Residual welfare model in Hong Kong

Residual eudaemonia model in Hong KongResidual view of well-disposed welf arSocial welf argon is a patsyifi butt endt issue in a society. The loving issues let us know which wellbeing should give up and to what extent the welf ar sewer be reserved. In f playact, the focusings to go out social welf are may vary between different societies. The social welfare carcass in Hong Kong is adopting the counterweight welfare model.Hong Kong has fol brokened the speculative market, runty presidency ideology for numerous years. It is based on the idea of the residual welfare model that t here is no claim for the establishment to look at in the distribution offshoot of social welfare. This is because quite a little keister fade out the problems themselves. The p overty-stricken laughingstock find support through with(predicate) the market mechanism, family or the nonprofit organizations. The governance volition notwithstanding provide support to stack when the adopt y re everyy cant solve the problems themselves. in that locationfore, according to the big market, small government principle, the government hold outs the whimsy that race need the qualification to get rid of the difficulties. The government is the last and temporary resort of the needy. The government can provide the immediate support to the needy. However, in the long term, the needy take up to find guidances to supporter themselves.Due to the residual welfare model, the policies in Hong Kong are non in the public eye(predicate). The social assistances in Hong Kong usually view as the pith shewify because the government just will help hatful who are under a very poor financial or living condition.I will use the education and lodging aspects in ordering to show that the policies in Hong Kong demonstrate the ideology of residual welfare model. For education, the government provides funding in the form of loans and grants for students who live in the low income f amily. The students office get full grants of their tuition fee but they should undergo the intend stress first. Besides, in order to protect packs basic living need, the government launches the public housing purpose. The government provides cheap housing for low-income residents. If pack want to apply for the public house, they should pass the means test in the public housing intent. From the policies of education and public housing, we can know that Hong Kong is under the residual welfare model because every policies are not usual and they will set round requirements for pot to deliver the thoroughlys which this is match the beliefs of residual welfare model. Thus, the laissez-faire style and positive non- interventionism are regarded as twain main features of Hong Kongs insurance policy.Despite the education and housing policies, the l integrityliness defense system also demonstrate the ideas of residual welfare model. The eoning creation problem is becomin g more serious in Hong Kong. The aging population of olden 65 and above is getting change magnitude from 12% to 17% in 2002 to 2012 (Census and Statistics incision, 2013). Hong Kong is experiencing the aging problems over the past decade. In my following part, I will focus on the privacy security measures policy within the aged welfare system.Three-tower retreat breastplate burn downIn order to deal with the aging problems, the World Bank go throughs the multi-pillar-model. thither will be iii pillar approaches toward the seclusion vindication system when the World Bank first times to launch the arrangement. The keystone I is a public retributive and defined-benefit system. It is so called the pay as you go approach. Besides, the backbone II is a private, funded and defined contribution system. Also, the Pillar one-third is a private, voluntary and supplementary defined contribution system (Roller, 2012). The two more pillars were added in the models later which are the Zero Pillar and Pillar IV. The Zero pillar aims to protect peoples basic need. It holds the belief that everything should undergo the process of means test. It is also colligate to the Pillar I because both of them are wishing to alleviate poverty. Both of them believe that all citizens should engage in the welfare process (Castells, 2010). Moreover, Pillar IV is public lecture about some support from family which dexterity not be bear on up to the property (Chou, 2009).Even though the model of the World Bank has five-spot pillars nowadays, Hong Kong is still adopting a one-third-pillar approach toward the retirement surety policy.First, the Zero pillar exists in Hong Kong which aims to provide the basic need to the elderly. In Hong Kong, when the elderly visualise the age requirement, they can own the CSSA and elderly Age Allowance (OAA). The CSSA and OAA can act as spare money for the elderly to fulfill their day-to-day living. Second, Hong Kong has the Pillar II which the example is the MPF. If you get a job, there is no inquiry that every employee has to engage in the MPF. Third, Hong Kong has the Pillar III which is tie in to the voluntary private nest egg(2011). In order to exact a purify living as a retired per boy, they might use their own savings to support their daily life.For the retirement security system policy, we can know that the government is obeying the rule of big market, small government . It means that the government and the opposite institutions also have the responsibility toward the retirement protection policy. The Means tests are the primary method for determining eligibility when applying the CSSA and Old Age Allowance. Selective silver assistances are reserved for people defined within the context of the policy as in need. Means testing is used to identify people with limited elections. This selective process determines the eligibility for welfare benefits or services so it shows the ideas of residual welf are model.The government uses the three pillars approach in order to provide the basic need to the elderly. However, it is not problem free with the three pillars approach.Hong Kong Council of Social Service finished a statistic about aging population last year. on that point are a third of people vulcanized 65 and over are living under poverty (2011). They are regarded as very poor people among the world. Thus, people signal that if the CSSA and Old Age Allowance which the elderly rely on can sincerely provide the basic necessities for them.Besides, people also argue that the MPF covers only works people. Housewives and opposites who are not employed are not covered by the MPF. There is little difficulty in understanding that people will feel doubt that how the retirement protection of the housewives is.Obviously, the existing retirement protection policy is trying to tackle the financial problems of the elderly. When the elderly really need help, the government can provide th em with the basic need. The report from the Census and Statistics Department shows that the aging population will be increasing quickly in the coming years. The elderly aged 65 and above will append from the 1.0 million last year to 2.6 million in 2041. This statistic suggests that by 2041, or so one in three persons will be elders (Census and Statistics Department, 2013).Thus, due to the limitations in the retirement protection policy I mentioned, there is no doubt that the government should make improvement toward the retirement protection policy. Experiences from chinaware chinaware is the same as Hong Kong that it also has the aging population and with the similar geographic background as Hong Kong. As the retirement protection policy in Taiwan is quite well certain, it can be Hong Kongs character when improving the retirement protection policy.Taiwan follows the five-pillar approaches when dealing with the elderly policy. I will focus on talking about the home(a) tribute course of study in Taiwan because the other retirement protection policies in Taiwan are nearly the same as other countries. The National Pension Program aims to provide the elderly with the basic needfully in their daily living. For the elders who want to apply for the National Pension Program, they ought to undergo the process of means test and there is a residency requirement that they have to pass.In order to maintain the sustainability of the National Pension Program, the government should not pay the money to the elders in one time. They should pay the money feeling by step, such as monthly (Roller, 2012).Urge for a commonplace retirement protection final causeHong Kong and Taiwan have the similarities in the crystalize process. However, their pension reform is very different. Taiwan implements the National Pension Program successfully whereas Hong Kong just focuses on the CSSA and Old Age Allowance.With reference in Taiwan, some people suggest that Hong Kong ought to e xpand its retirement protection policy which is to introduce a retirement protection object which is for all citizens. This scheme is later explained by professor Nelson chow Wing-sun. He proposed to set up a customary retirement protection scheme in Hong Kong. In the scheme, HK$3,000 monthly pension will be given to people aged 65 and above (-2013 . In order to maintain the stability of the scheme, the employers and employees need to contribute and the government would be responsible for some of the fund. This new scheme eliminates means tests and other administrative procedures because age criteria are the only eligibility to locate if you can get the pension or not.I think that the retirement protection scheme proposed by Professor Nelson cabbage has the same meaning as the National Pension Program in Taiwan because both of them focus on the people who are not in the drudge market. They all want to protect these people from being poor. For the existing three pillar approac h, I feel doubt of their effectiveness in showdown the needs of the elderly. With the low rates of return, the MPF cant support peoples daily living. Thus, if the elder just rely on the MPF system, it is not rational for them. Due to the shortcoming of the three pillar approach, I have a quest for a cosmopolitan retirement protection scheme as what Professor Nelson Chow proposed. However, based on Professor Chows proposal on universal retirement protection scheme, I think there should add the means test into the scheme. The aim of the universal retirement protection scheme is to alleviate elderly poverty. Thus, the poor people serve first. We should target on those with a genuine need and some form of means testing is necessary. There is no doubt that the elderly deserve a decent and better retirement. If we have the means-tested in the universal retirement protection scheme, some people cant receive the public pension due to their income level. Thus, people might argue that it is not a retirement protection for all citizens so it is unfair. However, if there is no means test and everyone aged 65 or above can receive the pension, it might damage the economic development of Hong Kong and increase commove on employers.Moreover, any retirement protection scheme without means test is regarding as welfarism. This might cause the financially infeasible for the government to lift the burden of a universal retirement protection scheme over time. Therefore, in order to make a good use of the universal retirement protection scheme, I suggest that there should include a means test in Professor Nelson Chows proposal which is the same as the Taiwans National Pension Program.There is not a new thing when talking about the aging problem. Hong Kong and Taiwan have many similar characteristics toward the elderly policy. However, Taiwan developed its retirement protection policies at a faster pace. Thus, Hong Kong should learn from the Taiwans National Pension Program that to implement the means test in the universal retirement protection scheme.The advantage of the scheme is that it provides the protection to the non-employees. For the existing retirement policy, such as the MPF system, it excludes the protection of the housewives. Thu, a universal retirement protection scheme can complement this problem.Besides, for some people, they argue that the financial pressure will be mounted on functional people under the universal retirement protection scheme because they have to bear the cost of the scheme. Thus, in order to make a good use of the fund, the universal retirement protection scheme should include the means test.Moreover, the means test can act as a resource distribution. This is because the needy elders can be found and they can get help from the government.Improvement of the three pillar approach many a(prenominal) people hold the belief that it is a huge concern for the population development that one in three people will be aged 65 years old and above in the coming years. This phenomenon threatens the economic reaping because there will be more people but less(prenominal) that are working. Thus, fewer people will contribute to the economy. If we have more elderly people in Hong Kong, it is a must to review the retirement protection policy. For our forthcoming planning of retirement protection system, Professor Nelson Chows universal retirement protection scheme can be one of the measures. We cant find a model response to tell us how to set up a good retirement protection policy due to the diversity of different countries. Despite Professor Nelson Chows proposal, there is essential for the government to make changes on the three approach model toward the retirement protection policy.For the Zero pillar, CSSA and OAA act as a safety net for the needy elderly. However, there might have some problems toward the CSSA. When applying the CSSA, the elderlys family members, such as her son or daughter, have to sign the de claration that they wont provide financial support for the elderly. Thus, if the elderly is in bad relationship with her family members, here son or daughter might not able to sign the declaration for her. Thus, the elder cant get the CSSA.Also, the money in the CSSA might not be able to provide basic needs for elderly because of the inflation. Due to the inflation, we have to pay more money when purchase things. In order to help the elderly during inflation, the government should adjust the money in CSSA more frequently.In addition, we should improve the MPF system in the Pillar II. The employees should feel free to choose their MPF program due to the different sets of requirements. There should be no barriers for employees when choosing the MPF program.Furthermore, the government ought to offer incentives to encourage voluntary savings in Pillar III. The pillar III is related to the voluntary contributions to the MPF system. In order to encourage personal savings, the government needs to provide the tax income incentives for people.For the three pillars approach, the government needs to assess the financial sustainability regularly. As jot before, the existing three pillars policies should be reinforced and enhanced.Future planning of the retirement protection policyEveryone agree that the universal retirement protection scheme is not implemented in Hong Kong for the elderly at this moment. The government only focuses on the Zero pillar. The government set some rules for the elderly to meet. If they can pass the requirements set by the government, they can get assistance. When planning the future policy for retired people, the scheme proposed by Professor Chow could be the way out. We should consider the concept of responsibility when planning the future retirement protection policy. Hong Kong is under the residual welfare model that people solve the problems through the family and market. The government is the last way to help people. Thus, for the retire ment protection policy, it is related to the concept of who is responsible?. Some people think that the old age living protection should be the responsibility of individuals and their family and not be situated on others nor should it be wholly financed by the government. Thus, the role played by the government in retirement protection policy can be different from various parties. In the perspective of limited financial resources, the government should only provide for the financially needy elderlies and not for all of age(p) citizens.On the contrary, with the level of Hong Kongs economic development and the huge financial reserve, some people proposed that the government have the capacity and means to provide for basic financial support protection for all senior citizens. The perception toward retirement protection policy will influence the role of the government.If people link the retirement protection policy with the income, it causes heavy burden on public finance and may hav e influence on the economy. On the other hand, people who universal retirement protection scheme points to a good-hearted of benefit for all senior citizens, unrelated to their past work bill or salary. They hoped for the setting up of some kind of universal livelihood protection grant.There is obvious that Hong Kong uses the three approaches toward the retirement protection policy. Many elderly received the cash assistances from the government. They still live under poverty. This might people argue that if the CSSA or other cash transfer programs are viable or not. Nowadays, people have a higher chance on the welfare support. They have the quests for universal retirement protection scheme. The scheme supposed to provide better protection for retired people. However, how the scheme should be implemented is still under a negotiation process. There are many things we have to decide when implementing the scheme, such as to undergo the means test or not. The universal retirement prot ection in Taiwan implement in a very successful way. Even some people claim that Hong Kong is better developed than Taiwan, we still should learn from Taiwans experience and decide how to initiate a universal retirement protection scheme. We should launch the scheme according to the specific features of Hong Kong.In fact, some people claim that the policy-making environment affect the implement of the retirement protection scheme. This is related to peoples conservativeness toward a policy. Thus, we should be aware of the political issues when designing the retirement protection policy. The retirement protection policy is a very complicated subject which affects all HongKonger and has far-reaching impact on the pecuniary sustainability in Hong Kong. In order to find a suitable way of the development toward retirement protection policy, people should clarify the concept which is related to responsibility.References -2011 4 4 -.--2013 Castells, M. (2010), The Shek Kip Mei SyndromeEc onomicDevelopment and Public caparison Development in Hong Kong and Singapore, UK. Pion Ltd.Census and Statistics Department (2013), Hong Kong Special administrative RegionChou, L.K. (2009). Retirement Income Protection in Hong Kong. Ageing in easternmost Asia Challenges and Policies for the Twenty-first century (pp. 105-137). London Routledge.Roller, E. (2012). The welfare state the equality dimension. The mountain chain of government, New York Oxford University Press.1