Trapped in poverty? A study of the dibao programme in Shanghai

As the secondary means of income redistribution in Chinese society (the primary means being taxation), the Minimum Living Standard Guarantee (MLSG) programme or dibao has been the object of both praise and criticism. The programme helps the government to channel its limited financial resources to the persons who need it most. While it covers the necessities of life, however, it does not enable its recipients to escape from poverty. It has also been criticized for its exorbitant administrative costs and heavy workload. This study uses a qualitative longitudinal design to identify changes across interview intervals and uncover the internal dynamics of the dibao programme. The research findings enrich the current literature on social assistance in China. Forty households receiving dibao in Shanghai were interviewed. Our findings show that most dibao recipients are laid-off workers – casualties of the massive economic reforms of the 1990s – and the younger members of their families. The assistance they receive helps with their daily expenses, but is insufficient to raise them out of poverty.     

The emergence of social assistance in China

This article outlines the development of China's social assistance programme, including its design, implementation and trends. The Chinese government has given high priority to the establishment and institutionalisation of this programme. To have an effective social assistance programme in the context of an increasingly pluralistic society, China is facing the profoundly challenging task of designing a coherent and over-arching social protection system that would cover retirement, medical care, unemployment and poverty alleviation.     

The Emergence of a Community-based Social Assistance Programme in Urban China

To many people, the problem of poverty in China was confined mainly to the rural areas, and the situation of urban poverty was regarded as insignificant. Yet in fact, market-orientated economic reforms have created an urban underclass, made up of poorly paid state workers, the unemployed, and migrants from the countryside. In attempting to respond to the mounting needs of the urban poor, the Chinese government has introduced a means-tested social assistance programme in the cities since the mid-1990s. This paper describes the basic philosophy, structure and operation of this programme, and provides a general assessment of its functions and shortcomings.     

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.     

Discourse change and policy development in social assistance in China

Zhang H. Discourse change and policy development in social assistance in China Since the introduction of a new social assistance programme in urban China, the state was eventually able to expand the programme to rural areas as a further step towards integrating the development of social assistance in urban and rural areas. This article argues that the development of social assistance in China can be explained by the change of discourse among the officials and the elites in central government. The discourse on social assistance can be conceptualised in three periods: the urban‐first discourse (1999–2003); the discourse debate (2003–2007); and the urban–rural integration discourse (2007–present). Through scrutinising specific discourses and the policy development of social assistance in these three periods, it appears that in company with the change in the discourse process, rural social assistance was developed rapidly in order to construct an integrated social assistance system. The article concludes that discourse plays a significant role in Chinese social assistance policy development.     

城市家庭贫困程度判定模型的构建——基于北京西城区社会救助工作实践的研究

近年来,北京市对社会救助的投入力度不断加大,如何提高救助审批程序的科学性、减少救助对象和救助额度确定过程中的主观性和随意性成为亟待解决的问题。本文依据需求理论建立贫困指标评价体系,在与民政工作人员充分沟通、探讨的基础上,运用AHP方法构建了城市家庭贫困程度的判定模型,从而为社会救助的管理和决策提供有力的支持。     

“Are We Doing Fine?” The Views on Poverty Reduction Strategies Among Front-Line Workers in the Field of Social Assistance in Turkey

ABSTRACT

This research highlights the views of front-line workers in the social assistance system in Turkey about the strategies of poverty reduction and the effectiveness of the assistance given by Social Assistance and Solidarity Foundations (SASFs) to the poor. The data were gathered from 33 employees from the 8 SASF offices in Ankara, Turkey. The results show that the majority of the participants agree with governmental efforts to create employment opportunities as the most important method. Although the participants felt the services they provided were effective at the individual and family level, they thought such services were extremely insufficient in terms of poverty reduction on a macro scale. The findings were discussed within the framework of the changing nature of poverty and the recent agenda on poverty reduction in Turkey. Future research based upon larger samples from different parties in the field of social assistance is needed to fully determine the positions taken by the agents.     

Unification of the Urban Minimum Living Standard in China: Using a Consumption Expenditure Percentile Method

ABSTRACT. The Minimum Living Standard Guarantee (MLSG) system in urban China was established in the 1990s. As a national income benefit program, this system has huge regional differences as a result of regional variation in economic development and the methods used to calculate the benefit. This article uses a consumption expenditure percentile method to measure and evaluate the benefit level of the MLSG system. The analysis shows that the consumption expenditure replacement rates in central cities are decreasing, but in prefectural-level cities, by contrast, they are increasing. The regional differences in replacement rates when comparing central cities are considerable and are even larger among cities at a prefecture level. Per-capita consumption expenditure is positively correlated with minimal living standards but negatively correlated with the replacement rate. Such variation in the value and operation of the MLSG system suggests an urgent need to implement a national unified scheme. The article proposes a single approach to calculating Minimum Living Standard benefits using a consumption expenditure replacement rate that would allow for local differences while providing national cohesion.     

Poverty eradication programs in Indonesia: Progress,challenges and reforms

This study explores the progress of and the challenges to poverty eradication programs in Indonesia by analyzing various social assistance programs and subsidies. Earlier poverty eradication programs such as food-based assistance and energy subsidies were only designed to increase households’ purchasing power. Later, the government also developed more advanced programs, such as conditional cash transfer, school assistance, and health insurance contribution assistance, to address long-run poverty by improving human capital quality. Common challenges of the existing programs remain, including inaccurate target the poor and lack of complementarity between programs. An exercise using a dynamic Computable General Equilibrium model shows that integrating programs into the conditional cash transfer reduces poverty further in rural and urban areas.     

Social assistance in Shanghai: Dynamics between social protection and informal employment

China's social assistance programme (dibao 低保) was introduced in Shanghai in 1993 and gradually extended to cover all urban areas by 1998. Due to massive economic restructuring, starting in the early 1990s, many urban dibao recipients were laid‐off, that is, state‐owned enterprise (SOE) employees. Shanghai was the epicentre of SOE reform, and the dibao system was primarily introduced to provide a safety net for laid‐off workers. In 2010, approximately 3 per cent of urban, permanent residents were on dibao, and 72 per cent of its recipients were working‐age adults. We conducted longitudinal qualitative interviews five times over 2 years with 40 dibao families that contained adults of working age in a Shanghai district. The current study demonstrates how they managed their employment, income and the dibao system. Findings suggested that, for various reasons, there was insufficient motivation for recipients to gain reemployment and leave dibao. Furthermore, local cadres, which were responsible for assessing and recommending dibao applicants to the district government, likely just assumed the incomes of adults with working capabilities.     

引入“发展”维度 完善农村社会救助——基于资产建设的视角

当前农村减贫效果有限,原因之一在于农村社会救助以收入维持为主要目标,缺乏"发展"维度。救助对象局限在绝对贫困人口,未能满足边缘贫困人群和有劳动力贫困人口的"发展"需求。资产社会政策主张减贫策略并非简单地直接增加穷人的收入,而是要帮助穷人进行资产积累与投资。通过资产建设,可为穷人提供可持续生计,提升其人力资本和社会资本,降低其脆弱性,增强抵御风险和发展的能力。因此,帮助穷人建立、积累个人资产和社区资产,可促进个人、家庭和社区发展,推动农村社会救助的完善。     

Poverty‐aware social work practice: service users' perspectives

In recent years, there has been an increase in scholarly writing on the theory and practice of critical social work with people living in poverty. Yet there is a lack of research on the experiences and perspectives of service users regarding this kind of practice. This paper presents a qualitative study that explored the practice of a special poverty‐aware social work programme in Israel, through the experiences of women who took part in it. Using an interpretative interactionist approach, in‐depth interviews with nine women were held three times over a 2‐year period. Findings reveal a high degree of satisfaction with the programme on the part of the women. The satisfaction was derived from four main experiences: the experience of visibility, the experience of the active partnership in the fight against poverty, the experience of close, hierarchy‐challenging relationships, and the experience of responsiveness to material and emotional needs. The findings are discussed in terms of three principles of practice: intervention in a real‐life context, relationship‐based intervention and the focus on both the material and emotional needs and their fulfilment.     

Can the minimum living standard guarantee scheme enable the poor to escape the poverty trap in rural China?

The rural Minimum Living Standard Guarantee (Dibao) Scheme is the most important social assistance programme in rural China. However, how the rural Dibao programme affects household expenditures and whether it can enable the poor to escape the poverty trap are questions that remain largely unexplored. This study used data from the 2012 Rural Household Survey in China to investigate the impact of the rural Dibao programme on household expenditures. We found that the programme significantly improved the well‐being of low‐income households. Particularly, the programme significantly increased household expenditures on housing, education and health; furthermore, the impact was greater for households with educated household heads. However, the programme did not significantly affect household expenditures on food, transportation or farming inputs. The results imply that participation in the rural Dibao programme induces household investment in human capital, which could help to break the inter‐generational transmission of poverty and raise long‐run welfare.     

Social assistance and minimum income benefits in old and new EU democracies

Nelson K. Social assistance and minimum income benefits in old and new EU democracies Int J Soc Welfare 2010: 19: 367–378 © 2009 The Author, Journal compilation © 2009 Blackwell Publishing Ltd and the International Journal of Social Welfare. In this article, social assistance developments are analysed in a large number of European Union (EU) member states, including European transition countries and the new democracies of southern Europe. The empirical analysis is based on the unique and recently established SaMip Dataset, which provides social assistance benefit levels for 27 countries from 1990 to 2005. It is shown that social assistance benefits have had a less favourable development than that of unemployment provision. Hardly any of the investigated countries provide social assistance benefits above the EU near‐poverty threshold. Social assistance benefit levels have not converged in Europe. Instead, divergence can be observed, which is due mainly to lagging developments in eastern and southern Europe.     

A comparison of social assistance in China and Sweden

This article compares social assistance in China and Sweden, and finds a number of similarities. In both countries, benefits are regulated by a national policy, while local governments are responsible for administration. The proportion of the population receiving social assistance is surprisingly similar in China and Sweden. Social assistance reduces dire poverty but is less successful in raising full-year recipients above the poverty line used in international comparisons of developed countries. During the last decade, the income thresholds used to assess claims have not increased at the same rate as the mean income level in both countries. Not surprisingly, there are also substantial differences in the social assistance systems of the two countries. The Swedish system has a long history; the Chinese is relatively recent. The income thresholds differ in terms of their method of calculation and the extent of the relief they offer. While the same thresholds are applied across Sweden, in China they vary by location. The profiles of recipients also differ between countries.     

Public assistance in urban and rural China: A tale of two stories

China's public assistance system has been urban–rural divided ever since its implementation in the 1990s. Despite the intention in recent years to promote an integrated public assistance system, there has been little empirical research that has systematically examined the differences between urban and rural areas. Moreover, research has focused mostly on the Minimum Living Assurance system (“Dibao”), paying little attention to other types of public assistance. This study contributes to filling this gap by analyzing a recent data set collected primarily from two Chinese provinces. The findings show substantial differences in the amount of public assistance received by urban and rural low‐income households, even after controlling for demographic and socioeconomic factors. Compared with urban recipient households, rural recipient households have disproportionally lower public assistance benefits and higher medical costs relative to their household expenditure, which suggests that assistance inadequacy is especially prominent among rural households. Policy implications are discussed.     

The Clash between Social Policy and Traditional Values: Unmet Welfare Needs Sustained by the Culture of Familism in South Korea

Drawing from a wider study of the ideas of poverty and inequality in South Korea, this paper reports on the lived experiences of disadvantaged South Koreans and their relationship to the National Basic Livelihood Security System (NBLSS), a flagship social assistance program aimed at addressing poverty and inequality. Utilizing a cultural approach to understanding and analysing policy responses to poverty, the impact of familism in the application of the NBLSS safety net is examined. Research data is presented through the testimonies, obtained through qualitative research interviews, of disadvantaged research participants and those who work with them, as well as policy‐makers' perspectives, revealing key flaws in the current NBLSS policy objectives. It is clearly evident that, by clinging to outdated Confucian conceptualizations of familial piety as a justification for highly selectivist access to what is no more than a subsistence level of financial support for poor people, the proposition of a poverty safety net is compromised and is widely missing its aim of reducing poverty and inequality in contemporary South Korea.     

Linking taxation and social protection: Evidence on redistribution and poverty reduction in Ethiopia

Although redistribution results from the simultaneous effects of taxes and transfers, analyses of their distributional effects in low‐income countries have largely been undertaken from singular perspectives. This article jointly assesses the distributional effect of taxes and transfers (through social protection) using Ethiopia as a case study. We find that Ethiopia's flagship social protection programme is more effective than income taxation in achieving poverty reduction, while neither policy achieves a sizeable reduction in overall inequality. We also find that Ethiopia does not currently have the capacity to close the poverty gap or to fully fund its main safety net programme using domestic income sources alone.     

Minimum income programme and welfare dependency in China

In the mid‐1990s China introduced a means‐test cash benefit called the Minimum Living Standard Guarantee System (dibao). Alongside the increases in both the number of beneficiaries and the budget, there is growing public concern that dibao is creating welfare dependency. Using survey data collected in three cities in China, we investigated to what extent dibao beneficiaries look for work. Focus group discussions were held with programme administrators and beneficiaries. While headline figures suggest that a considerable proportion of beneficiaries are of working‐age and able to work, their personal and household circumstances are important factors in determining their long‐term unemployment. There are also dibao design issues that have created financial disincentives to work. The specific origins of the policy of addressing the problem created by layoffs of inefficient state‐owned enterprises are still affecting the implementation of the programme and preventing it from playing a significant role in poverty reduction.     

Structural social work and the compatibility of NGO approaches: a case analysis of Bangladesh Rural Advancement Committee (BRAC)

This article offers a comparative analysis between the ideological orientation of structural social work (SSW) and the programmatic orientation of the Bangladesh Rural Advancement Committee (BRAC). SSW sees social problems as arising from specific socio-economic contexts rather than from the failings of individuals. This perspective recognises that patriarchy is a central feature of life in Bangladesh. BRAC analyses poverty, broadly defined, from a perspective that is political, making use of feminist principles. By assessing SSW as it pertains to the programme coverage of BRAC, this article presents the consistencies and inconsistencies of the approaches. Yet, SSW and BRAC share a common objective of shifting the locus of power to facilitate the empowerment of marginalised communities.