It makes the following key conclusions:

• Social security organizations responded well to the challenges posed by the global financial and economic crisis.  Despite major pressures on fiscal capacity and service delivery mechanisms, social security systems have demonstrated their effectiveness in providing a social and economic buffer in times of crisis.
• Countries best able to diffuse the crisis’ impacts were those that already had comprehensive social security systems in place , confirming the vital role of social security as a social and economic stabilizer. Schemes already operating provided policy-makers with immediate responses to respond to the crisis and to offer adequate protection to those affected.

 

• The crisis demonstrated that social security often comes at no additional cost to society but is integral to its smooth and successful functioning . It reduces poverty and inequality and contributes to social cohesion, whilst also representing an investment in human capital, unlocking the productive capacities of individuals and advancing economic development.
• Social security’s positive role is increasingly recognized . In the wake of the crisis, the societal role of public social security is viewed much more positively; indisputably, it is seen as an essential collective tool to mitigate the effects of increasing social and economic inequality, as well as ensuring income replacement. At the international level, a broad political consensus has formed around the high priority of extending social protection to all (e.g., through the UN’s Social Protection Floor Initiative (ILO, 2011a)).
• The crisis has created an uncertain context for social security . Calls for austerity and fiscal consolidation threaten to reduce the resources devoted to social security, undermining its mandate of reducing inequality and poverty. In this context, many crisis-ridden countries are responding by radically circumscribing their social spending, generating heightened uncertainty surrounding the prospects for future social investment.
• Social security must be reinforced, not weakened . Social security systems which have been weakened financially by events since 2008 will still be expected to respond to future crises. There is a strong case for continuing investment in social security in the wake of the crisis and maintaining it in good economic times. Indeed, largely flouting the trends among many high-income countries, middle-income countries such as Brazil, China and South Africa are taking preventive action and expanding their social security coverage. Further debate about social security priorities is important.

 

Download

 

English [ 2-social-security-coping-with-crisis.pdf 1,001.15 kB ]