With the 100th anniversary of the ROC—Asia’s first democracy—approaching, the Government Information Office recently invited a group of experts to review developments in the nation’s social welfare system. The panel lauded programs already in place, while calling for new measures to deal with a rapidly aging society and a widening wealth gap, as well as viable financing for all programs.
Within any given society, civil rights usually develop linearly from economic rights through political rights, and finally social rights, according to Chan Hou-sheng, national policy advisor to the president.
“Developments in the ROC since 1945 have followed a similar path,” Chan said. “And Taiwan is now becoming a country characterized by social rights.”
Citing the constitution’s stipulations that the state draw up appropriate social welfare policies and provide support and assistance for disadvantaged groups—the disabled, impoverished, elderly, women and children—Chan said the domestic social welfare developments in these areas are valid evidence of Taiwan’s progress in social rights.
“The Labor Insurance and National Pension Insurance programs demonstrate this point clearly,” he said.
Labor Insurance, as part of the social security system, has offered death, disability, injury, maternity, old-age and sickness benefits since its establishment in 1950.
As one of the nation’s most important social insurance programs, it currently covers more than 9.4 million participants, according to the latest statistics from the Council of Labor Affairs.
Beginning in January 2009, a monthly pension system was added to Labor Insurance, providing benefits to the insured until they pass away. Previously, upon retirement workers could only collect a lump sum.
“This important change was made to respond to our increasingly aging society,” Chan said.
With average life expectancy over 80 years, the government recognized the necessity of building up a more complete protection system to provide long-term financial support after retirement, and for dependents.
The ROC’s National Pension Insurance was launched in October 2008, targeting nationals aged between 25 and 64 who are not included in insurance programs for farmers, laborers, government employees and military personnel. It is the second program of its kind in Asia, following one in Japan, Chan added, pointing out that the program highlights the government’s commitment to creating a complete social safety net for every citizen.
With nearly 4 million participants so far, NPI provides fundamental economic security to nonworking spouses, freelancers and the unemployed, among others. Like Labor Insurance, it offers pensions and disability and death benefits.
In addition to these insurance systems, National Health Insurance is another success of Taiwan’s social welfare system, Chan said.
NHI went into effect in 1995, giving citizens affordable, comprehensive health services. The arrangement is particularly important for the socially and economically disadvantaged.
To date, NHI covers 99.6 percent of Taiwan’s 23 million people. “Such high coverage is very rare,” Chan said, adding that international experts see the system as one of the best in the world.
Since the 1980s the government has also launched a string of social welfare measures for indigenous peoples, the disabled, those living below the poverty line, the unemployed, children, senior citizens and new immigrants.
Employment Insurance, for example, was implemented in 2003, the second in Asia, according to Chan. The program provides for basic financial subsistence during unemployment and assistance in returning to the workplace.
“Many measures regarding social services, such as the Senior Citizens Welfare Act, Public Assistance Act and People with Disabilities Rights Protection Act, were enacted in 1980,” said Chou Yi-chun, assistant professor in the Department of Social Welfare at Hsuan Chuang University.
Progress in Taiwan’s social assistance system was also reflected in the Labor Standards Act of 1984, which safeguards working conditions, and the Gender Equality in Employment Act of 2002, which ensures gender equality in the workplace, Chou noted.
In addition to the efforts of the public sector, she pointed out, the power of civil society played a significant role in establishing the social welfare system, especially between 1945 and 1985.
Echoing Chou’s remarks, Environment and Development Foundation Chairman Chai Sung-lin paid tribute to the third sector—nongovernmental and nonprofit organizations—for promoting the country’s social services.
Chai also pointed to other successful developments in domestic society. “These include the popularization of education, developments in public health and medical care, a less socially hierarchical environment and improved social status for women,” he said.
Despite the many important advances of the past, however, these social welfare professionals drew attention to areas requiring further improvement.
Chan called for the establishment of long-term care insurance as soon as possible to deal with an aging society. “It is the last measure needed to build a complete social insurance system.”
He also urged the government to come up with more efficient premium plans for each social insurance program to make the system sustainable. “Otherwise, the next generation will be burdened with serious financial issues stemming from social insurance plans.”
Moreover, like many other advanced countries in the world, Taiwan faces a sinking birthrate. In 2009, there were only 8.3 newborns per 1,000 people, tying Germany for the lowest birthrate in the world.
“This situation is causing our social development to deteriorate,” Chou said. “The government must make it a priority to boost the birthrate and make raising children more affordable.”
Meanwhile, a widening wealth gap is looming in Taiwan following its economic miracle and successful experience combating poverty between the 1950s and 1990s, according to Ku Yeun-wen, professor of social work at National Taiwan University.
Chai also urged the government to take action in tackling income inequality. “Every new millionaire brings down the income of millions of other people.”
To establish a truly fair and just society, more must be done, by both the government and civil groups, Chan said.
Besides its strong economic performance, the Taiwan experience includes its outstanding developments in social welfare, and these must be continued, he said. (THN)
Write to Elaine Hou at elainehou@mail.gio.gov.tw