With the rapid approach of the twenty-first century, the era of an aged society, we are now being asked to reform the social welfare system. In 1990, eight laws concerning the social welfare system were amended. To what extent has the system been reformed as a result of the amendment? The main social welfare problem in the 1950s was poverty. In the 1960s, owing to economic growth, the standard of living improved somewhat. However, because people's lifestyles underwent big changes, a new kind of life problem began to emerge. The demand for social welfare services became large, and from the late 1960s to the early 1970s, social welfare institutions such as homes for the elderly and facilities for the handicapped had increased in number. However, from the mid 1970s, when the Japanese economy began to show a decline in growth, the financial situation of the Nation was aggravated by the recession. At that time, "reconsideration of social welfare" was stressed to reduce the Nation's financial burden. In the 1980s, the pension system and the health insurance system were reformed. Roles and share of expenses between central government and local public bodies were reconsidered, and users of welfare services were forced to pay expenses. Legal regulations on social welfare activities were relaxed to promote various private and voluntary social welfare services. The amendment of the eight laws concerning the social welfare system came after these reforms. In the amendment of the laws, much attention focused on the promotion of in-home welfare services for the elderly and the handicapped. Towns and villages were given a fairly large role. They are now responsible for developing both institutional welfare services and home welfare services. However the administrative and financial power of towns and villages is not sufficient to deal with these services. Many remaining problems must be solved if we are to be well prepared for the twenty-first century.
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