China Welfare System

History

Maoist Period (1949-1978)

Iron Rice Bowl-provided high level of economic security, mostly to urban dwellers via their work units (danwei).

The Labor Insurance Regulations (1951)

Provide in case of sickness, pregnancy, work injury, disability, death and old age

New Welfare Reforms

Promoting welfare reforms

Old welfare system has grown too costly, because state owned enterprises (SOEs), bore all cost of housing construction, pensions, welfare homes, maternity, work injury and medical expenses. Shifting some welfare costs onto employees. As a result unemployment has risen; temporary contracts

New Welfare Reforms cont

Socio-economic changes made reform imperative 1. Growth of private businesses 2. Rapidly expanding elderly population, divorce rates, and one-child policy New provisions are housing, pensions, unemployment insurance, maternity and work injury coverage, health care, social relief, community services and welfare homes.

Housing

Public housing provided by city governments or state work units for urban dwellers. Rents so low, incomes are not enough for basic repairs and construction. Housing deteriorated and housing shortage.

Tried to promote home ownership Increase incentives to buy homes for revenue Raise rent for revenue

Pensions and Old-Age Insurance

1.

2.

3.

1986-reform designed to divide the burden among employees and enterprises. Govt set up insurance co. to administer funds. Enterprises contribute % of total wage bill Individual acct. for employees, who contribute %.

Most workers are still receiving pension from old system Pensions cannot be transferred

Unemployment Insurance

Enterprises pay 1% of their total wage bill to a fund Employees who lose their jobs are paid 60% to 80% of the lowest wage standard for up to a maximum of 24 months. Must register as unemployed and pay a fee Laid off workers do not qualify

Work Injury and Maternity Insurance

1951-Labor Insurance Regulations Public enterprises unable to fulfill obligations Pooling of contributions and setting up individual accounts

1988-90 days of maternity leave Employers pay for leave and hospital treatment. Reduced employers willingness to hire women.

Health Care and Medical Insurance

Trial Reforms focused on pooling enterprise contributions and creating individual employees accounts. Example: Enterprises pay 10% of employee gross wage to a fund and 50% goes into an individual account in the workers name, according to the age of workers. Workers contribute 1% of total annual pay

Provisions for Disabled People

State provided jobs for disabled persons who were able to work. Government support focuses on encouraging self-reliance by enabling them to work. Disabled people who cannot work depend on families or community-based support services.

Social Relief and Welfare

Targeted at people who had no work unit and no family, no means of support. Army veterans and families of servicemen who died while in service received some form of assistance. Basic living guarantee system-local govt set up minimum income line and supplements the incomes of those who fall beneath the line

Community Service

1986-Ministry of Civil Affairs

community services initiative aimed at increasing the range of welfare facilities provided to urban dwellers. Formalized practices that were already in place under one unified local center. Committees such as nursing homes, nurseries, clinics, and organized recreation, & household help. Welfare 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 1960s the social security system aimed for from selectivism to universalism and from relief to prevention.
The major programs in Japan are: 1. Employees 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. Workmens 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 Services

There 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

DENMARK

Where is Denmark?

Welfare Models used by European Countries

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

Bismarck Model: offers assistance to those

who have been on the labor market

Subsidiarity Model: social responsibilities

are to be resolved within the family, or as close to the family as possible same for everyone

Scandinavian Model: social benefits are the

Denmark & Scandinavian Model

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

In areas of sickness and unemployment

benefits may depend on former employment, membership in trade unions, and payment of contributions. by the State and financed by TAXATION.

Largest share of financial burden is carried

History of Social Policy/Welfare

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

1803 introduced a TAX to cover parish expenses. Recipients of poor relief aid were not considered citizens an Act of 1856 established Fund for the Poor - relied on private
donations

Support in Old Age Act of 1891 - any citizens above 60 years

old were given the status of deserving poor, also a revision in the Poor Relief law which insured citizens public aid for medical care, midwifery services and burial.

Health Insurance Societies Act of 1892 introduced private insurance with state subsidy Insurance against Accident Act of 1898 1907 State allowed citizens receiving unemployment benefits to retain civil rights

Disablement Benefits Act of 1921 ensured the disabled received help and the ability to retain civil rights
Social Reform Act of 1933 established that any financial aid assistance would not result in the limitations of civil rights for all citizens 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 citizens 1950 deaf 1956 blind 1959 mentally deficient In 1956 sick pay scheme was established with the labor market 1n 1958 arrangements for home help were established

 National Pensions and Disablement Pensions Act of 1956

every citizen had right to a pension regardless of capital and income (independent of former employment or income)

1964 the Supplementary Pension Fund was introduced for

employee contributions.
TAXATION

1973 health insurance program was introduced, funded from

Social Assistance Act of 1976 gave the local authorities the

responsibility of dealing with the social needs of all citizens

1979 - anticipatory pension scheme introduced to allow 60-66

year old members of an unemployment benefit scheme to retire early.

Who is responsible for Denmarks Welfare Systems?

State supreme responsibility for social legislation and planning Local authorities responsible for the administration of the welfare programs for citizens Exceptions: - hospitals which are administered by counties - daily cash benefits which are administered by unemployment agencies - compensation for workplace injuries which are administered by insurance societies and the Agency for Injuries in the Workplace Only a small amount of social benefits are based on employers contributions or direct contributions of the insured of monies for social welfare systems are financed by the State through TAXES

Unemployment Benefits
Unemployment benefits
- minimum of a years membership in an unemployment insurance fund

- minimum of 52 weeks work within the last three years

- limit to receive benefits is 5 years - recipients of cash benefits must receive job training and education

Elder Benefits

Anticipatory Pensions enables older citizens to retire early to stimulate employment for younger citizens. To qualify: - 60 66 years old - pay a monthly anticipatory pension contribution together with their unemployment fund contribution for at least 25 years National Pension available to citizens 67 years and above, financed by TAXATION and independent of former income

The retirement age for the public sector is 70 years old. It will be lowered on July 1, 2004 to 65.
Contractual pension arrangements and supplementary private pensions are also available for citizens.

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

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

The degree of disability determines the amount of benefits Assistance is given for the disabled to stay in their own homes,
and the necessary aids are placed at their disposal (i.e. wheelchairs, walkers). Expenses are given to equip the home to be disabled friendly. and offers of employment.

The local authority is responsible for rehabilitation, retraining

Health Benefits
Sickness Benefit relief for citizens actively employed who
suffer a loss of income due to illness or injury

Denmarks Health Insurance

- 100% of expenses covered for general and specialist medical care - partial expenses for dentists, chiropractors, and medicine. - hospital treatment is FREE - Home nursing care for patients is FREE - Local authority dental care for children and young adolescents is FREE

Family Benefits

Maternity leave all women for 4 weeks before the birth to 14 weeks after - Father receives 2 weeks leave - An additional 10 weeks for father and mother to share

Family Allowances regular, tax-free amount per child Child 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 due to illness, or other issues.
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) 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.

Education
Basic schooling in Demark has a nine-year duration for
completion with an optional tenth year.
covered by the state by 85%.

Schooling publicly is Free. Private school expenses are

There are no examinations to move from one class to the next,

examinations are optional in the ninth or tenth year.

After Basic schooling- 2/3 of students go to practical training in

trades or commerce; 1/3 go to basic secondary schooling, after secondary schooling they may elect to go to college. Education at these universities are FREE.

Denmark has five universities dating from 1479 1974.

Problems with Denmarks Welfare State

Present welfare systems were developed during prosperous times
with high economic growth and low unemployment. It was never intended for so many citizens to be dependent on the system and receive benefits for so long. increased because they are already up to 50%. could hurt the welfare system.

Financing of the Welfare System is a HUGE problem, TAXES cannot be Denmark has accrued a vary large national debt which in the long run Denmarks 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 system which is based on the taxes of those engaged in active employment.

International Social Welfare France

France

Historical Perspective
19th Century France Individualistic thinking and promoting agriculture No public assistance, Only charitable relief Influenced by British Social Legislation Social Insurance Legislation enacted in 1928

Social Protection
Principle of national solidarity Social well-being of citizens Almost everyone in France covered by Social security system Compulsory deductions

Healthcare In France
Services for disabled are free Principle of liberal medicine Healthcare reforms Links between hospitals and medical schools

European and U.S. Welfare

Concerned with the social well-being of all citizens within their society = France Considered a safety net for those not employed in the mainstream economy. = United States

Social Workers In France

Family social worker (Assistante sociale) The Homemaker (Travailleuse familiale) Community Worker (Animateur socioculturel)

Current Social Policy in France