PRIVATIZATION OF SOCIAL SECURITY IN SOUTHEAST ASIA

This article examines the main social security programs, narrowly defined to include income maintenance for the aged and health care, in Indonesia, Malaysia, Singapore and Thailand, and reveals the large degree to which the statutory programs depend on private provision, particularly, private financing. It further shows that efforts are underway to reduce, or at least to arrest the expansion of role of the state by a corresponding expansion in the role of private provision and financing. The expansion of social security for the aged in Thailand is an exception in this regard. I conclude that both inefficiency and inequity have been promoted.     

EFFICIENCY VERSUS SOCIAL LEARNING: A RECONSIDERATION OF THE IMPLEMENTATION PROCESS

In a complex society committed to democratic norms a social learning perspective on the implementation process is more useful and appropriate than an efficiency, productivity perspective. The norms and assumptions underlying the efficiency emphasis to the implementation process are not applicable; nor do they exist in reality. An alternative set of assumptions based on a social learning approach to implementation is offered.     

THE MARKET PROVISION OF MANDATORY SOCIAL SECURITY: Protecting the Public Interest in Perpetuity

Pressures to introduce market reforms to public social security system emerged as a reaction to state welfare paternalism, drawing strength from the spirit of liberalism and emphasizing the virtues of the marketplace. Market reform advocates seek to shift the prevailing social security paradigm away from community solidarity to individual responsibility, with a view to divesting government of some of its statutory social security responsibilities. Market reform of public social security provision redefines the public‐private boundary, making socio‐political governance more a process of co‐ordination, steering, influencing, and balancing pluralist interactions, with the civil service increasingly expected to act as trustee of the public interest. What, however, the public interest is and how it differs from private interest is problematic and it should reflect the shared values that create social bonds and identity within a society. The daunting twin challenges facing governments are to design a set of regulatory arrangements that can protect the public interest in perpetuity, and to resist calls for government subsidies to support the economic rent expectations of privatized providers. To meet these challenges the “hollowed‐out” state must become a “smart” state.     

INDIVIDUALISM, COLLECTIVISM AND THE MARKETIZATION OF SOCIAL SECURITY: Chile and China Compared

Ideological beliefs are of central importance in current debates about the marketization of social security. However, developments in Chile and China suggest that the conventional individualist‐collectivist dichotomy, which has framed ideological debates on social security, fails to capture the complexities of ideological differences as well as the imperative of economic development which appears to be driving social security policy in both countries. Examining events in these countries, it is suggested that the individualist‐collectivist dichotomy needs to be reconsidered. It is also argued at a normative level that these ideologies no longer provide a viable basis for social security policy, and that the “developmentalist” approach emerging in China merits further scrutiny.     

ECONOMIC MOTIVES FOR "SOCIAL" PROGRAMS: THE NEW FEDERAL DIRECTION

The Job Training Partnership Act (JTPA), passed by Congress in 1982, is significant federal employment and training legislation for a number of reasons. Most noticeably, it substantially enhanced private sector and state government roles in the administration of such programs. In order to understand both the programmatic impact of JTPA and its likely consequences on subsequent federal employment and training initiatives, it is necessary to look at the politics of the legislation-especially those interests that are strongly represented through its implementation and those that are not. By doing this, one obtains a better sense of the dimensions of conflict around future employment and training legislation. General guidelines within which Congress should act in subsequent legislative activity are laid out.     

THE REAGAN ADMINISTRATION'S WELFARE RETRENCHMENT POLICY: TERMINATING SOCIAL SECURITY BENEFITS FOR THE DISABLED

Large numbers of the permanently and totally disabled have had benefits terminated since 1980 as a result of a determined effort towards that end by the Reagan administration. This is an example of the process by which a major change in political ethos is translated into important changes in welfare benefit entitlement rules. It is also interesting since it seems to be the first instance of a large scale conscientious attempt of the executive branch to reach into and narrow the basic entitlement policy of the Social Security Administration. This normally would be done through joint executive, congressional and legislative action. This article presents the policy background of these events and reviews and analyzes the data about their consequences.     

WELFARE IDEOLOGY, THE MARKET AND SOCIAL SECURITY: Towards a Typology of Market-Oriented Reform

The global shift towards the market in the provision of social security is typically associated with the values of the New Right, but we take issue with this view. An examination of the main welfare ideologies that have influenced the development of contemporary social security systems suggests that the market and individualism have a role to play in a range of approaches to reform. Whilst some approaches unreservedly endorse the market – in a way which accords with the ideas of the New Right – other approaches adopt a pragmatic orientation based on a recognition of two public policy dilemmas, “market failure” and “state failure.” This attempt to define a middle way typifies many of the recent social security reform initiatives. Drawing upon Esping‐Andersen's recent work on de‐commodification, we construct a typology of normative approaches to the provision of social security which may be used to contextualise market‐oriented social security reform initiatives. This we argue is necessary to avoid the over‐simplified dichotomy between individualism and collectivism which is typical of so much recent work on social security reform.     

THE ABILITY OF OLDER WORKERS WITH IMPAIRMENTS TO ADAPT TO NEW JOBS: CHANGING THE AGE CRITERIA FOR SOCIAL SECURITY DISABILITY INSURANCE

Many applications for Social Security Disability Insurance cannot be evaluated based on medical criteria alone. In specific cases, the current regulatory structure dictates that applicants who can no longer do past jobs are expected to adapt to new jobs up to the age of 55, but not after. As the proportion of these cases has grown and life expectancy among beneficiaries has increased, policymakers have considered whether expectations for adapting to new jobs above age 55 should be adjusted. Some recent reform proposals call for increasing the age cutoffs in the regulations. Although prior research predicts reduced program costs, the capacity of potentially affected applicants to continue working is unclear. Filling this gap, we evaluate the work capacity of applicants above age 55 using an instrumental variables strategy. Our estimates indicate that, for applicants on the margin of allowance, at most an additional 11.2 percent would work above the regulatory definition of meaningful employment (known as Substantial Gainful Activity) in the absence of Disability Insurance benefits. We explore the implications for adapting to new jobs above age 55 under the proposed policy regime.