Populist welfare policy

Local administrations should not waste taxpayers' money

Local governments are spending too much on various kinds of welfare programs such as special allowances for elderly residents, farmers and aging female divers as well as childbirth incentives and the promotion of reading.

They have come under criticism for wasting taxpayers' money in an apparent bid to curry favor with voters with the next elections in mind. They have already gone beyond the bounds by spending money like water. The central government is responsible for the phenomenon in that it is leading the trend.

Against the backdrop of this unhealthy trend, some local administrations have a plan to re-examine the controversial populist welfare policies by launching a special apparatus composed of chiefs of local autonomous units across the nation next month. Though belated, such a move appears to be timely.

The problem of the local governments' overheated competition to set aside taxpayers' money for various welfare programs and pork-barrel projects is nothing new. Chiefs of the local administrations have usually engaged in such competition to seek re-election.

They have maintained that they have a sufficient budget to cover lavish welfare programs, which help residents and promote income redistribution. However, the problem is that the success of various welfare programs largely depends on the financial capacity of local administrations.

For instance, a municipality gives cash incentives of 200,000 won to a mother for the birth of her first child and 1 million won for her second. Another municipality offers 300,000 won for the first childbirth and 1 million won for the second. The different cash amount is emerging as a source of contention among mothers who feel discriminated against in terms of where they live. This also causes concerns about fiscal health.

The envisioned special committee of local governments is expected to work out reasonable alternative welfare policies through discussions and compromise. This panel should take the lead in implementing viable and sustainable welfare programs. In this process, the central government needs to suggest the basic direction of a welfare policy in order to prevent the waste of taxpayers' money. It should also make sure that there is no place for welfare populism.