# Chapter 2: Looking back over the development of the social security systems according to the needs of the times

(1) Social security systems before Japan had the universal health insurance and universal pension systems (until 1954)

● Early stage of social insurance

(2) Establishment of universal health insurance and universal pension systems (from 1955 to the oil shock)

● Care for the poor in the postwar period

● Formation of a foundation for social security administration

1947: Life expectancy at birth was 50 for male, 54 for female

1948: Revision of Civil Code

First baby boom

(1947-1949)

1945: End of the WWII

1950: Korean War (special procurement boom)

1952: San Francisco Peace Treaty (Independence from GHQ occupation)

Security Treaty between Japan and the United States

● Before WWII, medical insurance and pension systems for employees had been established, as well as some regional medical insurance systems

1942: 'Beveridge Report' in Great Britain

1947: The Constitution of Japan enforced

1950: 'Recommendations on Social Security Systems', Social Security Council

● High economic growth and improvement of living standards

● Development of fundamental institutions for social security systems

● Focusing on social insurance (from relief of the poor to prevention against being poor)

● Improvement of various benefits

● The first welfare year

The 'Jinmu Keiki' (1954-1957)

1956: "We are no longer in the postwar period", Economic White Paper

1964: Tokyo Olympic Games took place

The Tokaido Shinkansen trains went into operation

1970: Signs of aging society (elderly population exceeded seven percent)

1971: Second baby boom (1971-1974)

1973: The first oil shock with skyrocketing prices

1961: Establishment of universal health insurance and universal pension systems

1965: Pension benefits amounted to ten thousand yen

1968: 70 percent payment from National Health Insurance

1969: Pension benefits amounted to twenty thousand yen

1973: Free medical care for the elderly

The first welfare year

70 percent payment to family from medical insurance with institutionalization of major medical expenses

Pension benefits amounted to fifty thousand yen, index-linked payments were introduced

(3) Institutional reconsideration period (1975-1988)

● Transition to steady growth

● Normalization of social security costs

● Equitable benefits and burden-sharing

● Establishment of a stable and efficient institutional infrastructure

1974: Economic growth rate fell into negative figures for the first time after WWII

1980: The second Ad Hoc Commission on Administrative Reform

1984: Life expectancy at birth for female exceeded 80 years

1983: Abolition of free medical care for the elderly; co-payment of medical expenses for the elderly was introduced

1984: 90 percent payment for the person covered by the health insurance; formation of the medical system for the retired

1986: Introduction of the basic pension

Passed the revised Act on Health Care for Elderly, aiming phased increase of the allotment up to 100 percent in 1990

(4) Response to an aging society with declining birth rate (1989-1998)

● Aging society with changing basic conditions of the economy

The bubble economy (until 1991)

1989: Introduction of the consumption tax

The '1.57 shock' (the total fertility rate became 1.57)

1994: Signs of aged society (elderly population exceeded 14 percent)

1995: The Great Hansin and Awaji Earthquake

1997: The consumption tax raised to 5% (including one percent of the local consumption tax)

1989: The 'gold plan' formulated

1994: The 'angel plan' formulated

The 'new gold plan' formulated

Passed the revised National Pension Act, aiming to raise the starting age for payment (of the fixed-amount component)

1995 'Reconstruction of Social Security Systems', Social Security Council

2000: Passed the revised National Pension Act, aiming to raise the starting age for payment (of the component proportional to earnings)

Enforcement of the revised Long-Term Care Insurance Act

(5) Economic structural reform and social security

(6) Change in government and social security (1989-)

● Economic and financial structural reform (including reduction of 220 billion yen of social security cost per year)

1999: International Year of Older Persons, the world population reached 6 billion

2005: The total fertility rate became the all-time low 1.26

2008: Financial crisis due to the bankruptcy of Lehman Brothers

2009: Change of government took place

2011: Great East Japan Earthquake

2004: Schemes for a fixed level of pension premiums, including a link to the macro economy

2005: Formation of prevention-oriented system for long-term care insurance and community-based services

2008: Formation of medical care system for persons aged 75 or older

2010: Payment of child allowance started

2011: "Plan for combined reform of social security and tax" (cabinet report) from the social security reform study group of the government and ruling parties Enforcement of Pension Support Act

2012: Reinforcement of a long-term care service infrastructure with long-term care insurance (planned)