The study is mainly to comprehend the historic background and status quo of Taiwan¡¦s labor welfare policy. Since the structure of welfare allocation was not accorded with equity and justice under the time of authoritarian regime and the content/structure of Taiwan¡¦s social welfare allocation were changed, the author would explore the substantive connotation of how KMT and DDP allocating the resources of labor welfare after democratization in Taiwan by way of integrately researching both parties¡¦ ideology of social welfare, the expenditure of welfare budge and policy measures, and using the definition of labor welfare¡¦s category based on the concept of social security as the research constructure to analyze how both parties allocate the resources of labor welfare while they were in power. During the process of democratic politics in the meantime, the policy of labor welfare is one of the national policies valued by each party. The democratic politics, economic development and power of civil society were emerged after the society and politics were liberalized in 1980s and the martial law was lifted in 1987. Regarding politics, the initial shape of party competition was forming as the advantage of KMT¡¦s dominant rule has been challenged and DPP was established. Therefore, during the process of party competition in 1990s, many policies of labor welfare were presented, especially in the compaign of election, each party suggested a lot of appealing policies of labor welfare to attract votes and win the election. Taiwan experienced the first party turnover in 2000 when DDP substituted for KMT to be the party who led Taiwan society which carried significance to Taiwanese. Whether the development of Taiwan labor¡¦s welfare would go on to become systematized, high-qualified and high-efficient, it depends on many variables of political/economic systems and social change. Overall, the welfare politics of democratic system with pluralistic competetion could be gradually fulfilled by representative politics, but such kind of multi-construct would be the paradise for vested interests, while the field which people could join in competing with adequate capacities will determine whether the allocation of social welfare resources and such consensus would be lifted or established. If such social consensus could be built up, then, the general welfare of welfare state and indiscriminate reallocative system would be achieved naturally without effort and there would also be an opportunity to promote national unity.

Solidarity and equivalence are basic principles on which is built not only social policy, but also the underlying structure of society as a whole. If the people's look at these principles doesn't correspond to their integration in social security systems, people find it as unjust and the social policy as illegitimate. It will be a task for new government elected in 2010 to solve long lasting problems derived from negative impacts of aging society together with more legitimate setting of solidarity and equivalence. This work analyzes income inequality in Czech Republic compared with other countries, follows the development of replacement rate of retirement pay to wage in time and in comparison with the level of previous income. The work compares the observed data with people's views on the pension system which are presented in the public opinion research. Next part compares two different approaches to solve the "pension crisis" -- the Swedish system of virtual accounts and the Chilean fully funded scheme -- and outlines a new pension system, which doesn't create explicit costs during transition from the current system, increases the involvement of merit principle, supresses excessive redistribution and thus constitutes a long-term sustainable system solution.

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