[In-Depth Review] The 4th Basic Plan, Between Familiarity and Strangeness

Recently, the 4th Basic Plan for Low Fertility and Aging Society was announced. Since the first plan in 2006, the fourth basic plan will be implemented from 2021 to 2025. During the 15 years of the 1st to 3rd basic plans, the total fertility rate dropped below 1.0, and the annual number of births fell to around 300,000. This shows a pattern where low fertility and low birth rates occur simultaneously. Fifteen percent of the population is now elderly aged 65 or older, yet life in old age remains insecure. The elderly poverty rate is the highest among OECD (Organization for Economic Cooperation and Development) member countries. As people age, they tend to have more health issues, and concerns about medical expenses remain significant. When one needs nursing care, it is often necessary to leave their home and move to an unfamiliar nursing (hospital) facility. The 'baby boom generation,' who have just begun to enter old age, feel uncertain about how to live in the era of 100-year lifespans.

During the 15 years of the 1st to 3rd basic plans, there were numerous policy changes too many to list individually. Society began to take on the responsibility of caring for children and the elderly, which had previously been the sole responsibility of families. No one now argues that free childcare and free school meals are 'socialist' ideas. Children receive child allowances, and those over 65 receive basic pensions simply because of their age. The state began supporting housing, which was once considered common sense for parents to provide when their children married. Although there are debates about the methods and procedures of housing support, no one now rejects state-provided housing as socialist. Even setting aside the mistake of the government and media excessively inflating the budget for low fertility measures, Korean society has expanded social security systems in many areas due to low fertility and aging. People have experienced a state that not only takes taxes but also gives something back.

The 4th basic plan, to be implemented from 2021, continues this familiar concept of a 'giving state.' In addition to providing 3 million won per newborn, an 'infant allowance' was introduced. If both parents take parental leave simultaneously, they can receive up to 15 million won over three months. The plan includes making half of daycare centers and kindergartens public. There is also a plan to fully cover tuition fees for a third child attending university. Expanding jobs for the elderly and providing employment incentives for the middle-aged are also included. Although it is called the Basic Plan for Low Fertility and Aging Society, it appears to be moving toward expanding universal social security systems already implemented in Western European advanced countries. However, many people are disappointed with this familiarity. While it is good to receive benefits, why is this the case? The reasons for not having children and the experiences of aging cannot be solved by money alone. Hence, criticism arises that "we have returned to the era of encouraging childbirth and are just giving handouts to the elderly." There is some validity to this.

Jaehoon Jeong, Professor, Department of Social Welfare, Seoul Women's University

People will accept money but will not have children. Elderly people appreciate 'pocket money,' but it does not make their old age happy. Therefore, the 4th basic plan set gender equality as a goal. It abandoned expressions like 'women of childbearing age, childbirth encouragement' and declared that society will move toward having children when people feel happy with their quality of life. It also announced a departure from isolated aging measures like expanding elderly welfare systems. It presented plans to respond to demographic changes and create social foundations where young and middle-aged people can live with hope by seeing the elderly as a model. It proposed a life where one can grow old comfortably 'in the place where they lived,' living with people they know and with their own income.

However, expressions like 'quality of life, gender equality, and agency in old age' feel unfamiliar because these are values Korean society has not experienced before. The 4th basic plan will be a task of creating a path not taken before. From the perspective of those accustomed to the framework of childbirth encouragement, the basic plan itself is unfamiliar. There are many critical voices saying it will not be effective. Opinions differ on how to concretely create this path. There is even doubt about whether a truly unfamiliar path was chosen. For the familiar expansion of social security systems to be effective, changes that make people accustomed to unfamiliar values must occur. This is an important challenge the basic plan must address going forward.

Professor Jaehoon Jeong, Department of Social Welfare, Seoul Women’s University

This content was produced with the assistance of AI translation services.