Welfare is expanding in Asia. The reasons why depend on who you ask. Some say it’s a result of greater wealth and democratisation. Others see it as a response to recent economic crises that revealed vulnerable sectors of society. And still others see it as governments pandering to voters. Whatever the reasons, it is a strong and growing trend. Some recent examples:
  • India rolled out a new welfare scheme for the poor in January. $58 billion will be handed out in cash directly to beneficiaries’ bank accounts.
  • Indonesia says it plans to launch a nationwide health insurance scheme in early 2014 to cover all citizens.
  • This year’s Singapore budget had various welfare measures, such as the Wage Credit Scheme, the Workfare Income Supplement Scheme and a personal income tax rebate.
  • In 2009, Nepal lowered the social pension eligibility age from 75 to 70.
  • Thailand has implemented a type of universal health coverage in the past decade, the so-called “30-baht scheme.”
Proponents say greater welfare is necessary and affordable. But what are the drawbacks? Critics say welfare creates dependency and complacency, and will erode Asia’s traditional self-reliance. They also claim it is economically damaging, and that benefits brought in during good times will not be affordable during bad times. Is Asia heading for some of the welfare-related problems seen in some Western countries, or can we do it differently? Experts on both sides of the issue argue it out on this month’s Perspectives.