Good Practices and Innovations in Public Governance 2003-2011

Good Practices and InnovATIONS in Public Governance
thereby reducing the incentive for people to work. In addition, by relying mainly on cash
payouts, the NBLS programme perpetuates a view of the poor as passive aid recipients
and weakens their will to become self-reliant. The failure of NBLS policies to help end
poverty can be seen from the fact that welfare caseloads dropped by a mere 6 percent in
2007. Additionally, the programme pays insufficient attention to Koreans in the secondlowest
income group, doing too little to keep them from falling into poverty.
In 2008, the Seoul Welfare Foundation released a study of the living conditions and
welfare needs of low-income residents of Seoul City. The researchers came to the
conclusion that under the current social structure, more than 90 percent of low-income
people could not improve their living conditions within the next five years,
despite their hard work. In addition, means testing to determine eligibility for assistance
tends to discourage the underprivileged from saving money and building assets.
This in turn creates a vicious cycle of intergenerational transmission of poverty.
Thus despite massive government spending, the NBLS programme has a limited effect
in promoting the self-sufficiency of low-income families.
A consensus has emerged on the need to formulate a new welfare policy. What is
most needed is a long-term antipoverty initiative that encourages people to work and
save for their future.
The Solution
In 2008, the Seoul metropolitan government developed programmes designed to
meet the needs of its residents with a view to ensuring self-sufficiency, participation
and universal care. One of the programmes is the Hope Dream Project. It is a comprehensive
initiative intended to assist low-income citizens in their efforts to help
themselves, and at its core is asset-building support. The Hope-Plus Savings Account
programme encourages people to work and save for economic independence; in the
process, it helps develop human and social capital. The idea is to refrain from unilateral
support and actively engage participants so that they can stand on their own feet.
The Hope-Plus Savings Account is run through collaboration among the Seoul government,
the Seoul Welfare Foundation (SWF), case management organisations, companies,
banks and other relevant organisations. The Seoul government has created necessary
infrastructure by funding, promoting and designing the programme. The SWF,
established by the city of Seoul, played a role in the planning stages and recruits participants,
arranges financial education and self-help groups and provides housing and business
startup services. Case management organisations are responsible for supporting
individual participants. The Community Chest of Korea and sponsoring companies provide
funding, while banks manage savings accounts. Other organisations such as SH
Corporation, the Seoul Foundation for Arts and Culture and Seoul City Credit offer
supplementary services like cultural events and training on business startup and housing.
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