By M. Ramesh
This is often the one in-depth learn of social regulations in Southeast Asia. It compares social protection, wellbeing and fitness, and schooling regulations in Indonesia, Malaysia, the Philippines, Singapore and Thailand. After describing the rules and assessing their adequacy and fairness implications, it examines the forces that experience formed them. It concludes that social courses (except for fundamental schooling) within the sector are either insufficient and inequitable. It argues that the cause of this can be political instead of cultural or socio-economic.
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Extra info for Welfare Capitalism in Southeast Asia: Social Security, Health and Education Policies
Example text
The Southeast Asian nations have a strong reputation for the small size of their governments, which are rather simplistically measured in terms of budgetary revenues and expenditures. 7. However, contributions to and withdrawals from provident funds (which are compulsory savings schemes, discussed in the next chapter) are not counted towards revenue or expenditure because they are treated as private savings. It may be argued that provident funds should be treated as analogous to contributory earnings-related social insurance schemes, which are counted as a part of public expenditure, as these involve the coercive power of the tax, one of the key criteria for defining a tax.
The growth enabled Indonesia and Thailand to move out of, according to the World Bank’s classification, the ‘low income’ to ‘lowermiddle income’ group, Malaysia a level higher to the ‘upper-middleincome’ group, and Singapore to the ‘high-income group’. However, the Philippines remains in the ‘lower-middle-income’ group of countries. Economic growth in Southeast Asia was accompanied by moderate inflation, except for the Philippines in the 1970–1980s and Indonesia in the 1960–1970s. 2 Consumer Price Inflation, Annual Average (%) Indonesia Malaysia Philippines Singapore Thailand Source: 1961–70 1971–80 1981–90 1991–96 211 1 6 1 2 17 6 15 7 10 9 3 15 2 4 9 4 10 2 5 Based on World Development Indicators 1998.
Note that many social policies such as health and pensions are to an extent ‘luxury goods’ in the sense that demand for them rises faster than national income itself. 1 Public Expenditure on Social Policies case that richer countries spend more on social policies when other conditions are held constant. As a percentage of GDP, Malaysia is by far the largest spender on social policies considered together, whereas Indonesia and the Philippines are the smallest. What is surprising is that while the share has increased somewhat in Indonesia and the Philippines, it has decreased in other countries, rather substantially in the case of Singapore.