The Development of State Welfare in the Asian NICs with Special Reference to Taiwan

ABSTRACT This paper explores Taiwan's welfare development from its specific politico‐economic situation. Although education and public health are well developed in Taiwan and social insurance is expanding to cover more and more Taiwanese people, the govenmental welfare effort is still too low to meet the welfare needs of the public. This is especially so given our discovery that military servicemen and related groups receive over 70% of the welfare expenditure of the central government while the disadvantaged receive only around 3%. Furthermore, political crises are often accompanied by a significant growth in social expenditure, implying that the purpose of state welfare is to maintain the stability of the Taiwanese state rather than to protect the well‐being of Taiwanese people. Political isolation forces the Kuomintang (KMT) to secure Taiwan's role in the international community via economic growth. The development of state welfare cannot be allowed to have a negative effect on this highest priority. The limited resources, therefore, are allocated to economic goals as well as to the KMT–state apparatus in order to keep the KMT in power. However, the democratization of Taiwanese politics since the 1980s has forced the KMT to consolidate its legitimacy from the people and the improvement of social welfare is one measure for this purpose. Whether or not Taiwan becomes a Western‐style welfare state through the expansion of state welfare in the near future, it furnishes a useful example with which to examine existing welfare theories.