By Cindy SuiBBC News,
Taipei
Watch: An increasing number of Taiwanese living below the
poverty line are struggling to make ends meet and are relying to
state aid.
Working six days a week at a Taipei noodle stall, Hsu
Ching-ni earns only $500 a month, not nearly enough to support her
family of seven including three children, or even pay rent.
Instead, they have to survive on welfare.
"I'm the only one in my family working. My husband suffered a
stroke and can't work. My parents-in-law are elderly. If it weren't
for the welfare, I don't know where we'd be," says Ms Hsu.
The number of people like her in Taiwan is on the rise. But whereas
in previous decades residents mostly depended on themselves, the
government has been forced to restructure its social welfare system
to help them.
'Worse off'
Previously criticised for not doing enough to aid the many
struggling to get by, the government has relaxed its criteria and
raised the low-income threshold to allow more people to qualify for
assistance.
As a result, statistics show the number of people living below
Taiwan's poverty line and dependent on welfare has surged by 29% to
a record 357,000 last year, compared with mid-2011.
"We've never before had that many low-income people," said Lee
Pi-ju, head of the Ministry of the Interior's social assistance
section.
We are most worried about poverty being passed on to the
next generation.”
"It's because of the global economic downturn and changes in
Taiwan's economy. It's harder for low-skilled people to find jobs.
Families have also changed; there are more divorces now, more
single-parent families.
"But mainly it's because people have become more aware of their
rights, and hope the government can take better care of them. After
all, they are economically worse off; the cost of living has
increased."
The changes are being made at a time when Taiwan's economy, once
one of the fastest growing in the region, has slowed to low
single-digit growth.
Many factories have moved to China or South East Asia so it is
harder to find well-paying jobs, especially for low-skilled
workers. And with wages failing to keep pace with the rising cost
of living, families have seen their wallets shrink.
Many people get by selling things on the streets. On Taipei's
sidewalks, it is common to see people selling breakfast from
wagons, mothers carrying children enticing passersby to buy
flowers, and disabled people on wheelchairs peddling tissue and
chewing gum.
Changing culture
I don't know if I can put my children through high school,
not to mention college”
The changes in Taiwan's welfare system are also being carried out
at a time when the dynamics of Taiwan's families have also changed,
with many more single-parent families and extended family members
no longer taking care of each other financially like they used
to.
In Taiwanese society, like other Chinese-speaking societies, people
were expected to take care of themselves and their family members;
poverty was considered one's own business.
And that has long been reflected in the welfare system in Taiwan
where the income of siblings or former spouses was taken as part of
a welfare applicant's assets.
But family are no longer as close-knit as they once were. Grown
children, for example, do not necessarily care for their elderly
parents. And divorced spouses do not always contribute to the
raising of the children - making it necessary for the government to
step in to offer financial aid.
The percentage of
Taiwanese people living below
the poverty line and on welfare - 1.78% - is not only
low compared with Western countries, but it is also much smaller
than in similarly developed Asian neighbours such as South Korea
and Japan, where the figure is around 21%.
Taiwan's public
expenditure on social
welfare is also much lower than its neighbours'.
Last year, Taiwan's
spending amounted to just 3.98% of its GDP, according to government
estimates.
This is far less than
South Korea's 9% and Japan's 22%, The average for developed
countries in the Organisation for Economic Co-operation and
Development is also 22%, according to OECD statistics.
Even with the new rules, however, Taiwan's criteria are considered
strict, and the percentage of Taiwanese who qualify as being poor
and eligible for monthly assistance is only 1.78% of the
population.
The figure is far lower than that of Western countries, where it
can be 10 to 15%.
And some of the old culture remains in the system, with the income
and assets of an applicant's parents, even if they don't live in
the same household, as well as that of grandparents who live with
them, still being taken into account.
"We're different from the West; we believe immediate family members
should still try to take care of each other," says ministry
spokesperson Ms Lee.
"We don't negate a family's responsibility. We have to prevent
dependence on welfare."
Government officials point out that with an average tax rate of
12%, much lower than that of some European welfare states' 40%,
Taiwan can't afford to provide many welfare services.
Poverty generation
To enable more people to qualify for welfare, Taiwan's government
raised what it considers to be the poverty line.
The thresholds differ from area to area: In Kaohsiung city, for
example, one can qualify for welfare if his or her monthly income
is no higher than $11,146 New Taiwan dollars (US$378), previously
it was NT$10,033.
On average, welfare recipients in Taiwan get NT$4,200 (US$140) a
month in public assistance money. To put that in context, the basic
wage is about NT$19,000 per month.
However, many people who are barely getting by are above the
official poverty line, so do not receive any government financial
assistance at all.
That is why non-governmental agencies such as the Taiwan Fund for
Children and Families are increasingly having to step in to fill
the gap.
Besides giving money, it also distributes rice, oil, milk and other
daily necessities.
"Many families might not have been categorised as poor, but they
definitely need help," says the director of the charity's southern
Taipei office, Vera Chen.
"It's difficult for them to find long-term jobs. If they fall sick
or lose their job, they become poor. They are also at risk of
domestic violence and alcoholism.
"If we don't give them some assistance their kids will not have the
same opportunities as other children. We are most worried about
poverty being passed on to the next generation."
At her noodle stall, Ms Hsu is also worried about her young family.
After paying the expenses, her family has nothing left. Meals are
simple, with little meat.
"We're getting by for now, but I don't know if I can put my
children through high school, not to mention college," Ms Hsu says.
"We don't know what will happen to us in the future."
