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An Asian Welfare State Model? East and South Asian trajectories and approaches. Gabriele Köhler Development economist Conference on Re -Thinking Asia II “Building New Welfare States: What Asia and Europe can learn from each other” Protestant Academy Tutzing 28-29 October 2013 . - PowerPoint PPT Presentation
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An Asian Welfare State Model? East and South Asian
trajectories and approaches
Gabriele KöhlerDevelopment economist
Conference on Re-Thinking Asia II“Building New Welfare States:
What Asia and Europe can learn from each other” Protestant Academy Tutzing
28-29 October 2013
I.) Premises of the discussion• Growing social inequalities in Asia and Europe
– Despite commonly accepted fundamental values and ideals
• Need for a progressive counter-narrative to– Tackle social inequalities – Make social justice available to all – Reduce income inequality and unequal opportunities– What role do comprehensive social security systems play
• Hence: revisit the welfare state
Source: FES invitation
II.) Preliminariessocio-economic trends
Vulnerability, poverty, informality
South Afric
aBraz
il
Malaysia
Argentina
China
United St
ates
Russian
Federation
Philippines
Nigeria
Singa
pore
Thaila
nd
Sri La
nkaJap
anIndia
Indonesia
Greece
Bangladesh
Canada
United Kingd
om
South Korea
Lithuan
ia
Switz
erlan
d
Finlan
d
Australia
Germany
Norway
Austria
Denmark
Swed
en0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
63.6
56.4
49.2
48.3
46.9
46.4
45.1
44.5
43.7
42.5
42.0
40.2
37.6
36.8
34.3
34.0
33.4
32.4
32.0
31.6
30.9
30.9
30.3
29.3
27.0
25.6
25.0
24.0
23.0
High income inequalitiesGini coefficient
Asia-Pacific: people deprived
Source: Asia-Pacific Regional MDG report 2011/12 (ESCAP/ADB/UNDP)
III. Welfare state trajectories
Welfare state definitions
Two -three – four – five pillars1. Education2. Health access3. Social security and social
assistance 4. Active labour market policies5. Family policy - welfare services
9
Pillar I:Education Pillar II:
Health
Pillar III:Social security
Welfare state politics• Nation building• Demographic factors• Economic progress• Productivity enhancement• Economic compensation – anti-poverty • Enhancing the domestic market • Political co-optation of subordinated classes by elites• Guilt or security concerns of the elites• Political stability • Political pressure from trade union movements or “grassroots”• Socio-cultural values and changing welfare provision arrangements • Norms• Peer competition• Copycatting • ….
Social policy as a process driven by power relations
The North: welfare state history
• Germany Bismarckian reform: 1870s• US New Deal: 1930s• Japan interventionist welfare state: post WWII• UK: Keynes and Beveridge 1950s• Northern, Central Europe, Southern Europe
welfare states: since 1950s
The South: welfare state history
• Latin America in 1910-1920s– Uruguay, Argentina, Chile, Brazil, Costa Rica
• Sri Lanka 1930s• South Asia – Constitutions of 1940s/1950s
The South: recent developments
IV. Four types of welfare states?
“Developmental welfare state I”
Japan, Republic of Korea 1st phase, Taiwan PoC, Hong Kong SAR, Singapore, Malaysia• Social policy subordinate to
economic development• Low government spending•Means tested, frequently conditional
“Developmental welfare state II”
Korea:• New social contract after 1997 – democracy
and response to Asian financial crisis• National Basic Livelihood Security Act 1999:– right to social assistance– universalised – guaranteed social minimum
17
Program Name
BLT Unconditional Cash Transfer
(2008-09)
Raskin Rice for the Poor
Jamkesmas
Health Protection
BSM Scholarship for the Poor
PKH Conditional
Cash Transfer
TransferType Cash Subsidized
Rice Health
service fees waived
Cash Cash & Conditions
Targetgroup (HHs)
Poor & near poor HHs
Poor & near poor HHs
Poor & near poor HHs
Students from poor
HHsVery poor
HHs
Number of beneficiari
es 18.7 Mn HHs 17.5 Mn
HHs 18.2 Mn HHs 8 Mn Students 1.5 Mn HHs
Benefitlevel
IDR 100,000 per month
15 kg rice per month Unlimited IDR 480,000
per year IDR
1,287,000 per year
Key executing agency
Ministry of Social Affairs
(MoSA)
Bureau of Logistics (BULOG)
Ministry of Health (MoH)
MoNE & MoRA MoSA
Indonesia: recent social assistance programmes
18
o To raise the average food expenditure of poor households
o To increase school enrollment and attendance
o To improve preventive health care for pregnant women and young children
o To reduce child laboro To encourage parents to invest
in their children’s (and their own) human capital: health and nutrition, education, and participation in community activities
Philippines: conditional cash transfer
Geographical Targeting
Household Assessment (Enumeration)
Selection of Poor Beneficiaries using Proxy Means Test
Eligibility Check
Selection Procedures of Target Households
“Developmental welfare state II”
China: • Disconnect between urban and rural coverage• Selective social contract: Minimum Subsistence
Guarantee – for urban populations in 1999 – response to market
reforms– extended to rural populations in 2008– does not cover migrants
• Rural cooperative medical insurance scheme– universalised 2013
“Developmental welfare regime III”
South Asia: Bangladesh, India, Maldives, Nepal, Pakistan, Sri Lanka
• Norms-based• Strong social inclusion angle• Mixture of means-tested and universal• Rights-based• Justiciable (notionally)
Food-related measures
Social Assistance
Public works
Affirmative action
Human rights
•Cooked school meals (IND)•Subsidized PDS (IND, NPL, BGD)•Subsidized grain prices
•Universal old age pension (NPL)•Benazir Income Support Program (PAK)•Child benefit (NPL)•Unorganized sector health insurance (IND)
•National Rural Employment Guarantee (IND)•Employment Generation Programme for the Poorest (BGD)•Karnali Programme; Employment Guarantee Act (NPL)•Employment generation for rural unskilled workers (PAK)
•Secondary school stipend for girls (BGD)• Education for all (NPL)•Child grants for girls (IND)•Rural development and community based interventions (IND)
•Right to food/National Food Security Act (IND)•Mid-day meal (IND)•Right to education (all)•Right to health services (all)•Right to work (IND)•Right to information (IND, BGD, NPL)
Social protection panoramaSouth Asia
“Developmental welfare state IV”
Dismantling: Europe 2005 onwards• Partial deterioration of entitlements• Means testing reintroduced• Conditionalities
Examples:• Hartz IV in Germany• Child benefit in UK
V. Welfare expenditures
Japan
Republic
of Korea
China
Vietnam
Malaysi
a
Thail
and
Singa
pore
Sri La
nka
Philippines
Nepal
Bangla
desh
Indonesia
0
5
10
15
20
25
19.2
7.9
5.4 4.73.7 3.6 3.5 3.2 2.5 2.1 1.4 1.2
% o
f GDP
Total Social Protection Expenditure, as % of GDP
V. Propositions
Proposition I
Each country has a trajectory of a developmental welfare state, but its characteristics differ as a function of power politics– Some are purely instrumental for nation building,
growth, social appeasement– Others are progressive, as outcome of pressure
from formal sector trade unions, informal sector or rural cooperatives, women's movements, social or faith-based CSOs
Proposition II
Common perception: welfare states were invented in Europe
• In fact, types of welfare states existed in the South before the North– Latin America had welfare state elements in the
1910s– Sri Lanka– “Zeitgeist” for welfare states: see post-war
Europe, independent South Asia
PropositionIII
Convergence in Asia:• 1st new wave: East Asia post 1998 economic
crisis with new social policies• 2nd new wave: rights-based or notionally
universal welfare states South Asia, South Korea, Southeast Asia and China, since early 2000s
PropositionIV
Divergence South-North:• While “Asia” is moving towards nascent
universalist developmental welfare states (at modest level of coverage and benefit levels)
• Europe is moving towards a top-down welfare state (with remaining high coverage, but decreasing real entitlements, more conditionalities, and widespread public resentment)
Selected referencesAsian Development Bank, 2013. The Social Protection Index. Assessing Results for Asia
and the Pacific. ADB Manila.Köhler, Gabriele and Deepta Chopra, eds., 2014. Development and Welfare Policy in
South Asia. LondonMkandawire, Thandhika, ed., 2005. Social policy in a development context. UNRISD.
Geneva, LondonPierson, Chris 2005. Late industrializers and the development of the welfare state, in
Mkandawire, op. cit.Porsche-Ludwig, Markus 2013. Sozialpolitik in Asien. Ein Handbuch der Staaten Asiens
von A-Z. LitVerlag Berlin: W HopfRingen, Stein and Kinglun Ngok, 2013. What Kind of Welfare State is Emerging in China?
UNRISD working paper 2013. www.unrisd.orgRingen, Stein, Huck-ju Kwon et al, 2011. The Korean State and Social policy. Oxford: OUPUNRISD, 2010. Combating Poverty and Inequality. Structural Change, Social Policy and
Politics. GenevaWehr, I., Leubolt, B. and Schaffar, W. 2012. ‘Welfare regimes in the Global South: A short
introduction’, Austrian Journal of Development Studies, Welfare Regimes in the Global South, 28(1), pp. 6-13 .
Contact informationGabriele Köhler
Website: www.gabrielekoehler.netEmail: [email protected]
Development and Welfare Policy in South AsiaEdited by Gabriele Koehler and Deepta Chopra Routledge, February 2014http://www.taylorandfrancis.com/catalogs/environment_and_sustainability/1/2/