NEW Zealand, like the United States, is finding that reform of its social-welfare system is vexing. Jobs are increasing. Income is growing. Yet social welfare benefits are up. A 12 percent drop in unemployment beneficiaries from 1991 to 1996 has been offset by an 11 percent increase in domestic purpose beneficiaries, a 68 percent rise in sickness beneficiaries and a 44 percent increase in invalid beneficiaries. New Zealand’s
social-welfare systemTwenty-four percent of working-age people are state-dependent versus only 8 percent in 1985, when the government instituted its vast economic reforms. Current trends point to still more dependence ahead.
Twenty-four percent of children live in families where no parent has a job -- 16 percent of European children, 48 percent of Maori children, and 45 percent of Pacific Islanders. Unmarried teen pregnancy and youth suicide rates are higher than similar countries.
The government is trying to reverse such trends by increasing incentives to work and offering more job training opportunities. Youth unemployment benefits in particular are being trimmed.
Benefit recipients are given what is now called "customized service" on a basis that comes close to one-stop shopping for 20 different categories of benefits. Beneficiaries usually are interviewed twice a year.
Efficiencies have speeded claims processing and reduced overhead to $500 million for dispensing $9 billion in benefits.
Emphasis in welfare is being placed on "reciprocity" rather than "entitlement." Recipients are told they must give something back to the taxpayers, including serious efforts to get and keep jobs.
People deemed not to be trying earnestly can have their benefits cut, though nobody seems to get kicked off the rolls forever. Starting April 1 applicants can be penalized for refusing to take a job outside their field if they are considered qualified for it even though it may seem a downgrade.
The "tough love" policy in Wisconsin, a U.S. dairy state, is being eyed by New Zealand, a dairy nation. Boosters say it promotes work and personal dignity and saves money for the taxpayers.
Two particular elements in Wisconsin have New Zealand welfare critics worried. First is the flat rate payment to families regardless of the number of children. This matches the real world, where employers don't ask how many children you have, welfare leaders were told in Auckland last month by Wisconsin's Workfare architect, Jean Rogers.
Second is the threat of complete loss of benefits. Rogers says this can be eased on a special-case basis. The New Zealand social welfare ministry said it is only studying Wisconsin and is not committed to any changes.
New Zealand is advancing the older-age benefits threshold from 60 to 65 by the year 2002 and trimming some benefits from 80 to 65 percent of after-tax wages on a price-adjusted basis.
Of the 850,000 beneficiaries of New Zealand's income-support programs, 469,000 are what it calls "superannuitants." New Zealand now gives low-income families a cash grant or voucher instead of building subsidized housing.
ON education, it has devolved control to local school boards of trustees. However, the secondary-school teachers union has succeeded in retaining national salary-setting.
Colleges are less regulated. Tuitions introduced in 1991 will rise gradually to 25 percent of costs but with government loans available.
Health-care reforms have been in the direction of privatization, with purchasing now separate from the provision of services and many providers competing. Some user charges have been introduced and cause a lot of grumbling. Better-off people use private insurance to get faster optional care.
The economic revolution begun in 1984 has been called harsh by some, but 24.5 percent of gross domestic product now is paid out for income support, education and health versus 21.5 percent spent in 1983-84.
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