Preface
The most widespread demand of people today is for security.
In a world characterized by continual and increasing change,
anxiety and uncertainty have grown. Globalization has created
extraordinary new opportunities, which have been a major driving
force behind recent growth in the world economy. But the inequality
of opportunity has been just as extraordinary, both within and
between countries. The advantages of open economies and open
societies are an accepted reality for most. What is now becoming
increasingly evident is that the benefits are not reaching enough
people. Uncertainty is no longer the sole preserve of the socially
excluded. Today, it reaches deep into middle class attitudes
and reactions, with many parents fearing that their children
may not have a better life than their own. In many countries
increased global competition has led to job losses, or to flexible
employment arrangements that are often less secure and provide
fewer social benefits than regular jobs. Short-term capital
movements have made economies more volatile, resulting in more
frequent and more severe financial and economic crises, which
have led to sharp rises in unemployment and poverty. All these
developments have contributed to a growing sense of insecurity
among workers, which goes a long way towards explaining the
resistance that can be observed in many quarters to globalization
— resistance which might in the end jeopardize the process of
international integration and bring to a halt the benefits which
it is bringing to people throughout the world. In my report
to the ILO Conference last year, Decent
work, I highlighted the importance
of security for all workers. Security is a many-faceted notion.
It encompasses safety and health at work, jobs which are stable,
skills and abilities which can be applied productively, guarantees
for income and access to public services, adequate incomes in
old age or in ill-health and protection against contingencies
of many sorts. It also embraces the right to organize and defend
one’s rights, the right to freedom from violence and oppression.
I believe that addressing this set of concerns is not merely
one goal among many others. It is the very bedrock of a decent
society, and the basis for dynamic economies because it is a
primary source of social legitimacy. Alarmist rhetoric notwithstanding,
social protection, even in the supposedly expensive forms to
be found in most advanced countries, is
affordable in the long term. It is affordable because it is
essential for people, but also because it is productive in the
longer term. Societies which do not pay enough attention to
security, especially the security of their weaker members, eventually
suffer a destructive backlash. And yet the
paradox is that the majority of people in the world do not have
adequate security. The systems of social protection which have
been developed in industrialized countries in the course of
the last century cover only a fraction of the population in
low-income settings and informal work. In many developing countries
no more than 20 per cent of the active population is included
in regular social security systems, in much of sub-Saharan Africa
no more than 10 per cent. It is an affront to all human values
that, in many of these countries, most working people and their
families have no access whatsoever to social protection, sometimes
not even to rudimentary health care. Even in industrialized
countries coverage is far from complete. There is much to be
done. Ways must be found to extend social protection to the
millions who have none. In the search for workable solutions,
new priorities will have to be established and new techniques
tried out. At the same time greater efforts must be made to
apply more widely the methods which past experience has shown
to be effective. Above all, we must not fall into the trap of
thinking that it is possible to extend social protection by
spreading it more thinly. It is unthinkable that the hard-won
gains of working people now covered by social security should
be reversed. It is not by undermining social protection for
one part of the workforce that we will succeed in improving
it for another. This report
offers a snapshot, a review of where we stand globally on income
security and social protection — the main problems which are
being tackled, the instruments which are being used, their successes
and failures, the challenges for the future. It looks at how
changing demographics and social patterns are changing needs
for security, at trends in social security expenditures, at
the specific problems of pensions, health care, disability,
unemployment and other benefits. And it discusses how systems
of protection might be extended to reach the population as a
whole, and restructured to meet new needs. One of my top
priorities is achieving gender equality across the whole range
of ILO activities and concerns. This report gives concrete expression
to that objective. Many people assume that social protection
is mostly gender neutral. But the facts are different. Social
protection schemes not only reflect existing inequalities between
women and men in the labour market; they also, in some cases,
reinforce them. By delineating what kind of schemes perform
badly in this respect, the report casts new light on issues
— such as the respective roles of mandatory and voluntary pension
schemes — which are too often the subject of abstract, ideological
debate. In its conclusions, the report gives priority to a set
of measures that will serve to address the unacceptable bias
that still leaves women with substantially lower levels of social
protection. This report
is about income security, and in particular about the forms
of social protection which can provide it. That means that it
pays relatively less attention to employment, to the enterprises
where jobs are created, and to the labour market institutions
and policies which create or deny access to income-earning opportunities.
These too are sources of income security, indeed they are the
primary sources of income security. As is said in Chapter 1,
“social protection can cope with fluctuations in employment within certain bounds, but chronic employment problems are sure to undermine any social protection system”. In reality, these are different aspects of the same problem, which ultimately need to be considered together because they are mutually reinforcing. Achieving decent work for all women and men will be the key to security, if by decent work we mean work which provides not only a decent income today but also longterm income security against the economic uncertainties and risks that workers face in their jobs and after retirement, and a working environment which respects rights and aspirations, which offers solidarity and participation. This
is the next challenge. To meet it, a new programme has been
launched in the ILO, the InFocus Programme on Socio-economic
Security. This major new initiative will investigate how economic,
labour and social policies can be combined to promote socio-economic
security for all women and men as the basis of social justice
and economically dynamic societies. To do so it will take a
fresh look at different dimensions of security in labour markets
and enterprises, in work and in jobs, and at how they interact
with other forms of social protection and income security, including
those which are analysed in this report. It will look at the
primary causes of insecurity in different economic contexts,
what impact social and labour policies have had on socio-economic
security in various parts of the world and for various groups,
and what policy options exist to improve it. This
will require new research and new data. The pages that follow
demonstrate that there is no substitute for sound analytical
and empirical research if economic and social policy is to have
a solid foundation. A careful reading of the evidence is the
best riposte to polemics against the sustainability of social
protection. It will be important to extend and systematize our
knowledge, identify best practice and develop benchmarks by
which we can judge whether progress is being made. The key to
progress is finding solutions, practical ways of solving difficult
problems. Finally,
it can never be overstressed that freedom and democracy provide
the context for workers’ participation in the decisions that affect
them. For social protection schemes to reflect workers’ legitimate
aspirations accurately, democratic institutions must be in place
and functioning. Amartya Sen — the 1998 Nobel Prize laureate in
economics — reminded us, when he addressed the 1999 session of
the International Labour Conference, that no democratic country
has ever suffered a famine. It is my intention to work unstintingly
for a world in which all workers benefit from a decent minimum
level of security. To that end, it is vital that representative
institutions, representing workers and employers, the State and
other interests in civil society join forces in order to build
this goal into the very fabric of economy and society.
April 2000 Juan Somavia The English
version of the report was edited by Geraldeen Fitzgerald. View some of the statistical tables included in the Report. ISBN: 92-2-110831-7 45 Swiss francs
Updated by JD. Approved by ER. Last update: 1 July 2000 |