Hands of solidarity

“Financial portfolios have been undermined by slumping markets and negative investment performance. Increasing unemployment has reduced contribution revenues while expenditure on benefits has increased,” Hans-Horst Konkolewsky told participants.

“Yet many governments have seized on social security systems as a vital policy tool to counteract the crisis. The challenges presented by the crisis have drawn attention to the strengths of these systems, thus energizing arguments in favour of the more vigorous promotion of social security worldwide,” he stated, during a panel discussion at the event.

"Social Protection: Its contribution to Recovery"

Organized by the European Commission, the international conference addressed the role of social protection in times of crisis, and highlighted the role of social security to combat poverty at national, regional and international levels, and to stabilize demand. Participants also discussed the challenges of sustainability of schemes.

The event provided a forum for European Union (EU) Member States and key emerging economies, including Brazil, China and South Africa, to exchange experiences and views on the role of social protection in recovery. The event also involved representatives of candidate and EEA countries, international organizations, the academic world, NGOs and social partners.    

Other speakers at the event included Vladimír Špidla, EU Commissioner for Employment, Social Affairs and Equal Opportunities, and a representative of the Swedish Presidency.    

Lessons learned from the crisis

Drawing on the experience and research of the ISSA and its member institutions during the crisis, Mr. Konkolewsky pointed to a number of lessons learned by social security administrations.

“The crisis, and the nature of policy responses to it, has highlighted the key role of social security institutions in realizing national social policy objectives and macroeconomic goals,” he said. “Social security systems have shown themselves to be an important component of the crisis “exit strategy”, offering policy measures that can both revitalize the economy, by stimulating aggregate demand, and better guaranteeing social cohesion, not least by providing adequate protection to the most vulnerable.”    

However, Mr. Konkolewsky warned, the social and labour market consequences of the crisis are far from over, and financial losses have weakened the capacity of some public social security and private pension systems to confront future challenges, which has potentially exposed governments to new financial risks, not least in guaranteeing a basic social safety net. He pointed to the need to revisit the regulation and governance of private pension systems, particularly with regard to investment strategies.    

“The crisis has revealed the need to improve the design of a number of national social security schemes. In the longer term, the current global crisis may lead to a reassessment of the roles and scope of some systems to better face future challenges,” he said.  

RELATED INFORMATION

Speech of the ISSA Secretary General at the Conference on "Social Protection: Its contribution to Recovery" >>

In Focus: Social security responding the financial crisis (news, videos, publications etc.) >>

Social Policy Highlight 10: Social security systems responding to the crisis >>

Website of the European Commission: Employment, Social Affairs and Equal Opportunities (external link) >>