Balancing Efficiency and Equity: Insights from Australia’s Robodebt and China’s Robodebt Plus RoboCredit in Automated Welfare System

Abstract

This article explores the integration of Automated Decision-Making (ADM) systems in welfare administration, drawing on the valuable experiences of Australia and China. Australia’s Robodebt scheme, designed to recover overpaid welfare benefits, revealed critical insights into the importance of transparency, accountability, and robust safeguards in ADM systems. Similarly, China’s approach, particularly Guangdong’s "Robodebt plus RoboCredit" model, provides lessons on balancing fiscal responsibility with inclusivity by combining automated alerts with human oversight to ensure fairness and adaptability. Both cases underscore the need for carefully designed ADM frameworks that address legal, ethical, and operational challenges. The article highlights how lessons from Australia and China can guide policymakers in developing welfare systems that leverage automation to enhance efficiency while safeguarding equity and public trust. By synthesizing these experiences, this study offers a roadmap for global welfare administration to integrate technology responsibly and effectively.