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.     

Introduction: social policy, economic growth and developmental welfare

Although the notion of developmental welfare is not new, it is only in recent times that its central premises have again attracted attention in social policy circles. Since developmental welfare offers an opportunity to challenge the neo-liberal claim that social expenditures harm the economy, and that economic development requires retrenchments in state welfare, more information about this approach is needed. This article discusses the developmental welfare approach with reference to neo-liberalism's current hegemonic influence on social policy. It traces the historical evolution of developmental welfare, discusses its theoretical implications and outlines its practical proposals.     

Social policy and embedded evaluation: Assessing the impact of a food insecurity project in the United Kingdom

Social policy making needs to involve robust evaluation to assess its impact. In this article, a social policy intervention focused on tackling food insecurity amongst vulnerable people is examined and the benefits and challenges of using an embedded approach to evaluation are considered. Food insecurity is defined as not always having the economic, social, and physical resources to ensure a sufficient supply of nutritionally appropriate food. Evidence suggests that food insecurity in the United Kingdom is increasing in the context of long-term poverty, austerity, insecure employment, rising living costs, low pay, and cuts to welfare and public services. An embedded evaluation was conducted involving interviews with the intervention participants and observations of a series of cooking and food budgeting classes. The findings suggest that the classes had a positive impact on many of the participants, who felt more confident about cooking and valued the shared experience. However, given the acute problems facing many of the participants including long-term poverty, policies aimed at tackling food insecurity need to go beyond cooking and food budgeting skills. The embedded evaluation approach contributed towards the overall impact of the intervention by providing insights that led to changes as part of an iterative process during the intervention rather than in the form of a final report after its completion. An embedded evaluation-based approach can be resource intensive, and the role of the evaluators can present challenges, but it can help to bridge the gap between intervention design, delivery, and social change.     

Social capital and health at the country level

This study examines the relationship between social capital and health. We use various estimation methods such as pooled OLS, a split-sample approach, a quadratic regression, and fixed effects model to investigate country-level unbalanced panel data of 194 countries for the time period 1990–2015. The results support the negative effect of bonding social capital and the positive effect of bridging social capital on health. The effects are more pronounced in low income countries. The first contribution of the paper is to better explain the mixed results of previous studies by focusing on the distinction between the two types of social capital. The second contribution of the paper is to address endogeneity and nonlinearity problems and to capture dynamic change by using various econometric methods. The findings imply that the socio-economic effects of social capital are different depending on the type of social capital.     

Introduction: social policy and economic development in late industrializers

This Supplement in the International Journal of Social Welfare presents the main findings of a United Nations Research Institute for Social Development research project on social policy in late industrializers, covering countries in East Asia, Latin America, Middle East and North Africa (MENA), and sub-Saharan Africa, as well as the Nordic countries. One of the findings from the research is that social policy has been used as an integral part of economic development in successful late-industrializing countries. In the MENA region and sub-Saharan Africa, however, social policy was tried for too short a period to be properly implemented and tested. East Asian and Latin American countries started with a narrow-based social policy, but social policy in East Asia was extended to foster social solidarity, bringing people into the mainstream of social change. Such findings suggest that social policy is multifunctional, not only in terms of social protection but also economic development and democratic governance.     

Social impacts of the Global Financial Crisis on China and its policy initiatives

The Global Financial Crisis has brought eminent, negative economic and social impacts on China since late 2008, including a considerable decline in GDP growth and a rapid rise in unemployment. Drawing on the published literature and official statistical data, this paper examines the social consequences of the Global Financial Crisis in China, explores various policy initiatives taken by the Chinese government and assesses the effectiveness of these policy initiatives. It argues that the Global Financial Crisis has led to high levels of enterprise bankruptcy and job losses in China. Rural migrant workers and new university graduates are the two social groups most adversely affected. The economic stimulus package and expanded social programmes tend to be short term and economic oriented. Whether the policy initiatives have been effective in mitigating the social impacts of this crisis and correcting the structural imbalance of China's economy is unclear. The paper concludes by suggesting that a new policy approach should be taken to timely and effectively address the negative social impacts of the Global Financial Crisis on China, in particular by providing a more inclusive and comprehensive social safety net, prioritizing employment generation, and addressing housing deficits.     

Social capital and children's wellbeing: a critical synthesis of the international social capital literature

Drawing on social capital literature from the international realm, this article presents a critical synthesis of this social resource in relation to children's and youth's wellbeing. Although considerable evidence indicates that social capital can have a positive impact on future outcomes for children and youth, no prior comprehensive review exists of the literature on social capital and children's wellbeing. Adopting the systematic review method (SR), the author explores how social capital has been conceptualised and operationalised as an explanatory variable in research on individual and collective wellbeing with children and youth. Oft-cited indicators of family social capital and community social capital are identified, together with common control variables, such as human and financial capital. The author concludes by examining several social capital trends in relation to children's wellbeing and offering recommendations for future research using a social capital theoretical framework to explore additional outcomes related to children's and youth's wellbeing.     

Decent work for sustainable development in post‐crisis Nepal: Social policy challenges and a way forward

Although the Decent Work agenda has received significant attention in the context of sustainable development, the formulation and implementation of appropriate social policies in developing countries remain an underexplored subject. This article responds to this gap and traces country‐specific Decent Work related policies and programs in Nepal—which is recovering from two major crises: a decade‐long armed conflict that ended in 2006 as well as the 2015 earthquake. Drawing on Critical Policy Analysis framework, this article examines how key tenets of the International Labour Organisation's Decent Work platform, namely creation and provision of employment, social protection, social dialogue and rights at work have manifested in Nepal. The findings indicate that while attempts have been made to embrace the Decent Work agenda into social policies and programs, structural instability of political processes means that there is a lack of strategic directions to address a capacity deficit specific to the informal sector and outbound labour migrants. The article makes broader analytical contributions towards evaluating the implementation of social policies driven by the global priority in the context of developing nations with weak governance settings. In countries like Nepal, where the majority of workers are located within the informal sector and as such the administrative reach and effectiveness of Decent Work related social policies designed for the formal sector are limited.     

Social capital and its relevance to the Japanese-model welfare society

Current debates and initiatives relating to the welfare regime in Japan focus on the contributions of informal and community networks. In this article, we adopt the concept of social capital, which is assessed according to three categories – structural social capital, experiential individual social capital and anticipatory individual social capital – in order to evaluate the assumptions and strengths of community in Japan. The findings are based on a small-scale survey conducted in the Greater Kobe area in 2002. The study revealed that the level of structural social capital is 'average' and the level of experiential individual social capital is 'rather low'. However, the anticipatory individual social capital, which is the expectation of future assistance whether conditional or unconditional, is higher than the experiential individual social capital. The findings suggest that, in Japan, people's belief that they will receive assistance in the future has a significant impact on their level of achievement. Such findings may help us understand the nature of the welfare regime in Japan: it depends on a sense of general trust, which effectively supports the informal groups and community networks that provide assistance to their members.     

Federalism and the politics of fiscal responsibility laws: Argentina and Brazil in comparative perspective

This article advances an institutionalist perspective to address a subset of issues that led to the relative success of Brazil and the absolute failure of Argentina in confronting the financial crisis of the late 1990s. It adds to the literature on the politics of fiscal federalism, documenting that fiscal crises prompt policy responses whose effects are mediated by institutional choice and the broader political dynamics and the incentives both generate. By analysing the adoption of fiscal responsibility laws in two federal polities that had been challenged by similar financial and territorially induced constraints, it tentatively shows that success in containing subnational fiscal profligacy, which has been causally related to the national overall financial weakness to confront the late 1990s crises, is contingent upon the internalisation of the value of fiscal responsibility by subnational administrations. These findings suggest that prevailing views on subnational actors as debt-ridden and passive spectators of fiscal policies for which national governments had taken full responsibility should be reconsidered. Given favourable institutional incentives, subnational interests are not necessarily incompatible with national programmes of fiscal adjustment and stability.     

Perpetuating the problem: neoliberalism,commonwealth public policy and housing affordability in Australia

This paper argues that the scale of the contemporary housing affordability crisis in Australia is at least partly attributable to the influence of neoliberal ideas over the past three decades. After providing an overview of the nature and scope of the crisis, the process by which housing as a policy problem has been reconceptualised by policy makers and others since the 1970s is examined. This is followed by analysis of the ways in which a number of commonwealth government policies which are ideationally underpinned by neoliberalism have amplified and perpetuated the problem of housing affordability in Australia and, ipso facto, prevented the issue from being addressed. The paper concludes by suggesting that policies which are ostensibly intended to improve housing affordability will continue to founder until the ideational obstacles which are the focus of this paper are recognised, and housing policy is reconceptualised along lines more conducive to the amelioration of the housing affordability problem. The paper seeks to extend the existing literature on housing affordability by explicitly identifying the linkages between neoliberal ideas, commonwealth public policy, and the extant problem of housing affordability in Australia.     

Macroprudential policy and the probability of a banking crisis

The ultimate purpose of macroprudential policy is to avoid financial instability, such as banking crises, which have a long-lasting and devastating effect on the economy. Although a growing number of studies have examined the effects of macroprudential policy on credit growth, few empirical studies have analyzed its effect on the probability of a banking crisis. Does macroprudential policy actually affect the probability of a banking crisis? Do other macroeconomic policies matter for the effectiveness of macroprudential policy? To answer these questions, this paper empirically investigates the effect of macroprudential policy on the probability of a banking crisis and its relationship with other macroeconomic policies. Specifically, using data on 65 countries from 2000 to 2016, we employ a probit model to analyze the effect of changes in the loan-to-value (LTV) ratio on crisis probability. Our results show that macroprudential policy is effective in changing the probability of a banking crisis via a credit channel and that its effectiveness depends on other macroeconomic policies. Changes in the LTV ratio are found to be effective in influencing the probability of a banking crisis in countries that have inflation targeting frameworks, floating exchange rate regimes, and/or no capital controls. Our results underscore the importance of policy coordination among different government bodies to design an appropriate macroprudential policy, especially in the current context of the Covid-19 crisis.     

The development of policy on international student welfare and the question of crisis response

The global market in international education has grown almost without interruption over several decades. Increases in international student enrolments in Australia have been among the most impressive in the world, though they declined between 2010 and 2013. The decline was attributable to exchange rate movements and changes to student visa regulations, though an additional factor lay in reputational fallout from a series of violent physical attacks on Indian students, mostly in 2009. In response, Australian federal and State governments undertook diplomatic trips to India, established a raft of public inquiries to investigate the broader question of international student welfare, and made policy changes. Utilising the literature on public policy “crises”, this paper presents government responses to the 2010–2013 downturn in terms of managing a “long‐shadow crisis” (Boin et al., The Politics of Crisis Management: Public Leadership Under Pressure; Cambrtidge University Press, 2005), which typically emerges quickly but has major political consequences, is only seen to be resolved incrementally, and calls for policy change rather than fine‐tuning in response. The adequacy of the policy response to the crisis is not discussed. The article suggests that the crisis and the response acted to elevate the status of international education as an area of policy in general, though not as a mainstream area of social policy.     

Social enterprise policy design: Constructing social enterprise in the UK and Korea

Taking the elusive definition of social enterprise as its starting point, this study seeks to understand the impact of government policies on the development of social enterprises in the national contexts of the UK and South Korea. The social construction of target populations is utilised as a theoretical framework in order to identify which factors influence government policy. A comparison of the two countries over a 14‐year period from 1997 to 2010 reveals that, despite very different contexts, governments in both countries have taken an instrumental approach to social enterprise. This tendency is more pronounced in Korea however, where government has limited the input of stakeholders and used an approval system to control access to the social enterprise name. The study concludes by recommending a more value‐oriented approach to social enterprise.     

Social policy and health: transition countries in a comparative perspective

T. Ferrarini, O. Sjöberg. Social policy and health: transition countries in a comparative perspective Int J Soc Welfare 2010: ??: ??–??© 2010 The Author(s), Journal compilation © 2010 Blackwell Publishing Ltd and International Journal of Social Welfare. This article analyses the development and design of unemployment insurance and family policy benefits and their links to health outcomes in Estonia, Poland, the Slovak Republic, Slovenia, the Czech Republic and Hungary from the mid‐1990s. Comparing these six transition countries with long‐standing welfare democracies reveals important similarities and differences in policy and health. Unemployment benefit schemes resemble corporatist schemes in important respects, however, with lower coverage and average benefits. Subjective wellbeing is also comparatively low among both employed and unemployed in the transition countries. Several transition countries have mixed family policy strategies that simultaneously support dual‐earner families and traditional gender roles. One clear exception is Slovenia, which has a highly developed dual‐earner support. Family policy generosity is related to lower rates of poverty, infant mortality and child injuries. The article demonstrates the fruitfulness of institutional analyses of the link between social policy and population health in a broader welfare state context.     

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.     

Getting back on track: the expanded use of PPPs in Ireland since the global financial crisis

The global financial crisis that took hold in late 2008 resulted in a major slowdown of activity in the global market for public-private partnerships (PPPs). Ireland was one of the countries most affected with over 20 major infrastructure PPP projects postponed or abandoned. Since 2012 however, the Irish government has adopted a number of initiatives to make PPP more attractive to bidders and private sources of finance. This paper describes these initiatives and shows that they have been associated with a renewal of PPP activity. It suggests that some of the adopted measures may involve trade-offs between encouraging PPP investment and achieving standard PPP objectives such as economic efficiency and better innovation. However, the attraction of public sources of finance from sources such as the European Investment Bank should result in a relatively lower cost of finance and enhance value for money if providers adopt rigorous risk management strategies.     

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.