Singapore and Hong Kong: A Divergence in Social Policy


A comparison of Iron Fist Social Policy versus Laisseze-Faire Social Policy among East Asian Newly-Industrialized Nations

John Burke
Asian Miracles
November 20, 2003
Singapore and Hong Kong: A Divergence in Social Policy

Governments, for centuries, have attempted to provide, or sometimes impose social welfare programs for the general populace of a country for several, ultimately varied reasons, either to aid the lives of citizens or to aid their own political agendas or any combination thereof. The same can be said for the countries known as the East Asian Newly Industrialized Countries (NICs). The formation of government-controlled social welfare is called social policy. Social policy relates to direct government provision for social welfare partly through public services and subsidies that benefit major social sectors. Generally, these policies include government subsidized health care, provisions for public education, subsidized child care, retirement savings and pension programs, public transportation for labor sectors, subsidized foodstuffs, public assistance programs, and even wage policies and labor-training programs (Deyo 1992, 50, 51).
In the East Asian NICs, nearly all of these policies can be seen in varying forms and degrees, especially in Singapore and Hong Kong. This paper will lay out the various social policies of both countries, along with the motivations of government, which guided the policies and reforms. A comparison will then be made explaining the divergence in their separate policies from a Statist perspective, analyzing the level of government intervention, along with alternative explanations.
When asking why countries impose social policy, a wide range of explanations can follow, depending on the country and type of government. Generally, there are a few key reasons. First of all, social pressures by one or a number of societal groups may demand better assistance or a change in welfare aid from the government. Many times these demands are for a basic standard quality of life, such as food, shelter, and basic subsistence. Even when not in the government’s best interests, it will give in to these demands in order to garner and maintain political support.
Other times, the government’s interests do, in fact, lie with the people and not their own political stability. Social policies can provide incentives to people for upward mobility within class structures, and they can provide incentives to people for an overall more productive society. This is very important in developing countries as some governments see a direct correlation between the welfare of the people and the country’s potential for economic development and continued growth. Many times in developing countries it is seen as a worthwhile trade off on the part of the government to give up some of its autonomous strength in order to aid its people, as well as to gain economic and growth stimulators.
The outcomes of these policies are not always clearly foreseen by governments. However, there are some generalized assumptions that can be made when thinking about the outcomes of different social policies.
First of all, governments, when thinking about development can assume that a healthier populace, especially the labor force, must equal efficiency and higher productivity. Secondly, in countries where high levels of workers are needed for manufacturing, public housing policies can provide a centralized labor force where the labor is needed. Public education policy can be beneficial, because the labor force can produce higher growth through higher manufactures and more specialized industry. By supplying a country with its most basic needs, such as direct financial assistance, food, shelter, labor, and a means to save earnings from labor, a government can secure its autonomy by bolstering its public support. By any measure, most times a government will only provide welfare for the public if it feels it can maintain or further the success of the country or for fear of political upheaval. On the other end of the spectrum, which has typically occurred with the Latin American NICs, political pressure for social policy reform are simply repressed along with any other movements by groups that do not support the current regime in power (Lorenzini 11/13/03).
Singapore
In Singapore, several specific policies have been imposed in accordance with the government’s post-World War II plans for development. These policies include: labor force training, pension plans, public housing, public education, and health and population policies.
But when the country in the late 1950s was just emerging as a new state, the policies were very basic in nature. “The social policies were not neutral. They were bent on modernizing the family for the market-oriented development goals of the state. By tying needed social or public goods to the party-state development plan, the state not only won support. These social policies extended social control by forming a common core of family values and goals” (Gugler 1997, 233).
Singapore, at that time, was a melting pot of many new immigrants and non-native war refugees, and in order to stabilize the country, the government felt it must unify these people under one ideology or moral and ethical code. This was really all the government was able to do as Singapore was just breaking into the Import-Substitution market, and was in financial turmoil.
Singapore continued to have many economic difficulties, however, and as the country grew, so did the demand for change, both on a development level and on a social level. “In the mid-1960s, Singapore’s development program centered on creating a potentially skilled, but labor-intensive and low-wage industrial sector to produce for foreign corporations and absorb the many unemployed” (Gugler 1997, 234). These policies eased some of the financial burden associated with Import-Substitution Industrialization, but as Singapore would later make the switch to Export-Led Growth, its social policy, too would need a makeover. These new policy changes would be referred to as “Second-Stage Development Programs” (Gugler 1997, 234).
The first area of focus would be on labor force training. The government saw this as an investment in labor. The goal, clearly, was to raise workers’ skills to meet the many new demands of second-stage industrialization. These programs began providing on-the-job training and also offered polytechnic and diploma-conferring educational programs.
Secondly, a pension policy was established. The Central Provident Fund (CPF) was set up providing a universal pension plan. Under this plan, both the employee and the employer must contribute to the employee’s CPF fund. The workers then have the option of using their fund to save for retirement or to buy into Singapore’s public housing sector. Once a worker commits to home buying, however, he or she must keep working to continue their payments.
The third area of importance came in the housing sector. The Housing Development Board (HDB) commissioned construction of large blocks of rental housing and the construction of large, high-rise buildings. This policy program was designed to stimulate the market in construction and finance and to promote an industrial way of living. This boom of newly accessible housing propelled residents into the wage labor-force and consumer economy, it decreased exchange with, and reliance upon kin and neighbors for social support, and it spurred the deployment of women into the wage labor-force (Gugler 1997, 235).
Singapore’s public housing policies proved to be very beneficial to its labor force. In 1973-74, 43% of Singapore’s population lived in HDB housing units, whereas 37% of the population lived in family-owned apartments. By 1979-80, 67% of the population lived in HDB units and of those people, 59% owned their own HDB units. Essentially, many people were provided housing and an increasing number of people became homeowners, or at least apartment owners. (Gugler 1997, 237).
The fourth implemented policy was education; culturally and historically a very important part of East Asian life. The aim of education was to mold a new national ideology out of a multi-ethnic society. First of all, the number of all schools was increased. Secondly, tuition was reduced and equalized allowing a broader class of students to attend schools of their choice. Schools were to emphasize the importance of meritocracy, or the idea that people would get jobs through their abilities and training, not through personal ties. All admissions policies were unified and a common core curriculum was imposed. Children could attend any school in their region, even the more renowned schools. Interestingly, a bilingual language system was imposed and children were given the choice between an English curriculum or a Mandarin-Chinese curriculum. English became and continues to be the preferred curriculum (Gugler 1997, 235).
Lastly, there was a focus on health and the growing population. These policies aimed to increase the ratio of the number of physicians to hospital beds. Small, substandard clinics, such as midwives’ services, were shut down. Hospitals were required to have maternal and child health services. This greatly reduced risk to expectant mothers and newborn children. By the late 1970s, over 80% of births took place at public hospitals and 90% of all newborns were enrolled for post-natal care at neighborhood and community clinics. The “extension of state medical care enabled the public to enjoy a better quality of life and reduced occupational time lost to illness”, a great improvement from the previous substandard conditions families faced (Gugler 1997, 237).
Also a concern to the Singapore government was the large, post-war population boom. It was feared that this could slow domestic capital formation in the long run. To counter this, contraceptive services were offered. Also, in the late 1960s, against public opinion, the state liberalized abortion and sterilization laws. Though unpopular, this strategy worked. It forced the crude birth-rate to decline over time from 44.4 births per 1,000 people in 1956 to 16.6 births per 1,000 people by 1977 (Gugler 1997, 237).
Also in an effort to control population, the government enacted the National Family-Limitation Campaign. The “National Family-Limitation Campaign aimed to convince people that rapid population growth endangered both their present livelihood and their future prospects” (Gugler 1997, 237). Adding to this, in 1973, economic and social Disincentives Against Higher Order Births were enacted, the goal of which was to attain zero population growth by the year 2030, at a level of 3.6 million people. These disincentives required that all services come into line to support the program. It imposed sanctions by hospitals and schools against families with large and increasing numbers of children. Couples could claim no more than two children as dependants for purposes of tax deduction. The ultimate goal here was to reduce the competition for social services, which “were interlaced with the new ideology of individual merit, and responsibility for one’s own poverty. They extolled self-help, individualism, and competition”, qualities considered to be fundamental by Singapore’s policy-makers in such a rapidly developing state (Gugler 1997, 238, 239).
Singapore’s social strategy, overall, began as an effort to reshape the thinking of an entire country. The government wanted to provide a means of survival for its people in a global economy, and the only way it could manage to do that was by garnering the peoples’ trust. If the people trusted their leaders to establish a new government, then they could more easily be molded to fit into it. The government was not radical in its policies. The policies implemented were based on the historical preferences and ideologies of the people. Confucianism was not ignored, people were not forced to entirely give up long standing tradition, but it was a modernized version of these traditions that ultimately allowed people to function in a modern industrial society. Though factory life is a far cry from family farming and rice paddies, it enabled an entire country to fit into the modern world. It was this vision of Singapore’s leaders that guided social policy. Without the state’s welfare, these people could never have gotten their foot through the door of East Asian development. Singapore is strong because its people adapted to a new world. It was a choice by their leaders, but it was one that the country accepted.

Hong Kong
Hong Kong’s social policy is much less hands-on than that of Singapore, which might be expected, as Hong Kong today and historically has taken a very Lassaize-fare approach to government under a Positive Non-Interventionist policy.
In Hong Kong, a “Social Welfare Department (SWD) is responsible for implementing the government’s policies on social welfare and for developing and coordinating social welfare services. These include social security, family and child welfare services, medical social services, group and community work, services for young people, services for the elderly, rehabilitation services for people with disabilities, as well as services for young offenders” (HKSAR 2003, web).
Social security, important in Hong Kong, is a responsibility of the Government, which is provided for mainly through non-contributory schemes. There are five of these social security schemes administered by the Social Welfare Department. The first is the Comprehensive Social Security Assistance Scheme, which provides cash assistance to bring the income of a household up to the prescribed level to meet basic livelihood needs. Secondly, there is the Social Security Allowance Scheme. This is just a basic old age allowance and disability allowance. Third, are the Criminal and Law Enforcement Injuries Compensation Scheme. This provides cash assistance for people injured or for dependents of those killed in crimes of violence, or through the action of a law enforcement officer using a weapon in the execution of his duty. Next, is the Traffic Accident Victims Assistance Scheme, which provides early financial assistance for people injured or for dependents of those killed in traffic accidents. Last, is the provision of Emergency Relief, which is comprised of cash grants, food and daily necessities that are provided for victims of natural and other disasters (HKSAR 2003, web). Overall, social security in Hong Kong is very minimal with no publicly contributed funds (Lorenzini, 11/13/03).
Also included under Hong Kong’s social welfare are Family and Child Welfare services. The main objective is to provide services that preserve and strengthen the family unit. These services include counseling, child services, family aid, and clinical psychological services. Also provided are services for victims of domestic violence, including spousal abuse and child abuse. Four battered women’s shelters have been provided with this service. Foster home programs are provided along with adoption services both domestically and overseas (HKSAR 2003, web).
Medical services provide for the operation of 37 medical social service units in public hospitals. Social workers in these units provide patients and families with counseling, financial aid, housing assistance, rehabilitation treatment, and help with societal re-integration. The other services provided by the Social Welfare Department include Work Services, Young People Services, Services for the Elderly and Services for Offenders. Of these remaining services, actual government support is very broad and consists mainly of referral services and community planning, which consists of after school activities for children, elderly social activities and help finding employment for released criminals and others (HKSAR 2003, web). Overall, they appear to be very weak programs that are mostly provided by volunteerism and groups within the community and the policies are just a framework for these groups to use.
It is difficult to imagine Hong Kong’s social policies making too much of an impact on its society. They are very general policies in comparison to those of Singapore, much less funded, and the outcomes are not near as dramatic. “When policy-makers lack the knowledge and abilities, or are irresponsibly unwilling to identify the fundamental causes of problems, the effectiveness of their remedial actions is inevitably limited. The welfare policy is no better” (Hsiung 2000, 130). In Hong Kong the government leaves many aspects of life up to the people, as it has done in the past. It seems unimportant in Hong Kong to impose waves of change, as it already functions efficiently, much the same as it did under British control. In the minds of policy makers, the sentiment of “if it isn’t broken, don’t fix it” holds true, but the implementation of poor policy is really no better than doing nothing at all.
In Singapore, people wanted stability and the government planned for it and gave it to them and the people accepted it. It would not have worked without the social safety net to back it up. People in Singapore would have been reluctant to change to an industrial way of life if the government had not held their hands throughout the process. In Hong Kong people historically enjoyed the freedom of low government intervention and to change that type of government control would have meant that interventionism would have been shoved down their throats.
The Statist argument says that countries are successful due to the level of autonomous power that governments hold. If this is true then Singapore is a model state where the government is in near total control of all sectors, thus explaining the country’s success. But what about Hong Kong? State autonomy in Hong Kong is very low. Many private sectors decided for themselves how to operate business, and the people decide how they want to interact with the private sector and their government. In Hong Kong, it seems no one entity, not the state, not business, not the people have a great, overarching autonomous hold, the power is more balanced throughout (Deyo 1992, 49, 50).
So what can explain the divergence of Social Policy between the two countries, yet provide for the great successes by both countries. In Singapore people needed structure after the war just to get themselves back on level ground. Without a large trading industry like the one Hong Kong retained, they needed a new nation-wide goal to provide unity and a solid foundation to rebuild on. The collective focus was then aimed at industry and to reach that goal, structure was key. In Singapore structure is evident everywhere, but most importantly is the family and social structure. The peoples’ way of life has been altered so that industrial growth can take place in the most efficient way possible. The miraculous part is the fact that these social policies did not destroy historical cultural sentiments of the people, but used them as a model and an incentive to take on the task of industrialization together in a way that everyone could agree on. In a way, they reached back to their roots in order to move forward. It was a cultural revitalization and it proved to be successful and it created a very strong, very autonomous state.
In no way would this same strong-armed approach have ever worked in Hong Kong. Being a trade center meant that many cultures were being intermingled and large masses of foreign labor were and continue today to come and go along with the fluctuations in the job market. The social stability was never there. There was never a unified cry by the people demanding someone give them direction and vision. The people there were just happy to be working and, in fact, they had long established a goal for themselves as a worldly center for trade. There would be an outcry if these freedoms and bragging rights, the essence of Hong Kong society, were somehow changed or infringed upon. So instead of micromanagement, the Hong Kong government lets the people do as they have done for centuries and as long as they hold on to their success there will not be any need for interventionism, especially in regard to the everyday way of living.



Citations
Deyo, Frederic C. 1992. “Imperatives of Development and the Formation of Social
Policy: East Asia’s Newly Industrialized Countries”. In Modernization in East Asia: Political, Economic, and Social Perspectives, edited by Richard Harvey Brown and William T. Liu, chapter 4.

Gugler, Josef. Cities in the Developing World Issues, Theory, and Policy. Oxford
University Press, 1997.

Hong Kong Special Administrative Region Government (HKSAR). Hong Kong: The
Facts, Social Welfare. Website: http://www.gov.hk, October 2003.

Hsiung, James C. Hong Kong the Super Paradox Life after Return to China. St Martin’s
Press, New York. 2000.

Lorenzini, Michelle, PhD. In-class notes, Social Policy. 11/13/03.

Posted: Sat - August 28, 2004 at 10:41 AM        


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