Hanns-Seidel-Stiftung: Im Dienste von Demokratie, Frieden und Entwicklung




	From December 3rd to 10th 2008, a delegation of professors from the Central Party School (CPS) visited the Federal Republic of Germany at the invitation of the Hanns Seidel Foundation. The core theme of the visit, which included stop-overs in Berlin , Bamberg and Munich , was “Globalization and Demographic Change – New Challenges to the Welfare State.” Especially in the light of recent societal developments in China , the spectrum of topics discussed proved to be of special interest to the Chinese scholars. Social aspects increasingly move into the political spotlight and, in terms of demographics, the Chinese society has entered into a process of ageing.
			At the Hanns Seidel Foundation

	During a visit to the German Federal Ministry of Labor and Social Affairs the participants met Thomas Kessel from the Ministry´s Department of International Affairs, who introduced the basic structure of the German welfare system as well as the organization and functions of the Federal Employment Agency. In his presentation to the delegation Mr. Kessel focused on the system of unemployment insurance and strategies for the promotion of employment. He stressed the importance of labor market policies aiming to reduce unemployment and improve employability as an integral part of overall social policy. At the German Pension Fund, Chief of the General Affairs Department Mr. Meierkord provided an overview of the German pension insurance system, paying special attention to the impact of demographic changes in Germany and measures taken to stabilize pension contributions, such as raising the age of retirement. He emphasized that even though the statutory pension scheme is still a key element of retirement provision in Germany , employees have to consider supplementary ways of securing their livelihood in old age, such as company or private pension plans like the state-subsidized Riesterrente. Mr. Meierkord underlined that social acceptability and trustworthiness in the eyes of the citizens constitute the backbone of any pension system, regardless of the specific financing structure. In a further visit to the Confederation of German Employers´ Associations (BDA), Vice Head of the Social Security Department Gert Nachtigal cautioned against draining the social security system, especially in regard to factors like globalization and demographic change. He called for a modernization of the system and the expansion of pension privatization, in the sense of providing a more basic care and promoting the increase of private pension plans. In his opinion an employment-friendly social security system requires more extensive financing through taxes, instead of relying on traditional contributions. Head of the Department for International Labor Union Policies of the German Labor Unions' Federal Executive Board, Dr. Wolfgang Lutterbach on the other hand laments the reduction of social achievements and the deregulation of labor markets in the progress of globalization, accompanied by a strong growth of the informal employment sector. He states that employees in this sector are not only living in precarious conditions, but are also particularly vulnerable to poverty in old age. According to Dr. Lutterauf the downgrading of wages in some sectors should be met with the introduction of statutory minimum wages. Given the circumstances of the global financial and economic crisis, he thinks it is imperative that the International Labor Unions participate in the decision making process to reshape the international financial architecture. In addition Dr. Lutterbach urges a stronger involvement of labor unions in defining economic policy measures. At the Berlin Institute for Population and Development social scientist Steffen Kröhnert outlined the demographic development of Germany and Europe . According to Mr. Kröhnert, the aging process of the German population continues: The baby-boomers are dropping out of the labor force and the number of people in very old age is on a steady rise. The birth rate in Germany is only about 1.4 percent, but to maintain the population at its current level, a rate of about 2 percent is necessary. After 1972 the excess mortality rate was still compensated by immigration, but this will not longer be possible in the future. It is estimated that by 2050 there will be 10 million fewer people living in Germany . Studies have shown that the compatibility of work and family clearly has a positive impact on the birth rate. Countries with a higher female employment rate, such as the Scandinavian countries, also have a higher birth rate. Even in regions, where traditional gender roles are more prevalent in society, there is no significantly higher birth rate. This trend is often explained by changing gender relations. Mr. Kröhnert describes Europe as being split into multiple demographic stages. Although for example Ireland has a relatively young population, Germany is in the process of aging, while at the same time Bulgaria is experiencing a birth slump. But countries all across Europe have one thing in common: A decline of population in rural areas and a steady growth of metropolitan areas. But according to Mr. Kröhnert, an equal development of rural and urban areas is only possible on the premise of a non-declining population. Therefore the Berlin Institute calls for a modern family policy and the immigration of skilled labor, especially in the light of recent demographic changes. In this context they also advocate a higher employment rate of women and older workers, the strengthening of investment in education as well as the creation of a social security system that is resistant to demographic changes

	At the German Federal Parliament the Chinese scholars were invited to meet Hartmut Koschyk, Chief Whip of the Christian Social Union (CSU) Parliamentary Group. The central topics of the discourse were different strategies to improve the socio-economic situation of families. Some of the specific measures discussed in this meeting included child benefits, parental allowance and tax reliefs as well as further steps in the development of the childcare system. Koschyk, who is also a Member of the German Parliament, stressed that supporting families with children is a major social concern of the CSU. Afterwards Member of the German Parliament Thomas Silberhorn informed the delegation about specific tasks and challenges in the electoral districts. He also provided a general overview of the German system of party financing.
			Discussion with Hartmut Koschyk


	The delegation was able to gather further insight in the urban development and the demographic situation in a discussion with Bamberg 's Cultural Mayor Werner Hipelius. "We are already facing huge problems," stated Hipelius, "and we have to act now." With 70,000 inhabitants Bamberg belongs to the Nuremberg metropolitan region and thus has a good chance of sustaining its population rate in the future. But this will require specific measures. Young families are moving to surrounding areas, as acquiring property there is easier. The elderly on the other hand, move back to the city center because of the better social infrastructure. The results of a demographic study commissioned by the city of Bamberg show that to stabilize the population development and the urban age structure, it is imperative to support families and create family-friendly structures. At the same time the needs of the 55-plus generation have to be taken into account when planning urban development.

	University President Prof. Dr. Godehard Ruppert welcomed the Chinese scholars at the Otto-Friedrich-University of Bamberg. He introduced the profile of the university and talked about the various international exchange programs, as for example with the Jiaotong University in Xi'an . Subsequently, Prof. Dr. Elmar Rieger, a researcher focusing on the sociology of transnational and global processes, talked about the topic: "The welfare state: An obsolete model or a prototype for catch-up development?" In this context he analyzed the path dependency of the German welfare state, its institutionalized structures as well as the challenges posed by globalization and necessary adjustments.
			Lecture by Prof. Dr. Elmar Rieger


	The special characteristics of the German welfare state and the interaction between globalization and social policy were further aspects of the presentation. The welfare state, he holds, is the foundation and the basic preposition of globalization. He argues that in democratic countries with a strong social system, the opening of markets and the resulting intensification of competition brought about by import business are more easily accepted, as a compensation for the social risks of free trade is offered. He named the opening of the internal market in the European Union as a good example. The transnational process of globalization inevitably leads to risks and crises. Faced with these issues, there is a functional equivalence of social policies and protectionism. The objection that countries without characteristics of a welfare state can also take part in the process of globalization can not be easily dismissed, as Prof. Rieger acknowledges. But he warns that the opening of markets without any accompanying social measures poses another threat: In a crisis the concept of free trade itself is put into question, leading to protectionist tendencies and a search for a sense of safety in religious fundamentalism and ethnic division.

	At the central administration of the Christian Social Union (CSU) State Executive Secretary Mark Zorzi outlined the party's social policy. Values like personality and solidarity constitute the cornerstones of this program, based on the Christian conception of humanity. While, according to the principle of subsidiarity, the individual is first and foremost responsible for him- or herself, it is essential, that individuals, who are no longer able to care for themselves, will receive support from the community. Mr. Zorzi underlined that a future-proof system of social security has to be created, especially in regard to globalization and demographic change. But a successful social policy has to be based on a sensible economic policy. Executive Director Dr. Peter Witterauf welcomed the delegation at the Hanns Seidel Foundation, where they were also greeted by Christian J. Hegemer, Head of the Institute for International Exchange and Cooperation. Both stressed the importance of the long-standing cooperation with the Central Party School . Dr. Reinhard C. Meier-Walser, Director of the Academy of Politics and Current Affairs, illustrated the role of political foundations in the Federal Republic of Germany. Prelate Karl-Heinz Zerrle introduced the main institutions of independent welfare work at the German Caritas Association in Bavaria , which served as an example to illuminate the importance of charitable organizations in the German social security network. Organisations include the Caritas Association (the largest voluntary organization in Germany ), the Diakonisches Werk (Protestant Welfare Association), the Paritätische Wohlfahrtsverband (Joint Welfare Association), the Red Cross and the Central Welfare Board of Jews in Germany . The Executive Director of the German Caritas Bavaria , Wilfried Mück talked about the underlying Christian concept of the Caritas and its role as an advocate and a representative organ for the socially weak. These welfare associations are non-profit organizations and fulfill a wide range of social functions on behalf of the government. As a social service provider the Caritas for example operates pregnancy counseling centers, kindergartens, hospitals and hospices. It also is involved in handicapped aid, as well as outpatient and inpatient nursing. This general overview was followed by a visit to the Kreszentia nursing home. There Director Christian Poka provided an insight into the daily tasks and the general situation of nursing homes. During the visit of this Christian nursing home, the delegation members thus were able to obtain a deeper understanding of this kind of social institution. In a final discussion Monsignor Prof. Dr. Wolfgang Oberröder underlined the importance of religious values in human life. Everybody is seen as a part of the human family, whose common goal it is to preserve this planet.

Focal Point: Globalization and Demographic Change