Lecture 4.

Theoretical
foundations of social policy
and social development
DR LU SHIYU TRACY
What have we achieved so far
Last week:
•Welfare mix
•Welfare sate
What have we achieved so far
•Welfare mix (actors in welfare production and
financing)
•The social division of welfare State
•Welfare mix denotes the varying configurations of
actors in the production of welfare.
Provision
Informal Finance Market
Regulation

Voluntary
What have we achieved so far
•Societies in which a substantial part of the production of welfare is paid and provided by the
government have been called ‘welfare states’ (Baldock, 2007, p. 22)
•Typologies of welfare regimes

R M Titmuss’s Typology Ramesh Mishra’sTypology Esping-Andersen’s Typology

• R M Titmuss in 1955 • Coined in mid-1970s • in 1990

➢ Residual welfare ➢ Residual welfare ➢ Liberal welfare regime

➢ Institutional welfare ➢ Institutional welfare ➢ Corporatist/conservative welfare

regime
➢ Industrial-achievement ➢ Structural welfare
/ performance model ➢ Social Democratic welfare regime
 Residual Institutional Industrial-Achievement Structural Welfare
(Titmuss, 1955) (Titmuss, 1955) Performance Model (Mishra, 1984)
(Titmuss, 1955)
Value Base Charity & Welfare & citizen rights Social welfare as adjuncts ( To each according to his
philanthropic 附屬) of the economy. needs (各取所需)
Origin of Individual deficits Social & structural Individual deficits Social & structural
social inadequacy inadequacy
problem
Welfare / help Last resort, safety net, Prevent social crises, Social needs met on the Totalitarian welfare
offered minimal, short term, long time, universal & basis of merit, work comprehensive & free
selective with stigma optimal with limited performance & productivity health care, free &
& blaming stigma & blaming compulsory education,
low-rent housing for the
majority of urban
population.

Gov’t roles Limited or non- Large portion of gov’t Government roles in social Government controls
intervention intervention policy should facilitate the wages & salaries directly
economic growth & welfare production
 Social
Define needs and welfare
social problems
Kinds of Eligibility
benefits (who
Policy evaluation (what) benefits)
Set policy goals
& outcomes
Social Policy Delivery Financing
(How to (how to
Policy design & deliver) finance)
implementation

Welfare states and the typologies

(social rights, social stratification,
welfare mix)

Welfare ideologies
Mixed economy of welfare state
State

How state activities are interlocked with

the market’s and the family’s role in Provision
social provision? Informal Finance Market
Regulation

Voluntary
 Types of welfare regimes
Type of welfare Liberal Conservative/ Corporatist Social democratic
regime
Values Work ethic stigma Rights according to class and status Equality, universalism of
high standards
Instruments Means tested assistance Social insurance (benefits based on the Universal benefits; high
contribution and governed by the government to levels of benefits
spread the risk collectively)
Welfare mix/Mixed Market plays a greater role -Highlight the roles of families and civil society State’s role to ensure
economy of welfare while the role of state is -State only intervenes when family’s capacity universalism and full
minimized exhausted participation
Social right / De- Low Medium High
commodification
Social stratification Inequality in the society is Social class maintained but stabilized Promotes equality of the
notable highest standards
Country example US Austria, France, Germany, Italy Scandinavian countries
Ideology of welfare
What is ideology?
•A set of values that underpin political thinking and policy making
•Each ideology has its own distinct way of viewing human characteristics, of
interpreting economic and social affairs and the role of the state in providing
benefits to its citizens
•Provide us with a way of understanding and influencing the world in which we
live
Ideology意識形態
an idea-ology, like in biology, or psychology
many of the words ending in –ism主義, such as liberalism, conservatism,
socialism, communism, religious fundamentalism, feminism, etc
no clear and agreed upon definition of ideology. difficult term to really
define properly
Like put on a pair of glasses, changes the way you see the world.
to interpret the world and to make decisions
Each ideology has its own distinct way of viewing human
characteristics, interpreting social and economic affairs, and the role
of state in providing welfare to the citizens.
Provide us with a way of understanding and influencing in which we live

10
Ideology
A (political) belief/value system
A set of values that underpin political thinking and policy making
An action-orientated set of political ideas
basis for organised political action
intended to preserve, modify or overthrow the existing system of
power
◦ (a) offer an account of the existing order, usually in the form of a ‘world view’
◦ (b) advance a model of a desired future, a vision of the ‘good society’
◦ explain how political change can and should be brought about – how to get from (a) to (b)

11
Typology of Ideologies (of welfare)
Left VS Right
◦ political / social perspectives
◦ economic perspective
◦ i.e. Social democratic, Third Way, Neo-Liberal

Historical / Developmental view

◦ Fabianism (since 1884), The New Right (60s to 80s), The Third
Way (i.e 90s, Anthony Giddens), etc

Scholars
◦ Marxism, Foucauldian, etc

Field of study
◦ Feminism, Racism, etc

12
Ideology of welfare
Political views on welfare are often divided into 'left' and 'right' wing views.

Left Right
• State should play large • State should play minimal
role in welfare role in welfare (laissez-faire)
• Equity; universality; • Pro-market
fairness • Favours occupational and
• Favours statutory rather fiscal welfare
than occupational or • Voluntary and informal
fiscal welfare sectors

Source: Spicker, P. (2014). Social policy: Theory and practice. Policy Press.
Main Western Political traditions
Liberalism
oLibertarianism
oNeo-liberalism
oSocial liberalism
Conservatism
Socialism
oSocial democracy
 • Social order over liberty or equality
• Gradual change
Conservatism

Socialism Liberalism

Left Right
• State should play large • State should play minimal
role in welfare role in welfare (laissez-faire)
• Equity; universality; • Pro-market
fairness • Favours occupational and
• Favours statutory rather fiscal welfare
than occupational or • Voluntary and informal
fiscal welfare sectors
Liberalism
Human nature
o The individual comes first – they are more important even than a group or society (Individualism)
o The individuals are rational and capable of personal development. This means that humans can make
good decisions. (self-interest)
o Therefore, individuals should be left to pursue their own interests. Liberals believe that the individual can
prosper if freed from tyranny and oppression. (freedom)
Economy
o The free market is the main organizing feature of society. “Invisible Hand”
o Market can secure individual and social welfare and human liberty.
o Individuals’ self-interested pursuit of wealth leads to collective prosperity.
o Or selfish desire to prosper and make a profit is constrained by market competition because
free competition can lead to equilibrium.
Liberalism
State
oThe advocates of “laissez-faire”
• Instead of taking an active role in providing welfare or in the management and coordination of
economic affairs, the state only plays limited constitutional role. A legal framework for market
operation is important.
• Interference in the marketplace is only justifiable on the grounds that its free operation is being
protected and preserved. Otherwise, state intervention in market activities to be inherently
destructive.

oLiberals are often fearful of the state assuming too much control and power over the life
of the individual.
• Limited role of state – do not obstruct the invisible hand and rational individual to exercise their
choices
• Hence, individual responsibility as fundamental, and state support as secondary
Liberalism
Social values
• Equality is incompatible with freedom of individual
• Equality only brings inevitable range of coercion on individual through
coercive policies
• Only inequality can preserve individual freedom and generate incentives to
innovation and effort to work, to earn, to invest and to save
• Reward (e.g., wealth) in proportion to the person’s merit as fair measure of
one’s worth to the society
• Inequality is economically beneficial, while equality would destroy social
cohesion
Liberalism
❖Social liberalism
• A less critical view of the state

❖Libertarianism
• Represents the logic extreme of liberalism

❖Neo-liberalism
• Came into being in the 20th century
• Followed the classical liberal legacy with the economic philosophy
• More emphasize on free trade, privatization, deregulation, control government spending, borrowings and
taxation
 • Social order over liberty or equality
• Gradual change
Conservatism

Liberalism
Socialism
Social liberalism Neo-liberalism Libertarianism

Left Right
• State should play large role • State should play minimal role
in welfare in welfare (laissez-faire)
• Equity; universality; • Pro-market
fairness • Favours occupational and fiscal
• Favours statutory rather than welfare
occupational or fiscal • Voluntary and informal sectors
welfare
Social Liberalism
•Social liberals continued to maintain a firm commitment to liberal
social values (freedom of individual & the primacy of market
economy)
•But with a less critical view of the state
oRecognized that markets do not always satisfy all needs & state intervention in
the economy can assist in:
▪ Improving the efficiency of the capitalist economy and
▪ Maintaining decent levels of employment
Social Liberalism
•Social liberals believe that the state is a potential ally and an instrument that can
be used to protect and even humanize the capitalist system when the free market
is unstable
•Social liberals still have no interest in attacking all inequalities, but accept for
certain degree of equality
o Equality of general rules
o Equality of civil and political right
o Equality of opportunities, e.g. opportunity to receive education, so that all can benefit from the
fruits of capitalism
Social Liberalism
It should be appreciated that modern social liberals have had an important role in the development
of the welfare state, especially in Britain and in the United States.
• The foundations of the British welfare state were laid by the Beveridge Report of 1942 and were couched
within a social liberal framework. (needs to boost economic development again)
• In the United States, the Democratic Party in general and the administrations led by Roosevelt have been
extremely important in establishing a range of state funded and directed welfare services. E.g., New Deal

Source: Taylor, G. (2006). Ideology and Welfare. Macmillan Education UK

Libertarianism
•Represents the logic extreme of liberalism’s prioritization of
individual liberty and autonomy and its suspicion of the state.
•Its rejection of the state, or its confinement to a minimalist role, in all
spheres of life is more radical than that social or classical liberalism
or neo-liberalism.
•Libertarians regard individuals as the rightful owner of whatever they
gain with their own talents or through free exchange
Neo-liberalism (新自由主義)
Economy
•Followed the classical liberal legacy
•Critique of the failings of 21st-century state collectivism embodied in “Keynesian welfare state”.
• Keynes (1936) argued that the state should be willing to pump money into the economy in the
interests of stimulating demand and thereby helping to secure full employment. (during the Great
Depression in the U.S.A in 1930s)
•Back to classical liberalism, which in its revived form came to be known as
neoliberalism
•Background: In the 1970s, economic stagnation and increasing public debt were notable.
• Friedman (1962) argued that Keynesian economic policies entailed fuelled inflation.
• Hayek (1960) emphasized the “negative freedom”. Individuals should be free from
constraints/coercion – what individuals do with their freedom is a private matter.
Challenges to the Pro-Leftist Policies
In the mid 20th century, public & social expenditure in welfare increase because of:
◦ Expansions in welfare programs
◦ Decline in economic growth rates
◦ The rise in the demand for welfare services

Financial sustainability of the welfare state & political sustainability are also in doubt in
different countries.
Neo-liberalism
Argument against the welfare state and social policy
From the mid 20th Century (at the time of Ronald Reagan in US & Margaret Thatcher
in UK) – downfall of socialism / socialist projects of a big government and society; the
spirit of liberalism was revived; free market was championed again in fostering
economic development of society

Key concepts:
◦ Like the classical liberals, they argued that individuals should bear their own welfare and the state should
withdraw from the market & social provision.
◦ State welfare poses significant threat to the freedom of individual & create dependency culture (依賴文化 –
e.g. 綜援養懶人) to rely on the state.
◦ Minimal public provision & state intervention – apply only when the market fail to provide efficiently e.g.
public health
◦ Safety-net security – for those unable to work in the market
◦ Privatization (market efficiency)
Neo-liberalism
•The Thatcher governments, in order to reduce
taxation, deprived the state of many of its
economic functions, privatised many of the
nationalised industries and left unemployment to
find its own level.

•Reagan governments out to reduce government

intervention in all areas of economic and social
life.
•Against the management the economy or
redistribute resources through egalitarian taxation
policies
Neo-liberalism
❑What are the problems of Neo-liberalism in the argument against the
welfare state?
Neo-liberalism fails to
• Understand the disadvantaged people who have less access to resources and face
greater discrimination
• E.g., we are born with differences. But some differences can make us vulnerable and
disadvantaged in market competition
• Distinguish between freedom and “ability”
• E.g., Individuals need the ability (education) to achieve freedom.
• Private sectors can be coercive too
• ,E.g., use the competition to prolong working hours, less employment protection, or put workers
in the risk of industrial injury
 • Social order over liberty or equality
• Gradual change

Conservatism

Liberalism
Socialism
Social liberalism Neo-liberalism Libertarianism

Left Right
• State should play large role • State should play minimal role
in welfare in welfare (laissez-faire)
• Equity; universality; • Pro-market
fairness • Favours occupational and fiscal
• Favours statutory rather than welfare
occupational or fiscal • Voluntary and informal sectors
welfare
 • Social order over liberty or equality
• Gradual change

Conservatism

Liberalism
Socialism
Social liberalism Neo-liberalism Libertarianism

Left Right
• State should play large role • State should play minimal role
in welfare in welfare (laissez-faire)
• Equity; universality; • Pro-market
fairness • Favours occupational and fiscal
• Favours statutory rather than welfare
occupational or fiscal • Voluntary and informal sectors
welfare
Conservatism
•Human nature
• Conservatism was a philosophy of imperfection, as it saw human nature as flawed and limited in its
grasp of the world, in contrast to the optimistic view of liberals.
o Thomas Hobbes (1588–1679)
• Organic society. Society is a natural, complex body like a tree. It develops and grows slowly, needs
constant nurturing and pruning to ensure its health and should not be uprooted and replaced with
something new through radical change/revolution. (Organic society over individualism)
• Hierarchy. Human nature and society are naturally divided by wealth, status and power. There is a
natural ruling class with the necessary wealth and authority to govern, while the masses should
naturally obey the elite that is governing in their best interest. Inequality is built inherently in our
society. (Social order over freedom)
•Gradual change
• A view of society as organic, as more than the sum of its individual parts, and as developing slowly
and naturally, so that radical reform is often seen as potentially problematic; an acceptance of
gradual change, but a skepticism about reforms that emerge from what may be passing fashions.
• Tend to preserve what we have and protect our cherished traditions from unfamiliar and untried
political scheme
• Conservatism emerged as a response to the French Revolution
Conservatism
•Economy
• Support for the free market economy and a belief in the importance of market forces
in wealth creation, with government intervention seen as inefficient, monopolistic and
damaging to individual freedom.
• Yet, conservatives attack liberals’ over emphasis on “economic success”
• Because it is very easy to trigger anger from the working class due to inequality, to lead to the
revolution
• Many conservatives have a willingness to use the government to regulate the
economy does not diminish their commitment to capitalism.
Conservatism
•State
• Conservatives want capitalism to work and they are willing to use the state to
compensate for market failures
• The welfare state is seen as a mechanism for looking after the population and
for creating stability in the system.
• Social policies are designed to protect the vulnerable and in so doing shield the
system from the insidious (潛在） influence of radical ideas.
Conservatism
•Social Values
• Higher priority to social order than to individual freedom
• It sees people as being unequal in their abilities, it approves of hierarchy and inequality.
• A belief that people are imperfect, and that there is a need for authority, a strong state government to maintain
law and order.
• We live in a selfish and corrupt society, thus, we need to be supervised and disciplined rather than liberated
• A belief in inequality since they have a hierarchical vision that the rich have authority over the
poor
• Inequality can ensure society is run by the wise and the economic system is in the hands of
those who display superior skills and initiative
• Traditional conservatism upholds that there are moral values (e.g. traditional marriage and the
nuclear family), that have provided stability and certainty.
• A view that the wealthy have obligations, including assisting those who are less fortunate, for
example, through voluntary charity
• Individual freedoms need to be limited to protect these values, to ensure society is stable and
works for all.
 • Social order over liberty or equality
• Gradual change

Conservatism

Socialism Liberalism

Social democracy Social liberalism Neo-liberalism Libertarianism

Left Right
• State should play large role • State should play minimal role
in welfare in welfare (laissez-faire)
• Equity; universality; • Pro-market
fairness • Favours occupational and fiscal
• Favours statutory rather than welfare
occupational or fiscal • Voluntary and informal sectors
welfare
Socialism
Human nature
• It is premised on an optimistic view of human nature as cooperative and creative;
• human beings are therefore seen as capable of self-government through the principle of popular
sovereignty.

Economy
• Socialism is the antithesis of conservatism and argues that capitalism as a social and economic system is
inimical to human well-being.
• Socialism argues for the common ownership of the means of production and distribution and for societal
responsibility to meet the needs of all its members in recognition of human interdependence.
Socialism
State
• The state has a big role in looking after the all as a community – almost “nannying” us and looking after
us.
• What this means is that the State should provide people with homes, free healthcare, education. Etc.
• State should ensure that wealth should be equal amongst us all – if it is not equal, it should be
redistributed and divided amongst us all.
• The Government should increase the “Public Sector” by owning more industries (e.g., owing transport
companies, etc.). Then people can be employed by the Public Sector and get fair pay

Social value
• Socialism’s motivating principle is social equality. The equality of everyone in a community is more
important than individual rights
• From this stems a fundamental critique of capitalism and the inequality, exploitation, social class
divisions, competitive individualism and materialist values that it generates.
Socialism - Social democracy
•Socialists also differ in the extent to which they want to tame capitalism through reformist means
or overthrow it through revolution.
•Such differences reflect two most important strands of socialism:
o Democratic socialism or social democracy
o Marxism (not our focus)
Social democracy
•Economy
• Social democrats tend to be critical of capitalism and believe that capitalism can
and should be eroded and replaced by a more humane and just economic system
•Social values
• Social democrats tend to be openly egalitarian.
• Social democrats argue that freedom and equality are compatible. By defining
freedom as the opportunity to fulfil ourselves and to be free from economic
deprivation, they see that some measure of equality is necessary for the
individual to experience true freedom
Social democracy
•State and welfare
• Social democrats recognise the positive value of the state intervening to provide
welfare services
• See the welfare state as a mechanism for reducing inequalities and for
cultivating a sense of cross-class solidarity.
•Welfare and social policies
• Social democrats have traditionally relied upon a string of social policy
initiatives to maximise the welfare of individuals and of society.
• Social democrats argue that progressive forces need to gain control of the state
and to use it to tackle social need and to establish a more egalitarian system.
• Social democrats tend to support the welfare state and rely to a great extent
upon the state responding constructively to our social needs.
 • Social order over liberty or equality
• Gradual change

Conservatism

Socialism Liberalism

Social democracy Social liberalism Neo-liberalism Libertarianism

Left Right
• State should play large role • State should play minimal role
in welfare in welfare (laissez-faire)
• Equity; universality; • Pro-market
fairness • Favours occupational and fiscal
• Favours statutory rather than welfare
occupational or fiscal • Voluntary and informal sectors
welfare
 To what extent your views on welfare are
similar to ones from liberals, conservatives or
social democrats?
Summary

Social
Define needs and
welfare
social problems
Kinds of Eligibility
benefits (who
(what) benefits)
Policy evaluation
Set policy goals
& outcomes
Delivery Financing
Social Policy (How to (how to
Policy design & deliver) finance)
implementation

Welfare states and welfare regimes

Principles/values of social policy

&
Welfareofideologies
Ideologies social welfare
(Liberalism, Conservatism, Socialism – Social democracy)
The evolution of
welfare state
HISTORY OF SOCIAL WELFARE IN THE WEST
Before Industrial Revolution
• Responsibility to meet the needs of those who are unable to be self-sufficient was mainly taken
up by family, church or neighbours.
• Influenced by the value of humanitarianism to help those in need benevolently.
• The Elizabethan Poor Law (1603)

• Replaced church responsibility for the relief of pauperism （貧民） with government
responsibility
The evolution of the welfare state
Inception (1880s–1930s)
❖Economic development
• Golden era of unrestrained capitalism - Industrialization
• Hazards of industrial society
• E.g., the decline of rural agriculture, the transformation of farmers and peasants into factory workers, and the
jeopardy faced by increasing numbers of families as economic cycles of boom and bust disrupted their livelihood)
• E.g., Great Depression in the 1930s (deprivation, misery & poverty were beyond individual control)

❖Political development
• Growth of democracy;
• Universal adult suffrage; Development of union movement
❖Government & Social Policy
• Beginning of national welfare leadership: Government must play a role in providing financial
assistance and social services
• Poor-law tradition gives way to new initiatives in social security (pensions, unemployment, health
care); public spending reaches 5 percent of gross domestic product (GDP)
• 1886: Germany adopts health insurance; 1911: England enacts National Insurance Act;
The evolution of the welfare state
Growth & Maturation (1940s–1970s)
❖Economic development
• Triumph of Keynesian economics after the Great Depression
• Powerful post–World War II economic growth
• Low unemployment
❖Political development
• Broad political consensus on increasing social spending
• Advocate civil and social rights for minorities, women and the disabled
❖Government & Social policy
• Broad expansion in national social financing and regulation,
• Emphasis on social and economic rights for minorities, urban poverty population etc.
• Europe: 1942: Beveridge Plan provides welfare blueprint for post–World War II English society
• US: 1964: War on Poverty; 1965: Medicare and Medicaid enacted
The evolution of the welfare state
Retrenchment & Transformation (1970s-2007)
❖ Economic crisis (e.g., 1973 oil crisis)
• Slower economic growth, stagnating personal incomes, increased inequality; unemployment
rate increased
• Increased demands on social security and health programs for an aging population

❖Politically, Intellectual critiques of the welfare state

• Conservative resurgence and Conservative that many problems were beyond the capacity of
the government to alleviate.
• Neo-liberalism.
❖ Government and Social Policy (Retrenchment) (1970s – 1980s)
• Reagan (United States) and Thatcher (United Kingdom) seek to reduce the size and scope of
the welfare state;
• Thatcher government: privatization of public housing and reduce pension payment
• No new, large scale social welfare programs were initiated in the 1970s and 1980s
The evolution of the welfare state
Retrenchment & Transformation (1970s-2007)
❖ Government and Social Policy (Transformation) (1990s)
• Clinton in USA & Tony Blair in Britain
• Welfare reform (from welfare to workfare)
➢ Without working, recipients of financial benefits receive no more than 2 years (workfare)
➢ Single parents have an obligation to work for a living
The First, Second and Third Way
❖The First Way
The left (first way) is based on socialist ideas, see welfare based on rights and redistribution. The
acceptance of the market is universal, even in socialist countries. The socialist approach is weak on
work incentives and responsibilities.
❖The Second Way
The socialist approach is weak on work incentives and responsibilities. The right (the second way),
based on neo-liberalism would aggravate unemployment, inequalities and social division. Emphasize
on the individuals to fend themselves against insecurity and changes.
❖The Third Way
rights and responsibilities should be equally emphasized (strike a new balance). “No rights without
obligations/ responsibilities”. T. Blair (1993) “without responsibility, there is no society.” From each
according to his ability; To each according to his needs.

Liberal Third Way Social Democratic

Minimal State Enabling State Welfare State
 Welfare to Workfare in Hong Kong
Year Gov’t Policies / measures Organization Workfare Active Passive

1971 Public Assistance Social Welfare ✓

(1971 - 1993) Department (SWD)
Comprehensive Social
Security Assistance
(CSSA) (1993 - now)
1992 Different retraining Employee Retraining ✓
courses Board (ERB) 僱員再
培訓局
1999 Support for Self-Reliance Social Welfare ✓
scheme (SFS) 自力更生 Department (SWD)
支援計劃
1999 Youth Pre-Employment Labour Department ✓
and Training Programme
(YETP) 展翅計劃
2002 The Continuing Education The Secretary for ✓
Fund (CEF) 持續進修基 Labour & Welfare
金
2002 Youth Work Experience Labour Department ✓
and Training Scheme 青年見習就業計劃
(YWETS)
2006 New Dawn Intensive Social Welfare ✓
Employment Assistance Department (SWD)
Project (Single Parent)
欣曉計劃
 Welfare to Workfare in Hong Kong
Year Gov’t Policies / measures Organization Workfare Active Passive

2006 Special Training & Social Welfare ✓

Enhancement Department (SWD)
Programme (My STEP) (for long term young
CSSA recipients)

2007 Y.E.S. Youth Labour Department ✓

Employment Start
2008 Work Incentive Labour Department (鼓 ✓
Transport Subsidy 勵就業交通津貼計劃)
Scheme (WITS)
2009 YETP & YWETS were Labour Department ✓
combined as Youth (展翅青見計劃)
Employment & Training
Programme
2011 Minimum wages Legislation ✓

2013 Employment Labour Department ✓

Programme for the 中年就業計劃
Middle-aged
2016 Low Income Working Social Welfare ✓
Family Allowance 低 Department (SWD)
收入家庭津貼
Austerity (2008-before COVID-19)
❖Global economic recession since 2008
• Significant increase in unemployment and economic insecurity; debt crises and threats

❖Political views
• Broad acceptance by mainstream political parties of the need to limit government spending and debt.
• However, anti-austerity demonstrations throughout Europe

❖Government
▪ Austerity measures ranging from benefit reductions, eligibility restrictions, cuts to the pay of public
employees
▪ Germany increased its retirement age from 65 to 67, and imposed tuition in its national university system
▪ Denmark reduced its unemployment benefits to two years from four
▪ Great Britain cut family allowances and imposed work requirements on welfare recipients
 Anti-austerity demonstrations throughout
Europe

https://www.bbc.com/news/uk-36063743
How about during the pandemic?
Is welfare state back during COVID-19?

Source: OECD Secretariat estimates based on the OECD Risks That Matter 2020 survey
From redistributive welfare to
social investment perspectives
Evolution of changing welfare paradigms
•Unmet Social needs
• Rising inequalities
• In‐work poverty
• persisting unemployment
•New risk
• Ageing population
• Increased economic competition arising from globalization
• Intense budgetary constraints
• a lack of adequate social services
• a lack of skills to fill today’s jobs and to create the jobs of tomorrow

A new social policy strategy can address these issues altogether

Morel et al (2011)
Social Development (Midgley, 1997)
•Social development offers an alternative perspective on redistribution that emphasizes resource
allocations to social programs that are productivist and investment-oriented and that enhance
economic participation and make a positive contribution to development.
•The social development perspective insists on the integration of economic and social policy and
gives expression to two axioms:
◦ a) it requires that economic development should be inclusive, integrated and sustainable and bring
benefits to all;
◦ b) it proposes that social welfare should be investment-oriented, seeking to enhance human capacities
to participate in the productive economy

•The approach would emphasize personal responsibility, the involvement of non-profit

organizations, and the full utilization of the market and state intervention
Key notions of social investment in
changing social welfare
❖Developing Individual and Community Assets
❖Enhancing Human Capital Investments
❖Facilitating Economic Participation through Productive Employment and Self-Employment
❖Promoting Social Capital Formation
• Community Investment and Inclusion Fund (CIIF) 社區投資共享基金
❖…………………….

Midgley (1999). Social Service Review

Social policy in Social investment
❖Examples:
oActive labour market policies;
oEarly childhood education and care;
oHigher education
oLife‐long training;
oPolicies to support women’s employment (childcare, parental leaves, etc.)

Morel et al (2011)
Example: Active labour market policies (ALMP)
 Example: Early Education and Care
• Early Education and Care has
multidimensional short and long-term
benefits

• 1. Improving early education can help more

children get ahead, increase their human
capital, and boost social mobility

Source: https://read.oecd-ilibrary.org/education/starting-strong-2017_9789264276116-en#page32
 Example: Early Education and Care
• Early Education and Care has
multidimensional short and
long-term benefits

• 2. Facilitating Economic
Participation among women

Source: https://read.oecd-ilibrary.org/education/starting-strong-2017_9789264276116-en#page32
Key references:
**Taylor, G. (2006). Ideology and Welfare. Macmillan Education UK
**Lister, R. (2010). Understanding theories and concepts in social policy. Policy Press.
**Esping-Andersen, G. (1990). The Three Worlds of Welfare Capitalism. Polity Press.