CHAPTER TWO
2.5 SHIFTS IN POLICY: FROM A RESIDUAL MODEL TO A DEVELOPMENTAL APPROACH
Different perspectives or theoretical approaches to social we~are policy are identified in the literature. Welfare structure of a society is a reflection of broader cultural and societal conditions. "It seems to be a feature of 'modernism' that
social and political theories are evaluated or ranked by reference to the way they deal with welfare, or what welfare-enhancing policies, in a material sense, can be derived from them." (Barry 1990:5). Gilbert and Specht (1993:43) are of the view that pa"iicy-makers and planners have to make social we~are policy choices which revolve around four questions:
• What is the basis of social allocations?
• What are the types of social provisions to be allocated?
• What are the strategies for the delivery of these provisions?
• What are the ways to finance these provisions?
A variety of different theories and philosophies, including the perspectives on social problems, influences the decision-making of planners and policy practitioners. In order to understand the problems of social policy adequately, and to contribute to their solution, it is necessary to understand the wider social context of policy. There is a need to understand structural patterns and arrangements and the nature and meaning of welfare within a wide societal
perspective through which needs are met and has therefore been included in this study.
There are two basic models of welfare in the scope of statutory provision; namely, residual and institutional welfare. Within South Africa, there has been a move from a residual model of welfare policy to one based on citizenship and development. .
2.5.1 RESIDUAL WELFARE
South African welfare policy was based on the principles of residualism. A residual view of welfare holds that state provision should come into play only when there is a breakdown in the natural mechanisms for support of individuals;
that is, family, market and voluntary charities. The State intervenes in welfare as 47
a last resort. Its ideal-type organisational form is means-tested poor-relief (Lundstrom 1989:264). Access to services is based on selectivity. The nature of services is based on individual pathology. Residual programmes are reactive and are developed and funded only when the demand for services exceeds the ability of society to meet those needs in the private sector. Social welfare provision is of a short-term temporary nature, helping clients over a crisis period. The safety-net concept, based on the proposition that people should be prevented'from falling below a certain minimum standard owing to misfortune, represents residualism.
2.5.2 INSTITUTIONAL WELFARE
It was expected that welfare in South Africa was to become institutionalised and some kind of welfare state was to emerge after democratic elections in 1994.
Luiz (1994:330) also agrees that South Africa has much to learn from the welfare state, despite the unlikelihood of this system ever being entirely reproduced in this nation. Luiz (1994:330), while not advocating a welfare state (in South Africa) in its European form, believes that there is much to be learnt from their approach, especially on how to achieve consensus and humanise market forces.
Service provision in the institutional model is towards statutory welfare. Access to services is based on the principle of universality. Services are available to everyone regardless of their personal circumstances. Institutionalised services are seen as an investment in the well-being of the individual and part of the effort to encourage healthy and productive citizens. There is no connection between what you pay and what you get out of the system. Benefits are supposed to give the individual a decent standard of living.
2.5.3 THE WELFARE STATE
A welfare state is a nation that has at least a minimum level of institutionalised provision for meeting the basic economic and social requirements of its citizens.
The concept refers both to intention of the idea of state responsibility for welfare and the state mechanisms, (the institutions and practices for delivering services and provisions) (Mishra 1981 :xi). The notion of the welfare state has been justified by the concept of justice that is specifically redistributive. The concept of the welfare state had its origins in Britain. The Beveridge Report of 1942 had an important influence on its development. Taken in conjunction with the commitment to Keynesian macro-<lconomic policies, the idea of welfare had
. .
become completely associated with a social philosophy designed not to replace the market but to correct it where appropriate (Barry 1990:47). This welfare state had two dimensions, full employment and an extensive range of public services (Glad stone 1995:2). The system did reco'gnise the 'rights' of citizenship in that redistribution was not seen as an act of charity, but as a consequence of membership of the community (Gladstone 1995:2).
Today, the welfare state is in a state of crisis. It is important for South African policy-makers to review the situation so that they can leam from the experiences.
The present system is being seen as financially unsustainable, providing money to everyone in disagreeable circumstances renders such conditions more bearable and so reduces the incentive for self-support (Butler 1995:242).
Research' has clearly indicated that the welfare state's. aim of equality, achievement, and maintenance of minimum standards of provision, and of the maintenance of social cohesion and collective responsibility, has at best been only partially achieved (George and Wilding cited in Ife 1995:3). In addition, western capitalism has learned that the principles of the welfare state are too costly and involve too great a transfer of political and economic power to the middle and working classes (Gould 1993:10). Research has also shown that welfare has not reached its intended target and that the middle class has benefited most.
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Weekes (1994:235) states that at present a co-existence or blend of a residual and institutional/socialist model is what is likely to work best in South Africa. If rationally planned and effectively implemented, such a mix of systems could become more practically workable, politically desirable and economically feasible than the outright creation of a welfare state.
Midgley (1995) is of the opinion that neither model, the residual or the institutional, addresses development issues, and furthermore that both models assume that the cost of social welfare will be met by the economy. He therefore proposes a model which promotes a developmental perspective in social welfare.