Some critics of Prime Minister Kamla Persad-Bissessar are slamming her for "creating a welfare state" with her announcement of water, electricity and transportation subsidies for pensioners and other qualified citizens.
Before we create the impression that "welfare state" is a bad word or something retrograde, let's understand the system.
By definition it is:
"A social system whereby the state assumes primary responsibility for the welfare of its citizens, as in matters of health care, education, employment, and social security."
Before we create the impression that "welfare state" is a bad word or something retrograde, let's understand the system.
By definition it is:
"A social system whereby the state assumes primary responsibility for the welfare of its citizens, as in matters of health care, education, employment, and social security."
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| PM Kamla Persad-Bissessar hands out keys for state housing |
In that context Trinidad & Tobago has always been a welfare state and there is nothing fundamentally wrong with it. Canada is also a welfare state.
What is wrong is when we have a citizenry that becomes so dependent on the state that people refuse to be productive.
Trinidad & Tobago has not gone the route of Canada in developing a full welfare state, although in areas such as education it has surpassed Canada. Successive governments going back to Eric Williams have been making efforts to improve the welfare of citizens.
Kamla and the People's Partnership are moving the process ahead and doing it quicker that their predecessor administrations because of their approach to fiscal management. In other words they are finding ways to make their dollars work harder for more people.
So giving free electricity and water to certain people might ostensibly put an additional financial burden on the state and its taxpayers. But that is not necessarily so.
Kamla operates on the premise that managing the state must be done with the same care and accountability as running a home. You look after everybody and spread the resources to ensure that no one is left out.
By the very definition above Trinidad & Tobago is a well developed welfare state, looking after the healthcare, education, employment and social security of its people.
I would argue that it needs to develop the system even further to provide state-managed employment insurance, state pensions and a financial support system for people who need the help. It must go beyond what NIS now offers. And it needs to fine tune some of what it does to make it more effective.
In health for example, Trinidad & Tobago offers free services, but only at the hospitals and health centres. It means a mother with a sick child might have to wait hours to see a doctor at a public institution or pay a hefty fee at a private clinic to see a doctor. Compare that with Canada where the state regulates the fees that doctors charge and pays doctors directly for service provided to anyone.
If you need a doctor you go the clinic and he or she bills the government for it. Doctors are taxed at source and that generates revenue to help pay for the system. In Trinidad & Tobago you have to pay for every visit and I would wager that there are very few doctors who are honest about their revenues in paying taxes.
Further, Canada has a single tiered system, which means that the state pays for doctors' visits, hospital care, and a host of other health services. It is illegal to have a private hospital unless that hospital operates within the rules of the Canada Health Act and the state pays the bills.
In Trinidad & Tobago many doctors undermine the health care system because they encourage patients to use private facilities - and pay thousands - when the public system is just as good. I have had angioplasty in Toronto without paying one penny; my brother in Trinidad paid TT$100,000 for the same service. In principle it should be free in T&T too, but the two-tiered system allows the double standards and exploitation where doctors malign the public system for their own benefit.
Every system is the world will be exploited by some. However, with proper planning and management the welfare state is affordable and creates a better society in which people are treated fairly and equitably.
It works well within a capitalist system too, so the private sector and the corporations need not fear the term "welfare state". In fact, such a system provides welcome support to everyone, even the rich and famous.
There's no need for anyone to apologise for creating support systems for those who need them. That's what Kamla promised and that's what she is doing. God speed to her and her team!
Jai Parasram - 30 January 2012
What is wrong is when we have a citizenry that becomes so dependent on the state that people refuse to be productive.
Trinidad & Tobago has not gone the route of Canada in developing a full welfare state, although in areas such as education it has surpassed Canada. Successive governments going back to Eric Williams have been making efforts to improve the welfare of citizens.
Kamla and the People's Partnership are moving the process ahead and doing it quicker that their predecessor administrations because of their approach to fiscal management. In other words they are finding ways to make their dollars work harder for more people.
So giving free electricity and water to certain people might ostensibly put an additional financial burden on the state and its taxpayers. But that is not necessarily so.
Kamla operates on the premise that managing the state must be done with the same care and accountability as running a home. You look after everybody and spread the resources to ensure that no one is left out.
By the very definition above Trinidad & Tobago is a well developed welfare state, looking after the healthcare, education, employment and social security of its people.
I would argue that it needs to develop the system even further to provide state-managed employment insurance, state pensions and a financial support system for people who need the help. It must go beyond what NIS now offers. And it needs to fine tune some of what it does to make it more effective.
In health for example, Trinidad & Tobago offers free services, but only at the hospitals and health centres. It means a mother with a sick child might have to wait hours to see a doctor at a public institution or pay a hefty fee at a private clinic to see a doctor. Compare that with Canada where the state regulates the fees that doctors charge and pays doctors directly for service provided to anyone.
If you need a doctor you go the clinic and he or she bills the government for it. Doctors are taxed at source and that generates revenue to help pay for the system. In Trinidad & Tobago you have to pay for every visit and I would wager that there are very few doctors who are honest about their revenues in paying taxes.
Further, Canada has a single tiered system, which means that the state pays for doctors' visits, hospital care, and a host of other health services. It is illegal to have a private hospital unless that hospital operates within the rules of the Canada Health Act and the state pays the bills.
In Trinidad & Tobago many doctors undermine the health care system because they encourage patients to use private facilities - and pay thousands - when the public system is just as good. I have had angioplasty in Toronto without paying one penny; my brother in Trinidad paid TT$100,000 for the same service. In principle it should be free in T&T too, but the two-tiered system allows the double standards and exploitation where doctors malign the public system for their own benefit.
Every system is the world will be exploited by some. However, with proper planning and management the welfare state is affordable and creates a better society in which people are treated fairly and equitably.
It works well within a capitalist system too, so the private sector and the corporations need not fear the term "welfare state". In fact, such a system provides welcome support to everyone, even the rich and famous.
There's no need for anyone to apologise for creating support systems for those who need them. That's what Kamla promised and that's what she is doing. God speed to her and her team!
Jai Parasram - 30 January 2012
1 comment:
Jai: This is an excellent article and Trinidad and Tobago should follow the examples of Canada. Of course early statesmen such as Tommy Douglas was the man who championed the National Scheme in Canada.
Moreover, I would like to see a National Auto Insurance initiated and run by the TnT Government. In Canada -Provinces such as British Columbia, Sascatchewan and Manitoba - the insurance preminums paid by the motorist stays with the government and it pays out all liabilites in cases of auto accidents. In TnT the private insurance companies takes the premiums and hesitates to pay out auto insurance claims.
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