Social Security System in Asian Transition Countries

Abstract

We examine the changes in social security systems in Asian transition countries and the limitations of socialist heritage reforms. Unlike other European transition countries, Asian transition countries formulated partial opening in the economic field while maintaining their political system. Accordingly, the existing socialist period's political power is maintained even after the transition, and economic resources tend to be exclusively occupied by the privileged. In general, the social security system is also favorable to the ruling class. Besides, social security expansion is not expected as it is challenging to finance contributions from companies and others due to various tax breaks. As economic development comes first, social security is a strong tendency to be treated as a second priority. Also, there is an aspect of inequality in the use of services as the private sector is also involved in welfare provision after the system transition.