The coming of East and South-East Asian welfare states

2000 ◽  
Vol 10 (2) ◽  
pp. 162-184 ◽  
Author(s):  
Sven Olsson Hort ◽  
Stein Kuhnle

It has long been assumed among Western commentators that rapid economic growth in East and South-east Asia has been achieved without the development of social policies. It has often been inferred that growth without social welfare is not only possible, but beneficial to further strong economic growth. The article questions these perceptions and beliefs. First, to what extent did East and South-east Asian countries delay the introduction of social insurance schemes compared to European pioneering countries, in the sense of introducing them only at a much higher level of 'modernization'? Second, to what extent was the economic miracle achieved by some of these countries based on (or accompanied by) attempts to forestall or retrench welfare state schemes? Third, to what extent has the recent financial crisis led to attempts at lowering or changing standards of social protection? The study shows that the Asian countries generally introduced social security programmes at a lower level of 'modernization' than Western European countries; that rapid and strong economic growth in the decade 1985–95 has in general been accompanied by welfare expansion; and that even after the financial crisis of 1997, expansion of state welfare responsibility is more evident than efforts to reduce or dismantle state welfare responsibility]

At a time when Europe is in the grip of a new crisis, it is especially useful to look back at the experiences of the European welfare states’ constitutions during the most recent financial crisis. This book provides unique insights by analysing social protection reforms undertaken in nine European countries, from both a social law and a constitutional law perspective. It highlights the mixture of short-term cuts in benefits and of structural changes in social protection schemes. The crisis might have helped to further the partial and temporary implementation of reforms, but it certainly cannot spare us from the debates and political compromises that are unavoidable in order to reform social protection thoughtfully and thoroughly. Moreover, the book records the outcome of relevant constitutional review proceedings and thereby demonstrates that, even if corrections remained restricted to relatively few cases, social rights matter. The financial crisis advanced their protection one step further, but left many questions open. One lesson is of paramount importance, also for helping us overcome the current pandemic crisis: we need a substantial and commonly accepted agreement in the Europe Union on how to balance the economy and social protection in the future.


2021 ◽  
pp. 843-862
Author(s):  
Maurizio Ferrera

In Southern Europe, welfare state building followed a distinct path, characterized by ‘weak Fordism’ in labour markets, a dualistic social insurance, and a faulty and fragmented safety net. The (extended) family thus played a key role as welfare and income provider for its members, penalizing women’s autonomy and employment opportunities. The 1990s and 2000s witnessed substantial efforts to modernize both labour markets and social protection schemes, by recalibrating their coverage both across risks and social groups. However, the economic crisis of the 2010s halted such recalibration and the gap with Europe’s more developed welfare states has again started to widen, especially in Italy and Greece.


Author(s):  
Ulrich Becker

The chapter introduces the aim of the book, its structure, and its relevance, including an overview of previously published works in the field. It emphasises a double-sided understanding of the constitution of welfare states by way of background to the book, which aims to provide, from a comparative perspective, a detailed analysis of crisis-driven changes in the nine EU Member States that were particularly affected by the financial crisis. As a basis for the subsequent country reports and comparative analysis, this introduction explains different forms and functions of social protection and different dimensions and levels of human rights protection, as well as detailing the time and place of investigation.


2015 ◽  
Vol 1 (1) ◽  
pp. 17-29
Author(s):  
Dariusz Prokopowicz

The recent financial crisis in 2008 has made a significant contribution to the growing importance of the analysis of processes of credit risk management and forced to take measures to improve the process. Sources of the financial crisis is now largely associated with the activities of mainly US investment banks that sold derivatives on the basis of income from high-risk mortgages. Increased risk recorded in the banking business, as a rule, also a derivative of the economic downturn in the sectors of bank customers, including non-financial business entities. In such a situation, banks are limited to provide customers with a more risky loan pro-active financial products. Given the global nature of financial markets and the importance of investment banking in the financial systems and the necessary actions to improve the tools for identifying, quantifying and managing banking risks, especially credit and lending institutions to protect themselves from potential sources of risk. The present analysis showed that the anti-crisis measures are mainly focused on the introduction of additional restrictions in the provision of financial products that may not be enough and may even be harmful, helping to reduce the economic growth of individual countries. Measures are also needed to strengthen supervisory agencies in the financial systems, including transnational supervision.


2012 ◽  
Vol 15 (2) ◽  
pp. 35-54
Author(s):  
Arisyi F. Raz ◽  
Tamarind P. K. Indra ◽  
Dea K. Artikasih ◽  
Syalinda Citra

As economies become more integrated in the midst of globalization, financial crisis that occurs in one country can easily transmit to other countries, becoming global financial catastrophe in a short period of time. In such event, strong economic fundamentals are particularly important to defend a country from the contagious effect of the crisis. As evidence, due to the fragile economic fundamentals and lacking government credibility, East Asian economies were easily attacked by the crisis in 1997 once the sentiment deteriorated. Nevertheless, the region had learned its lessons in 1997 thereby proofing its resilience in facing the global financial crisis that struck in 2008 by improving its economic fundamentals as well as policymakers’ credibility. This paper starts with theories on economic growth and financial crisis. Further, it empirically examines to what extent the financial crises in 1997 and 2008 affect East Asian economies by using panel data econometrics. The evidence shows that, even though both crises have contributed adverse impacts on East Asian economies, the magnitude of the 2008 crisis was relatively less severe than that in 1997. Finally, this study also provides further discussions regarding how East Asian economies had successfully minimized the impact of the global crisis in 2008. Keywords: Global Financial Crises; East Asian Economies; Economic Growth;Financial Market; Random and Fixed EffectsJEL Classification: C330, E440, G010


2004 ◽  
Vol 1 (4) ◽  
pp. 61-71 ◽  
Author(s):  
Galina G. Preobragenskaya ◽  
Robert W. McGee

Corporate governance has become a popular topic in recent years. Although much attention has been given to corporate governance in the United States and other Western countries as a result of recent scandals, and in Japan and other East Asian countries because of the financial crisis that occurred there a few years ago, much has also been going on in Russia and other transition economies in the area of corporate governance. This paper discusses recent developments in corporate governance in Russia and includes information gathered during interviews conducted in Russia during the summer of 2003.


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