Poverty and Politics: Evaluating Public Assistance in Japan Ulrike Schaede Kuniaki Nemoto Graduate School of International Relations and Pacific Studies University of California, San Diego Paper prepared for the 2006 Annual Meeting of the International Studies Association in San Diego. Please do not cite without our permission. Please send comments to:
[email protected]. Abstract Literature on Asian, and in particular Japanese, welfare policies deals mostly with pensions and health care. As a result, we know very little about poverty relief in these countries. Japan, the most affluent Asian country, is often hailed as a poster child of “welfare capitalism”. However, when it comes to public assistance, Japan is in fact a laggard. We introduce the basic features of Japan’s public assistance program, and analyze what explains variations in both public spending on poverty relief, and the system coverage (the number of recipients of poverty relief) over time. We find that, unlike other “welfare nations”, Japan does not have a quasi-automatic, institutionalized response to changes in social and economic distress of its citizens. Rather, spending and coverage vary over time and are significantly influenced by the number of seats held by the Liberal Democratic Party in the Diet. We conclude that politics matter more than poverty relief per se in Japan’s public assistance program. 1. Introduction Japan is typically considered as an industrialized country with a well-developed welfare system. Dore (2000) maps Japan and Germany as “welfare economies”, as opposed to the Anglo-Saxon “capitalist economies”. Likewise, Hall/Soskice (2001) group Japan with the “coordinated” systems of capitalism, where a variety of institutions and mechanisms are in place to delegate a significant amount of employment, training, unionism and welfare to corporations, which benefit from other state services in return.