare states towards: a market-conforming policy on business taxation, a reduction of the share of employer's contributions in social protection revenues, more limited income security programmes, an increased allocation of resources for active labour market programmes and less state intervention in the labour market. All these reforming trends in social policy can be understood as a response of welfare states to the evolving needs of business caused by structural change, notably globalisation.     

The decomposition of social policy in Sweden

The traditionally strong dominance of the state in social security in Sweden has been replaced by a more mixed structure. Individuals are increasingly covered by a mix of private welfare, employment-based corporate welfare and state programmes. There are several reasons behind this development: shifts in the economic and political conditions, strong tax incentives for the individual to buy private insurance, increasing problems for the public system in covering the loss of income for middle and high income earners, repeated media reports that the public welfare system will go bankrupt in the near future and increasing reports on free-riding and cheating in the area of public insurance. The advantage of the more mixed system may be its similarities to social insurance in some of the European Community Member States. However, from a social policy point of view there are also some dangers. There will be increasing tendencies towards inequality. In particular, the difference in social security conditions between the skilfully employed and marginal groups will be even more marked. The unemployed, the young and people with physical or mental handicaps will be left outside the private and corporate structures. There is also a marked risk that some individuals be reach a level of coverage well above the loss of income, and this will be a disincentive to work. Private and corporate welfare systems are also largely invisible in the sense that individuals may not even know under what conditions they are covered. Another problem is that public attitudes towards the public welfare system will increasingly become more negative and different in various parts of the population. The effect of this may be a vicious circle: public social policy becomes increasingly inefficient and unpopular among the working population and remains only as a marginal system for small marginal groups.     

A social welfare perspective of market‐oriented social enterprises

The article analyses market‐oriented social enterprises from a social welfare perspective, within the context of the innate conflict between business and welfare orientations. After defining the concept of market‐oriented social enterprises and presenting some successful examples on such entities that employ different marginalised populations, particularly people with disabilities, the article asks three interrelated questions: (i) What policy environment is needed to encourage the development of social enterprises? (ii) Given the innate tension between the social and economic objectives in social enterprises, what structural principles are needed to enable them to meet those dual objectives? Lastly, (iii) What intervention modalities are best suited to help individual participants in those frameworks? Answers to these questions are discussed within conceptual frameworks from the worlds of welfare and business that jointly provide a base for a social welfare rationale for market‐oriented social enterprises.     

Providing social security in a context of change: Experience and challenges in Latin America

Over the past two decades Latin America has experienced major demographic, economic and social changes. The trend towards accelerated ageing of the population in most countries, together with the financial restrictions faced by social protection systems, has brought sweeping changes in pension programmes. The new demographic and labour context presents challenges for these new programmes which, unless they make the necessary adaptations, will definitely be unable to attain their stated objective of providing universal coverage and eliminating poverty in old age. This article offers a general discussion of the processes that the region is undergoing, as well as the limitations and challenges imposed by existing welfare systems. Finally, it examines the options available to retain the objective of universal coverage and thus ensure the economic needs of the elderly population.     

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.     

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?     

The United States: welfare, work and development

It has long been claimed that social welfare programmes harm economic development. These programmes, it is alleged, depress work incentives, divert scarce investment resources to 'unproductive' social services and create a large underclass of dependent individuals. Welfare reform in the United States intends to reverse these allegedly negative economic effects by requiring welfare clients to work. It also hopes to reduce poverty. This article examines these claims. It discusses the welfare reform programme and concludes that its impact on both economic development and poverty has been minimal. Policies that transcend the current obsession with work, promote sustained economic development and invest in human capabilities are more likely to succeed.     

A New Approach to Social Assistance: Latin America's Experience with Conditional Cash Transfer Programmes

Conditional cash transfers are a departure from more traditional approaches to social assistance that represents an innovative and increasingly popular channel for the delivery of social services. Conditional cash transfers provide money to poor families contingent upon certain behaviour, usually investments in human capital such as sending children to school or bringing them to health centres on a regular basis. They seek both to address traditional short-term income support objectives and promote the longer-term accumulation of human capital by serving as a demand-side complement to the supply of health and education services. Evaluation results reveal that this innovative design has been quite successful in addressing many of the failures in delivering social assistance such as poor poverty targeting, disincentive effects and limited welfare impacts. There is clear evidence of success from the first generation of programmes in Brazil, Colombia, Mexico and Nicaragua in increasing enrolment rates, improving preventive healthcare and raising household consumption. Despite this promising evidence, many questions remain unanswered about conditional cash transfer programmes, including the replicability of their success under different     

The economic consequences of the welfare state

What are the economic and employment consequences of larger social insurance programmes? Are larger welfare states diverting resources from economic activity and distorting the investment decisions of firms? I examine theoretical and empirical research on the economic consequences of the welfare state. This review shows that the predictions of a negative relationship between higher levels of social protection and growth have not been borne out in the data. Both insurance programmes and other policies that increase investment in human capital or the overall productivity of workers generate important economic externalities that outweigh the potentially distortionary effects of higher taxes. Empirical studies also fail to uncover a consistent negative relationship between larger welfare states and the level of employment. The employment consequences of the welfare state are mediated by existing institutions and policies—such as the level of centralization of the wage bargaining system—which affect the redistribution of the costs of higher taxes among workers and firms. As a result, the employment consequences of larger welfare states are non-linear.     

Urbanization, caring for elderly people and the changing African family: The challenge to social policy

An inquiry into the role of social welfare in the development process in Africa must start by determining the position of the family in the face of all the social changes that are taking place. The role of the traditional African family may be broadly subdivided into its social role, its economic role and its role as an agent for the transmission and renewal of sociocultural values. Intraditional African societies, there is a complex interaction between the members of the family and the community. Social organization centres on the kinship group and the age group. The economic, political and sociocultural values of present-day Africa, with its sprawling urban centres and industrial zones, differ increasingly from its traditional values. In Africa, the concept of development has been greatly influenced by the colonial experience and Western modernization theory which posited that economic development and growth, mainly through industrialization, would automatically raise the living standards and meet the social needs of the population. Social welfare was viewed as a non-productive activity and therefore accorded a low priority in national development planning and resource allocation. In such a context, the scope of social policy is limited and cannot deal with the critical problems of mass poverty and deprivation afflicting the majority of African peoples, especially in rural areas. The family is disintegrating and social change has brought in its wake a host of new social problems which remedial social welfare services are not adequate to meet. Using Ghana as an example, this paper will critically examine these key issues and make recommendations for effective social policies and programmes that must be incorporated centrally into national development plans.     

Welfare Chauvinism in Populist Radical Right Platforms: The Role of Redistributive Justice Principles

Welfare chauvinism has become an important element in the agenda of the populist radical right. This article proposes a novel argument to explain variation in the strength of welfare chauvinist appeals across social policy programmes. It theorizes that the redistributive justice principles (equity, equality, and need) that underpin a social programme matter. Equality‐ and need‐based programmes are more likely to contradict a nativist worldview in principle or practice, whereas equity‐based schemes are less vulnerable to welfare chauvinistic appeals. As a consequence, welfare chauvinism should be targeted at social policies that provide universal or means‐tested benefits. Insurance‐based systems are more likely to be immune. This argument is tested through a qualitative content analysis of populist radical right election manifestos in four West European democracies. The results show that insurance‐based systems (pensions, unemployment) are less likely to attract welfare chauvinism, whereas universal healthcare and means‐tested social assistance programmes are more prone to draw nativist appeals. Universal family allowances, however, are less likely to attract welfare chauvinism than predicted by the theory.     

Government for the people: the substantive elements of democracy

The most widely used understandings of the concept of democracy – normative, procedural and institutional – focus on its methods and approaches. This article argues that democracy needs also to be understood in terms of its substantive implications. Democratic rights include not only the civil and political rights associated with liberal democracy, but also the economic and social rights promoted in industrially developed countries. Liberal principles promote democracy and economic development. Social rights have developed, not just through state action, but through the independent establishment of solidarities facilitated by the exercise of democratic rights. Every established democracy has a system of social welfare provision. This is not coincidental. Democracy, economic development and social protection are intimately linked.     

MUTUAL OBLIGATION AND THE WELFARE RESPONSIBILITIES OF GOVERNMENT

Significant forces mean that governments are reassessing their responsibilities for welfare. The welfare changes introduced by the Howard Government have a strong role for mutual obligation. After reviewing the meaning of welfare, the historic welfare responsibilities of government and the impact of social and economic change, three key objectives for a current Australian Government are proposed. These are to protect the vulnerable, to develop capacity to function effectively in a more difficult environment and to promote social cohesion. The paper examines whether the current application of mutual obligation assists their achievement, concluding that all are compromised. Protection is compromised by the reduction in levels of income support payments, often to very marginalised and vulnerable individuals. Capacity building is undermined by the limited activities and choices available and social cohesion is affected by the divisions created by mutual obligation and the lack of attention to institution building.     

Ageing and the changing role of the family and the community: An African perspective

Global ageing, the major social issue of the twenty-first century, will have greater social repercussions for developing countries. The fastest increase of older persons in terms of ratio in relation to younger people is happening in developing countries, and in Africa segregation of older people in rural areas will become manifest. While beneficial changes for women have accompanied modernization in many of the developing countries, the situation of older women appears to be particularly precarious. Social changes brought about by modernization are also profoundly affecting the traditional systems of care for older people. Even though most older people requiring care are still looked after within the informal structures of the family, this can no longer be taken for granted as we move into the new century. This paper critically reviews social protection systems and the resource constraints which characterize developing countries and warns against blind development of social security systems based on those of the industrialized countries. The paper argues for the design of intergenerational support back into mainstream social relations so that older persons are not marginalized and put at risk through social protection programmes which reinforce physical vulnerability stereotypes and stress welfare needs over and above older people's social and economic contributions to society     

Singapore: social development, housing and the Central Provident Fund

The high rates of economic growth and significant improvements in standards of living recorded in East-Asian nations such as Singapore in recent decades has attracted increasing attention from social policy scholars in the industrial countries. Many believe that the experiences of these countries offer useful lessons for the Western welfare states. This article examines social security and housing policies in Singapore and shows how both were an integral part of a wider commitment to promote economic development. The article suggests that Singapore provides a good example of a developmentalist approach to social welfare that successfully harmonises economic and social objectives.     

The Transferability of Welfare Models: A Comparison of the Scandinavian and State Socialist Models in Relation to Finland and Estonia

In this paper, two examples of the close relationship between a national social welfare system, and explicit transnational influences are discussed. Both the state socialist and Scandinavian models have a recognized structure independent of the particular countries in which they have been implemented, although they are both associated with a home base, Russia and Sweden respectively. Our examples, Estonia and Finland, faced both common and specific national problems following 1991, which led to rapid change in each country's economic situation and pressure on their respective welfare systems. There were elements of continuity and discontinuity with the main tenets of their respective welfare models, and both structural factors and cultural diffusion will be explored to understand the origin of these changes. The paper could be seen as a case study of welfare changes in the "borderlands" where "old empires meet". The countries were chosen because they are peripheral to what were rival spheres of influence and because they see themselves as having much in common. We also expect changes to occur more rapidly in peripheral areas.     

旨在维护家庭功能的家庭政策探索

当今中国急剧的社会变迁增加了个体的流动性,而家庭为个体提供福利的功能也在减弱,分析我国现行的家庭政策在支持家庭增强福利提供功能方面政策指向不明确,建议建立以维护家庭功能为主旨的由家庭经济安全保障和家庭福利服务为主要内容的家庭政策体系。     

Coordination in Urban Settings

In recent years a number of programmes have been developed which focus on the urban community rather than the individual as the beneficiary of welfare allocations. Working on the assumption that different views of social malaise will generate different programme types, this paper takes an analytical framework developed by Roland Warren and applies it to an Australian situation. The problem at stake is one of creating conditions in which a newly formed organization can enter an urban situation and begin to coordinate local activity. This paper discusses the difficulty a new organization has in breaking into the inter-organizational field, the difficulty of achieving legitimacy, and means by which its activities may be prevented, blunted and repelled. These are illustrated with examples in metropolitan Adelaide.     

Policies and programmes to end homelessness in Australia: Learning from international practice

Parsell C, Jones A, Head B. Policies and programmes to end homelessness in Australia: Learning from international practice. Many welfare states throughout the industrialised world have recently implemented policies to achieve targeted reductions in homelessness. These policy and welfare initiatives differ across national contexts. They are similar, however, in moving away from social programmes that have essentially ‘managed homelessness’ towards interventions that seek to permanently end homelessness. Australia has recently adopted similar homelessness policy objectives. This article examines the manner in which Australian homelessness policy has been converging with international policy directions. More specifically, the article scrutinises Australian social programmes adopted from the UK and USA as a means to achieve strategic goals of reducing homelessness. It argues that although Australian homelessness policy objectives are converging with international policy, Australian programmes modelled on international successes do not have some of the elements shown elsewhere to be crucial for achieving sustainable reductions in homelessness. This may become central to explaining programme outcomes in future years. Key Practitioner Message: ?Strategies aimed at permanently ending homelessness represent a significant shift to contemporary professional practice;?Homelessness programmes internationally are now characterised by their branding or identification with evidence‐based models;?It is important to critically scrutinise these models, examining their core elements and the manner in which they are appropriated and incorporated across jurisdictions.