This open assessment accompanied the release of a new report, “ Dynamic Social Security: Securing social stability and economic development”, by the International Social Security Association (ISSA) at the WSSF, which opened in Cape Town, South Africa on 29 November.
Debate during the session recognized the unparalleled use of social policy interventions in many countries to alleviate the crisis’ impacts. But this had come at a higher than expected cost for social security systems, who now found their finances depleted. In spite of this, the conclusion offered by Hans-Horst Konkolewsky, the ISSA Secretary General, was clear: social security systems were a “social must”.
Towards a culture of social security
With the international standing of social security on a high, the plenary also heard how further improvement could be achieved.
A fundamental challenge was to better inform citizens of social security’s importance. In some countries, as in Uruguay and Mexico, this was done from an early age, through the national school curriculum. This helped instil a “culture of social security”. Professor Andras Uthoff from Chile underlined that the value of solidarity was an essential condition of this culture, a position echoed by Professor Chantal Euzéby of France.
A further challenge was to make social security inclusive of all generations. Vusi Madonsela, Director General of South Africa’s Department of Social Development, spoke of the social risk presented by high levels of youth unemployment. However, inactivity among all population groups was equally a threat. As longevity increased, early retirement was one form of inactivity to be discouraged in particular.
Because inactivity denied vital resources to social security while augmenting its costs it also challenged current social security financing models. Ensuring the financial sustainability of social security required greater consideration.
Social security’s financial health was also a question of political will, according to Michael Cichon, Director of the Social Security Department at the International Labour Office. Different countries with similar levels of economic development were capable of making different choices about how much they spent on social security. While higher spending might not always equal better social protection, these variations provided evidence that countries could make choices and find the necessary fiscal space when required to do so.
This observation was offered as evidence to support the feasibility of the ILO-led Social Protection Floor Initiative, for the universal extension of basic social security coverage.
A need was identified for social security to partner labour market, health and life-long learning strategies, which encouraged activity among all who were capable. For all people of working-age, activity and work was still the best form of social security. Bernd Marin from the European Centre for Social Welfare Policy and Research argued there was a role for prevention in social security.
Among the ISSA report’s conclusions, a call was made for greater effort to realise Dynamic Social Security – the imperative to develop strategies to foster improved performance of social security organizations, with the aim of improving the social security of populations. Current global uncertainty and instability had rendered Dynamic Social Security more necessary than ever.