China Welfare SystemChina Welfare System

HistoryHistory

Maoist Period (1949-1978)Maoist Period (1949-1978) ““Iron Rice Bowl”-provided high level of economic Iron Rice Bowl”-provided high level of economic

security, mostly to urban dwellers via their work security, mostly to urban dwellers via their work units (danwei).units (danwei).

The Labor Insurance Regulations (1951)The Labor Insurance Regulations (1951) Provide in case of sickness, pregnancy, work Provide in case of sickness, pregnancy, work

injury, disability, death and old –ageinjury, disability, death and old –age

New Welfare ReformsNew Welfare Reforms

Promoting welfare reforms Promoting welfare reforms Old welfare system has grown too costly, because Old welfare system has grown too costly, because

state owned enterprises (SOEs), bore all cost of state owned enterprises (SOEs), bore all cost of housing construction, pensions, welfare homes, housing construction, pensions, welfare homes, maternity, work injury and medical expenses.maternity, work injury and medical expenses.

Shifting some welfare costs onto employees.Shifting some welfare costs onto employees. As a result unemployment has risen; temporary As a result unemployment has risen; temporary

contractscontracts

New Welfare Reforms cont…New Welfare Reforms cont…

Socio-economic changes made reform imperativeSocio-economic changes made reform imperative

1.1. Growth of private businessesGrowth of private businesses

2.2. Rapidly expanding elderly population, divorce Rapidly expanding elderly population, divorce rates, and one-child policyrates, and one-child policy

New provisions are housing, pensions, unemployment New provisions are housing, pensions, unemployment insurance, maternity and work injury coverage, insurance, maternity and work injury coverage, health care, social relief, community services and health care, social relief, community services and welfare homes.welfare homes.

HousingHousing

Public housing provided by city governments Public housing provided by city governments or state work units for urban dwellers.or state work units for urban dwellers.

Rents so low, incomes are not enough for basic Rents so low, incomes are not enough for basic repairs and construction.repairs and construction.

Housing deteriorated and housing shortage.Housing deteriorated and housing shortage. Tried to promote home ownershipTried to promote home ownership Increase incentives to buy homes for revenueIncrease incentives to buy homes for revenue Raise rent for revenueRaise rent for revenue

Pensions and Old-Age InsurancePensions and Old-Age Insurance

1986-reform designed 1986-reform designed to divide the burden to divide the burden among employees and among employees and enterprises.enterprises.

1.1. Gov’t set up insurance Gov’t set up insurance co. to administer co. to administer funds.funds.

2.2. Enterprises contribute Enterprises contribute % of total wage bill% of total wage bill

3.3. Individual acct. for Individual acct. for employees, who employees, who contribute %.contribute %.

Most workers are still Most workers are still receiving pension from receiving pension from old systemold system

Pensions cannot be Pensions cannot be transferredtransferred

Unemployment InsuranceUnemployment Insurance

Enterprises pay 1% of their total wage bill to a Enterprises pay 1% of their total wage bill to a fundfund

Employees who lose their jobs are paid 60% to Employees who lose their jobs are paid 60% to 80% of the “lowest wage standard” for up to a 80% of the “lowest wage standard” for up to a maximum of 24 months.maximum of 24 months.

Must register as unemployed and pay a feeMust register as unemployed and pay a fee Laid off workers do not qualifyLaid off workers do not qualify

Work Injury and Maternity Work Injury and Maternity InsuranceInsurance

1951-Labor Insurance 1951-Labor Insurance RegulationsRegulations

Public enterprises Public enterprises unable to fulfill unable to fulfill obligationsobligations

Pooling of contributions Pooling of contributions and setting up and setting up individual accountsindividual accounts

1988-90 days of 1988-90 days of maternity leavematernity leave

Employers pay for leave Employers pay for leave and hospital treatment.and hospital treatment.

Reduced employers’ Reduced employers’ willingness to hire willingness to hire women.women.

Health Care and Medical InsuranceHealth Care and Medical Insurance

Trial Reforms focused on pooling enterprise Trial Reforms focused on pooling enterprise contributions and creating individual contributions and creating individual employees accounts.employees accounts.

Example: Enterprises pay 10% of employee Example: Enterprises pay 10% of employee gross wage to a fund and 50% goes into an gross wage to a fund and 50% goes into an individual account in the worker’s name, individual account in the worker’s name, according to the age of workers.according to the age of workers.

Worker’s contribute 1% of total annual payWorker’s contribute 1% of total annual pay

Provisions for Disabled PeopleProvisions for Disabled People

State provided jobs for disabled persons who State provided jobs for disabled persons who were able to work. were able to work.

Government support focuses on encouraging Government support focuses on encouraging self-reliance by enabling them to work.self-reliance by enabling them to work.

Disabled people who cannot work depend on Disabled people who cannot work depend on families or “community-based” support families or “community-based” support services.services.

Social Relief and WelfareSocial Relief and Welfare

Targeted at people who had no work unit and Targeted at people who had no work unit and no family, no means of support.no family, no means of support.

Army veterans and families of servicemen Army veterans and families of servicemen who died while in service received some form who died while in service received some form of assistance.of assistance.

““Basic living guarantee system”-local gov’t set Basic living guarantee system”-local gov’t set up minimum income line and supplements the up minimum income line and supplements the incomes of those who fall beneath the lineincomes of those who fall beneath the line

Community ServiceCommunity Service

1986-Ministry of Civil Affairs1986-Ministry of Civil Affairs ““community services” initiative aimed at increasing community services” initiative aimed at increasing

the range of welfare facilities provided to urban the range of welfare facilities provided to urban dwellers.dwellers.

Formalized practices that were already in place under Formalized practices that were already in place under one unified local center.one unified local center.

Committees such as nursing homes, nurseries, clinics, Committees such as nursing homes, nurseries, clinics, and organized recreation, & household help.and organized recreation, & household help.

Welfare homes-for the elderly and orphansWelfare homes-for the elderly and orphans

JAPAN

The Social Service System of a

Nation

History The origin of social security in Japan models after the poor laws

in England. In Japan, an Equivalent law, Jyukkyu Kisoku, was introduced in 1874.

After WWII American forces demanded the Japanese government implement social security measures, which would assure a minimum level of economic social security, daily life security and public assistance.

The GHQ, introduced three basic principles: 1. nondiscrimination and equality 2. public assistance as a national responsibility 3. separation of the public and private sector

History continued Development of universal social security began after the end of

WWII.

The new Constitutional Law (1947) stated that all Japanese people have the right to enjoy the minimum standard of living and descent life.

Other Laws implemented include: The Government Council on Social Security (1950) Public Assistance Law (1950) Child Welfare Law (1947) Welfare Law for the Handicapped (1949) Social Service Law (1951)

Major programs

In the 1960’s the social security system aimed for “from selectivism to universalism” and “from relief to prevention.”

The major programs in Japan are: 1. Employee’s Pension Insurance 2. National Pension Insurance 3. Health Insurance 4. National Health Insurance 5. Health and Medical Services for the Aged 6. Employment Insurance 7. Workmen’s Accident Compensation Insurance 8. Public Assistance 9. Social Welfare and Child (Family) Allowance

The Breakdown of the System

The annual expenditure and revenue for social security can be classified into three major categories:

1. Medical Care

2. Pensions

3. Others (Welfare Services and Child Allowances)

Pension Plan The National Pension Law made self-employed persons, those

engaged in agriculture, and others with no previous access to social insurance policies eligible for national pensions

These pensions were of 3 types:

1. national pensions-for the self-employed

2. employees pensions

3. mutual aid pensions

In 1986 a 2-tier pension system was established whereby the entire population is eligible to receive national pension, to which employees’ pensions and mutual aid pensions are added for those people eligible

Medical/Health Insurance The second largest item of social security benefits is

medical insurance

The cost of medical services are shared by the central and local governments, social insurance premiums and patients’ fees

The Japanese health care system is divided into three systems:

1. Employees health insurance 2. Health insurance for the self-employed 3. Health services for the elderly

Personal Social ServicesThere are two relatively different fields in the

personal social services:

1. Social services for the elderly and the disabled

2. Family policy to support working women.

The “Golden Plan” for the elderly and the “Angel Plan” to support working women, were introduced as priority social policies towards the 21st century.

REFORMS IN JAPAN

DENMARKDENMARK

WhereWhere is Denmark?is Denmark?

Welfare Models used by Welfare Models used by European CountriesEuropean Countries

• Beveridge Model: offers social benefits only Beveridge Model: offers social benefits only to those in greatest needto those in greatest need

• Bismarck Model: offers assistance to those Bismarck Model: offers assistance to those who have been on the labor marketwho have been on the labor market

• Subsidiarity Model: social responsibilities Subsidiarity Model: social responsibilities are to be resolved within the family, or as are to be resolved within the family, or as close to the family as possibleclose to the family as possible

• Scandinavian Model: social benefits are the Scandinavian Model: social benefits are the same for everyonesame for everyone

Denmark & Scandinavian ModelDenmark & Scandinavian Model

• Benefits generally are given to all citizens, Benefits generally are given to all citizens, individually, who fulfill the conditions without individually, who fulfill the conditions without regard to employment or family situation. regard to employment or family situation.

• In areas of sickness and unemployment In areas of sickness and unemployment benefits may depend on former employment, benefits may depend on former employment, membership in trade unions, and payment of membership in trade unions, and payment of contributions.contributions.

• Largest share of financial burden is carried Largest share of financial burden is carried by the State and financed by TAXATION. by the State and financed by TAXATION.

History of Social Policy/WelfareHistory of Social Policy/Welfare

• Poor Relief Act of 1708 – organized parishes to provide relief Poor Relief Act of 1708 – organized parishes to provide relief for those incapable to workfor those incapable to work

• 1803 introduced a TAX to cover parish expenses.1803 introduced a TAX to cover parish expenses.

• Recipients of poor relief aid were not considered “citizens”Recipients of poor relief aid were not considered “citizens”

• an Act of 1856 established Fund for the Poor - relied on private an Act of 1856 established Fund for the Poor - relied on private donationsdonations

• Support in Old Age Act of 1891 - any citizens above 60 years Support in Old Age Act of 1891 - any citizens above 60 years old were given the status of “deserving poor”, also a revision old were given the status of “deserving poor”, also a revision in the Poor Relief law which insured citizens public aid for in the Poor Relief law which insured citizens public aid for medical care, midwifery services and burial. medical care, midwifery services and burial.

• Health Insurance Societies Act of 1892 – introduced private insurance with state subsidyHealth Insurance Societies Act of 1892 – introduced private insurance with state subsidy

• Insurance against Accident Act of 1898Insurance against Accident Act of 1898

• 1907 – State allowed citizens receiving unemployment benefits to retain civil rights1907 – State allowed citizens receiving unemployment benefits to retain civil rights

• Disablement Benefits Act of 1921 – ensured the disabled received help and the ability to Disablement Benefits Act of 1921 – ensured the disabled received help and the ability to retain civil rightsretain civil rights

• Social Reform Act of 1933 – established that any financial aid assistance would not result Social Reform Act of 1933 – established that any financial aid assistance would not result in the limitations of civil rights for all citizens in the limitations of civil rights for all citizens

• Public Assistance Act of 1961 reaffirmed the rights of citizens receiving assistance Public Assistance Act of 1961 reaffirmed the rights of citizens receiving assistance

• Acts continued to be developed in the welfare state to cover special needs of citizensActs continued to be developed in the welfare state to cover special needs of citizens1950 – deaf 1956 – blind 1959 – mentally deficient1950 – deaf 1956 – blind 1959 – mentally deficient

• In 1956 sick pay scheme was established with the labor marketIn 1956 sick pay scheme was established with the labor market

• 1n 1958 arrangements for home help were established 1n 1958 arrangements for home help were established

• National Pensions and Disablement Pensions Act of 1956 – National Pensions and Disablement Pensions Act of 1956 – every citizen had right to a pension regardless of capital and every citizen had right to a pension regardless of capital and income (independent of former employment or income)income (independent of former employment or income)

• 1964 – the Supplementary Pension Fund was introduced for 1964 – the Supplementary Pension Fund was introduced for employee contributions.employee contributions.

• 1973 – health insurance program was introduced, funded from 1973 – health insurance program was introduced, funded from TAXATIONTAXATION

• Social Assistance Act of 1976 – gave the local authorities the Social Assistance Act of 1976 – gave the local authorities the responsibility of dealing with the social needs of all citizens responsibility of dealing with the social needs of all citizens

• 1979 - anticipatory pension scheme introduced to allow 60-66 1979 - anticipatory pension scheme introduced to allow 60-66 year old members of an unemployment benefit scheme to retire year old members of an unemployment benefit scheme to retire early.early.

Who is responsible for Denmark’s Who is responsible for Denmark’s Welfare Systems?Welfare Systems?

• State – supreme responsibility for social legislation and planningState – supreme responsibility for social legislation and planning

• Local authorities – responsible for the administration of the welfare programs Local authorities – responsible for the administration of the welfare programs for citizensfor citizens

Exceptions:Exceptions: - hospitals which are administered by counties- hospitals which are administered by counties - daily cash benefits which are administered by unemployment - daily cash benefits which are administered by unemployment agenciesagencies

- compensation for workplace injuries which are administered by - compensation for workplace injuries which are administered by insurance societies and the Agency for Injuries in the Workplaceinsurance societies and the Agency for Injuries in the Workplace

• Only a small amount of social benefits are based on employers contributions or Only a small amount of social benefits are based on employers contributions or direct contributions of the insureddirect contributions of the insured

• ¾ of monies for social welfare systems are financed by the State through ¾ of monies for social welfare systems are financed by the State through TAXESTAXES

Unemployment BenefitsUnemployment Benefits

• Unemployment benefitsUnemployment benefits - minimum of a year’s membership in an - minimum of a year’s membership in an

unemployment insurance fund unemployment insurance fund

- minimum of 52 weeks work within the last - minimum of 52 weeks work within the last three years three years

- limit to receive benefits is 5 years- limit to receive benefits is 5 years

- recipients of cash benefits must receive - recipients of cash benefits must receive job job training and education training and education

Elder BenefitsElder Benefits• Anticipatory Pensions – enables older citizens to retire early to stimulate Anticipatory Pensions – enables older citizens to retire early to stimulate

employment for younger citizens. To qualify:employment for younger citizens. To qualify:- 60 – 66 years old- 60 – 66 years old- pay a monthly anticipatory pension contribution together - pay a monthly anticipatory pension contribution together with their unemployment fund contribution for at least 25 yearswith their unemployment fund contribution for at least 25 years

• National Pension – available to citizens 67 years and above, financed by National Pension – available to citizens 67 years and above, financed by TAXATION and independent of former incomeTAXATION and independent of former income

• The retirement age for the public sector is 70 years old.The retirement age for the public sector is 70 years old. It will be lowered on July 1, 2004 to 65.It will be lowered on July 1, 2004 to 65.

• Contractual pension arrangements and supplementary private pensions are Contractual pension arrangements and supplementary private pensions are also available for citizens.also available for citizens.

• Other ways Benefits are supplemented are through personal supplements, Other ways Benefits are supplemented are through personal supplements, heating supplements, and monies given for prescription medicines. They also heating supplements, and monies given for prescription medicines. They also can be given housing assistance. can be given housing assistance.

Disability BenefitsDisability Benefits

• Early Retirement Pension –available for citizens between 18 – Early Retirement Pension –available for citizens between 18 – 67 years whose ability to work has been permanently reduced 67 years whose ability to work has been permanently reduced by 50% (physically or mentally)by 50% (physically or mentally)

• The degree of disability determines the amount of benefits The degree of disability determines the amount of benefits given to citizensgiven to citizens

• Assistance is given for the disabled to stay in their own homes, Assistance is given for the disabled to stay in their own homes, and the necessary aids are placed at their disposal (i.e. and the necessary aids are placed at their disposal (i.e. wheelchairs, walkers). Expenses are given to equip the home wheelchairs, walkers). Expenses are given to equip the home to be disabled friendly.to be disabled friendly.

• The local authority is responsible for rehabilitation, retraining The local authority is responsible for rehabilitation, retraining and offers of employment.and offers of employment.

Health BenefitsHealth Benefits• Sickness Benefit – relief for citizens actively employed who Sickness Benefit – relief for citizens actively employed who

suffer a loss of income due to illness or injurysuffer a loss of income due to illness or injury

• Denmark’s Health Insurance –Denmark’s Health Insurance –

- 100% of expenses covered for general and specialist - 100% of expenses covered for general and specialist medical care medical care

- partial expenses for dentists, chiropractors, and - partial expenses for dentists, chiropractors, and medicine. medicine.

- hospital treatment is FREE - hospital treatment is FREE

- Home nursing care for patients is FREE- Home nursing care for patients is FREE

- Local authority dental care for children and young - Local authority dental care for children and young adolescents is FREE adolescents is FREE

Family BenefitsFamily Benefits• Maternity leave – all women for 4 weeks before the birth to 14 weeks afterMaternity leave – all women for 4 weeks before the birth to 14 weeks after

- Father receives 2 weeks leave - Father receives 2 weeks leave

- An additional 10 weeks for father and mother to share- An additional 10 weeks for father and mother to share

• Family Allowances – regular, tax-free amount per childFamily Allowances – regular, tax-free amount per child

• Child Allowances – regular, tax-free amount per child for single parentsChild Allowances – regular, tax-free amount per child for single parents

• Home Help – provided for families with children who may not be able to manage the household Home Help – provided for families with children who may not be able to manage the household due to illness, or other issues.due to illness, or other issues.

• Families living in rented housing can receive a housing benefit if they qualify.Families living in rented housing can receive a housing benefit if they qualify.

• Day-care institutions are publicly supported (includes nursery schools, after-school programs)Day-care institutions are publicly supported (includes nursery schools, after-school programs)

• Parents are only required to contribute 30% to the cost of child day-care institutions. If Parents are only required to contribute 30% to the cost of child day-care institutions. If financially they are unable to, these services are FREE.financially they are unable to, these services are FREE.

EducationEducation

• Basic schooling in Demark has a nine-year duration for Basic schooling in Demark has a nine-year duration for completion with an optional tenth year.completion with an optional tenth year.

• Schooling publicly is Free. Private school expenses are Schooling publicly is Free. Private school expenses are covered by the state by 85%.covered by the state by 85%.

• There are no examinations to move from one class to the next, There are no examinations to move from one class to the next, examinations are optional in the ninth or tenth year.examinations are optional in the ninth or tenth year.

• After Basic schooling- 2/3 of students go to practical training in After Basic schooling- 2/3 of students go to practical training in trades or commerce; 1/3 go to basic secondary schooling, after trades or commerce; 1/3 go to basic secondary schooling, after secondary schooling they may elect to go to college.secondary schooling they may elect to go to college.

• Denmark has five universities dating from 1479 – 1974. Denmark has five universities dating from 1479 – 1974. Education at these universities are FREE.Education at these universities are FREE.

Problems with Denmark’s Welfare Problems with Denmark’s Welfare StateState• Present welfare systems were developed during prosperous times Present welfare systems were developed during prosperous times

with high economic growth and low unemployment. It was never with high economic growth and low unemployment. It was never intended for so many citizens to be dependent on the system and intended for so many citizens to be dependent on the system and receive benefits for so long.receive benefits for so long.

• Financing of the Welfare System is a HUGE problem, TAXES cannot be Financing of the Welfare System is a HUGE problem, TAXES cannot be increased because they are already up to 50%.increased because they are already up to 50%.

• Denmark has accrued a vary large national debt which in the long run Denmark has accrued a vary large national debt which in the long run could hurt the welfare system.could hurt the welfare system.

• Denmark’s population is aging FAST and as a result Denmark will lose Denmark’s population is aging FAST and as a result Denmark will lose a majority of its work force. This will be a challenge for the welfare a majority of its work force. This will be a challenge for the welfare system which is based on the taxes of those engaged in active system which is based on the taxes of those engaged in active employment.employment.

International Social WelfareInternational Social WelfareFranceFrance

FranceFrance

Historical PerspectiveHistorical Perspective

1919thth Century France Century France

Individualistic thinking and promoting Individualistic thinking and promoting agricultureagriculture

No public assistance, Only charitable No public assistance, Only charitable reliefrelief

Influenced by British Social LegislationInfluenced by British Social Legislation

Social Insurance Legislation enacted in Social Insurance Legislation enacted in 19281928

Social ProtectionSocial Protection

Principle of Principle of national solidaritynational solidaritySocial well-being of Social well-being of citizenscitizensAlmost everyone in Almost everyone in France covered by France covered by Social security Social security systemsystemCompulsory Compulsory deductionsdeductions

Healthcare In FranceHealthcare In France

Services for Services for disabled are freedisabled are free

Principle of Principle of liberal medicineliberal medicine

Healthcare Healthcare reformsreforms

Links between Links between hospitals and hospitals and medical schoolsmedical schools

European and U.S. WelfareEuropean and U.S. Welfare

Concerned with the Concerned with the social well-being of social well-being of all citizens within all citizens within their society = their society = FranceFrance

Considered a safety Considered a safety net for those not net for those not employed in the employed in the mainstream mainstream economy. = United economy. = United StatesStates

Social Workers In FranceSocial Workers In France

Family social worker Family social worker (Assistante sociale)(Assistante sociale)

The Homemaker The Homemaker (Travailleuse familiale)(Travailleuse familiale)

Community Worker Community Worker (Animateur socioculturel)(Animateur socioculturel)

Current Social Policy in FranceCurrent Social Policy in France