Politics of social policy in korea
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Politics of social policy in Korea. Why is inequality becoming a bigger concern? What effects did the democratization and the financial crisis have on social policy in Korea? Is welfare politics becoming salient? What’s the prospects of welfare politics?

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Politics of social policy in korea
Politics of social policy in Korea

  • Why is inequality becoming a bigger concern?

  • What effects did the democratization and the financial crisis have on social policy in Korea?

  • Is welfare politics becoming salient? What’s the prospects of welfare politics?

  • Will Korea develop toward a social democratic, conservative, or liberal welfare state?


Varieties of welfare capitalism
Varieties of welfare capitalism

David Soskice: liberal vs. coordinated market economies

Gøsta Esping-Andersen: liberal, social democratic, conservative welfare states

  • LMEs: the USA, Britain, Australia, Canada, New Zealand, Ireland

  • CMEs: Germany, Switzerland, the Netherlands, Belgium, Austria; Sweden, Norway, Denmark, Finland; Japan



Redistributive impact of welfare states
Redistributive impact of welfare states

  • Inequality and redistribution among working-age households, late 1990s

    Mkt Gini Disposable Redistribution

    Nordic SMEs 35.2 23.6 32.9%

    Continental SMEs 34.8 25.6 25.7%

    LMEs 41.8 32.4 22.6%

    (US) (43.6) (36.3) (16.7%)


Universal vs selective programs
Universal vs. Selective Programs

  • Universal programs: “How shall we solve our common problem (health care, education, pensions, etc.)?”

  • Selective programs: “How shall we solve their problem?” -Stigmatization (“the undeserving poor”)

    Means-testing (whether and how much to support): suspicion and arbitrariness, cheating and corruption, costly administration  undermines public support

    Means-tested (targeted) assistance is not more redistributive. Why?



Korea historical breakdown
Korea: Historical Breakdown

  • Pre Democratic Period

    • Welfare Developmentalism

  • Post Democratic Period

    • Expanding the social contract

  • Post Financial Crisis Period

    • End of Welfare Developmentalism?

  • New Welfare Politics

    - Universal or selective welfare programs?


Pre 1987
Pre-1987

  • Welfare Developmentalism

    • Primacy of Economic growth

    • Key sectors first to receive limited social insurance:

      *Public pension system: Government employees(1960), military personnel(1963), private school teachers(1975)

    • Limited gov’t fiscal commitment: “regulator”

    • Expanding investments in education

  • Low inequality

    - Not because of social policy

    - Land reform, Korean War

    - Labor-intensive industrialization with full employment


Post 1987
Post-1987

  • Coverage for all citizens: Health insurance

  • Direct gov’t fiscal commitments

    • Health care contributions to farmers, self-employed (1990)

  • National Pension Scheme: private sector employees in companies with 10 or more employees (1988), companies with 5 or more employees (1992), farmers and fishermen (1995)

  • Modest Unemployment Insurance (1992)


The impact of the 1997 financial crisis
The Impact of the 1997 Financial Crisis

  • Rising unemployment

  • Declining full-time, regular employment

  • Growing inequality

  • Also, rapid population aging



Post financial crisis rapid expansion but still small welfare state
Post-financial crisis: Rapid expansion, but still small welfare state

  • Fiscal strains but no rolling back

    • National health care program in the red

    • Pension system faces long-term insolubility:

      *Partial privatization not adopted

  • “social right to decent living for every citizen”:

    - Minimum Living Standard Guarantee Act (2000)

  • Greater long-term fiscal commitments



Social expenditure selected oecd countries of gdp source adema and ladaique 2005 p 72
Social Expenditure, selected OECD countries spending(% of GDP) Source: Adema and Ladaique (2005), p.72


The basic goal of the vision 2030
The Basic Goal of the “Vision 2030”

10 thousand dollars/capita

Norway

2030

Swiss

USA

Denmark

England

Sweden

  • 2020

Japan

Germany

  • OECD Average

Greece

Korea

Mexico

Poland

  • Public social expenditure/GDP


Source: OECD ECONOMIC SURVEY OF KOREA (2008)



Why small welfare state in kor
Why small welfare state in KOR?

Kim, Young-soon:

  • Institutions of interest representation:

  • Social dialogue


Why small welfare state in kor1
Why small welfare state in KOR?

Kim, Young-soon: Institutions of interest representation:

  • Political party w/o policy:

    Policy making by the bureaucracy, with civil society input

  • Why?

    Single-term presidency, regionalism, lack of class cleavage, anti-communism & narrow ideological spectrum, ideological politics developed surrounding North Korea policy

  • Social dialogue

    -Tripartite Agreement (2/6/98)

    -KCTU’s withdrawal & company unionism: Low coordination & centralization


Yang jae jin 2004 democratic governance bureaucratic politics
Yang, Jae-jin (2004), Democratic governance & bureaucratic politics

  • Dominance of economic bureaucrats→ social bureaucrats

  • Increasing role of civil society organizations

  • Formation of pro-welfare policy network

  • Still, bureaucratic politics over party politics


New era of welfare politics
New era of welfare politics? politics

  • 2010 local elections: Free school lunch as a defining issue

  • DP’s new platform: Universal welfare state, debate on wealth tax

  • GNP’s response: Selective vs. near-universal welfare programs, debate on tax cuts

    Why?

  • Increasing economic polarization

  • Role of DLP & progressive educational superintendents

  • Prospects?

  • Institutionalization of party system?


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