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.     

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.     

Social risks and public pension in South Korea

This study investigated how traditional and new social risks have emerged in South Korea and how policies have coped with them, focusing on the public pension program. Using national statistics data and publicly published government reports, factors such as marital status, economic activity, and the insurance trend of the public pension by age and gender for the last decade were examined. Main results are as follows. Women's labor force participation has slightly increased; however, career discontinuity remains and new family risks have increased. Second, women's public pension coverage as a percentage of the employment rate has substantially increased, implying that old labor market risks have largely been reduced for female workers. Third, the public pension insured rate among male workers has decreased to a small degree, which implies that new labor market risks are increasing for male workers. Consequently, the gender gap in risk has been reduced; however, policies established to deal with new risks have introduced some gender effects     

Poverty,income inequality and externalised problem behaviours of children: an empirical study in Korea

The primary purpose of this study is to examine the effects of neighbourhood poverty and income inequality on children's externalised problem behaviours in Korea. For the analysis, we used the National Survey of Children and Youth data and employed a multilevel analysis method. The results show that income inequality level of a community is a significant factor in increasing children's externalised problem behaviours. When controlled for income inequality, poverty itself was not significantly related to the level of children's externalised problem behaviours. We provide social welfare practice and policy implications of the findings in the paper.     

Poverty alleviation,coverage and fiscal sustainability: Investigating the effect of a new social pension in Hong Kong

This article synthesises the characteristics of social pensions across Asia and evaluates the effect of a new social pension in the Hong Kong SAR, the Old Age Living Allowance (OALA), on poverty alleviation, coverage rates and fiscal sustainability. We found that the effectiveness of the OALA in reducing old‐age poverty was limited, although it has led to an increase of retirement pension coverage by 6%. The OALA is projected to face substantial cost increases in the medium and longer term. Increasing the level of OALA benefits would be a direct means to enhance its poverty alleviation effect but may potentially be hampered by concerns about the fiscal sustainability of such changes. More obfuscated alternatives for Hong Kong policy makers to affect old‐age poverty alleviation include adjusting the indexing rules of benefit level payments and the eligibility criteria to reduce the stigma attached to the current policy choices.     

Microfinance as a Development and Poverty Alleviation Tool in Rural Bangladesh: A Critical Assessment

Poverty is multidimensional in nature and exists in every part of the world. Microfinance is considered one of the most important programs to achieve poverty reduction, particularly in Bangladesh. It has been estimated that nearly 45% of Bangladesh's population lives below the poverty line. This qualitative research study was conducted in order to determine the effectiveness of microfinance programs and the contributing factors to the high‐level of poverty among microfinance beneficiaries in the district of Bogra, Bangladesh. Study findings indicated that microfinance programs were ineffective as a result of high interest rates; insufficient loans; unproductive use of loans; corruption and poor skills of microfinance institution staff; weekly repayment schedules; and physical and mental harassment of poor women. Additionally, the lack of employment opportunities, education, healthcare facilities and social safety nets; natural disasters; the dowry system; and the rising cost of basic daily needs have also contributed to chronic poverty.     

Importance of pension income of elderly households in Korea and related factors

Utilising the 2014 Household Income and Expenditure Survey of Korea, this study examined the importance of pension incomes for elderly-headed households in Korea and the influence of other income sources and socio-demographic factors on pension income. It was found that 64.8% of those surveyed received pension income, which accounted for 12.4% of total income on average. As age increased, the importance of pension income increased. Pension income receipt and amount were affected by household size, gender, age, educational level and home ownership. Policymakers could use the factors identified in this research to develop effective and selective pension policies.     

Trends of Income Inequality Among the Elderly in Korea

This study investigates the overall trend of inequality among the elderly in Korea and to examine what the most influential factor is for these changes. Although inequality among the elderly is far greater than it is for any other group, little attention has been given to how inequality changes over time. Used are data from the Urban Household Survey with five‐year intervals from 1986 to 2006. The results show that inequality within a cohort increases over time and that earnings and benefits from occupational retirement plans are the most influential factors on overall inequality changes. In addition, the impact of public transfers has gradually increased during the past twenty years. The results imply that our society needs to enact a social policy for lessening earnings inequality in the labor market and to increase public transfers for the elderly.     

Poverty Reduction: The Missing Piece of Pension Reform in Latin America

Employment‐based pension plans constitute the main form of pension provision in Latin America. Although recent pension reform in the region has focused on strengthening these, old‐age poverty remains high in most countries in the region, with older people over‐represented among the poor. The article argues that ensuring old‐age support for poor and vulnerable groups involves a different set of priorities and options for pension reform, namely a strong focus on tax‐financed public cash transfer programmes. Cash transfer programmes focused on poor older people are the missing piece of pension reform in the region. The article examines the experience of the handful of countries with such programmes in place, and draws the lessons for the future of social policy in the region.     

Social Welfare Reform Since the 1997 Economic Crisis in Korea: Achievement, Limits, and Future Prospects

Social welfare reform has been implemented in Korea since the 1997 financial crisis. A dominant concern of the reform was on equality and social solidarity. A major means to this end was establishing universalistic social insurance programs like those in developed welfare states. The reform efforts produced some positive results but were not greatly successful. Income polarization and the deteriorating economic status of low-income families have become big social issues. Many low-income families have not gained many benefits from the reformed social security system. The rapid aging of the population is creating an exploding demand for social spending, risking the fiscal sustainability of major social insurance programs. The reform experience suggests that a social welfare system based on western-style universal social insurance may be too expensive to sustain and not very effective in protecting disadvantaged families in Korea. More attention is being paid to expenditure control and efficiency. Social insurance programs may need to be leaner than those in traditional welfare states. Targeted programs, such as the "making work pay" policy, are likely to be expanded more broadly to low-income families. The future of the Korean welfare state may hinge on successful employment support for working families and extensive investment in their human capital.     

Poverty Among Korean Immigrant Older Adults: Examining the Effects of Social Exclusion

ABSTRACT

Previous studies have shown that elderly Asian immigrants face greater risks for living in poverty compared with their native contemporaries. Particularly, Korean immigrant older adults are reported to be most likely to experience poverty among many Asian immigrant groups. The purpose of this study is to examine the extent to which demographic, human capital, and social exclusion factors contribute to such economic vulnerability among Korean immigrant older adults. Adding to previous research, this study broadly conceptualizes social exclusion and tests for its additive effects on poverty using nationally representative public data of Korean immigrant older adults. From the 2008–2010 Public Use Microdata Sample of the American Community Survey, this study extracts a sample that consists of individuals aged 65 years and older whose national origin is Korean, who were not born in the United States, and thereafter immigrated to the United States (N = 3,820). The findings indicate that 3 dimensions of social exclusion—exclusion from social and civic life, exclusion from asset building, and exclusion from the labor market—contribute significantly to Korean immigrant older adults’ odds of living in poverty. The study concludes with practice implications for socially inclusive workforce development as a way to ameliorate economic afflictions among Korean immigrant older adults.     

项目制扶贫的运作逻辑与地方性实践--以精准扶贫视角看A县竞争性扶贫项目

通过对国家级贫困县A县竞争性扶贫项目运作逻辑的探析发现,依附于科层制之下的扶贫项目在实施前的选择性平衡、实施中的反科层制逻辑以及落地后的短期效应,共同造成项目制在扶贫开发中功能的式微。扶贫项目在地方实践中的非均衡分配规制了贫困地区脱贫的步伐,项目进村时呈现出的“委托—代理”关系使地方在扶贫项目打包中以“反控制”的策略从中谋利,项目制“短、平、快”的目标导向弱化了扶贫开发的可持续性。面对扶贫项目存在的一系列问题,需要进一步加强项目执行的监管力度,提高基层政府的精准扶贫治理能力,制定扶贫开发的后续扶持政策。     

Social Policy for Poverty Reduction in Lower-income Countries in Latin America: Lessons and Challenges

This article provides a comparative study of income transfer programmes recently introduced in lower-income countries in Central and South America, aimed at raising human development and consumption among groups in extreme poverty. The successful introduction of these programmes is challenging in these countries due to their high incidence of poverty, low delivery capacity and poor service infrastructure. The article discusses the design, implementation and impact of these programmes, as well as their institutionalization and dynamics. It concludes that these programmes can be effective in reducing persistent intergenerational poverty, but that their sustainability is undermined by weak institutionalization.     

The 2015 welfare reform of the National Basic Livelihood Security System in South Korea: Effects on economic outcomes

In July 2015, South Korea’s National Basic Livelihood Security System (NBLSS) was reformed for the purposes of eliminating welfare blind spots and reducing poverty. The reform is expected to affect the recipients’ economic behaviours and choices. In this study, we used changes in benefits and eligibility for the NBLSS under the customised benefit system to identify the effects of the change in the NBLSS on a proposed set of economic outcomes – income, labour supply, consumption, savings, poverty reduction. To estimate the effects, we used data from the 10th–12th waves of the Korea Welfare Panel Study and employed a difference‐in‐differences framework integrated with the propensity scores. We found that the NBLSS helps the poor to reduce financial and material hardships through income and consumption increments, but that it does not provide disincentives to the recipients from participating in the labour market or from saving.     

Child Poverty and Ecological Contexts of Deprivation and Well‐being: A Critical Review of Budgeting and Social Policy in India

In the context of global developments in the measurement of child poverty, this article critiques the limited success of the Indian government to develop a comprehensive social policy approach to address multi‐faceted deprivation suffered by Indian children. Since independence in 1947, Indian governments have focused on childhood deprivation through various programmes to improve food security, education and health. However, these programmes have functioned in siloes without any linkages to each other, along with poor budgetary commitment which has resulted in sub‐optimal policy outcomes. Based on the theoretical approaches of Amartya Sen's capability approach and Townsend's consensual approach to poverty measurement, this article highlights the intrinsic importance of child well‐being to society. To achieve its objectives, the article is organized into four main parts. First, the article provides an overview of Indian children's deprivation and poverty, and the policy approach. Second, it provides conceptual advancements globally on the measurement of child poverty and deprivation. Third, it highlights the importance of utilizing these indicators to measure child poverty in the Indian context. Fourth, it concludes with a critical analysis of children's budgets and social policy in India to highlight that the Indian government's approach towards child well‐being is not only conceptually flawed, but that its commitment is extremely poor.     

Financial Crisis and Social Security: The Paradox of the Republic of Korea

This paper seeks to answer the questions why and how the social security system in the Republic of Korea has expanded in the wake of the financial crisis. The author first reviews the characteristics of the Korean welfare system before turning to the social effects of the financial crisis, then examining the resultant changes to the social security system and highlighting the driving forces behind them. The paper argues that the development of the system can be mainly attributed to the change of policy networks from a symbiotic alliance between the State and business to a tripartite corporatismand growing social demands for social welfare.     

Poverty affects access to regular source of primary care among the general population in Hong Kong

A territory‐wide two‐stage stratified random sample of 2,282 community‐dwelling Hong Kong adults were surveyed between 2014 and 2015 to investigate the association between poverty and regular source of primary care utilization. Poverty was operationalized by income‐poverty and deprivation. About 94% of our sample reported having regular source of primary care (Western and/or Chinese medical practitioner) and about 69% among them were in private sector. Multivariable logistic regression showed that people who were income‐poor and deprived were less likely to have regular source of primary care (income‐poor: OR = 0.523, p = .027; deprived: OR = 0.488, p = .007) and visit private primary care doctors (income‐poor: OR = 0.445, deprived: OR = 0.222, both p < .0001). Those who had chronic diseases were more likely to have regular source of primary care (multimorbid: OR = 10.709, p < .0001), but less likely to access care in the private sector (one chronic disease: OR = 0.690, p = .019; multimorbid: OR = 0.374, p < .0001) than those without. Further, being older and less skilled were significantly associated with less likelihood of visiting a private doctor. Path analysis showed that the number of chronic diseases had significant indirect effect on having regular source of primary care with being income‐poor and deprived as the mediators (β = ?.0183, p = .0016). Therefore, despite a public health‐care system that aims to deny no one from adequate health care for lack of means, regular source of primary care in Hong Kong is found to be pro‐rich. Future policies should tackle the problem of health‐care inequalities to meet the needs of the underprivileged.     

Zakat as a Poverty Reduction Mechanism Among the Muslim Community: Case Study of Bangladesh,Malaysia, and Indonesia

Poverty reduction remains the most important challenge for policy makers in Islamic communities. The World Bank (2010: Poverty profile in Muslim world, from http://www.worldbank.org ) estimates that approximately 3 billion people are living in poverty and 46 million more people will come under the income level of US$1.25 a day due to the recent global economic meltdown and slow economic growth rates. Thirty‐five percent of these people are Muslims from Islamic countries. The global Muslim community has an essential role to play in addressing the injustice of global poverty through zakat. Zakat is an Islamic faith‐based institution and is being underutilized for poverty reduction in many of these poor Muslim countries. Since zakat constitutes one of the pillars of Islam, it is logical to assume that policy makers among Muslims should pay serious attention to it. However, that is not the case for many Muslim countries and this paper will show that not all Muslim countries are seriously applying zakat in its strategy of combating poverty. This paper will specifically examine the role and effect of zakat in three Muslim countries (Bangladesh, Malaysia and Indonesia) providing the facts of countries that practise zakat in comparison with those that do not.     

Poverty and quality of life of Chinese children: From the perspective of deprivation

Using data from the Family and Children Survey of Beijing 2011, the authors constructed a child poverty measure – Child Deprivation Indicators (CDIs) – and explored the relationship between poverty and children's quality of life. The CDIs were found to be a more valid child poverty measure than the conventional measure which is based mainly on individuals' social assistance status. The findings show that deprived children are worse off in terms of living conditions. Furthermore, deprived boys and girls are disadvantaged differently; boys in self‐efficacy and girls in physical development. The findings have four important implications: (i) policy makers should look beyond those on social assistance; (ii) more public funding should be invested in deprived children's informal education and social interaction; (iii) dealing with structural problems relating to parents' socioeconomic status (SES) would be helpful to alleviate child deprivation; (iv) different types of support should be provided to deprived boys and girls for their disadvantages are not identical.     

Aging in Poverty: Making the Case for Comprehensive Care Management

A model for holistic care management that would enhance outcomes for economically vulnerable older adults who receive an array of disjointed services administered through the older Americans Act (OAA) and local Area Agencies on Aging (AAA) is proposed. Fragmented service delivery is typically wasteful and ineffectual, but comprehensive care management that includes an autonomous care manager, a single interagency plan of care and ongoing monitoring that is client-centered may protect those aging in poverty from negative health outcomes.