Welfare’s State
As India prepares to roll out the worlds largest welfare scheme,with the food security Bill aiming to reach out to nearly two-thirds of the population or 800 million people,a look at how welfare stacks up
As India prepares to roll out the worlds largest welfare scheme,with the food security Bill aiming to reach out to nearly two-thirds of the population or 800 million people,a look at how welfare stacks up
UNITED STATES: LAND OF THE FREE
Record numbers of American citizens are now on some form of government assistance.
1 trillion a year: Amount taxpayers have to cough up to fund more than 120 welfare
programmes.
100 million: Roughly one third of the US population subsists on aid.
20,610: Amount in benefits received by a poor person in the US per year.
Medicaid: Biggest expenditure guzzler among the USs social safety nets.
Food stamps: Next highest expenditure is on food stamps. Costs for this have doubled since 2008.
15 trillion: Total welfare spending since 1964s War on Poverty. More than 46 million people continue to live in poverty.
SOUTH AFRICA: WELFARE BUBBLE
South Africa is Africas biggest welfare state. However,recent revelations that more people receive welfare than have jobs have rocked the welfare boat.
According to World Bank,social assistance typically represents 1-2 per cent of GDP in developing countries. In SA,its 3.4 per cent.
16.1 million people are beneficiaries of various schemes.
60 per cent of the governments R 1.15 trillion budget is aimed at social spending for the poor.
n In 2011,the unemployment rate in SA was 25 per cent. The Expanded Public Works Programmethe governments largest job creation programmelasts for 46 days and pays only 9 a day.
THE NORDIC MODEL
The Nordic states are still the worlds most generous welfare states. But a series of crises has sent these nations back to the account books to balance their budgets and welfare is not as forthcoming as it was before.
SWEDEN: NOT FOR EVERYONE
The government has opened up services to competition private players to improve the quality of Swedens universal health and education systems.
27 per cent of health care is delivered by profit-making private firms.
In education,private firms can run free schools. 400 such schools are in operation,
Universities and adult education are free. The state offers six years of grant and an optional loan.
242,000: number of children living in poverty in 2010.
Homelessness has quadrupled from 8,300 people to 34,000 out of Swedens 9 million population.
At 27 per cent in the first quarter of 2013,Swedens unemployment rate is the highest in the EU.
DENMARK: RETHINKING WELFARE
Denmarks social safety net includes free health care,free university education and hefty payouts even to the rich.
18 per cent of Denmarks population is over 65. And only 47 per cent work.
Only 3 of 98 municipalities will have a majority of residents working in 2013.
In 2000-12,average hours of work fell by 8 per cent.
250,000 Danes have no economic incentive to give up unemployment benefits and take up a job.
UNITED KINGDOM: AUSTERITY,NOT WELFARE
On April 1 this year,the largest ever welfare cuts came into force in Britain.
1 per cent per year: The rise in most welfare benefits for the next three years.
9,000,000: Number of families set to lose an average of 256 a year.
543 million: Reduction in the budget for legal aid. One of the motives for this is to prevent legal challenges to the governments draconian welfare cuts.
Health and Social Care Act: This new Act overturns the 1946 legislation that held the NHS as a provider of free,universal health care. The government no longer has a legal duty to provide comprehensive health service.
1 million: Number of children reduced to poverty in the next five years,thanks to the welfare cuts. This adds to the four millionone in threealready poor children.
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