Increase In Social Spending Research Articles

Chasing cancer: does the social-to-medical spending ratio relate to cancer incidence and mortality in Canadian provinces? A retrospective cohort study

IntroductionCancer is the leading cause of death in Canada, and cases are expected to rise by 83% between 2012 and 2042. Jurisdictions with higher ratios of social-to-medical spending exhibit better...

Adaptive social protection in Indonesia: Stress‐testing the effect of a natural disaster on poverty and vulnerability

AbstractIndonesia is among the countries with the highest exposure to natural disasters, and risks are expected to increase due to climate change. Natural disasters and other shocks require well‐developed social protection systems that can cushion the economic consequences for those most vulnerable to these events. International stakeholders advocate for ‘Adaptive Social Protection’ which links social policy with strategies on disaster risk reduction and climate change adaptation. This article uses the tax‐benefit microsimulation model INDOMOD to analyse the adaptiveness of the Indonesian social protection system by simulating an income shock caused by a natural disaster and testing reforms to the existing social protection system. We find that the existing system generally performs well in lifting people out of poverty in normal times but does not sufficiently help them to prepare for and cope with shocks. This is especially the case for large households, households with more than two children, people in their 20s and 80s and individuals with a disability. The tested hypothetical reforms reduce the impact of the shock and better target those identified as needing more support but require a substantial increase in social spending.

Впливи пандемії COVID-19 на стан світової та національних економік

The article analyses the peculiarities of the global pandemic COVID-19 impact and related quarantine restrictions imposed on the economic growth of Ukraine and other countries of the world. The purpose of the study is to determine the negative consequences of such an impact due to the global pandemic COVID-19, as well as to outline the effectiveness of implemented (planned) measures of governments to neutralize the effects of this impact on the economy. Particular attention is paid to: the study of changes in GDP dynamics, the volume of foreign trade, and the level of public debt in different countries of the world in three phases of the pandemic: I-phase (2019–2020), II-phase (2021-2022) and III-phase (second half of 2022, first half of 2023); determining the effectiveness of anti-crisis measures of governments during the global crisis of 2019–2022. The scientific paper notes that the negative factor influencing the quality to the economic growth of the country’s world (during the pandemic) is non-diversification of economies with emerging markets and their dependence on global foreign trade flows. It has been determined that the increase in social spending and the level of debt in developing countries is a threat to their financial security in the future, since the maximum level of public and guaranteed debt in relation to GDP in some countries exceeded the limit of 60% according to the Maastricht criteria.

PRAWO PODATKOWE W CIENIU POPULIZMU (NA PRZYKŁADZIE POLSKIEGO ŁADU)

Tax law populism should be associated more with a populist economic policy than with the legal populism. Populist economic policy requires an increase in social spending, while the source of financing is the public debt or an increase in tax burdens. However, the tax increase is hidden from the public due to the complexity of regulations and the method of settlement, imposing levies that are less noticeable by society (indirect taxes) and changing the structure of direct tax burdens for various social groups (primarily a raise for the wealthy).

Modern migration process: new аpproaches in аnalysis

The article discusses research approaches to the analysis of migration, which is becoming one of the most important problems at the regional, national and international levels in the modern world. They also analyze migration processes in modern Kazakhstan. Migration can be viewed as a way of mass reaction of the population to the political, spiritual, socio-economic, and environmental changes taking place in the country. The process of migration affects the countries receiving and sending migrants differently depending on the level of development, migration processes affect the structure of the country and lead to the differentiation of its regions. While the governments of developing countries that send migrants today view their migrant citizens as potential investors and participants in the development process, in developed countries, on the contrary, the negative socio-political consequences of migration have now become apparent. In the article, with the help of a scientific analysis of the works of domestic and foreign authors, a priority approach is determined in the analysis of migration. And also through the analysis of statistical data, the features of migration processes in the territory of Kazakhstan are revealed. The analysis shows that since the beginning of the 21st century, the number of studies of “migration pessimists”, who give a negative assessment of migration and advocate limited migration, has increased. They associate negative consequences with migration, such as a decrease in income among the indigenous population, an increase in unemployment, an increase in social spending, a slowdown in economic growth, an increase in social tension caused by increased cultural differences, a worsening sanitary and epidemiological situation, the threat of terrorism, etc. For these reasons, today migration creates more negative forecasts. The difference between these views lies in the fact that most works written in an optimistic manner are more concerned with the theoretical aspects of the problem and are based on the economic consequences of migration for donor and recipient countries, while “pessimistic” works are based on empirical data and are aimed at more accurate analysis of the socio-economic, political, cultural, demographic, environmental consequences of migration. Key words: migration, internal migration, external migration, limited migration, migrant

County health outcomes linkage to county spending on social services, building infrastructure, and law and order

Will counties that reallocate money from law enforcement to social services improve subsequent markers of population wellbeing? In this study, we measure the association between county government spending across multiple sectors and Life Expectancy at Birth (LEB) in the U.S. using data from the U.S. Census Bureau. We constructed a Structural Equation Model to determine whether social expenditure, building infrastructure, and spending on law and order were positively or negatively associated with LEB three-years after initial spending. The analysis compared data between 2002-05 and 2007-10 and was stratified for urban and rural counties. In rural counties, a one-standard-deviation increase in social spending increased subsequent LEB by 0.58 (SE 0.16) and 0.36 (SE 0.16) years in 2005 and 2010, respectively. In urban counties, a one-standard-deviation increase in building infrastructure spending increased subsequent LEB by 1.14 (SE 0.51) and 1.05 (SE 0.49) years in 2005 and 2010, respectively. In 2002, a one-standard-deviation increase in law and order spending significantly decreased subsequent life expectancy, 2.2 (SE 1.27) and 0.46 (SE 0.13) years in urban and rural counties, respectively. Similarly, investments in building infrastructure for urban counties and social services for rural counties were associated with subsequently higher life expectancy three years later after initial investments.

PENSION REFORM - GOALS AND ESTIMATED RESULTS

PENSION REFORM - GOALS AND ESTIMATED RESULTS

The Effects of Social Spending on Income Inequality in 30 OECD Countries

Social spending programs began to be implemented in the post-World War II period owing to the positive developments in economic and demographic indicators. In the following years, governments used social spending programs to eliminate income differences between income groups due to their increasing social benefit function. Hence, the redistribution of income from high-income groups to low-income groups occurs through taxation. The unfairly distributed income lead to not direct human capital and public resources for productive economic activities. Accordingly, governments try to minimize or remove the negative effects of income inequality by social spendings. The study aims at investigating the relationship between social spendings and income inequality in 2009, 2011, the years when the effect of the 2008 crisis observed in the world, and 2015 not being the crisis year by the OLS method by cross-section regression analysis in 30 OECD countries. The analysis results show that an increase in social spending reduces income inequality. Moreover, trade openness negatively affects income inequality, unemployment increases income inequality, and it is possible to interpret that the positive effect of social expenditures on income distribution decreased during the crisis years by compared to the year-based estimation results.

Understanding Chile’s Social Unrest in an International Perspective

We aim to provide a broad descriptive overview of Chile's social issues, in comparison to other countries and over time, in order to place the recent social unrest in historical and international perspectives which can help prepare the ground for future policy priorities. We follow an eclectic approach, classifying a broad set of indicators along six dimensions-inequality across: i) income; ii) perception; iii) access; iv) opportunity; v) redistribution; and vi) location. The analysis puts forward a set of descriptive findings. First, income inequality declined substantially but remains high, also compared to countries with similar level and path of development. Second, Chile seems to be one of the few countries in Latin America with declining inequality where perceived inequality actually increased. Third, notwithstanding an increase in social spending, access to essential services appears limited, particularly for middle and lower income classes, amid fast growth of out-of-pocket health expenses, relatively faster growth of cost of living for the relatively poorer, and remaining weaknesses in the pension and education systems. Fourth, inequality of opportunity is high, with limited competition. Fifth, fiscal redistribution has improved markedly, but remains low by international standards. Finally, inter-regional inequality has declined substantially over the last two decades, reaching levels similar to the OECD median.

Improvement of investment support for human capital development in the conditions of digital transformation

The features of investment in the development of human capital in Ukraine at the regional level, in the private sector and at the household level have been investigated. It is noted that the state acts as the main investor in the formation and development of human capital, financing the main expenses in the field of education, medicine, cultural and physical development and social security. However, state policy in the context of limited financial resources and their irrational use does not contribute to the effective development and reproduction of human potential in accordance with the needs of the digital economy. Despite the nominal increase in social spending, their structure is irrational, and the spending itself do not consider as investment. An insufficient level of investment activity in the field of investment in human capital observe at the corporate and individual levels. It has been determined that the main incentive for the development of human capital affects the formation of a motivational basis at all levels is the purposeful, consistent and pragmatic activity of state authorities aimed at implementing a certain development strategy for the country, ensuring its security and macroeconomic stability. An important condition is also the creation of a regulatory framework that is adapted to the specifics and realities of economic and social transformations in the context of digitalization, the regulation of labor relations, and the preservation of social and investment guarantees. To regulate and intensify investment activities, a model of investment support for the human capital development is proposed. It involves the redistribution of investment resources in accordance with the subjects of investment and the expected results of the investment process, forms and criteria for assessing individual components of human capital at different stages of the life cycle, together form a general model of financing it development and reproduction at all levels.

Political Regimes, Path Dependence, and the South Korean Welfare State

Contrary to common belief that political actors can fundamentally shape the welfare state, any political regimes with distinct positions on welfare policies are usually put under public scrutiny, which makes it risky for them to simply follow their traditional beliefs without taking into account public reactions over welfare-related decision making. In terms of the welfare state development, South Korea is an interesting example in the sense that parties from different political backgrounds have had the opportunity to run the country for almost the same amount of time, since progressives came to power for the first time in modern Korean history. Based on data ranging from 1998 to 2016, the relationship between the welfare state and political/socioeconomic conditions is evaluated alongside policy implications, revealing the path dependence of the South Korean welfare development. The increase in social spending in South Korea was rather due to natural phenomena such as population aging, than any political actors’ approaches to the welfare state.

Zimbabwe

This 2019 Article IV Consultation focuses on Zimbabwe’s near- and medium-term challenges and policy priorities and was prepared before COVID-19 became a global pandemic that has resulted in unprecedented strains in global trade, commodity, and financial markets. It, therefore, does not reflect the implications of these developments and related policy priorities. The outbreak has greatly amplified uncertainty and downside risks around the outlook. The IMF staff is closely monitoring the situation and will continue to work on assessing its impact and the related policy response in Zimbabwe and globally. With another poor harvest expected, growth in 2020 is projected at near zero, following a sharp contraction in 2019, with food shortages continuing. With no progress on clearing longstanding external arrears, the authorities face a difficult balance of pursuing tight monetary, to reduce very high inflation, and fiscal policies to address the macroeconomic imbalances and build confidence in the currency, while averting a crisis. Pressures are mounting to increase spending on wages and for social protection to mitigate the impact of the weather shocks and high inflation. While the 2020 budget includes a significant increase in social spending, it is likely insufficient to meet the pressing needs.

The Relationship Between Health Spending And Social Spending In High-Income Countries: How Does The US Compare?

There is broad consensus that the US spends too much on health care. One proposed driver of the high US spending is low investment in social services. We examined the relationship between health spending and social spending across high-income countries. We found that US social spending (at 16.1percent of gross domestic product [GDP] in 2015) is slightly below the average for Organization for Economic Cooperation and Development (OECD) countries (17.0percent of GDP) and above that average when education spending is included (US: 19.7percent of GDP; OECD: 17.7percent of GDP). We found that countries that spent more on social services tended to spend more on health care. Adjusting for poverty and unemployment rates and the proportion of people older than age sixty-five did not meaningfully change these associations. In addition, when we examined changes over time, we found additional evidence for a positive relationship between social and health spending: Countries with the greatest increases in social spending also had larger increases in health care spending.

Austerity in reverse: Korea, capabilities, and crisis

ABSTRACTDevelopment is austerity in reverse. And austerity is development in reverse, a form of de-development. This paper argues that austerity is a neoliberal technology for returning countries to positive economic growth that reduces social spending and thereby reverses development. Drawing on Sen and Nussbaum's human capabilities approach, an exploration of Korea's development since 1960 supports this and three additional claims. First, the expansion of capabilities in Korea is tied to democratization and exponential increases in social spending. Second, Korea's experience with financial crises and austerity programmes demonstrate that increased social spending is compatible with rapid recovery. Third, Korea's roll out of neoliberal technologies and economic transformation since the 1980s have undermined the capabilities developed during earlier industrialization. Fourth, the importance of housing as a vital tool for political legitimation, especially since democratization, has sustained political interest in providing better housing, suggesting that social movements are essential to protecting social spending.

'Face the Bullet, Spare the Rod?' Evidence from the Aftermath of the Shining Path Insurgency

We investigate whether violence occurring outside the confines of a home can alter intrahousehold violence inter-generationally. This paper is the first to explore whether exposure to violence from an armed conflict affects the later use of physical punishment as a child discipline method. Our identification strategy relies on the spatial and temporal variation of the Peruvian civil conflict that occurred between 1980 and 2000. We find that a mother exposed to an additional one hundred violent conflict-related events in her district is 3.4-3.8 percentage points less likely to physically punish her children. This effect is equivalent in magnitude to an additional 10 years of education. We find suggestive evidence that the conflict could have increased parenting knowledge and support. Communities that experienced higher levels of conflict violence saw greater increases in social spending and had more health resources in the post-conflict period. Additionally, we find women’s conflict exposure is associated with a higher likelihood of accessing these resources.

The Crucible of Debt and Welfare Spending: Evidence from State-level Welfare Expenditures in the United States

This paper argues that financial pressures affect state public welfare expenditures, controlling for economic effects, financial constraints faced by state administrations and general economic conditions. It develops a series of panel models for 17 states with the largest muni markets (representing 71 per cent of all state-level public welfare spending in the US or $326 billion) from 1998 to 2010. As economic conditions worsen, government revenues decline. Coupled with marginal increases in social spending, state governments face higher debt and binding budget constraints. As investors realize the situation, muni bond prices drop, yields increase and higher finance costs compel state governments to decrease expenditures. These cuts are generally focused on public welfare expenditures. Between 1998 and 2010, one percentage point increases in short (1y), medium (5y) and longer (10y) bonds yields are associated with 0.01 per cent, 0.03 per cent and 0.04 per cent decreases in public welfare expenditures relative to gross state output.

Inequities in under-five child nutritional status in South Africa: What progress has been made?

Despite the emphasis given to poverty reduction in policy statements and a substantial increase in social spending, money-metric poverty has shown little improvement since South Africa's transition to democracy in 1994. Alternative approaches to measuring well-being and inequality may show a more positive trend. This article uses the 2008 National Income Dynamics Study to assess the magnitude of inequalities in under-five child malnutrition ascribable to economic status. The article compares these results with those of Zere and McIntyre, who analysed similar data collected in 1993. In both cases, household income, proxied by per-capita household expenditure, was used as the indicator of socio-economic status. Children's heights and weights have increased since 1993 and being stunted or underweight has become less common. Furthermore, pro-rich inequalities in stunting and being underweight have significantly declined since the end of apartheid. This suggests that pro-poor improvements in child welfare have taken place. Policies that may have contributed to this include the Child Support Grant, introduced in 1998, and improvements in healthcare and the education of women.

Labour Taxation in the European Union - Convergence, Competition, Insurance?

Carlos Martinez-Mongay outlines labour tax trends in the European Union over the last three decades. The analysis is based on macro data: the average effective tax rates on labour, consumption and capital. Different measures of effective tax rates on labour in EU Member States are calculated; they are compared with those in the USA and Japan and with the effective tax rates on consumption and capital. All the measures show that the tax burden on labour has increased in the EU over the last three decades both in absolute terms and in comparison to the effective tax rate on capital. Moreover, over the same period the tax rates on labour, consumption and capital have converged across EU countries. These trends largely depend on two factors: the increase in social spending and international tax competition. However, concerning the latter there is little evidence that changes in tax rates on labour are related to changes in tax rates on capital. This suggests that international co-movements of tax rates and tax revenues may be due to common structural changes underlying tax policies rather than to tax competition forces.

Are dictatorships less redistributive? A comparative analysis of social spending in Europe, 1950–1980

Using new data on Spain and Portugal 1950-1980, this paper shows that non-democratic governments were less generous in providing social protection and also financed their meager social policy in a less redistributive way. This contradicts recent studies that hold that dictatorships have no significant effect on social policy. The analysis also reveals that, rather than provoking a 'race to the bottom' or an increase in social spending, globalization favored the adoption of tax-funded systems instead of systems based on compulsory social security contributions. Copyright , Oxford University Press.

Social Spending in Korea: Can it Foster Sustainable and Inclusive Growth?

Going forward, Korea faces two closely related challenges: sustaining economic growth against the backdrop of a rapidly aging population and ameliorating income inequality. This paper argues that a gradual increase in social spending could promote more sustainable and inclusive growth in Korea. In particular, simulation results suggest that social spending which supports labor market reforms can boost longer-term growth. However, despite rapid increases recently—albeit from a low base—there is still a social spending gap relative to Korea’s OECD peers. Because of several fiscal challenges in the coming decades, increases in social spending should be incremental, and would be usefully guided by a longer-term fiscal framework.