Current Supports for Poor Households and Policy Implications

  • 2009-01-21
  • 374
  Having experienced the high unemployment, family disintegration and deepening of income polarization during the foreign exchange crisis in 1998, there has been rising consensus that strengthening social safety net is ever more important during recession period. The current budget related to social safety net, however, does not fully reflect the possibility of full fledged recession, which makes it difficult to help needy households to cope with hardships. Additional budget for the social safety net, therefore, needs be considered. In the area of housing support, the introduction of housing voucher for the low income urban residents would help alleviate the burden of high housing cost. For the households near poverty line who could not afford to pay for the public health insurance, broadening the coverage of medical aid needs to be considered. To help the children from disintegrated family, public assistance for the local child support centers needs to be strengthened. Emergency welfare support system introduced in 2006 as a sunset law has been working effectively and could be made permanent.