Process of Policy Formulation

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Process of Policy Formulation
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Social Welfare - a Measure to Control the Poor

• Short supply of labor force due to Black Death
• Creation of the Statute of Laborers in 1349 that
  regulated the movement of laborers
• Government control over employment -work or jail
• Peasants Rebellion of 1381
• Statute of Artificers enacted in 1388 in England
  prevented movement from place of birth without
  permission
• Increase in population, enclosure movement, lack
  of raw materials, low wages and inflation coupled
  with high unemployment
• Production of trade goods and money economy which
  involved accumulation of profits beyond the cost
  of raw materials, labor and investment
• Dawn of capitalism and social welfare became part
  of the labor policy
• Work became a moral issue responsibility for
  poverty was placed on the workers shoulders
• Calvinism and the Protestant work ethic
• Elizebethan Poor Laws of 1601-almshouses and
  workhouses

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Questions for consideration in policy formulation

• Is the policy compatible with the current mood of
  the nation?
• Does it reflect the prevailing values in society?
• Is it a politically viable policy? Will it create
  an uprising or other social/political problems?
• Is it legally sound? Rational? Based on empirical
  data?
• Will it satisfy the predominant interest groups?
• Does it promote justice and equality?
• Is it an economically feasible policy that
  provides the best option among other options
  available? Is it efficient?

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History of Social Welfare Policy

• Feudalism and embeddedness-obligation of honor
• Population increase and emergence of agricultural
  technology
• Reduction of profits for the Lords- emergence of
  tenant forming
• Individualism and alienation - the cessation of
  obligation of the Lords to protect the serfs
• Mechanization and Lords control of equipment
  such as grinding mills which monopolized the use
  of labor saving devices and the emergence of
  user fee
• Churchs deep involvement in governance and
  distribution of charity
• Continuation of private charity and the service
  by the clergy, and the guilds
• Displacement of agricultural workers, growing
  piecework industry, hard work routines,
  population increase and famine resulted in
  associating the poor with moral degradation and
  witchcraft
• Poverty became a crime

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Social Security-A drowning Ship?

• Is the most expensive program in jeopardy
  because of the reduced dependency ratio or
  because of COLAS?
• Will means testing the program save the drowning
  ship?
• How to assure intergenerational equity?
• Can it become a targeted program?
• Can the tax system be used to reduce the stigma
  if means test becomes a criteria to receive
  benefits from social security?
• How can SSI and SSD be effectively used to meet
  the needs of poor social security recipients?

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What is social security?

• Designed to help deal with economic insecurity
• Income maintenance program that helps offset the
  income losses that accompany disability, death or
  old age
• Principles of
• Universality
• Equity
• Adequacy
• Less stigmatization
• Saving Incentives
• Integration

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Is social security a chain Letter?

• Declining rates of return
• Poor sustainability of benefit promises
• Universality principle that favors the wealthy
• Younger generation worried about inability to
  keep promises by the government
• Political nature of the issue
• Public discourse based on inaccurate information
• Entitlement security
• Perverse incentives
• Actuarial uncertainty

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Cost Effectiveness

• A method for quantifying costs of services in
  relation to the goal achievement.
• No monetary value is placed on the desired goals