Social Policy After the East Asian Financial Crisis: Forging a Normative Basis for Welfare

Abstract

Despite their impressive economic development achievements, East Asian governments have not formulated coherent social policies or created comprehensive social welfare programs. Instead, they have relied on rapid economic growth, high employment, occupational provisions, familial obligations, and limited public social services to meet social needs. The weaknesses of this approach became apparent after the 1997 East Asian financial crisis when unemployment, poverty, homelessness, and other social problems increased. East Asian governments are now being urged to formulate a more coherent approach to social welfare, and two normative approaches which provide a basis for social policy are being considered; these are neoliberalism and social protection. Reviewing these approaches, this paper concludes that they are not well suited to the East Asian situation. Instead, it suggests that the social development approach with its emphasis on the harmonization of economic and social policy, extensive social investments, and managed pluralism offers a viable alternative which is compatible with the region's historic commitment to state-directed economic development.