Financial crisis and the developmental states: A case study of Hong Kong

Studies taking a mediation perspective have highlighted how the actual impact of economic globalisation is mediated by institutions that include welfare regimes. Some have examined how the welfare systems of East Asian developmental states have changed and adapted since the Asian financial crisis of 1997/1998. Using Hong Kong as a case study, this article examines how the developmental state of Hong Kong mediated the impact of the global financial crisis of 2008, particularly on disadvantaged groups. Hong Kong's welfare regime has provided insufficient support to ‘non‐productive’ groups despite incidents of social crisis. The government's welfare responses have been characterised by long‐term strategies to improve the competitiveness of the economy, and short‐term measures to boost the spending power of the general public. Measures targeted at disadvantaged groups have been piecemeal and minimal. The government's approach towards crisis management after 2008 has been similar to that taken after the 1997/1998 financial crisis.     

Credit access,macroprudential rules and policy interventions: Lessons for potential first time buyers

Given the increased popularity of macroprudential measures in the aftermath of the great financial crisis (GFC), a key policy question to arise in certain mortgage markets is whether a significant access to credit issue exists amongst prospective homeowners because of these new policies. In this paper we assess whether such a problem arises in the context of the Irish mortgage market – a market particularly adversely impacted by the GFC. We use a microsimulation model to estimate the level of latent credit demand that could be serviced by the market given prudent credit risk assessment and the current macroprudential regulations. We then compare this demand to current market provision to explore whether a credit gap exists. Finally, we simulate how a public mortgage credit scheme or equity “help-to-buy” type instrument may help credit access. We find both instruments to be effective but would lead to somewhat higher house prices.     

Impact of Social Service Expenditures on the Suicide Rate: The Cases of Asia Countries

An empirical study reported that the economic crisis in European countries affected their suicide rates and described that an increase in social services expenditures of US$10 per person in labor market programs impacted the decrease in unemployment suicides by 0.038%. However, there has no study that the economic crisis in Asia countries affected their suicide rates. Since 2008, South Korea has been ranked first for suicide rate in the OECD countries. Many studies have blamed the economic crisis that followed from the US financial crisis in 2007 as the critical cause. However, in the case of Japan, the suicide rate decreased in the same time period (2008–2011) even though they faced the same financial crisis. The purpose of this study was to examine why the different situations in Korea and Japan occurred with the economic crisis through testing whether the government’s social service expenditure affects the people’s suicide rate in Asia countries. These efforts will contribute to understanding the critical role of social service.     

Social capital and the impact of the recent economic crisis: Comparing the effects of economic and fiscal policy developments

In this contribution, we offer an analysis that evaluates the impact of the recent financial and economic crisis on social capital. An economic crisis offers a unique chance to study people's associational lives, volunteering, network-making, and trust-building under duress. Theoretical perspectives on the relationship between social capital and economic development emphasize a reciprocal relationship between the two. Therefore, we hypothesize that if economic performance is compromised, this might lead to an erosion of social capital. More importantly, however, we also argue that states can actively intervene by means of fiscal policy measures. We will illustrate our approach by comparing 29 Organisation for Economic Co-operation and Development countries before and after the crisis. Using qualitative comparative analysis, we demonstrate that imperatives related to fiscal policy stimuli provide leverage on social capital development.     

南宁市应对金融危机的策略选择

金融危机正在对全球实体经济产生严重损害,世界经济增长动力减弱、复苏乏力。在经济全球化的背景下,中国经济虽然在短期内所受影响较小,但在未来中长期内其发展形势依然严峻。作为中国宏观经济的一部分,在金融危机的挑战下,积极深化改革,尽快实现经济增长方式的转变将是南宁市应对危机、实现经济稳定快速发展的必然选择。     

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.     

The social and economic impacts of drought

Although the environmental and economic impacts of drought have been widely studied, few large‐scale studies have examined the broader social impacts of drought. To fill this knowledge gap, the Australian Institute of Family Studies undertook the Regional and Rural Families Survey in 2007, when a significant part of Australia was experiencing a severe drought. This paper analyses that survey to measure the extent to which drought affects a range of economic, health and social outcomes. Drought is found to have a substantial negative economic and health impact on farmers and others employed in the agricultural sector. There is some evidence that groups that are not employed in agriculture are adversely affected, with a widespread loss of services in drought‐affected areas and some marginal labour market groups (e.g. carers) experiencing poor employment outcomes in a drought‐affected local economy. Policymakers need to take these impacts into account in designing effective responses to future droughts.     

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.     

From reform to crisis: Argentina's pension system

Argentina underwent economic and social collapse in December 2001. The crisis brought the worst socioeconomic indicators in its history, and the pension system was not immune from this disaster, which was unparalleled in any middle-income developing country. In 1994 the pension system had been restructured, and was regarded as a viable model for other reforms elsewhere. This article discusses in general terms the features of the current pension scheme, the structural problems that were not resolved in the reform of 1994, the relation between that reform and the government's financial crisis, and the impact of the economic collapse on the pension system. Finally, it discusses some aspects of the challenges faced in building a system that is financially viable and has the potential to close the major gaps in coverage affecting both the working population and older persons.     

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?     

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.     

Social protection as a mechanism for family protection in sub‐Saharan Africa1

Mokomane Z. Social protection as a mechanism for family protection in sub‐Saharan Africa In sub‐Saharan Africa (SSA), the extended family has for generations been the basis for the sustenance of society, offering material, social, emotional and care‐giving support for its members in times of need and crisis. Over the years, however, this institution has been affected by demographic and socio‐economic transformations that have continued to take place in the region. This article illustrates how these changes have contributed to family circumstances that are characterised by economic fragility, debilitating poverty and weakened family support for household chores and care‐giving responsibilities. The article argues that the development and provision of more comprehensive social protection policies and programmes in SSA can help mitigate the impact of the changes on families and their members.     

印度积极应对世界金融风暴的挑战

本文联系印度经济近几年高速增长和国民经济结构不平衡的背景,探讨当前世界金融风暴对印度经济影响的程度,着重分析印度抵御世界金融风暴冲击的政策措施。     

Transmission mechanisms of financial stress into economic activity in Turkey

Measuring, analyzing and understanding systemic risk in financial system have become very important in the light of the recent global crisis. In this study, we follow Holló, Kremer, and Lo Duca (2012) and evaluate systemic stress of financial system of Turkey with a high frequency (daily) financial stress index which consists of daily 13 financial market indicators. Dynamics of the financial stress index indicate that the index creates proper signals to the well-known financial stress events. The dynamic interaction between financial stress and real economic activity is investigated with application of structural VAR (SVAR) model. Results of the study suggest that deterioration of financial conditions impacts real economic activity significantly and adversely.     

金融危机对劳动者权益的影响及保护对策

世界性金融危机对我国经济产生了巨大冲击，经济下滑，企业倒闭、裁员、欠薪、断保甚至雇主欠薪逃匿等问题不断发生。在我国社会保障体制尚不完善的情况下，金融危机对劳动者权益的影响远胜于对企业的影响。在危机应对中，保护劳动者合法权益，关系到我国劳动关系能否和谐稳定的终极目标的实现。一方面要依据国家统一立法，贯彻劳动法倾斜保护的基本原则；另一方面，应当积极推进劳资协商对话机制，使之成为我国劳动者权益保护的主流模式。     

The Korean welfare state: a paradox of expansion in an era of globalisation and economic crisis

When the Asian financial crisis took a heavy toll on Korea in the late 1990s, policy makers responded by extending welfare policy. For many analysts, this was a paradoxical move, marking a fundamental reconfiguration of the social policy system. This article contests that interpretation. It examines the changes made to Korean social policy in recent years, and considers their impact on the Korean welfare state. It notes both that welfare extensions have been comparatively limited, and that they have often formed part of wider attempts to boost labour market flexibility. It thus concludes that limited expansion of the Korean welfare state is chiefly an attempt to bolster industrial competitiveness and economic growth. For now, Korea retains the productivist social policy orientation that has long characterised it. It also concedes, however, that in the future underlying social change, notably a rapidly ageing population, may prompt policy makers to make significant changes to the Korean welfare state.     

Pax Rossica: The History of the Eurasianist Movement and the Fate of the Eurasianists

The radical changes that are taking place in the country, and which have led to a total crisis both in the political and the economic and social spheres, have affected all segments and groups of the population—men and women, rich and poor, old people and children, and those engaged in physical and mental work.     

Recommendations for Long-Term and Short-Term Social Policy Measures

The results of comprehensive analysis of income dynamics and the development of measures to provide social support of the population in various stages of the economic cycle enable the authors to formulate recommendations for measures to regulate incomes and social support of the population, which are divided into priority and long-term measures. The priority measures are seen as a policy tool in crisis conditions and are aimed at achieving two goals: (1) overcoming the negative consequences of the crisis, and (2) using the crisis stage for actions that are unlikely to be taken in conditions of economic growth.     

Citizens' attitudes towards economic insecurity and government after the 2007 financial tsunami: A Hong Kong and Taiwan comparison

Wang KY‐T, Wong C‐k, Tang K‐L. Citizens' attitudes towards economic insecurity and government after the 2007 financial tsunami: A Hong Kong and Taiwan comparison The purpose of this study was to investigate people's attitudes to economic insecurity and government in Hong Kong and Taiwan after the financial tsunami of 2007. Random sampling telephone surveys were conducted in July 2009. These are the main conclusions: First, the most vulnerable groups hurt by the financial crisis were low‐income families and people who had lost their job or were afraid of losing it. This implies that the old policy issue of social stratification and the emerging policy issue of employment insecurity coexisted during the financial crisis. Second, personal experiences of economic insecurity had an influence on people's perceptions of the severity of the economic crisis at the societal level. Third, citizens had ambivalent feelings about public interventions during the crisis. Fourth, there were both convergence and divergence between Hong Kong and Taiwan with regard to attitudes to particular issues. The policy implications of these findings are discussed in the final section of this article.     

Changes of Electoral Politics under the Growing Wealth Gap in East Asia since the Global Financial Crisis: South Korea and China’s Taiwan in Comparison

Abstract

The economic recession caused by the global financial crisis of 2008 affected political change across the world in different ways. Economic and social problems turned into political crises in North Africa. In Europe and America, dissatisfaction over such problems caused social unrest but did not imperil the political order. In East Asia, where competitive party politics have just emerged, the financial crisis sparked a correlative political and economic reaction model involving economic recession—growing wealth gap—public policy transition in electoral politics. Major electoral campaigns over the past five years in China’s Taiwan, the Republic of Korea and other economies in East Asia indicate that prioritizing economic growth and equitable distribution are emerging to be common core issues in different parties’ electoral competition despite remnant historical questions and highly politicized issues. The new electoral politics based on public policy competition has gained greater space for development against the background of an economic recession and a growing wealth gap, and is exerting a profound influence on the political and economic development process in East Asia.