Indonesian social security in transition: An empirical analysis

Indonesia is one of the world's largest countries, with a population of some 190 million people. Although considered poor in terms of virtually every economic indicator at the start of the first national development plan some 25 years ago, the nation has consistently improved in performance year by year. This paper argues that the development of social security has been inextricably linked to the remarkable economic growth. The commencement of the second national development plan period (1994-2019) offers a timely opportunity to review Indonesian social security progress to date, to consider the challenges ahead, and to speculate on how social security can best contribute towards national objectives such as the development of human resources and the alleviation and eradication of poverty.     

The recent evolution of social security coverage in Brazil

Abstract   This article describes and assesses indicators of social security coverage in Brazil over the period 1992 to 2006 for employed workers and the elderly. While the coverage of retired workers has shown some degree of stability over the past years, that of employed workers changed significantly over the period, showing clear signs of deterioration between 1992 and 2002, and of recovery since then. Fewer self-employed persons in agriculture in rural areas (Special Insured Persons, workers with specific social security schemes) accounts for most of the deterioration. The economic recovery and an increase in new registered jobs accounts for most of the improvement in coverage between 2003 and 2006. Administrative and institutional factors also played a relevant role, especially in promoting the inclusion of domestic and self-employed workers as social security contributors.     

Extending social security protection to the entire population: Problems and issues

Rural, agricultural and informal-sector workers have often beendenied the social security protection to which other economic sectors of populations have had access, and this is particularly true in the case of developing countries. There are also other important groups which have few or no rights to social security protection, such as family, domestic and casual workers. The lack of coverage is disturbing, as witnessed by the frequency with which this topic appears on social security meeting agendas worldwide, and particularly so since these sectors, as a whole form a very large proportion of the populations of many countries. Certainly there are difficulties of a practical nature which inhibit extension of coverage to these groups. So what can social security systems do? What kind of coverage is best suited to the needs of these groups? This article, based on papers presented at an ISSA Regional Meeting for Asia and the Pacific held in Manila in 1992, analyses the issues and makes some suggestions for a strategy relating to extension of coverage.     

China: developmentalism and social security

China began its social security reform when the market-oriented economy was first promoted in the late 1970s. Initiatives have been taken to replace the employer-based labour insurance model with a largely social insurance model. However, it is a mistake to argue that China is pursuing a neo-liberal agenda in its social initiatives. Instead, the state has played a major role in the process. Based on a developmental analysis, it is argued that the direction of change is generally encouraging. The emerging social insurance programme has the following advantages: it widens coverage, facilitates economic development, seeks a minimum entitlement, fosters social integration, and enhances individual participation and responsibility. The creation of an economically and socially viable social insurance programme will support the economic development of the country in the twenty-first century.     

Insurance demand and social comparison: An experimental analysis

This paper analyzes whether social comparison can explain the low take-up of disaster insurance usually reported in field studies. We argue that risks in the case of disasters are highly correlated between subjects whereas risks for which high insurance take-up can be observed (e.g. extended warranties or cell phone insurance) are typically idiosyncratic. We set up a simple model with social reference points and show that in the presence of inequality aversion social comparison makes insurance indeed less attractive if risks are correlated. In addition we conducted a simple experiment which confirms these theoretical results. The average willingness to pay for insurance is significantly higher for idiosyncratic than for correlated risks.     

社会保障制度改革与政治稳定:西方的经验分析

西方社会保障制度不仅与经济利益紧密相关,而且与政治斗争结伴而来,逐渐成为资本主义政府的一项基本功能,成为资本主义政党政治的一个主要内容,对稳定西方资产阶级统治和国家政权发挥了重要的政治功能.20世纪70年代中期以后,西方各国纷纷改革社会保障制度.由于社会保障制度具有刚性和权威性,甚至已经和西方政治制度融为一体,社会保障政策成了政治体制中不可或缺的组成部分,因此,社会保障制度的改革牵涉到公众的既得利益,要经过复杂的政治程序和相当程度的公民认同,必须谨慎地加以推进.     

Governance of social security regimes: Trends in Senegal

The main aim of this article is to analyse the Senegalese experience in the management of social security institutions. The keyword which occurs and reoccurs is autonomy. Except for Côte d'Ivoire, which has experimented with the same system since 2000, the Senegalese experience is unique in French-speaking sub-Saharan Africa. The article reviews the institutional pluralism which is another unique feature of the Senegalese situation, the genuine autonomy of management which exists and its results, illustrated by the example of the Social Security Fund. The results obtained in terms of financial stability, better quality of service and the installation of an efficient information system prove that this is the way of the future. Finally, the paper highlights the distribution of powers between the various bodies of the Fund.     

Modernizing social security: Changing responsibilities and individual choice

Social security needs to be reformed to make it sustainable. We argue that it is necessary to consider not only system characteristics (such as the level and duration of benefits, insured population), but also the division of responsibilities. Social security is not solely a state matter; firms, trade unions, industrial sectors and the individual play a role as well. As social risks are to some extent endogenous, insurance ought to be taken care of at the level at which the risk can be most directly influenced in order to improve efficiency. This may partly take place within the public system, for example through risk rating. Alternatives would include shifting from collective to more individual arrangements, prominent examples being multipillar systems and savings accounts. Multipillar systems mainly imply a new division of responsibilities, taking the endogeneity of social risks and the implications of modern life cycles into account. At the same time they offer more individual choice. Savings accounts reduce moral hazard without affecting individual choice. Either way, in reforming social security a balance needs to be found between competing goals or principles: between equity and efficiency, between solidarity and freedom of choice, between the risks of moral hazard and adverse selection. This choice is difficult because social security is not only about "security". It is an important part of the way we organize our society and embodies many of society's values.     

Reforming China's social security system: Facts and perspectives

This article overviews the social security reform started shortly after the commencement of the general economic system restructuring in China in 1978. The reform is remarkable not only for its scale in terms of population covered, territory affected and comprehensiveness sought, but also for the difficulties confronted, progress made and confidence achieved. Although there is still a long way to go to fulfil its ambitious ultimate objectives, 14 years of reforming exercises have built up a solid basis for a sound social protection system to be gradually extended to the non-covered population. China now can share its experience with other nations in a similar situation.     

Participation and opportunity: Redefining social security in Australia and New Zealand

Against a political background of shifting societal expectations about the role of social security in terms of mutual obligation and social responsibility, both Australia and New Zealand have conducted major social policy reviews within the past two years. Two of the central themes of the McLure Report (Australia) and the Pathways to Opportunity Report (New Zealand) are social participation and opportunity creation. This paper focuses on these issues from several perspectives. An outline of the motivations for reform and the concepts guiding it is followed by a summary of the reform strategies identified in each report. After a discussion of the similarities and differences in the changes implemented since the two reviews, the conclusion points to some of the potential problems raised by the critics of the reform proposals.     

Introduction: Social security,inclusive growth and social cohesion

This special issue selectively addresses the relationship linking social security systems, inclusive growth and social cohesion. Inclusive growth and social cohesion are viewed as political expedient and necessary goals for national economies. The desirability of their attainment reflects political pragmatism, the “social contract”, as much as it does a commitment to the wider emancipative goal of social justice. The International Social Security Association (ISSA) has often paraphrased these assertions to argue that there can be “no social justice without social security”. Of course, progress achieved towards the realization of the goals of inclusive growth and social cohesion should be equally beneficial for the adequacy, sustainability and coverage of social security systems. The aim of this special issue is to unpack and better understand the nature of this relationship.     

Information technology and transformations in social security policy and administration: A review

In this paper we analyse the interactive relationship between technology, administration and policy in social security. Focusing on new and emerging information and computing technologies, we show how they have been shaped and adopted by social security institutions in different countries, and explore their differential impact on recipients and staff, on organizational structures, and on policy and practice. We conclude that similar technologies have been adopted in a variety of ways to address different economic, social, political and organizational objectives and that, although these differences are becoming more blurred, different patterns have been associated with different welfare state regimes.     

Extending health care coverage: Potential linkages between statutory social security and community-based social protection

Abstract   The extension of social health protection in developing countries is widely recognized as a priority. Various financing and institutional methods can be used in pursuing this objective, but none of them can achieve universal coverage in the short term. Based on an analysis of the respective strengths and weaknesses of social health insurance and community-based health care schemes, this article demonstrates the high potential of coverage extension strategies that use a pluralistic institutional approach to establish linkages and exploit complementarities optimally. A typology of potential linkages among different methods is presented and their value added illustrated using country examples.