Residual welfare model in Hong Kong Essay Example

Residual welfare model in Hong Kong Paper Residual position of societal public assistance Social public assistance is a important issue in a society. The societal issues allow us cognize which public assistance should supply and to what extent the public assistance can be provided. In fact, the ways to supply societal public assistance may change between different societies. The societal public assistance system in Hong Kong is following the residuary public assistance theoretical account. Hong Kong has followed the large market, little authorities political orientation for many old ages. It is based on the thought of the residuary public assistance theoretical account that there is no demand for the authorities to prosecute in the distribution procedure of societal public assistance. This is because people can decide the jobs themselves. The needy can happen support through the market mechanism, household or the non-profit-making organisations. The authorities will merely supply support to people when the needy truly can’t solve the jobs themselves. Therefore, harmonizing to the large market, little authorities rule, the authorities holds the belief that people have the ability to acquire rid of the troubles. The authorities is the last and impermanent resort of the needy. The authorities can supply the immediate support to the needy. However, in the long term, the needy have to happen ways to assist themselves. We will write a custom essay sample on Residual welfare model in Hong Kong specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Residual welfare model in Hong Kong specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Residual welfare model in Hong Kong specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Due to the residuary public assistance theoretical account, the policies in Hong Kong are non cosmopolitan. The societal aids in Hong Kong normally have the agencies trial because the authorities merely will assist people who are under a really hapless fiscal or populating status. I will utilize the instruction and lodging facets in order to demo that the policies in Hong Kong demonstrate the political orientation of residuary public assistance theoretical account. For instruction, the authorities provides support in the signifier of loans and grants for pupils who live in the low income household. The pupils might acquire full grants of their tuition fee but they should undergo the agencies test foremost. Besides, in order to protect people’s basic life demand, the authorities launches the public lodging strategy. The authorities provides low-cost lodging for low-income occupants. If people want to use for the public house, they should go through the agencies trial in the public lodging strategy. From the policies of instruction and public lodging, we can cognize that Hong Kong is under the residuary public assistance theoretical account because every policies are non cosmopolitan and they will put some demands for people to achieve which this is fit t he beliefs of residuary public assistance theoretical account. Therefore, the individualistic manner and ‘positive non- interventionism’ are regarded as two chief characteristics of Hong Kong’s policy. Despite the instruction and lodging policies, the retirement protection system besides demonstrate the thoughts of residuary public assistance theoretical account. The aging population job is going more serious in Hong Kong. The aging population of aged 65 and above is acquiring increasing from 12 % to 17 % in 2002 to 2012 ( Census and Statistics Department, 2013 ) . Hong Kong is sing the aging jobs over the past decennary. In my undermentioned portion, I will concentrate on the retirement protection policy within the aged public assistance system. Three-pillar retirement protection attack In order to cover with the aging jobs, the World Bank implements the multi-pillar-model. There will be three pillar attacks toward the retirement protection system when the World Bank first times to establish the strategy. The Pillar I is a public retributive and defined-benefit system. It is so called the ‘pay as you go’ attack. Besides, the Pillar II is a private, funded and defined part system. Besides, the Pillar III is a private, voluntary and auxiliary defined part system ( Roller, 2012 ) . The two more pillars were added in the theoretical accounts subsequently which are the Zero Pillar and Pillar IV. The Zero pillar purposes to protect people’s basic demand. It holds the belief that everything should undergo the procedure of agencies trial. It is besides related to the Pillar I because both of them are wishing to relieve poorness. Both of them believe that all citizens should prosecute in the public assistance procedure ( Castells, 2010 ) . Furthermore, Pi llar IV is speaking about some support from household which might non be related to the money ( Chou, 2009 ) . Even though the theoretical account of the World Bank has five pillars today, Hong Kong is still following a three-pillar attack toward the retirement protection policy. First, the Zero pillar exists in Hong Kong which aims to supply the basic demand to the aged. In Hong Kong, when the aged meet the age demand, they can have the CSSA and Old Age Allowance ( OAA ) . The CSSA and OAA can move as trim money for the aged to carry through their day-to-day life. Second, Hong Kong has the Pillar II which the illustration is the MPF. If you get a occupation, there is no uncertainty that every employee has to prosecute in the MPF. Third, Hong Kong has the Pillar III which is related to the voluntary private nest eggs ( e†ºÃ‚ ·e?Zei2011 ) . In order to hold a better life as a retired individual, they might utilize their ain nest eggs to back up their day-to-day life. For the retirement protection policy, we can cognize that the authorities is obeying the regulation of ‘big market, little authorities ’ . It means that the authorities and the other establishments besides have the duty toward the retirement protection policy. The Means trials are the primary method for finding eligibility when using the CSSA and Old Age Allowance. Selective hard currency aids are reserved for people defined within the context of the policy as in demand. Means testing is used to place people with limited resources. This selective procedure determines the eligibility for public assistance benefits or services so it shows the thoughts of residuary public assistance theoretical account. The authorities uses the three pillars approach in order to supply the basic demand to the aged. However, it is non job free with the three pillars approach. Hong Kong Council of Social Service finished a statistic about aging population last twelvemonth. There are a 3rd of people aged 65 and over are populating under poorness ( e†ºÃ‚ ·e?Zei2011 ) . They are regarded as really hapless people among the universe. Therefore, people argue that if the CSSA and Old Age Allowance which the aged rely on can truly supply the basic necessities for them. Besides, people besides argue that the MPF covers merely working people. Housewifes and others who are non employed are non covered by the MPF. There is small trouble in understanding that people will experience uncertainty that how the retirement protection of the homemakers is. Obviously, the bing retirement protection policy is seeking to undertake the fiscal jobs of the aged. When the aged truly necessitate aid, the authorities can supply them with the basic demand. The study from the Census and Statistics Department shows that the aging population will be increasing rapidly in the coming old ages. The aged aged 65 and above will increase from the 1.0 million last twelvemonth to 2.6 million in 2041. This statistic suggests that by 2041, around one in three individuals will be seniors ( Census and Statistics Department, 2013 ) . Therefore, due to the restrictions in the retirement protection policy I mentioned, there is no uncertainty that the authorities should do betterment toward the retirement protection policy. Experiences from Taiwan Taiwan is the same as Hong Kong that it besides has the aging population and with the similar geographic background as Hong Kong. As the retirement protection policy in Taiwan is rather good developed, it can be Hong Kong’s mention when bettering the retirement protection policy. Taiwan follows the five-pillar attacks when covering with the aged policy. I will concentrate on speaking about the National Pension Program in Taiwan because the other retirement protection policies in Taiwan are about the same as other states. The National Pension Program purposes to supply the aged with the basic demands in their day-to-day life. For the seniors who want to use for the National Pension Program, they ought to undergo the procedure of agencies trial and there is a residence demand that they have to go through. In order to keep the sustainability of the National Pension Program, the authorities should non pay the money to the seniors in one clip. They should pay the money measure by measure, such as monthly ( Roller, 2012 ) . Urge for a cosmopolitan retirement protection strategy Hong Kong and Taiwan have the similarities in the reform procedure. However, their pension reform is really different. Taiwan implements the National Pension Program successfully whereas Hong Kong merely focuses on the CSSA and Old Age Allowance. With mention in Taiwan, some people suggest that Hong Kong ought to spread out its retirement protection policy which is to present a retirement protection strategy which is for all citizens. This strategy is subsequently explained by Professor Nelson Chow Wing-sun. He proposed to put up a cosmopolitan retirement protection strategy in Hong Kong. In the strategy, HK $ 3,000 monthly pension will be given to people aged 65 and above ( a‘ °- °i2013 i?†° . In order to keep the stableness of the strategy, the employers and employees need to lend and the authorities would be responsible for some of the fund. This new strategy eliminates means trials and other administrative processs because age standards are the lone eligibility to make up ones mind if you can acquire the pension or non. I think that the retirement protection strategy proposed by Professor Nelson Chow has the same significance as the National Pension Program in Taiwan because both of them concentrate on the people who are non in the labour market. They all want to protect these people from being hapless. For the bing three pillar attack, I feel uncertainty of their effectivity in run intoing the demands of the aged. With the low rates of return, the MPF can’t support people’s day-to-day life. Therefore, if the senior merely rely on the MPF system, it is non rational for them. Due to the defect of the three pillar attack, I have a pursuit for a cosmopolitan retirement protection strategy as what Professor Nelson Chow proposed. However, based on Professor Chow’s proposal on cosmopolitan retirement protection strategy, I think there should add the means trial into the strategy. The purpose of the cosmopolitan retirement protection strategy is to relieve aged poorness. Therefore, the hapless people serve foremost. We should aim on those with a echt demand and some signifier of agencies proving is necessary. There is no uncertainty that the aged deserve a decent and better retirement. If we have the means-tested in the cosmopolitan retirement protection strategy, some people can’t have the public pension due to their income degree. Therefore, people might reason that it is non a retirement protection for all citizens so it is unjust. However, if there is no means trial and everyone aged 65 or above can have the pension, it might damage the economic development of Hong Kong and increase load on employers. Furthermore, any retirement protection strategy without agencies trial is sing as ‘welfarism’ . This might do the financially impracticable for the authorities to shoulder the load of a cosmopolitan retirement protection strategy over clip. Therefore, in order to do a good usage of the cosmopolitan retirement protection strategy, I suggest that there should include a means trial in Professor Nelson Chow’s proposal which is the same as the Taiwan’s National Pension Program. There is non a new thing when speaking about the ripening job. Hong Kong and Taiwan have many similar features toward the aged policy. However, Taiwan developed its retirement protection policies at a faster gait. Therefore, Hong Kong should larn from the Taiwan’s National Pension Program that to implement the agencies trial in the cosmopolitan retirement protection strategy. The advantage of the strategy is that it provides the protection to the non-employees. For the bing retirement policy, such as the MPF system, it excludes the protection of the homemakers. Thu, a cosmopolitan retirement protection strategy can complement this job. Besides, for some people, they argue that the fiscal force per unit area will be mounted on working people under the cosmopolitan retirement protection strategy because they have to bear the cost of the strategy. Therefore, in order to do a good usage of the fund, the cosmopolitan retirement protection strategy should include the means trial. Furthermore, the agencies test can move as a resource distribution. This is because the destitute seniors can be found and they can acquire aid from the authorities. Improvement of the three pillar attack Many people hold the belief that it is a immense concern for the population development that one in three people will be aged 65 old ages old and above in the coming old ages. This phenomenon threatens the economic growing because there will be more people but less that are working. Therefore, fewer people will lend to the economic system. If we have more aged people in Hong Kong, it is a must to reexamine the retirement protection policy. For our hereafter planning of retirement protection system, Professor Nelson Chow’s cosmopolitan retirement protection strategy can be one of the steps. We can’t happen a theoretical account reply to state us how to put up a good retirement protection policy due to the diverseness of different states. Despite Professor Nelson Chow’s proposal, there is indispensable for the authorities to do alterations on the three attack theoretical account toward the retirement protection policy. For the Zero pillar, CSSA and OAA act as a safety cyberspace for the destitute aged. However, there might hold some jobs toward the CSSA. When using the CSSA, the elderly’s household members, such as her boy or girl, have to subscribe the declaration that they won’t provide fiscal support for the aged. Therefore, if the aged is in bad relationship with her household members, here boy or girl might non able to subscribe the declaration for her. Therefore, the senior can’t get the CSSA. Besides, the money in the CSSA might non be able to supply basic demands for aged because of the rising prices. Due to the rising prices, we have to pay more money when purchasing things. In order to assist the aged during rising prices, the authorities should set the money in CSSA more often. In add-on, we should better the MPF system in the Pillar II. The employees should experience free to take their MPF plan due to the different sets of demands. There should be no barriers for employees when taking the MPF plan. Furthermore, the authorities ought to offer inducements to promote voluntary nest eggs in Pillar III. The pillar III is related to the voluntary parts to the MPF system. In order to promote personal nest eggs, the authorities needs to supply the revenue enhancement incentives for people. For the three pillars approach, the authorities needs to measure the fiscal sustainability on a regular basis. As suggestion before, the bing three pillars policies should be reinforced and enhanced. Future planning of the retirement protection policy Everyone agree that the cosmopolitan retirement protection strategy is non implemented in Hong Kong for the aged at this minute. The authorities merely focuses on the Zero pillar. The authorities set some regulations for the aged to run into. If they can go through the demands set by the authorities, they can acquire aid. When be aftering the hereafter policy for retired people, the strategy proposed by Professor Chow could be the manner out. We should see the construct of ‘responsibility’ when be aftering the future retirement protection policy. Hong Kong is under the residuary public assistance theoretical account that people solve the jobs through the household and market. The authorities is the last manner to assist people. Therefore, for the retirement protection policy, it is related to the construct of ‘who is responsible? ’ . Some people think that the old age life protection should be the duty of persons and their household and non be laid on others nor should it be entirely financed by the authorities. Therefore, the function played by the authorities in retirement protection policy can be different from assorted parties. In the position of limited fiscal resources, the authorities should merely supply for the financially destitute ageds and non for all senior citizens. On the contrary, with the degree of Hong Kong’s economic development and the immense fiscal modesty, some people proposed that the authorities have the capacity and means to supply for basic support protection for all senior citizens. The perceptual experience toward retirement protection policy will act upon the function of the authorities. If people link the retirement protection policy with the income, it causes heavy load on public finance and may hold influence on the economic system. On the other manus, people who universal retirement protection strategy points to a sort of benefit for all senior citizens, unrelated to their past work history or wage. They hoped for the puting up of some sort of cosmopolitan support protection grant. There is obvious that Hong Kong uses the three attacks toward the retirement protection policy. Many elderly received the hard currency aids from the authorities. They still live under poorness. This might people reason that if the CSSA or other hard currency transportation plans are feasible or non. Presents, people have a higher outlook on the public assistance support. They have the pursuits for cosmopolitan retirement protection strategy. The strategy supposed to supply better protection for retired people. However, how the strategy should be implemented is still under a dialogue procedure. There are many things we have to make up ones mind when implementing the strategy, such as to undergo the means trial or non. The cosmopolitan retirement protection in Taiwan implement in a really successful manner. Even some people claim that Hong Kong is better developed than Taiwan, we still should larn from Taiwan’s experience and make up ones mind how to originate a cosmopolitan retirement protection strategy. We should establish the strategy harmonizing to the specific characteristics of Hong Kong. In fact, some people claim that the political environment affect the implement of the retirement protection strategy. This is related to people‘s conservativeness toward a policy. Therefore, we should be cognizant of the political issues when planing the retirement protection policy. The retirement protection policy is a really complicated topic which affects all HongKonger and has far-reaching impact on the financial sustainability in Hong Kong. In order to happen a suited manner of the development toward retirement protection policy, people should clear up the construct which is related to ‘responsibility’ . Mentions e†ºÃ‚ ·e?Zei?saˆSc‚?a »Ã‹â€ eaˆ?a†¦Ã‚ °Ã¢â‚¬Ëœeˆˆa?‘aes?a? ¶a? ¦aˆ?aaei?Y aˆâ€ ¹iaˆSaa  ±ec ¶Ã¢â‚¬Å"?- °e?zaˆâ€ ¹i2011 a4 4 ?-? . a‘ °- ° : aˆSc ¤Ã¢â‚¬ ?c ­-cs„e §Ã‹â€ a? µa’?a? ¶a? ¦aˆâ€ ¹i2013 i?†°ia? ­e†º?a ±Ã‹â€  Castells, M. ( 2010 ) ,The Shek Kip Mei Syndrome: EconomicDevelopment and Public Housing Development in Hong Kong and Singapore, UK. Pion Ltd. Census and Statistics Department ( 2013 ) , Hong Kong Special Administrative Region Chou, L.K. ( 2009 ) .â€Å"Retirement Income Protection in Hong Kong† . Ageing in East Asia Challenges and Policies for the Twenty-first century( pp. 105-137 ) . London: Routledge. Roller, E. ( 2012 ) .The public assistance province: the equality dimension. The range of authorities, New York: Oxford University Press. 1