Social Cohesion

Social Cohesion EU-AsiA DiAlogUE Shaping a Common Future for Europe and Asia – Sharing Policy Innovation and Best Practices in Addressing Common Challenges Social Cohesion Addressing social Divide in Europe and Asia © 2014 Konrad-Adenauer Stiftung and European Union All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical or other means, now known or hereafter invented, including photocopying or recording, or in any information storage or retrieval system, without permission from the publisher. Editors: Dr. Wilhelm Hofmeister Patrick Rueppel Konrad-Adenauer Stiftung Ltd. Regional Programme Political Dialogue Asia 36 Bukit Pasoh Road Singapore 089850 Registration Number: 201228783N East Asian Institute 469A Bukit Timah Road Tower Block #06-01 Singapore 259770 European Policy Centre Résidence Palace 155 rue de la Loi B-1040 Brussels / Belgium European Union Centre in Singapore 11 Slim Barracks Rise, #06-01 Executive Centre, NTU@one-north campus Singapore 138664 Design, Layout and Typeset: Select Books Pte Ltd 65A, Jalan Tenteram #02-06, St Michael’s Industrial Estate Singapore 328958 Website: www.selectbooks.com.sg National Library Board, Singapore Cataloguing-in-Publication Data Social cohesion : addressing social divide in Europe and Asia / editors, Wilhelm Hofmeister, Patrick Rueppel. – Singapore : Konrad-Adenauer Stiftung Ltd,¬ [2014] pages cm ISBN : 978-981-09-2115-6 (paperback) 1. Social integration – Europe. 2. Equality – Europe. 3. Europe – Social policy. 4. Europe – Social conditions – 21st century. 5. Social integration – Asia. 6. Equality – Asia. 7. Asia – Social policy. 8. Asia – Social conditions – 21st century. I. Hofmeister, Wilhelm, editor. II. Rueppel, Patrick, editor. HM683 361.25094 -- dc23 OCN889935118 Printed in Singapore ContentS 7 Preface 11 Polarization, inequality and social Protection Maria Socorro Gochoco-Bautista, Dalisay S. Maligalig and Maria Nimfa F. Mendoza 45 social Cohesion in singapore – Challenges and Policy Response Nurhidayah Hassan and Yeo Lay Hwee 59 social Cohesion in Malaysia Helen Ting Mu Hung 75 social Cohesion and Equalization of Basic Public services in China: Achievements and Future Challenges Qian Jiwei 93 Neoliberalism and Economic Polarization in Korea: insecure Employment and the Emergence of the Working Poor Andrew Eungi Kim 105 social Cohesion as a Way to Exit the Economic Crisis in Europe Claire Dhéret 121 social Cohesion through social investment Anton Hemerijck 137 social Cohesion in italy: Recent Trends and Current Challenges Paolo R. Graziano 151 Civic Engagement in germany: Topics, Assumptions and Findings Sebastian Braun 161 social Cohesion in Britain: Key Facts, Challenges and Responses Neli Demireva Preface The world has never been as wealthy, and yet as divided, as today. This has resulted in discussions in Europe and Asia on how to overcome these inequalities and maintain cohe- sive societies. Often, cohesion is defined as the absence of violent conflicts. Following this definition, many countries in Europe and Asia have achieved cohesiveness and the European Union is even engaged in promoting and subsidizing cohesion among its member states. Nevertheless, in Europe, one can also still observe inequality, injustice, intolerance, discrimi- nation and exclusion, all of which indicate a lack of social cohesion. While social cohesion has a strong economic component, the discussion should also not neglect the social and political aspects of communities. To achieve economic growth without an increase in income disparities and inequalities is a special challenge for policy makers worldwide. While the overall economic performance of a country might be positive and proven through various indicators, new divides may arise. This results in discussions and sometimes tensions concerning an extension of the welfare state, benefits for the poor and financial programmes to support those who are not benefiting from the growing prosperity. However, in times of budgetary constraints such demands can often not be met or can be met only through massive taxation and debts. This will limit the state’s capacity in the long run and imbalanced policies can even increase such divides. Maintaining the welfare state in such a situation will be one of the biggest challenges for the future and will impact social cohesion in these countries tremendously. The financial crisis in some European states has demonstrated this very well. As a result of this crisis, many people lost their jobs and the income disparities increased. At the same time countries had to follow a strict austerity course due to their high debts resulting from mismanagement in pre- vious years and external factors. This development threatens social cohesion in the respective countries and the European Union as a whole. Since there is a strong division between those countries being strongly hit by the crisis and those hardly affected, their policy approaches differ greatly, resulting in misunderstandings and an erosion of political trust. The European Union is aware of this danger and has several mechanisms in place to tackle the challenges; the most important being the Regional Cohesion Policy, which aims at levelling differences between and within the countries. The situation is significantly different in the Asian region. Most Asian countries have ex- perienced rapid economic development through strong liberalization of their economies, but lack social protection policies. Labour rights, protection and assistance in times of unemploy- ment, comprehensive health care and pensions systems are not in place. Thus, disparities in terms of standard of living and income are much bigger than in European countries. Also, the disparity in economic achievements and prosperity between the Asian countries is at another 7 Social Cohesion scale altogether. For instance, the ASEAN member states include some of the wealthiest states in the world (Singapore and Brunei), but also some of the poorest (Myanmar and Lao PDR). Balancing these differences in view of the aspired ASEAN Economic Community in 2015 will certainly be one of the biggest challenges as this community will increase the economic interconnectedness of this region. Despite this, the social cohesion of a number of these countries is perceived as being higher than that of European welfare states. A reason for this is that social cohesion cannot be understood only in economic terms. Over the past years, the definition of social cohesion has been broadened to include several other aspects influencing social relations in a society. Such topics are political participation, rights of minorities, integration of new arriving immigrants, access to social services, and a feeling of belonging, to name a few. Social inclusion, social capital and social mobility were introduced as key pillars of this widened concept. Social mobility is closely connected to a country’s education system. Does it allow equal access for all or does it benefit only the higher classes? Is social mobility deter- mined by heritage and eventually blocked through the community system? Does patronage occur to lift people into influential positions? These are some of the questions which need to be answered to enhance social mobility. Social capital concerns questions of contacts and re- lationships which can function as social protection measures and self-help alliances to balance missing policies. Finally, social inclusion concerns both aspects of income and the psychologi- cal feeling of belonging. Initiatives need to be introduced to give the various groups of society a voice and enable them to participate in the political process. Justice, equal opportunities and compensation policies can help to increase this feeling of belonging further. Ensuring equal access and fair opportunities will however be more successful than compensation approaches alone as this will also require less financial resources. In general participatory initiatives have the potential to increase social cohesion. Civic engagement can complement the role played by the state. This is of crucial importance in times of limited budget and lack of good governance. There are also other stakeholders when discussing social cohesion. Development banks, trade unions and even the business sector through corporate social responsibility programmes enhance the social cohesiveness of societies. Finally, diversity should not be seen as a problem only. It can be an opportunity for innovation, creation of ideas and advancement of society as a whole. It is thus important to avoid social divides, but to maintain a society’s diversity while preventing any inequality and injustice. In this context there is a great opportunity for exchange on policies which have worked and lessons learnt. Numerous countries in Asia and Europe have introduced policy initiatives to address various aspects of social cohesion. Many of these initiatives tackle different sub-topics of this sometimes vague concept. While the policies themselves are often not transferable, they can still provide ideas and could be adapted to local circumstances. In order to contribute to the understanding of the current developments on social cohesion, this publication includes papers with perspectives from Europe and Asia. What is the current situation in Europe and Asia? What aspects of social cohesion threaten peaceful living 8 Preface together? Can both regions cooperate in addressing this matter? Who are the key stakehold-

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