Trends in Social Security in East Africa: Tanzania, Kenya and Uganda

As elsewhere in the world and in Africa in particular, social security in the member countries of the East African Community (Kenya, United Republic of Tanzania, and Uganda) has long been provided through voluntary assistance under the traditional extended family system. Later, and more specifically after independence in the early 1960s, when the region had a major increase in the number of employees in the formal sector — both public and private — who were mainly located in urban centres, formal social security schemes started to gain recognition among employed workers. Thus over the years, the urban population became increasingly detached from rural communities where the traditional extended family system was most effective. In addition, their general standards of living rose to such levels that if they ceased to earn employment income for one reason or another their livelihood could not be sustained through the extended family system. The above social security development trends have resulted even today in societies examining and determining ways to improve social protection beyond the formal sector so as to ensure arrangements are put in place for a large part of the working population to be provided with social security insurance during their working life and after retirement.     

Social security: Indispensable solidarity

Social security must be considered not as an economic burden, but as a collection of mechanisms for collective solidarity based on the principle of income redistribution. The economic and social transformations that the various regions of the world are going through, in particular the globalization of the economy, are making social security increasingly necessary. Instead of yielding to proposals for the privatization of schemes — a formula that is less efficient and more expensive — we should be protecting and improving social security; developing it in those countries where its position is still weak; and stressing that, while its objectives are humane and social, it brings economic benefits too.     

Social Security Pensions in the Maghreb: A Study of Morocco and Tunisia

Long-term pension schemes in Morocco and Tunisia, taking all elements together, are very much in decline and for the moment there is no serious option available to make up for the limited scope of the contributory model of social insurance. Furthermore, efforts to coordinate and harmonize these schemes are only just getting going. Eligibility conditions are very strict and the benefits paid — to people with disabilities, to retirees or their surviving dependants — are frugal. Privatization of pensions helps only those able to take out private insurance, benefiting a tiny proportion of the target population. Tunisia, however, has provided its people with better safeguards than Morocco, a more populous country whose rulers are less inclined to be generous in this respect. Whatever the case, those in charge of social insurance in both countries have a long way to go before their rapidly ageing populations can aspire to a relatively decent quality of life.     

Linking Community Initiatives to National Institutions: Ghana

The ILO has developed an innovative concept of global solidarity for social security — the Global Social Trust — which supports the development of national social protection systems through international financing. The concept is ready to be tested nationally and the present paper proposes a pilot project for Ghana. The paper considers the virtues and weaknesses of developing-country social security healthcare systems and community-based voluntary insurance schemes, their lack of informal sector coverage on the one hand and their financial disequilibria on the other. It outlines the socio-economic and macro-policy context of Ghana and the current health policy environment. It argues for a fusion of the social health insurance and mutual health organization concepts in Ghana, thus linking community initiatives to national institutions, enhancing coverage and the quality of services for all. The paper outlines a basic model that could apply to Ghana, its organizational structure, practical functioning, financing arrangements and expected outputs. In particular it seeks to develop a model for the cross-subsidization of insurance premiums for the poor. It describes a concept that would combine local ownership initiatives with national responsibility and financing, arguing for a truly interrelated network of social protection. The authors welcome feedback and comments from the wider social security audience.     

Focusing on individual needs: Developing the law's mechanisms for mentally disabled and elderly people

The author examines the development in Australia of mechanisms for formal legal representation for people who are mentally incompetent: these include guardianship and property management; enduring powers of attorney; and government schemes for pensioners. Other legal protections discussed include the implementation of a statutorily required agreement between owners and residents in nursing homes. The paper lists the principles which now permeate legislation for formal legal representation — client-centred decision-making standards; limited loss of civil rights; encouragement of independence; deference to the wishes of the individual; informal and accessible determination and review processes — and sounds a warning about the influence of legal culture, particularly when there are people with legal experience on bodies determining whether substitute decision-making should be implemented. It calls for lawyers to be sensitive to the influence they are capable of exerting and also recommends steps which can be taken to rectify weaknesses in the enduring power of attorney and government pensioner schemes. Finally the paper considers the new government initiatives to improve the conditions of people in aged care accommodation and raises some of the problems which can be anticipated in implementing that programme.     

Informal Economic and Social Security in Sub-Saharan Africa

Most people think that there is no social security in sub-Saharan Africa, whereas a theoretical statutory social security is foreseen in quite a few African States. Since the 1960s, the first formal social security provision in French-speaking sub-Saharan Africa was established mainly in the field of health services. Nevertheless, the situation is different in reality. The coverage rate is less than 10 per cent of the workforce. The majority of the population are excluded because they work in the informal sector. Formal social security systems are usually based on a labour-centred view, which is founded on formal employment and thus employment contracts. Legal restrictions, such as the exclusion of several categories of employees, and administrative and financial problems are primarily responsible for the low coverage rate. This situation has induced informal sector workers to create their own "safety nets". The integration of these existing informal social security schemes in a broader, pluralist approach to sub-Saharan social security seems necessary.     

Disability benefits and workers with HIV/AIDS: Coverage issues and challenges in the United Republic of Tanzania

This paper explores the effective non‐availability of disability/invalidity benefits to formal sector employees with HIV/AIDS in the United Republic of Tanzania. The legal difficulty of establishing a direct connection between HIV/AIDS and employment injury and occupational diseases present a challenge to social security institutions and schemes which are simultaneously trying to come to grips with the mounting problems of the shrinkage of the formal sector and low coverage. Remedial policy responses are proposed. These identify the statutory and legal adjustments needed both to ensure convergence of eligibility criteria for invalidity benefit claims among the concerned institutions, and to ensure that qualifying conditions are both consistent and in line with contemporary approaches to disbility. The suggested adjustments would simplify and clarify eligibility criteria in cases of invalidity involving existing scheme members, potentially also allowing for a future expansion of benefit coverage better to reflect labour market realities.     

Income security for older people: An Asian perspective

In Asia and the Pacific, as in other developing regions, the continuing growth of the aged population has a great impact on social security programmes generally and, in particular, on the income security of older persons. In societies where traditional support systems are breaking up, their need for social security protection is increasingly important. A system of social security for the elderly population exists in most countries of the region. Many are provident fund schemes, which are basically saving schemes, and their coverage is low. Where social insurance pension schemes exist, the levels of benefits provided are also low. The focus for future development, therefore, lies in converting the savings schemes into multitiered pension schemes, extending their coverage and raising the level of benefits. In this context the critical question concerns the role of the State and the type of schemes used. The need for public pension schemes is great in Asia and the Pacific, where the level of poverty is comparatively high. Building pension schemes, whether public or private, involves a set of issues that need to be addressed. This article considers the systems currently in place and the challenges and limitations faced when considering the future development of social security in this area.     

Rural population and social security in Brazil: An analysis with emphasis on constitutional changes

This paper analyses the situation of the Brazilian rural population with respect to social insurance and social assistance at two points in time: 1988 and 1998. The 1988 Constitution defined new rules with regard to eligibility conditions and benefit values for the rural population. But it was only in July 1991, with Law 8213, that these changes were implemented. We compare — by gender and individual age — activity rates and probability of receiving benefits, before and after the changes in legislation. We also compare, at these two points in time, family structure and the importance of the income of older people in the family budget. The analysis makes clear the positive impact brought by the legislation on the coverage and per capita family income of those families with older members in rural Brazil, bringing about some degree of poverty alleviation, as well as bridging the gender gap with respect to access to benefits. In contrast to what occurs in other Latin American countries, nowadays the Brazilian rural population has almost universal access to social security benefits, not only at family level but also in individual terms.     

Unemployment and Labour Market Policies: Some Lessons from West Germany

The author points out that West Germany has had low inflation, high industrial efficiency, and good vocational training, but has not escaped rising levels of unemployment. After an analysis of employment trends in Germany since 1945 there is a review of varying government policies in public expenditure and in dealing with unemployment. The author relates demographic trends to employment patterns, and refers to such phenomena as the "dormant labour force", concluding that unemployment will remain high. He reviews the effects of social security benefits and of job creation schemes. He concludes that none of the well-known remedies for unemployment have proved effective in themselves but that short-term job creation schemes are very much a "second-best". He concludes that industrial efficiency — though essential — is not enough in itself and that conquering inflation or providing youth training are shown by the German example to be only a partial help and not a solution to improving employment prospects.     

Micro‐pensions in India: Issues and challenges

This article aims to fill a gap in the social security literature on India by examining the role of micro‐pensions. The analysis suggests that because of the heterogeneity of the target population, micro‐pension products — with microfinance institutions (MFIs) as the main, but not only sponsors — should be voluntary and portable and permit experimentation in their design and in the delivery of services. Accordingly, decentralized micro‐pension schemes that operate within an appropriate regulatory framework and according to sound governance practices are deemed more fitting for the Indian context than centralized schemes with limited flexibility. The article discusses two case studies of recently‐initiated micro‐pension schemes in India, which reveal the need for rigorous analytical research on the micro‐pension sector, particularly concerning the structuring of pay‐out options and innovative delivery mechanisms. The article concludes that micro‐pensions have the potential to be one of the most useful components in India's multi‐tiered social security system, and should be encouraged.     

Pension insurance and the participation of private enterprise

One of the principal developments of our time in the field of social security policy has been the growing importance of the desire of individuals for greater economic security in their old age. This desire has in its turn given rise to an increasing tendency to seek benefits complementing those offered or promised by public social insurance schemes. In Europe and North America private enterprise has for many years played an active role in the field of complementary provident arrangements; but in the countries of Latin America interest in schemes of this kind has only begun to develop in recent years. A study of the present situation shows a need to establish concepts permitting an objective approach to the problem of whether — and ultimately, how — a modern State can succeed in striking a satisfactory balance between public intervention and private enterprise in the field of provision against deferred risks or, if it cannot do so, what the prospects are for the securing of a better future by present-day society and how that goal could be achieved. A reform of provident systems in Latin America is inevitable. The difficulty lies in determining how to reorganize public systems so as to ensure their continuance and to entrust them with the principal role in ensuring social solidarity while at the same time opening up opportunities for free private complementary insurance.     

Health care as a social security benefit: Institutional approaches to extending coverage

Reaching universal health‐care coverage requires an appropriate mix of compulsory contributory social insurance schemes, with mechanisms to include the informal‐economy population, and tax‐based social assistance for those whose incomes preclude their own contributions. This article urges a reversal of the trend that favours the separate development of social health insurance by separate health authorities and makes the case for the extension of health‐care coverage using existing formal‐sector social security schemes, not least because they have the necessary political backing and institutional structures. The article reviews reasons for the slow pace of coverage extension to date, and stresses the added value of incorporating health care as a social security benefit while also acknowledging the importance of retaining linkages between statutory and well‐regulated community‐based or micro health‐insurance schemes.     

Gender issues in social security policy of developing countries: Lessons from the Kerala experience

This paper is based on the premise that labour market conditions are critical in shaping access to social security benefits. Women's entitlement to long-term social security is in many respects different from that of men on account of the assumptions which pervade the system about gender roles, labour market conditions, and outcomes. The Indian state of Kerala has made great strides in formulating various schemes for workers in the informal sector, but gender concerns in social security are in want of attention in the light of demographic pressures, fiscal constraints and changes in the global economy.     

The free circulation of Individuals between the European Community member states: The practical implications for social security schemes

Freedom of movement in an integrated European Economic Area created the need to coordinate social security legislations by means of complex regulations. Improving their application calls for innovative solutions based on the experience of ISSA member institutions, ILO standards and the initiative of non-governmental organizations. These solutions are also of interest to institutions in states — even non-European states — linked to the Community by bilateral or multilateral conventions. The main objective is to simplify and speed up administrative procedures, notably for the award of pensions to migrants, given the desirability of identifying them and reconstructing their working careers at the earliest opportunity. Teleprocessing must gradually replace the international circulation of forms, facilitating in particular the provision of medical care during a temporary stay. Recipients'effective access to benefits can also be improved through the personal intervention of liaison offices, the use of migrants'own language and the aid of social services.     

Sheltered Housing and Community

This paper considers the role of sheltered housing following the introduction of new community care arrangements in 1993 and examines the continuing uncertainty about its exact role as community care continues to develop. It reports on a study conducted in Shropshire, using a postal survey and interviews with older people and service professionals. The study highlights the importance of sheltered housing for older people, particularly in relieving them of concerns about maintenance and repairs, social isolation and security. These factors were crucial for their overall peace of mind and quality of life. While only a small proportion of tenants received help under social services' community care arrangements, the additional support, monitoring and service coordination provided by wardens helped some of them to remain in sheltered housing when residential or nursing home care might otherwise have been necessary. Sheltered housing was overwhelmingly popular with older people — but their satisfaction was closely associated with the availability and quality of the warden service. Although sheltered housing is not currently in vogue in housing policy, the paper argues that it plays a vital role in local provision for older people and needs to be more closely integrated into community care policy, while at the same time preserving the characteristics that make it popular with its residents.     

The decomposition of social policy in Sweden

The traditionally strong dominance of the state in social security in Sweden has been replaced by a more mixed structure. Individuals are increasingly covered by a mix of private welfare, employment-based corporate welfare and state programmes. There are several reasons behind this development: shifts in the economic and political conditions, strong tax incentives for the individual to buy private insurance, increasing problems for the public system in covering the loss of income for middle and high income earners, repeated media reports that the public welfare system will go bankrupt in the near future and increasing reports on free-riding and cheating in the area of public insurance. The advantage of the more mixed system may be its similarities to social insurance in some of the European Community Member States. However, from a social policy point of view there are also some dangers. There will be increasing tendencies towards inequality. In particular, the difference in social security conditions between the skilfully employed and marginal groups will be even more marked. The unemployed, the young and people with physical or mental handicaps will be left outside the private and corporate structures. There is also a marked risk that some individuals be reach a level of coverage well above the loss of income, and this will be a disincentive to work. Private and corporate welfare systems are also largely invisible in the sense that individuals may not even know under what conditions they are covered. Another problem is that public attitudes towards the public welfare system will increasingly become more negative and different in various parts of the population. The effect of this may be a vicious circle: public social policy becomes increasingly inefficient and unpopular among the working population and remains only as a marginal system for small marginal groups.     

Social protection for the family in the Maghreb

This article is based on a study of the protection afforded to the family under the social insurance schemes of the five Member States of the Arab Maghreb Union, and considers the usefulness of family benefits in economically poor countries gripped by the great problems of population growth and unemployment. This type of social protection is conditional upon the individual being actively employed and covers only a very small part of the working population, leaving out the majority. Should not priority be given to coverage against real occupational risks that threaten employment? This is not an easy question to answer in an increasingly unfavourable economic climate, but it should be possible, in the name of those social and human ethics founded on Maghrebi sentiments of family, local, national and regional solidarity, to mobilize particularly the political will to find better solutions or alternatives. It will, however, be necessary first to reconsider family benefit systems in relation to other, more urgent forms of protection in accordance with a social choice based on the rights and cultural values of Maghrebi citizens. By showing the common features of the Maghrebi schemes at the same time as some of their differences, the article will also present useful elements for their harmonization and even their unification into a regional social security system.     

The welfare state in liquidation?

This paper is about the most recent reforms of cash benefit systems and the sociopolitical debate in eight European countries. The welfare state and the social security system rank high on the political agenda. After many years of economic crisis, with increasingly widespread unemployment and changed family patterns, the welfare system that developed in most western European countries since the end of the Second World War is the focus of attention. In a world of increasing international trade, with competition from countries — in eastern Europe and Asia as well as the United States — which have not developed such comprehensive systems of social security, one of the main issues in the debate is whether western Europe can afford to maintain welfare at the existing level, or whether it is necessary to make fundamental changes. But the discussion also centres on what can be called the welfare state's own internal problems.     

Reforming formal social security systems in India and Sri Lanka

This paper analyses the formal social security systems of India and Sri Lanka. While many of the social, demographic, and economic indicators differ markedly between the countries, the structure of the social security systems, challenges, and reform directions are quite similar. Thus, the provident fund organizations in both countries need to modernize and benchmark their governance, operations, and investment policies. The dualism in their systems, which has resulted in relatively generous non–contributory pensions being provided to civil servants, also needs to be addressed. This dualism and the fiscal unsustainability of current civil service pension arrangements lend urgency to reforms in this area in the two countries. The prospects for voluntary tax–advantaged private sector schemes are encouraging, particularly in India. The conditions for reforms are more favourable now owing to hopeful signs of an end to longstanding conflict in Sri Lanka, and decade–long experience with financial sector reforms in India.