• Title/Summary/Keyword: Social Welfare Reforms

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The Impact of Income Inequality on Economic Growth: Empirical Evidence from Vietnam

  • HIEN, Luong Quang
    • The Journal of Asian Finance, Economics and Business
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    • v.9 no.2
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    • pp.305-312
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    • 2022
  • Each country's economic progress creates opportunities for its citizens to raise their income. Meanwhile, the country has secured the people's social security policies, particularly the protection of income equality, to promote harmonious and sustained economic development. Vietnam has been located in a dynamic economic development area in Southeast Asia since the 1986 economic reforms, with an annual growth rate of around 7%. Meanwhile, having achieved a middle-income status of roughly 3500 USD per person per year, Vietnam is attempting to maintain income equality and access to welfare systems for its inhabitants. As a result, the primary goal of this study is to use an autoregressive distributed lagged model to investigate the effects of income inequality and other economic factors such as foreign direct investment and trade openness on Vietnam's economic growth from 1992 to 2019. The research focuses attention on literature on income inequality, economic development indicators, and economic development in unique ways in this study. Income inequality slows the rate of change in economic development in the same year, according to our findings. Finally, the study will make policy suggestions to the Vietnamese government.

Social Welfare Policy Expansion and Generational Equity: Generational Accounting Approach (복지지출 확대가 세대 간 형평성에 미치는 효과 분석: 세대 간 회계를 이용한 접근)

  • Chun, Young Jun
    • KDI Journal of Economic Policy
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    • v.34 no.3
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    • pp.31-65
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    • 2012
  • We study the sustainability of the current fiscal policy of Korea, and the effects of the social welfare policy expansion, which has been recently discussed among the political circles, on the government budget and the generational equity, using generational accounting. We follow the generational accounting approach, considering the fact that most of the social welfare policies are the entitlement programs, which imposes the limitation of the policy maker's discretion to control the cost of their provision. The social welfare expenditure will change due to the change in the policy environments of the future, such as population aging. Therefore, we need to take into account the government cash flow of the future as well as of the present to investigate its effects on the fiscal sustainability, which implies that the national debt or the budget balance is not a proper index for the investigation. Our findings are as follows. The current fiscal policies are not sustainable, and the long-term budgetary imbalance is shown very serious. The required tax adjustment, which is defined as the percentage change of tax burden required to attain the long-term budgetary balance, is very large. Unless the level of the government expenditure is properly controlled, the tax burden and the social contribution level will rise to the untolerable level. Moreover, the expansion of the social welfare policies, which has been discussed among the political circles, will substantially increase the fiscal burden of the future generations. Even though the provision of the free lunch to the primary and the secondary school students, the free child care, and the discounted college tuition do not increase the fiscal burden much, because their magnitude at present is not large and will decrease due to the decrease in the number of the newborns and the students resulting from the fall in the fertility rate, that of the free health care service will increase tax burden of the future generations very much, because the magnitude of the government expenditure needed at present is very large and the population aging will further increase the magnitude of the health care expenditure. The findings indicate that the structural reforms, to prevent the explosive increase in the social welfare expenditure in the future, are necessary before the implementation of the welfare policy expansion. In particular, the cost control of the social transfers to the elderly needs to be made, because the speed of the population aging of Korea is among the highest in the world. The findings also indicate that the budget balance or the national debt can cause the fiscal illusion, which makes the Korean government budget look sound, even though the fiscal policy will rapidly increase the social welfare expenditure in the future, as the population ages. The generational accounting, which takes into account the cash flow of the future as well as of the present, unlike the budgetary balance and the national debt, which shows the results of the government financial activities of the past and the present, is a useful method to overcome the fiscal illusion.

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Lone Parent Families and Poverty: Policy Changes in Britain. (한부모 가족과 빈곤: 영국에서의 정책변화)

  • Kang, Wook-Mo
    • Korean Journal of Social Welfare
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    • v.56 no.1
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    • pp.127-153
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    • 2004
  • In the absence of a male provider the state must decide how far and under what conditions it will provide for the mother and her children. In the case of lone mothers, there are three main possible sources of income: the labour market, the absent father, and the state. However, the relative proportions of these three sources vary significantly from country to country as well as from individual to individual within the group of lone parents. Until very recently the UK has been alone among countries of the EU in allowing lone parents to draw benefits without making themselves available for work so long as they have dependent children. However, in the 1990s, the UK government introduced major changes to his policies regarding lone parents. The UK government attempted to restrict the role of the state as a source of income for lone parent families. At the beginning of the 1990s, the emphasis in the UK was put on securing more money from 'absent fathers' to maintain. However, the policy was unsuccessful and by the mid-1990s attention to the only other possible source of income for lone parent families, the labour market, was stepped up, notwithstanding the ambivalence of politicians about the desirability of women with young children entering employment. From 1998 the Labour government introduced a series of reforms aimed at reducing both worklessness and poverty by raising welfare payments to families both in and out of work, improving financial incentives to work and introducing a more proactive welfare system. The results presented here suggest that these policies have raised the employment rates of lone parents by around 5 percentage points, or 80,000. These employment gains have come from a welfare reform package that does not require lone parents to search for jobs, or uses time limits in welfare programmes. In addition these gains have been achieved despite generous increases in welfare payments for lone parents who do not work. These earnings gains combined with the more generous welfare are making rapid progress in reducing lone parents' poverty.

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Old-Age Income Security System in Korea from the Pension Regime Perspective (연금 체제(Pension regime) 측면에서 본 한국 노후 소득보장 체계 - 갈림길에 선 한국 연금 체계 -)

  • Jung, Chang-Lyul
    • Korean Journal of Social Welfare
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    • v.62 no.2
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    • pp.329-348
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    • 2010
  • Following the welfare state typology well known, the typology in terms of individual system in welfare state has been widely examined and, pension which is the biggest and most important in welfare state has been classified into Beveridge and Bismarckian types based on their pension system design. Such typology focused on benefit type or size of private pension has been recently refined to add a new type - 'Bismarckian Lite' type - in addition to traditional Beveridge and Bismarckian types. Whereas the pension reforms in the developed countries has been changes within their pension regimes, the Korean pension reform in 2007 seems to have changed the existing social insurance type into the 'Bismarckian Lite' type. However, considering the immaturity of Korean pension regime, it is difficult to conclude the existing status of the Korean pension regime and, the Korean one can be classified into a multi-pillar one. Over the last decades the developed countries have increased the size of private pension regardless of their original pension regimes, which tends to converge into multi-pillar schemes. Accordingly, there is recently a new typology focused on the degree of regulation in terms of private pensions, which seems to be the better perspective. It will be more important how to regulate the (immature) occupational pension as well as the National Pension in Korea. Considering that old age income security in countries where the public regulation regarding private pension was absent has been deteriorated, it would be necessary to strengthen the role of government to effectively regulate private pension.

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The Difference-in-Difference Model Analysis about the Effects of Long-Term Care Insurance on Family Relationships' Change (노인장기요양보험제도가 가족관계의 변화에 미치는 영향에 대한 이중차이모델 분석)

  • Min, Kichae
    • 한국노년학
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    • v.31 no.4
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    • pp.999-1014
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    • 2011
  • The purpose of this study is to examine the effects of long-term care insurance(macro-system) on family relationship(micro-system)s' change based on ecosystems theory. Data come from the second(2007) and the fourth(2009) Korean Welfare Panel Study(KWPS). Experimental group is the beneficiary using long-term care insurance and the member of household in their households, and control group is the non-beneficiary not using long-term care insurance and the member of household in their households. The main findings of difference-in-difference model analysis are as follows. First, the ecosystems theory is a theory examining the correlation between long-term care insurance and family relationship. Second, the effects of long-term care insurance is not income effect but independent effect. This result shows that the meaning of family has faded away and family relationship has been weaken and that long-term care insurance has not complete characteristics as a social insurance. Thus, system reforms of long-term care insurance is highly needed for system comprehensiveness, coverage, adequacy, and service accessibility and is changed into family-friendly social policy.

Hong Kong's Anti-Ordinance Amendment Movement and the Trend of Change in the One Country-Two System (香港反修例运动与"一国两制"演变趋势)

  • Tian, Feilong
    • Analyses & Alternatives
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    • v.3 no.2
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    • pp.59-85
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    • 2019
  • The Hong Kong's Anti-Ordinance Amendment Movement is the most serious radical social movement since the 1997 return, which has served as the promotion of the 2014 Occupy Central Movement and broken through the violence baseline. The movement came from a criminal case committed in Taiwan,which gave a good reason and motivation for the HK government to amend the Fugitive Offenders Ordinance. The HK government has responded to the protests by strictly limiting the legal scope and transfer procedure, even giving up the legislative motion. But the protests still say no and develop into the constantly violent activities. Many of the protests have committed the crimes in HK laws,part of whom have been arrested,prosecuted and under judicially judged. It is necessary for the offenders to be punished to protect the authority of rule of law in HK. Two different paths for HK have fought against each other since the 1997 return: one is the "democratic-welfare" path taken by the Pan-Democratic Camp, the other is the "Legal-development" path taken by the Pan-Establishment Camp. The second path shares some nuclear characteristics of the so-called The China Model mainly shaped from the 40-years Reforms and Openness. However, the HK people can't understand the China Model very well and show great fear and distrust on the judicial system of Mainland China. The foreign powers such as US and UK have illegally interfered the HK issues which are deemed to be the domestic affairs of China. The so-called Sino-UK Joint Declaration can't serve as the legal basis for the interference. Taiwan, as a part of China, also plays a negative role in this movement for its electoral and political interest. Up to now, the movement has gone down and the HK government has the legal capacity to solve the problems under the supports from the central government and the HK people. The HK people love its rule of law and order under the constitutional framework of One Country Two System. After the movement,One Country Two Systems will be go on, and the integrated development under the policies of the central government will be the main stream. However, the relevant problems exposed by this movement muse be checked and solved legally and strictly,especially concerning the social inequality and youth development.

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Education as a Capability for Community Development with a Case of Community Development Model in Kerala, India (사회발전을 위한 토대역량으로서 교육 - 인도 케랄라(Kerala)주(州) 지역사회발전 모델을 중심으로 -)

  • Yoo, Sung-Sang;Chun, You-Jin
    • Korean Journal of Comparative Education
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    • v.26 no.4
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    • pp.55-80
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    • 2016
  • Kerala, a southern-west state of India, has been vigorously studied due to its unique development status. Indeed, Kerala shows such a high level of social development as Human Development Index indicates, yet it is suffering from the low level of economic. As a result, scholars have examined a broad range of rationales to understand the 'Kerala Development Model' as discussing historical contexts, social welfare policies, land reforms by Communist Party of India, and so on. Among them, scholars agree that education is one of the most critical factors that led to social development of Kerala. Despite the consensus, there has been lack of research that deeply look into how education has been delivered, what impacts it has on people, and why it contributes to social development in Kerala. This research, thus, would discuss the meanings, values and impacts of education with the capability approach that is originally termed by Amartya Sen. The approach criticize the dominant paradigm of 'development' that is materialistic oriented, instead it emphasizes expanding a range of capabilities of people to reach 'development' that people can act upon what they value and cherish. Based on Sen's perspective, we believe that dimensions of education can be re-defined and expanded in a relation to development.

Regressiveness Analysis of Contribution Rate of National Health Insurance Insured (건강보험 지역가입자의 보험료 역진성 분석)

  • Na, Young-Kyoon;Moon, Yongpil
    • Health Policy and Management
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    • v.31 no.3
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    • pp.364-373
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    • 2021
  • Background: This study aims to examine the regressiveness of national health insurance (NHI) premium burdens for local subscribers. The government has established a restructuring of health insurance contributions in 2017. Therefore, insurance premium reform began in 2018 and the second national health insurance premium reform will be carried out in 2022. We will analyze local subscribers before and after the policy reform of 2018. Methods: This study used data from 'local premium imposition elements' in the health insurance statistics annual reports (2017-2019) on National Health Insurance Service (NHIS). This study was calculated contribution rates according to levels of income and property for local insured by the method of comparing. Simulations of primary and secondary reforms were conducted in the study to determine regressiveness. Results: Insurance premiums for local subscribers were analyzed separately by income and property insurance premiums. In the income premium analysis, the higher the income, the lower the premium rate, and then the fixed rate was maintained from a certain section. The regressiveness of income insurance premiums has been eased in part. On the other hand, the property insurance premium burden was found to be regressive still by income class. Conclusion: Regressiveness analysis showed that a decrease in income contributions was achieved to local insured in the first phase of reform. But in the second phase of reform, more consideration should be given to reductions of property premium portions of local subscribers. Based on the results, the author suggested policy discussions to reorganizing the new systems of NHI contribution of local Insured.

Disability-Rights Based International Cooperation: With Some References to North Korea (장애 권리 기반한 국제협력: 북한 관련하여)

  • Kim, Hyung Shik;Woo, Joo Hyung
    • 재활복지
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    • v.22 no.2
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    • pp.1-30
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    • 2018
  • This paper attempts to explore the place of human and disability rights from the perspective of Social Welfare within the context of the UN Disability Rights Convention of 2006. The overall discussion is focused especially upon the situations of human and disability rights in the Democratic People's Republic of Korea (North Korea) as it is being challenged to drastically address the issues of human rights in general, and disability rights in particular. The UN Disability Rights Convention challenges every ratified State party to commence legal reforms, legal harmonization, and policy and program developments to implement the Convention. Both North and South Korea are not exceptions to this. Even without drawing upon the UN's the Commission of Inquiry on Human Rights in the Democratic People's Republic of Korea, the dire situation of human rights in North Korea is well documented. However, this paper does not assume South Korea's human rights are any way superior to that of North Korea. This paper spells out areas for further action common to two Koreas and to any other nations for that matter. Apart from the general discussion on disability rights, the distinctive contribution of this paper lies in the fact that it has endeavored to draw upon any latest information and data on North Korea. It relied on various sources from UN and also from North Korea itself. One can note that North Korean disability authorities are making strenuous efforts to improve human rights of persons with disabilities in their desires to seek assistance from outside. It also shows an enormous need for international cooperation in seeking financial and material supports. This paper notes the latest political development between North and South Korea in taking "phased" steps for peace and stability as a positive sign for North and South Koreans' DPOs collaboration under the banner of International Cooperation of the article 32 of the UN Disability Rights Convention. More critically, this paper points to the further need to improve the overall data bases to ensure balanced legal reforms, policy developments and sharpen the areas of international collaboration.