BRAZIL

 

SOCIAL WELFARE

 

Restricted Welfare System

Military Rule prevented the country from developing  a real public welfare system

Military Focus on rapid economic growth and not on social policies

Increasing Gaps

Late 1970s, rise of a movement claiming for welfare programs (middle and working class)

Social rights consecrated in the 1988 Constitution—Insufficient implementation

 

Policy Structure: About 50% of workers make no contributions to the system

Fiscal Gaps

 

Programs and services based upon the Organic Social Security law promulgated in the 1930s and changed in the 70s and 90s.

 

November 1998, Social Security Reform (fostering people’s transferring to the private system)

 

In Brazil, universality means exclusion-- Targeted policies

 

Economically, Brazil’s national debt, de-industrialization, and dependency have increased

Socially, the gap (one of the biggest in the world) is widening

Politically, loss of legitimacy of the system and pessimism

 

External Debt led to—Cuts in public expenditure—lack of resources to spend in education, health, etc.

 

Brazil’s industry hit by globalization (unemployment)

 

Many social reformers argue for a strong paternalistic state (Danger of authoritarianism)

 

Voluntary Associations

 

Lula has brought new hopes, with his goal of allowing all Brazilians to have three meals a day—Will he be able to achieve even this minimal goal?

 

 

 

 

 

 

 

 

 

 

 

PUBLIC HEALTH

 

1940 Special Services for Public Health (SESP)

1975 Plan for Immediate Care (PPA) First real step towards universalization- creation of the National Institute of Medical Assistance and Social Security

1988 Constitution: Sistema Único de Saúde (SUS) Single and ambitious health system, covering in principle the whole nation. Foundation of the present system

1990 Organic Health Law: Universal State health care

 

Gvt. Stronger commitment from 1985-92, Hindered by successive financial (and debt) crises (IMF, World Bank loans)

Two health care systems:

–Public: federal (basic services), state (endemic diseases, parental and infant care), municipal (emergency)

–Private: for profit institutions, philanthropic

 

GERMANY

 

SOCIAL WELFARE

 

Place of Birth of the Welfare State

First Statutory Social Insurance System

Bismarck, 1883, compulsory sickness insurance

1889, Provisions concerning old age and invalidity insurance

1923, the Empowering Act (local responsibility/ employer/employee financing of the system)

 

After WWII

1945-1949-Reconstruction of the social welfare system while integrating war veterans, victims, and refugees.

1949 Basic Law settles conditions for social welfare policy: Social State, inspired in Bismarck’s welfare state

Key elements applied throughout the nation with local differences in implementation

1950-69 Ec. Growth and expansion of the welfare state

1970s Welfare Reform (expansion)

Late 1970s-1980s Economic problems and reduction of programs (not as severe as elsewhere)

1990s Problems of reunification

 

Before Reunification

West Germany: Pluralism, Corporatism, Decentralization. High welfare provision hierarchically organized and distributed

East Germany: Centralized and Universalistic, wide-scale coverage, deficiencies of quality

 

After Reunification: organizational uniformity, with differences

Western social insurance was extended to the Eastern States with benefits calculated on the basis of their (Eastern) income

 

Social Market Economy

Welfare policy objectives are

Defined and articulated by the federal gvt.

Implemented at the local level/increasing role of the federal gvt. Since the 1980s (and with reunification)

Funded by both the state and the private sector (employers/employees)

The German System

Social Insurance

General Assistance program covering income losses caused by sickness, unemployment, old age, or disability. Semi-autonomous organization (employers/unions) locally administered and sponsored by the federal gvt.

Social Assistance (benefits for those who cannot apply for social insurance, calculated according to needs)—State institutions, benefits for refugees, social housing

Personal Social Services provided by the states (Lander)

 

Criticisms and Problems

The welfare system reproduces the inequalities of the labor market

Reunification brought about a crisis of the welfare system (huge unemployment, more individuals in need, lack of resources, inequality between the West and the East)

No roll back of the state

 

 

 

 

PUBLIC HEALTH

Corporatist autonomous system established by Bismarck in the 1880s.

1883 Health Insurance Act (sickness funds)

 

Principles

–Solidarity: commitment to take care of each other

Subsidiarity: belief in shared power, mutual respect, and incorporating as many people as possible into the system. Self-help, family, voluntary associations

–Corporatism: party and labor forms of representation

 

•After WWII, 2 systems

–East: nationalized health care (erosion of the private sector)

–West: renewed commitment to the pre-War principles. Extension of coverage in the 1960s

 

1992 Health Care Structural Reform Law (limits budgets to contributions, increases consumer choice, stricter controls, opens sickness funds to competition for clients)

•Productive & Efficient system

 

Organization

•Corporatist, decentralized, multi-payer system based upon the same principles

•The Federal gvt. Has no power of implementation

•System centered on sickness funds, which have the status of public-law bodies and make health care decisions

–Sickness funds are intermediaries between the Gvt. And the people

–Comprehensive benefits

–9/10 Germans are enrolled in sickness funds

–Disincentives to profit

–Funded by taxes, gvt. Subsidies, and individual contributions. Also, private insurance

 

 

GREAT BRITAIN

 

SOCIAL WELFARE

 

Antecedent: British Poor Laws (1601)

The British Welfare State developed out of the belief that “every individual has the right to support in times of need and emergency.”

1942 Beveridge Report: social welfare seen as a right of citizenship. Expanded notion of liberty. Attack against the “five giants of modern society”—want, disease, ignorance, squalor, idleness.

Three decades of expansion of the Welfare State

1979: Thatcher’s Structural Cutbacks (limits: health care & benefits for the elder)

1997: New Labour’s “Welfare-to-Work” approach.

Main Social Welfare Instruments

From WWII to 1979/80:

Single weekly contribution for “cradle-to-grave” benefits (“all-in” insurance)

Five areas of benefits: cash benefits, health care, education, housing, personal & social services (about 70% British received at least one cash benefits, and health and education were available to everyone)

Since 1979, Thatcher’s drastic erosion of the Welfare State—Privatization (of pensions, health, education), weakening of the idea of universal access—Replaced with the notion of incentives and disincentives

New Labour» Conservatives

 

 

Shift in the Debate

From

How much to expect, and how should the State provide for its citizens’ needs

To

How to make the choices concerning welfare services

 

Problem: lack of resources to fund a comprehensive welfare state (the British welfare state looks obsolete in comparison with the Swedish or the German)

 

 

 

 

PUBLIC HEALTH

 

•The Poor Laws (workhouses/poorhouses)

 •1911 National Health Insurance (all manual workers over 16 earning small salaries). Weekly payment

•Until 1948, administered through voluntary associations and a few public facilities (most medicine was paid)

•WWII and post-War led to the expansion of the system

•1942 Beveridge Report: recommended the creation of a comprehensive national health system

•1946 National Health Service Act (NHS): nationalization of all hospitals, creation of health centers, redistribution of physicians across the country, teaching facilities, physicians could have private practice. Funded through taxes.

 

•1974 Attempt to integrate the national with the regional with the local levels. Creation of Regional Health Authorities (RHA) and District Health Authorities (DHA)

•1980 NHS becomes more autonomous and specialized. More power ffor RHAs

•1982 Elimination of RHAs. DHAs become fully responsible for the administration of health

•1979 Margareth Thatcher (backed by Milton Friedman and von Hayek) believed that privatization would improve the performance of the system

–1983 Griffith Report, recommended to move to an insurance-based health system. Did not work

 

•1989 the NHS in crisis

•1990 National Health Service and Community Act (encourages competition within the health industry)

•Since 1997 New Labour has maintained the system

•1990s—the State imposed a Market into the state-administered system

 

Organization

•Universal Access to Health Care for all citizens

•80% paid through general taxation (plus individuals’ regular contributions plus co-payments)

•NHS, internal market made up of purchasers and providers. State central control

DHAs buy services from public, private, or semi-private providers

•2002 Integrated care, groups practitioners in local community groups

 

Main Problem/s

•Health gap (mostly geographical)

 

 

 

 

JAPAN

 

SOCIAL WELFARE

 

1938 National Health Insurance

1944 Employees’ Pension Insurance

Occupation—Western-style welfare reforms (1946 Daily Life Protection)

 

 

1960s: Prosperity & Social Welfare

National pension scheme

Late 60s: movement pro-Welfare State

1973, the “First Year of Welfare”

Dramatic increase in social expenditure during the 1970s

1980s Japan looked like Germany

Mid 1980s (economic crisis, cutbacks) Development of the idea of a Japanese Welfare State— “Reconsider Welfare”

Complex System: Family, Community, Corporation, and... The State (the State only supports people who are also supported by their relatives)

Mixture of welfare-state principles, insurance, and individual responsibility

Four Main Areas

Public Assistance

Social Insurance

Basic Welfare

Public Health

 

Main Actor: the Central government bureaucracy

 

Main Problem: the aging population

 

 

 

PUBLIC HEALTH

 

WHO 2000 Report ranks the Japanese as the #1

 

Japanese culture introduces healthy habits

Comprehensive national health care program

 

Before WWII, German influence

1922 Health Insurance Law offered coverage to certain workers (2,000,000)

 

1938 Ministry of Health and Welfare

War led to extend coverage to many more Japanese

After WWII and the American occupation

   1948 Medical Service Law/Social Medical Fee Payment Fund

   1961 Every Japanese had coverage (Universal System). “Golden Era”

Problems

1970s  Rising Costs (1972 Free Health for 72+)

1970s/80s Gaps and inequities

New Health Problems: drugs, suicide, pollution, inadequate housing, cancer

Japan has the fastest-aging population in the world

 

Organization

Universal Coverage

More beds than any other nation

Sophisticated technology

Insurance funded by both employers and employees

Physicians are revered (and make a lot of $$$$)

Complex and fragmented system

   Public health centers (prevention), physicians’ offices (diagnoses), clinics (treatment), and hospitals (intensive care)

   Public/private (20% co-payments)

2000 National Long Term Care Insurance Program (foreign corporations)

 

SWEDEN

 

SOCIAL WELFARE

 

Gradualism

Early commitment with solidarity and universalism since the 18th century (because of the political power of the agrarian industry, the increasing power of the working class, and the existence of a centralized monarchy)

The Poor Law (1882)

The Pension Act (1913)

The National Unemployment Commission (1914)

1932-1976 Social Democratic gvts—Welfare State based upon a Keynesian policy

1980s Growing deficit & Inflation

1990s Austerity measures (did not undermine the structure of the Welfare State, at least not yet)

Structure

Social Insurance: universal (sickness, unemployment, disability, old age, long-term care). No means-tested

Social Assistance Benefits: Means-tested (Housing and child benefits)

Social Services: Parental benefits package (12 months leave at 80% of gross earning, further 180 days of leave until the child enters primary school, up to 60 days per year to face emergencies); Daycare

 

 

PUBLIC HEALTH

 

•1660 Collegium Medicum

•1752 First General Hospital in Stockholm

•1800 King Gustavus Adolphus created “crown” hospitals (for soldiers with syphilis)

•19th century- Expansion of “crown hospitals” •Health Care is seen as public responsibility and supported by the national insurance system

1874 Public Health Act (expanded coverage)

•From the late 1930s, the Social Democrats organized a universal health care system

•1955 the National Insurance Law covered the entire population

•1959 Elimination of private beds

•1969 Elimination of private practice for physicians

•1976 Reversal (allows private health services)

•1982 Health and Medical Services Act

•1990s Objective: decentralization

 

 

Health care is seen as a basic human right

•All residents are covered

•Physicians perceive salaries

•National Ministry, National Board  of Health and Welfare, County councils (provide health, run hospitals). Some competition with private providers

•System funded by personal income taxes, the National Health Insurance System, National Grants, and user fees

 

 

Health Care is seen as public responsibility and supported by the national insurance system

•System funded by personal income taxes, the National Health Insurance System, National Grants, and user fees

 

 in scope and territory—Decentralization of health care at the county level

 

 

 

UNITED STATES

 

SOCIAL WELFARE

 

Reluctance towards social policy

Social welfare policies developed after the 1930s by the federal gvt.

Roosevelt’s New Dealâ Limited (and always problematic)

Reason: American political culture and values, with an emphasis on self-reliance and individualism

Poverty is seen as the individual’s fault

Early 20th century â punitive approach

After 1929: acceptance of the notion that crises may produce poverty that are not the poor’s fault

1935 Social Security Act â social security and unemployment compensation/ Preventive and alleviative

(AFDC) Aid to Families with Dependent Children

Post WWII, prosperity & suspension of social welfare

1960-8 Kennedy-Johnson â the Great Society & the War on Poverty (Medicare, Medicaid, housing subsidies, school feeding programs, programs for pregnant women, Equal Opportunity Act/curative)

1968 Nixon (Milton Friedman) inexpensive programs based on dis/incentives â Workfare

1980/90s Reagan & Bush: hostility to welfare. Poverty seen as the individuals’ fault â punitive approach. Welfare seen as the root of all problems

1996-Clinton, the Personal Responsibility and Work Opportunity Reconciliation Act â End of Welfare?

Organization

Since 1996, recipients of welfare are required to work

AFDC was eliminated and replaced by TANF, limited temporary assistance to families

States administer funds and programs (no national unified programs anymore)

Elimination of benefits for immigrants

Punitive & Incomes approach

Different Programs

Direct Cash Assistance

 In-Kind Assistance Programs

Services (health care, childcare, help dealing with alcohol or drugs)

 

 

PUBLIC HEALTH

#1 in per capita expenditure in health

#37 in performance (in our sample, only better than Brazil)

The best technology and research, but...

18% population uninsured, and 50% underinsured

Why?

History

Entrepreneurial tradition

Since the 1798 Public Health Service, Gvt. Seen as only a “safety net” for the poorest

Prior to WWI, 4,000 hospitals run by religious or civil associations were established (charged fees)/ “workshops” for training physicians

1933 Blue Cross (1st pre-payment system)

1940s Private Insurance growth

1946 Hill-Burton hospital and Survey and Construction Act–Federal contribution to build hospitals

President Truman’s attempt to develop national insurance defeated by lobbysts from the American Medical Association

 

1960s, Johnson’s extension of health insurance to those who qualified for social security

1963 Community Mental Centers

1966 Comprehensive Health Planning Act

    Medicare/Medicaid (intended to work as private insurance)

1973 Health Maintenance Organization Act (HMO) subsidized the formation of prepaid insurance groups (offering good services)

    Managed Care System (PPOs & IPAs)

1974 National Health Planning and Resource Development Act (NHPRD)—200 health planning areas to guide the provision of health services

1980s Reagan’s further privatization

    Escalating health costs

 

Acknowledgment of crisis of the system (“emergency”)

Congress examined different plans to reorganize the system

1992 Clinton’s goals: to extend health insurance to all Americans, to reduce costs

October 1993 Clinton’s project begun to be discussed. Proposal to pass a Health Security Act. Republicans had their own  plans. All plans reached a dead end.

       Why? Lobbying by the Medical Associations and drug corporations

 

Problems

Business lobbying

Acknowledgment of crisis of the system (“emergency”)

Congress examined different plans to reorganize the system

1992 Clinton’s goals: to extend health insurance to all Americans, to reduce costs

October 1993 Clinton’s project begun to be discussed. Proposal to pass a Health Security Act. Republicans had their own plans. All plans reached a dead end.

 

Why? Lobbying by the Medical Associations and drug corporations

Business lobbying

American political culture that sees national health care as socialism and fears “big gvt.”

   The American system of checks and balances does not work well in the area of health

The U.S., a “paradox of excess and deprivation”

3 tiers: people with private insurance coverage, people in the HMOs, and the uninsured

System financed with federal funds (56%), and resources provided by the state and local levels

 

      American political culture that sees national health care as socialism and fears “big gvt.”

   The American system of checks and balances does not work well in the area of health

      The U.S., a “paradox of excess and deprivation”

      3 tiers: people with private insurance coverage, people in the HMOs, and the uninsured

      System financed with federal funds (56%), and resources provided by the state and local levels