Implications of Subsidiarity for the Care of Older People in Germany

This paper examines definitions and origins of the principle of subsidiarity and its application to welfare systems of the Federal Republic of Germany (FRG) with particular reference to the care of older people. The German corporatist welfare system is influenced by conservative views about status relations and Catholic teachings on family responsibilities. Since unification of Germany in 1990 new care systems based on the principle of subsidiarity have been imposed in eastern Germany. The FRG's social insurance system based on entitlement benefits those fully employed, while women and marginalized groups with low status in the labour market are poorly covered by insurance and may have to rely on stigmatizing means-tested social welfare based on subsidiarity. Access to pluralist, fragmented care services depends on eligibility for funding through insurance or social welfare or else on ability to pay. Social care is poorly developed because of the emphasis on insurance and the medical model as well as on the principles of subsidiarity and self help which place an explicit duty on the family, mainly women, to care.     

The Beveridge Report: Its origins and outcomes

The Beveridge Committee had an inauspicious start. It was intended by the British government to be a minor tidying-up operation. When the report was completed, the government seriously considered not publishing it. The report advocated family allowances, a free health service and full employment, and that all social insurance benefits should be at flat rate and at subsistence level with the aim of abolishing poverty. But the actual recommendations would not have fully achieved Beveridge's aims. Although the report had a rapturous media reception, the government initially decided not to commit itself to action. But pressure from parliament forced Prime Minister Churchill to produce plans for legislation. When the report finally became law, the benefits were about a third less than Beveridge had recommended. As a result his social assistance safety net, intended to have a very small role, ended up giving ultimate protection to some 7 million persons. The report had a major influence in other countries by setting a much more ambitious agenda for social security than had generally been accepted before.     

Retrenchment, Expansion and the Transformation of Mexican Social Protection Policies

Social protection policies in Mexico have been transformed since 1988 through partial retrenchment of social insurance and significant expansion of targeted or means-tested social assistance. These changes reflect a substantial redefinition of social protection through incremental changes in policy. The changes reflect the abandonment of the goal of developing an employment-based, universal welfare regime, which had been pursued by Mexican governments as late as the 1970s. Instead, recent administrations have moved towards the redefinition of Mexico's welfare regime into a residual, means-tested model with significant private provision of benefits and services. This shift in social protection is consistent with the change in Mexico's overall economic development strategy and increasing political competition in the process of democratization.     

The state of the German social insurance state: Reform and resilience

At the core of the German system of welfare provision stand social insurance schemes whose central role contributes to Germany being labelled a social insurance state. In recent decades, Germany has been experiencing major social policy reforms that are often evaluated as paradigm changes. These changes have been reflected in analyses that sometimes even questioned common classifications of the German welfare state. The article sheds light on recent developments that have affected the German system of social insurance. It focuses on four aspects of social insurance: benefits, financing, governance, and coverage. Although confirming many earlier analyses of reforms in detail and sharing assessments of changes such as retrenchment and marketization, the article nevertheless stresses that social insurance remains structurally intact and that the work–welfare nexus underlying welfare provision has been reinterpreted but not surrendered.     

The politics of safety net reform in Southern Europe during the Great Recession: Introduction to the regional issue

Southern European welfare states have developed relatively solid social insurance income maintenance programs, but have lacked effective means-tested benefit systems to address poverty and protect outsiders. Spain and Portugal are usually considered the two first countries to depart from the traditional path with the creation of minimum income schemes between 1988 and 1995. In the Spanish case, minimum income programs were established at the regional level and are very heterogeneous despite their institutional stability. The limited extent of these programs in most Spanish regions must be put in the context of national means-tested income support schemes in the fields of pensions and unemployment. The introduction of these programs in the 1980s was also a significant path departure. The combination of these programs has offered some income support to low income groups left unprotected by traditional insurance benefits, although in a patchy and limited way, especially as regards the working-age population. The social effects of the Great Recession, especially in terms of long-term unemployment, evictions and impoverishment, have reopened the debate on how to combat monetary poverty, which has been on the general election agenda since 2014–2015. Most regions have reformed their programs in different directions since 2008, under the contradictory pressures of growing demand and financial constraints. Such debate, however, has not been able yet to set a clear basis for a new development of anti-poverty income support policy.     

The advantages and disadvantages of different social welfare strategies

This paper presents a framework for consideration of change in or reform of social welfare systems. The author describes characteristics of the approaches to providing social welfare most commonly used in North America and western Europe. These include social insurance, employer mandates, individual mandates, voluntary arrangements (tax expenditures), means-tested programmes, and universal programmes (demogrants). He then evaluates each of the approaches in terms of its ability to achieve a set of social and economic objectives. The social protection objectives include treating people with dignity and respect, assuring complete coverage, equitably distributing costs and benefits, and operating efficiently to lower overhead. The objectives important to promoting a healthy economic environment include encouraging individual saving and work effort, fostering government fiscal responsibility, and facilitating smooth market functioning. The author concludes that there is no one correct way to organize social welfare systems, that each approach has strengths and weaknesses, and that different societies will attach different priorities to different objectives. Thus, as social goals change, we may expect that the particular mix of approaches used will also evolve and change over time.     

Retirement and health benefits for Mexican migrant workers returning from the United States

In the absence of a bilateral agreement for the portability and totalization of social security contributions between the United States and Mexico, this article examines the access to pension and health insurance benefits and employment status of older Mexican return migrants. We find that return migrants who have spent less than a year in the United States have a similar level of access to social security benefits as non‐migrants. Return migrants who have spent at least a year in the United States are less likely to have public health insurance or social security benefits, and could be more vulnerable to poverty in old age. These results inform the debate on a bilateral social security agreement between the United States and Mexico to improve return migrants' social security.     

Social Justice and the Reform of Social Security

There have been massive increases over the years in expenditure on the public services loosely grouped together as the “welfare state”, but widespread dissatisfaction persists. This article is a critique of the proposals for reform presented in the Report of the Commission on Social Justice, set up by the late John Smith. The report contains a sweeping condemnation of existing arrangements and puts forward a series of recommendations ranging from the health service to decentralization in government and from employment policy to benefits for the elderly. As was perhaps inevitable, some are more precisely presented than others. An important example of the more fully specified proposals is one to establish what would, in effect, be a means-tested “pension guarantee”but with “means”so defined as to exclude capital and with much improved “disregards”. Another is the endorsement of the proposals to extend social insurance to part-time workers—a proposal which raises some controversial issues. There is much in this report that deserves close attention, and it is, therefore, all the more unfortunate that its proposals are not presented in the form of a quantified plan for social policy. Even for the first five years or so of the fifteen the Commission has in mind, there is no attempt at quantification. The importance of economic growth is rightly stressed, but “faster growth”can become a panacea that obscures the need for choice, not only between private and public expenditure but also between the various components of public policy itself.     

(A‐)typical and (in‐)secure? Social protection and “non‐standard” forms of employment in Europe

Atypical forms of employment (part‐time work, mini‐jobs, fixed‐term contracts and solo self‐employment) have gained in importance overall in recent years in many European countries. They are often part of an irregular career pattern and carry a high risk of unemployment. In a 6‐country comparison (Germany, the United Kingdom, the Netherlands, Italy, Denmark and Poland) we consider whether and in what way national social protection laws cover the various forms of non‐standard employment and the specific risks these entail. Significant variations were found in coverage standards and practices between countries as well as substantial variability within countries in their responses to different types of non‐standard employment. A need for further and improved coordination of both social legislation and tax law is identified.     

Social Security in Australia and New Zealand: Means-tested or Just Mean?

The social security systems of Australia and New Zealand have traditionally rejected social insurance in favour of a means-tested categorical safety net approach that provides considerable scope for targeting. The experience of both countries provides many examples of how targeting can be used to constrain social security spending, and these have attracted interest in other countries keen to contain the growth in their social security budgets. However, although there are many similarities between the two systems, there are also many differences and these have become greater as targeting has gathered momentum over the last two decades. This paper analyses how targeting has been used in each country as a way of illustrating the different approaches adopted. Attention is focused on how the retirement income systems of the two countries illustrate an increasing policy divergence, with the planned Australian transition to a "multi-pillar" approach in contrast to the constant (and continuing) reform of New Zealand superannuation. Household data on the pattern of receipt of transfer incomes and their impact on the distribution of income are then used to explore the impact of targeting since the early 1980s. This analysis suggests that, in practice, targeting has had a far smaller impact on income inequality in both countries than is often claimed.     

Between Tradition and Transition: Workers With Family Responsibilities

This paper briefly summarizes the demographic and social changes in Australian families that have focused attention on the interconnections between work and family life. The impacts that employment has on family functioning and the pressures of family life that impinge on the work environment will be discussed. The main theme of the paper explores the apparent confusion and lack of consensus on the part of government and the community at large toward the appropriate roles of men and women in the family and the boundaries that should exist between work and family life. Finally, policy implications of the ambivalence about work and family roles as reflected in government and corporate responses to workers with family responsibilities is addressed.     

Social Welfare: Availability and Delivery of Services and Benefits for Children

It is contended that social welfare legislation is principally concerned with the allocation of resources of income, wealth, position and power. Australian legislation providing welfare services and benefits for children is assessed from this perspective. It is argued that the present legislation providing income support payments for young people accords excessive weight to the promotion of economic interests of the community such as the work ethic and fails to address the social and human needs of that population. It is also contended that the structure of the child welfare services legislation is overly concerned to cater to conservative forces in society who favour social control measures designed to protect their values and interests and who resist efforts to provide a network of non-coercive preventive services. Both areas of the law are criticized on the basis that they place excessive reliance on the notion that the family unit is capable of carrying the major responsibility for income support and service provision.     

Refugees and asylum seekers living in the Australian community: the importance of work rights and employment support

While Australian legislation allows for the mandatory detention of asylum seekers arriving without a valid visa, in recent years the Australian Government has released thousands from immigration detention prior to their protection claims being finalised. This article outlines the results of interviews with eleven men who had been released into such community‐based arrangements after long periods of immigration detention. The major challenge for most of the men who had been granted the right to work upon their release was securing employment, while being denied the right to work was the major challenge for those released without this right. This article explores the social and personal benefits that employment can offer asylum seekers and refugees and the implications it has for integration into their host country.     

Long-term Care Policies in Italy, Austria and France: Variations in Cash-for-Care Schemes

Cash benefit provisions have been at the core of many recent reforms in the long-term care sector in Europe. The respective schemes, however, vary widely in terms of the definition of entitlements, the level of benefits, and the ways in which benefits can be used by recipients. This article investigates cash-for-care schemes in three European social insurance countries. It asks whether the diversity of these schemes indicates different paths or just differences in the pace with which the respective policies address the risk of dependency. A characterization of the three schemes and a discussion of the implications for care work arrangements lead to the conclusion that the context and timing of long-term care reform processes are in fact quite variegated. All three countries have histories of cash schemes and of applying the cash approach to support – and to some extent relieve – traditionally strong family obligations. Differences predominate in terms of linking cash to employment, although some convergence is apparent in the effects on qualifications, working conditions and wages in care work.     

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.     

Social assistance in China and Sweden: how policy intentions are translated into local practices

This article compares social assistance policies in China and Sweden, with a special focus on the means of translating policy intentions into local practices. Unlike China, Sweden has laws regulating social assistance, which is intended to ensure a ‘reasonable standard of living’. Though considered a legal right, assistance is Sweden is means-tested. While social assistance claims are dealt with by the welfare bureaucracy in Sweden, in China the process of application involves the input of cadres, administrative officials from different levels of government, and neighbours. The challenges facing Sweden are to find ways to cope with long-term social assistance and to help recipients find work. The challenges facing China are to establish a social assistance law and standardized management procedures, and to incorporate the resources of social work.     

Continuous Parenting and the Clean Break: The Aftermath of Marriage Breakdown

This paper examines the financial disparity between men and women after marriage breakdown in the context of the debate about public support for children and their caretakers. The Australian Institute of Family Studies research into the economic consequences of marriage breakdown, the government's endorsement of reforms for the assessment and collection of child maintenance and the Law Reform Commission's recommendations for the reform of matrimonial property law indicate the need for more clarity and predictability for family law clients. In addition, empirical work highlights the need to eradicate any notion that the clean break philosophy is appropriate for parenting after separation. Whilst family law reforms are already underway in this area, the issues of womens' independence and of child welfare must be looked at in the broader context of employment opportunities and child care.     

Employment, Industrial Relations and Social Policy: New Life in an Old Connection

The purpose of this paper is to account for the revival of both academic and substantive interest in what had long been seen as an unimportant byway of social policy: the role of social partners, especially trade unions, in the management of national social insurance systems. The answer is found in the budgetary crises facing these systems along with the frequent embedded role of the social partner organizations in their governance. Meanwhile, this welfare state role of trade unions then has implications back on to the conduct of industrial relations. The diversity of national experiences is considered, including the reasons for British exceptionalism on this question. Particular use is made of a comparison between Italy and the Netherlands on the one hand (cases of some success in the role of social partners in managing change in social insurance arrangements), and France and Germany on the other (at the time of writing, cases of stalemate).     

Exit from and re‐entry into social assistance benefit in Belgium among people with migration background and the native‐born

Whereas several studies have examined the timing of exit from social assistance, little is known about the exit destinations after social assistance and whether these entail different risks of re‐entry into social assistance. Using administrative data, we studied 13,552 people with various migration backgrounds who entered social assistance in Belgium in 2004 or 2005. We tracked their social assistance spell(s) and the income source(s) after exit on a quarterly basis over 4 years, using random‐effects hazard models. We found that one‐third of the beneficiaries exited from first‐spells to work, whereas 14% left to active labour market programmes (ALMPs) and 16% to social insurance benefits. About a third re‐entered social assistance, in particular after short work exits. Participation in ALMPs and social insurance benefit receipt was less common among beneficiaries with migration background compared with native‐born and these exits led less frequently to re‐entry than did exits to paid employment.     

The Role of Non‐profit Organizations in the Mixed Economy of Welfare‐to‐Work in the UK and Australia

This article charts the development of welfare‐to‐work policies and compares and contrasts the traditions of delivery in the UK and Australia. We find that in the UK, employment services and social security benefit administration have been dominated by the central state, traditionally affording a key role to civil servants as direct delivery agents. However, in federal Australia, mixed economies of welfare‐to‐work operate in the different states, there is a far greater role for social services and non‐profit organizations are firmly established as key providers of frontline employment services. Since the late 1990s, UK welfare reforms have been gradually following the Australian lead in contracting non‐state actors as delivery agents. As this trend seems set to continue and intensify, we examine the Australian experience in order to reflect on the role of non‐profits in policy reform.