The Characteristics of Child Welfare Finance Management and Developmental Improvement Measures

Abstract

As the total fertility rate declines to a level that threatens the socio-economic system, support for child rearing and the realization of child welfare are becoming the centerpiece of the national agenda. In this study, based on OECD statistics and analysis of central government budget data as of 2021, I examined the characteristics of Korea's child finance management and derived some improvement measures. Our analysis of the central government's child welfare finance found that current child welfare programs are multi-ministerial and segmented by age and characteristic groups, nationally subsidized but without sufficient level of legally mandated subsidization, and focused on child care support for children in early childhood. In order to improve the efficiency of child welfare finance and the effectiveness of policy implementation, improvement measures can be sought for improving the governance of child policies, systematizing and optimizing the state subsidy rate for projects for children, returning part to central government projects, and establishing a support system for the entire life-cycle of children. In addition, policy makers may consider returning the financial capacity generated by the reduction in the number of children or improved efficiency to child welfare finance, and an appropriate allocation of resources by the Education Finance Division for school-age children.