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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.

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Presentation on theme: "An Asian Welfare State Model? East and South Asian trajectories and approaches Gabriele Köhler Development economist Conference on Re-Thinking Asia II."— Presentation transcript:

1 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 October 2013

2 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

3 II.) Preliminaries socio-economic trends

4 Vulnerability, poverty, informality

5

6 Asia-Pacific: people deprived Source: Asia-Pacific Regional MDG report 2011/12 (ESCAP/ADB/UNDP)

7 III. Welfare state trajectories

8 Welfare state definitions Two -three – four – five pillars 1.Education 2.Health access 3.Social security and social assistance 4.Active labour market policies 5.Family policy - welfare services

9 A welfare state model Social Insurance, including health insurance Social assi- stance Labour market policies Forms of micro credit, micro insurance, area-based schemes Child protection services/tra nsfers 9 Pillar I: Education Pillar I: Education Pillar II: Health Pillar II: Health Pillar III: Social security Pillar III: Social security

10 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

11 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

12 The South: welfare state history Latin America in s – Uruguay, Argentina, Chile, Brazil, Costa Rica Sri Lanka 1930s South Asia – Constitutions of 1940s/1950s

13 The South: recent developments

14 IV. Four types of welfare states?

15 “Developmental welfare state I” Japan, Republic of Korea 1 st phase, Taiwan PoC, Hong Kong SAR, Singapore, Malaysia Social policy subordinate to economic development Low government spending Means tested, frequently conditional

16 “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 17 Program Name BLT Unconditional Cash Transfer ( ) Raskin Rice for the Poor Jamkesmas Health Protection BSM Scholarship for the Poor PKH Conditional Cash Transfer Transfer Type Cash Subsidized Rice Health service fees waived Cash Cash & Conditions Target group (HHs) Poor & near poor HHs Students from poor HHs Very 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 Benefit level 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 labor o 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 18

19 “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

20 “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)

21 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 panorama South Asia Social protection panorama South Asia

22 “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

23 V. Welfare expenditures

24 Total Social Protection Expenditure, as % of GDP

25

26 V. Propositions

27 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

28 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

29 Proposition III Convergence in Asia: 1 st new wave: East Asia post 1998 economic crisis with new social policies 2 nd new wave: rights-based or notionally universal welfare states South Asia, South Korea, Southeast Asia and China, since early 2000s

30 Proposition IV 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)

31 Selected references Asian Development Bank, The Social Protection Index. Assessing Results for Asia and the Pacific. ADB Manila. Köhler, Gabriele and Deepta Chopra, eds., Development and Welfare Policy in South Asia. London Mkandawire, Thandhika, ed., Social policy in a development context. UNRISD. Geneva, London Pierson, Chris Late industrializers and the development of the welfare state, in Mkandawire, op. cit. Porsche-Ludwig, Markus Sozialpolitik in Asien. Ein Handbuch der Staaten Asiens von A-Z. LitVerlag Berlin: W Hopf Ringen, Stein and Kinglun Ngok, What Kind of Welfare State is Emerging in China? UNRISD working paper Ringen, Stein, Huck-ju Kwon et al, The Korean State and Social policy. Oxford: OUP UNRISD, Combating Poverty and Inequality. Structural Change, Social Policy and Politics. Geneva Wehr, I., Leubolt, B. and Schaffar, W ‘Welfare regimes in the Global South: A short introduction’, Austrian Journal of Development Studies, Welfare Regimes in the Global South, 28(1), pp

32 Contact information Gabriele Köhler Website: Development and Welfare Policy in South Asia Edited by Gabriele Koehler and Deepta ChopraGabriele KoehlerDeepta Chopra Routledge, February stainability/1/2/ Website: Development and Welfare Policy in South Asia Edited by Gabriele Koehler and Deepta ChopraGabriele KoehlerDeepta Chopra Routledge, February stainability/1/2/


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