Visions of Visions of Sustainable Sustainable

Welfare SocietyWelfare SocietyExtending Social Quality into Extending Social Quality into

an Asian/Developmental an Asian/Developmental ContextContext

Yoshinori HiroiYoshinori HiroiChiba University, JapanChiba University, Japanhiroi@le.chiba-u.ac.jphiroi@le.chiba-u.ac.jp

ContentsContents

1. Conceptual Frameworks for 1. Conceptual Frameworks for Sustainable Welfare SocietySustainable Welfare Society

2. Failure in a Shift from Industrial 2. Failure in a Shift from Industrial Policy to Social policy? : Dynamic Policy to Social policy? : Dynamic Relationship of Welfare, Environment Relationship of Welfare, Environment and Economy in Postwar Japanand Economy in Postwar Japan

3. Agenda for Realizing Sustainable 3. Agenda for Realizing Sustainable Welfare Societies in AsiaWelfare Societies in Asia

1. Conceptual 1. Conceptual Frameworks for Frameworks for

Sustainable Welfare Sustainable Welfare SocietySociety

““Sustainable Welfare Sustainable Welfare Society”Society”

a society where quality of life of a society where quality of life of individuals and distributional justice individuals and distributional justice are realized in a sustainable manner for are realized in a sustainable manner for a long period of time under the finite a long period of time under the finite natural resources and environments natural resources and environments

Relevant in applying the Social Quality Relevant in applying the Social Quality Approach into an Asian/developmental Approach into an Asian/developmental contextscontexts

Two Implications of Two Implications of “Sustainable Welfare “Sustainable Welfare

Society”Society” 1. Integration of welfare (or social) policy 1. Integration of welfare (or social) policy

and environmental policyand environmental policy ・・ introducing environmental sustainability introducing environmental sustainability

into the discourses of social policyinto the discourses of social policy ・・ particularly important in the Asian particularly important in the Asian

contextcontext

2. “welfare society” rather than “welfare 2. “welfare society” rather than “welfare state”state”

・・ critical and comparative review of the critical and comparative review of the concept of “state” concept of “state”

Policy ContextsPolicy Contexts ：：Two Axes of Policy Two Axes of Policy

ChoiceChoice

Social Democracy

Keynesian Policy

Conservatism

Neo-Liberalism

Growth-oriented 　

Environment (Sustainability)-oriented

Big Government

Small Government

Sustainable Welfare Society?

Welfare, Environment and Welfare, Environment and EconomyEconomyIssues or Issues or FunctionFunction

ObjectiveObjective

WelfareWelfare Distribution Distribution of Wealthof Wealth

Equity Equity (Equality, (Equality, Justice) Justice)

EnvironmentEnvironment Total Volume Total Volume of Wealthof Wealth

SustainabilitySustainability

EconomyEconomy Production of Production of WealthWealth

EfficiencyEfficiency

Structure of Human SocietyStructure of Human Society

Ａ． Individual

Ｂ． Community

Ｃ． Nature

market /economy

community

environment

Issues of Welfare (Social Protection) 　　　　　 　　　　 　 Issues of

Environment

Market, Government and Market, Government and Community and their Relationship Community and their Relationship

with with Welfare and Environment (1)Welfare and Environment (1)

Market

Government Community

【 Efficiency 】

【 Equity 】 【 Sustainability 】

　　 Sustainable Welfare Society

Welfare Environment

Different Dimensions of Different Dimensions of SustainabilitySustainability

(1) institutional sustainability (short-term)(1) institutional sustainability (short-term) ・・・・・・ concerning the level of market and concerning the level of market and

governmentgovernment

(2) social sustainability (long-term)(2) social sustainability (long-term) ・・・・・・ concerning the level of communityconcerning the level of community

(3) environmental sustainability (super long-(3) environmental sustainability (super long-term)term)

・・・・・・ concerning the level of natureconcerning the level of nature

Market, Government and Market, Government and Community and their Relationship Community and their Relationship

with with Welfare and Environment (2)Welfare and Environment (2)

Market Government

Community

【 Efficiency 】 【 Equity 】

【 Sustainability(1) 】

Nature

【 Sustainability(2)】

【 Sustainability(3)】

　　 Sustainable Welfare Society

2. Failure in a Shift from 2. Failure in a Shift from Industrial Policy to Social Industrial Policy to Social

policy? : policy? : Dynamic Relationship of Dynamic Relationship of

Welfare, Environment and Welfare, Environment and Economy in Postwar Economy in Postwar

JapanJapan

Interesting Aspects of the Interesting Aspects of the Japanese ExperienceJapanese Experience

1) Extremely fast speed of industrialization 1) Extremely fast speed of industrialization and socio-economic change and the rapid and socio-economic change and the rapid build-up of social protection systembuild-up of social protection system

2) Social policy and environmental policy 2) Social policy and environmental policy “embedded” in economic policy including “embedded” in economic policy including industrial policy and land policyindustrial policy and land policy

Both of these are common to some extent in Both of these are common to some extent in “latecomer” countries in industrialization“latecomer” countries in industrialization

Four Stages of Four Stages of Redistribution Policy in Redistribution Policy in

postwar Japanpostwar Japan 1. Policy Initiatives for the “Equality of 1. Policy Initiatives for the “Equality of

Opportunities” in the Postwar EraOpportunities” in the Postwar Era

2. “Redistribution at the Production Level” 2. “Redistribution at the Production Level” in High Economic Growth Period (1950-60s)in High Economic Growth Period (1950-60s)

3. Dependence on Public Works and the 3. Dependence on Public Works and the Beginning of Redistribution by Social Beginning of Redistribution by Social Protection for the Elderly (1970-90s)Protection for the Elderly (1970-90s)

4. Pro-Market Reforms and their Outcomes 4. Pro-Market Reforms and their Outcomes (2001-)(2001-)

Stage 1: Policy Initiatives Stage 1: Policy Initiatives for the “Equality of for the “Equality of

Opportunities” in the Opportunities” in the Postwar Era Postwar Era

Policies “from outside” in the Occupation Policies “from outside” in the Occupation periodperiod

・・・・・・ Strong Influences from U.S. and Soviet Strong Influences from U.S. and Soviet UnionUnion

Particularly significant areParticularly significant are

1) Agricultural Land Reform: Radical Land 1) Agricultural Land Reform: Radical Land Redistribution PolicyRedistribution Policy

2) Mandatory Education for Junior High School2) Mandatory Education for Junior High School Both contributed greatly to “Equality of Both contributed greatly to “Equality of

Opportunities” and economic development Opportunities” and economic development later onlater on

Initial Land Distribution Initial Land Distribution and Economic Growthand Economic Growth

(source) World Development Report 2006

GDP Growth,

1960-2000

Equality in

Land Distribution

Japan

Korea

China

Taiwan

Stage 2: “Redistribution at Stage 2: “Redistribution at the Production Level” in the Production Level” in High Economic Growth High Economic Growth

Period (1950-60s)Period (1950-60s) Various Redistribution mechanisms rather Various Redistribution mechanisms rather

than social protection (or social policy) had than social protection (or social policy) had the effects of strong income equalizationthe effects of strong income equalization

1) Subsidies to Farmers (Urban to Rural)1) Subsidies to Farmers (Urban to Rural) 2) Tax Redistribution system from Central 2) Tax Redistribution system from Central

to to Local AreasLocal Areas 3) Subsidies to Small-sized companies and 3) Subsidies to Small-sized companies and

Declining Industries Declining Industries

Historical Trend of Historical Trend of Government Expenditures Government Expenditures

in Japanin Japan Social Protection (by Tax)

Tax RedistributionFrom Central to Local

Public Works

1958 1222 2240 1899

1960 1927 3282 3036

1965 5457 7162 7261

1970 11515 17716 14406

1975 41356 33082 34870

1980 81703 69521 68955

1990 114805 159308 69557

2000 176364 149149 119096

2005 208235 159226 80154

Stage 3: Dependence on Public Stage 3: Dependence on Public Works and the Beginning of Works and the Beginning of

Redistribution by Social Redistribution by Social Protection for the Elderly Protection for the Elderly

(1970-90s)(1970-90s) Public Works took the Role of income redistributiPublic Works took the Role of income redistribution since 1970s, having the negative effects of con since 1970s, having the negative effects of curtailing labour transfer and causing environment urtailing labour transfer and causing environment destruction, while contributing to lower unemploydestruction, while contributing to lower unemployment for the momentment for the moment

As the elderly people are retired from the labour fAs the elderly people are retired from the labour force, “redistribution at the production level” does orce, “redistribution at the production level” does not work → Beginning of redistribution by social not work → Beginning of redistribution by social protection for the elderlyprotection for the elderly

Relationship of the Volume Relationship of the Volume of Public Works and Income of Public Works and Income Level of Local Prefectures Level of Local Prefectures

in Japanin Japan

Per capita Income of each prefecture

(1955-1960) (1991-2000)Volume

of Public Works in each prefecture

Stage 4: Pro-Market Reforms Stage 4: Pro-Market Reforms and their Outcomes (2001-)and their Outcomes (2001-) So-called “Koizumi Reform”So-called “Koizumi Reform” Dissolving the “redistribution at the Dissolving the “redistribution at the

production level” which had been production level” which had been characteristic of Japanese public policycharacteristic of Japanese public policy

Various negative effects in terms of Various negative effects in terms of income equality etc., while income equality etc., while contributing to “destroying” vested contributing to “destroying” vested interests in the production sectorinterests in the production sector

Income Inequality and Income Inequality and Social Protection Spending: Social Protection Spending:

International ComparisonInternational Comparison

(Source) OECD, Extending Opportunities, 2005

Gini Coefficient of Income and AssetGini Coefficient of Income and Assets in Japans in Japan

Land

Financial Assets

Income

(source) Japanese Government, White Paper on People’s Life, 2000

Evaluations of Evaluations of Redistribution Policy in Redistribution Policy in

postwar Japanpostwar Japan Very strong policy initiatives for “Equality of Very strong policy initiatives for “Equality of

Opportunities” at the outset had the significant Opportunities” at the outset had the significant effects both in terms of income redistribution effects both in terms of income redistribution and economic growth.and economic growth.

“ “Redistribution at the Production Level” Redistribution at the Production Level”

worked relatively successfully at the first half of worked relatively successfully at the first half of high economic growth, while becoming the high economic growth, while becoming the burdens since 1970s and curtailing the burdens since 1970s and curtailing the development of social protection per se.development of social protection per se.

Summarized as a “Failure in a shift from Summarized as a “Failure in a shift from Industrial Policy to Social Policy” ? Industrial Policy to Social Policy” ? ・・・・・・which is likely to happen in many “catch-up” which is likely to happen in many “catch-up” countries or developmental states.countries or developmental states.

Similar Patterns in Similar Patterns in Environmental Policy in Environmental Policy in

JapanJapan Recognized as policy issues in late 60s -Recognized as policy issues in late 60s -

early70s and some policy responses (various early70s and some policy responses (various laws, creation of Environment Agency (1971), laws, creation of Environment Agency (1971), etc.)etc.)

But many of the policy initiatives were taken by But many of the policy initiatives were taken by ministries in charge of each industrial sector ministries in charge of each industrial sector (such as Ministry of International Trade and (such as Ministry of International Trade and Industry, Ministry of Transport, Ministry of Industry, Ministry of Transport, Ministry of Public Works, etc.) and placed as residual Public Works, etc.) and placed as residual policy areas.policy areas.

Recently, signs of new developments with Recently, signs of new developments with stronger public concerns but many agenda stronger public concerns but many agenda remain.remain.

Framework for the Policy Framework for the Policy IntegrationsIntegrations

of Welfare, Environment and of Welfare, Environment and EconomyEconomy

Development Development

-oriented-orientedQuality of Quality of Life/ Social Life/ Social QualityQuality

-oriented-oriented

Dimensions reDimensions regarding Humagarding Human/Labourn/Labour

Industrial Industrial PolicyPolicy

Welfare (or Welfare (or Social) PolicySocial) Policy

Dimensions Dimensions regarding regarding Place/SpacePlace/Space

Land PolicyLand Policy

(Agricultural (Agricultural Policy, Urban Policy, Urban Policy)Policy)

EnvironmentaEnvironmental Policyl Policy

Process of Economic Development

3. Agenda for 3. Agenda for Realizing Realizing

Sustainable Sustainable Welfare Societies Welfare Societies

in Asiain Asia

Possibilities of Sustainable Possibilities of Sustainable Welfare Societies in Asia:Welfare Societies in Asia:

Trend of PopulationTrend of Population Aging and Stabilization of Population in Asia in Aging and Stabilization of Population in Asia in

the middle of 21the middle of 21stst Century Century ex. ex. ・・ Population in Japan began to decrease Population in Japan began to decrease

in 2005in 2005 ・・ Korea around 20sKorea around 20s ・・ China in 2033 (1.5 billion)China in 2033 (1.5 billion) ・・ East Asia as a total in 2035 (2.1 billion) East Asia as a total in 2035 (2.1 billion)

[UN [UN　　　　　　　　　　　　　　 forecast]forecast]

→→Possibility of Environmental Sustainability Possibility of Environmental Sustainability and “Steady-state Society” in Asia, if adequate and “Steady-state Society” in Asia, if adequate environmental policies are implemented.environmental policies are implemented.

Environmentally Environmentally Sustainable Society and Sustainable Society and

Aged SocietyAged Society Environmentally Environmentally

Sustainable SocietySustainable Society　　　　 Aged SocietyAged Society

CharacteriCharacteristicsstics

　　　　　　“　　　　　　“ Steady-state Society”Steady-state Society” Environmental Environmental SustainabilitySustainability

　　　↑　　　↑　 　 finite resources finite resources

　　 Stable PopulationStable Population 　　　　　　↑　　↑　　 aging and low fertility aging and low fertility rate rate

Major Major ConceptConcept

　　　　　　　　　　　　　　　　 CirculationCirculation

　 　 between human between human beings and naturebeings and nature

　 　 inter-inter-generationalgenerational

Time ScaleTime Scale 　 　 super long-termsuper long-term 　　　 　　　 long-termlong-term

Per Capita GNI and Gini CoefficientPer Capita GNI and Gini Coefficientin Asian Countries:in Asian Countries: 　　 Inverted U-shaped CurvInverted U-shaped Curv

e?e?

Based upon the data from World Development Report 2006

J apan

KoreaLaos

MalaysiaPhilippines

Sri LankaThailand

Cambodia

China

IndonesiaMongolia

0

10

20

30

40

50

60

0 5000 10000 15000 20000 25000 30000 35000

GNI percapita PPP, dollar（ ）

Gin

i C

oeffi

cie

nt

Evolution of the Relationship of Evolution of the Relationship of Community, Government and Community, Government and

MarketMarket--Different Paths between Europe --Different Paths between Europe

and Asia?and Asia? -- --

“Traditional

Community”

Government

Market

“New Community”Ex. Non-Profit Sector,

Social Economy, Civil Society etc.

[ Pre-Industrial ]

[ Industrial ]

[ Post-Industrial ]

Different Paths ?

Asian Welfare (& Asian Welfare (& Environment ) NetworkEnvironment ) Network

1) International Cooperation in the areas of 1) International Cooperation in the areas of Social ProtectionSocial Protection

ex. Project by JICA (Japan International ex. Project by JICA (Japan International Cooperation Agency) , Cooperation Agency) ,

regarding the Implementation of Old-age Pension regarding the Implementation of Old-age Pension system in Rural Areas in China starting in 2006system in Rural Areas in China starting in 2006

2) Active Communications and 2) Active Communications and Comparative Research among Researchers Comparative Research among Researchers in the areas of Social Protection and in the areas of Social Protection and Environmental PolicyEnvironmental Policy →Networking and →Networking and Various Policy RecommendationsVarious Policy Recommendations

3) Possibilities of Redistribution System 3) Possibilities of Redistribution System beyond nation-state Levelbeyond nation-state Level

Policy Integrations for Policy Integrations for Sustainable Welfare Sustainable Welfare

Society:Society:from Local to Globalfrom Local to Global

1. Local (community) Level1. Local (community) Level Sustainable Welfare CommunitySustainable Welfare Community “ “Sustainable Zone” (Kurasaka, Chiba University, JapaSustainable Zone” (Kurasaka, Chiba University, Japa

n)n) 2. National Level2. National Level Ecological Tax ReformEcological Tax Reform Working Time Reductions and Basic IncomeWorking Time Reductions and Basic Income 3. Regional (or Asian) Level 3. Regional (or Asian) Level “ “Asian Welfare (and Environment) Network”Asian Welfare (and Environment) Network” 4. Global Level4. Global Level Redistribution Mechanism such as Global TaxesRedistribution Mechanism such as Global Taxes “ “Global Steady-state Society”Global Steady-state Society”

Thank you very Thank you very much!much!謝謝！謝謝！

Appendix : Appendix : Perspectives for Perspectives for Social ProtectionSocial Protection

in Asian Countriesin Asian Countries

Grouping of Social Grouping of Social Protection Protection

in Asian Countries (1)in Asian Countries (1) Group 1Group 1 Countries that have achieved economic development Countries that have achieved economic development

comparable to the developed countries, including Japan. comparable to the developed countries, including Japan. Countries in this group have achieved some sort of Countries in this group have achieved some sort of

universal coverage of social protection, and have been universal coverage of social protection, and have been dealing with new challenges such as aging population and dealing with new challenges such as aging population and streamlining of social security systemsstreamlining of social security systems

Examples:Examples: Singapore, Taiwan, South KoreaSingapore, Taiwan, South Korea

Group 2Group 2 Countries that are on the path to industrialization, as well Countries that are on the path to industrialization, as well

as to the achievement of universal coverage in their social as to the achievement of universal coverage in their social protection systems. protection systems.

In these countries, a certain level of social protection is In these countries, a certain level of social protection is provided for the employed while the majority of their provided for the employed while the majority of their population working in agriculture and the self-employed population working in agriculture and the self-employed are not covered by social protection systems. are not covered by social protection systems.

Examples:Examples: Malaysia, Thailand, Philippines, IndonesiaMalaysia, Thailand, Philippines, Indonesia

Grouping of Social Grouping of Social Protection Protection

in Asian Countries (2)in Asian Countries (2) Group 3Group 3 Countries that are in the primary stage of Countries that are in the primary stage of

industrialization. industrialization. In these countries, social protection is provided for a In these countries, social protection is provided for a

limited number of people, such as certain types of limited number of people, such as certain types of civil servants and military personnel. Their health civil servants and military personnel. Their health care services are still prioritized to the improvement care services are still prioritized to the improvement of public health, especially the prevention of of public health, especially the prevention of infectious diseases.infectious diseases.

Examples:Examples: Vietnam, Laos, Cambodia, MyanmarVietnam, Laos, Cambodia, Myanmar

Group 4Group 4 Countries that cannot be categorized into any of the Countries that cannot be categorized into any of the

above groups due to the extraordinary size of their above groups due to the extraordinary size of their population.population.

Examples: China, India Examples: China, India

Two Axes for Two Axes for Understanding Understanding Social ProtectionSocial Protection

in Asian Countriesin Asian Countries

(1) “Vertical” Axis:(1) “Vertical” Axis: = Economic Development and Social Protection= Economic Development and Social Protection Evolution of Social Protection System as a Evolution of Social Protection System as a

Policy Policy

Response to Industrialization, Urbanization, Response to Industrialization, Urbanization, Change of Family Structure etc.Change of Family Structure etc.

→ “ → “Linear” Model of Development of Social Linear” Model of Development of Social SecuritySecurity

Two Axes for Two Axes for Understanding Understanding Social ProtectionSocial Protection

in Asian Countriesin Asian Countries (2) “Horizontal (or Diversity)” Axis:(2) “Horizontal (or Diversity)” Axis: = Elements of Diversity which cannot be = Elements of Diversity which cannot be

explained by Linear Development Modelexplained by Linear Development Model

a) Degree of National Integration or Ethnic a) Degree of National Integration or Ethnic DiversityDiversity

ex. Malaysia, Indonesiaex. Malaysia, Indonesia b) Institutional Influences of Colonial Powersb) Institutional Influences of Colonial Powers c) Social and Cultural Elementsc) Social and Cultural Elements ex. Roles of Family, Religious ex. Roles of Family, Religious

Organizations etc.Organizations etc.