Given the prevalence of informal labor, most countries have combined contributory social insurance programs pensions, unemployment benefits, and health insurance , with non-contributory insurance programs and several types of "safety nets. As such, existing programs are not well prepared to deal with a world of labor characterized by persistent low productivity jobs, more frequent labor market transitions including across sectors and geographic regions and higher equilibrium unemployment rates for some groups of workers.
This paper develops a policy framework to integrate, in a transparent way, the insurance function actuarially-fair risk pooling or savings and the redistributive function transfers of the social protection system in order to expand coverage, improve equity, and reduce labor market distortions.
We illustrate this type of integration with the case of old-age pensions which is typically the most important intervention, at least from a fiscal perspective.
These necessary cookies are required to activate the core functionality of the website. An opt-out from these technologies is not available. The definitional of social security has under gone change and now it is the security that society furnishes through appropriate organization against certain risk to which its members are exposed.
These risks are essentially contingencies against which the individual of small means cannot effectively provide by his own ability or foresight alone or even in private combinations with his fellows. Social security is a dynamic concept. By it very nature it is dependent on the growth and development of National economy and prevailing social conditions coupled with technological advancement.
All the developing as well as developed countries of the world are trying their best to achieve its maximum cherished goal. India being one of the young developing economy having declared social and economic justice to all in the preamble of the Constitution and also being a welfare state it has assumed the responsibility of providing social security against these risks by social insurance supplemented by quasisocial security against these risks by social insurance supplemented by quasi-social insurance and social assistance or by combination of all or any of this devices.
These measures are an integral part of social democracy and introduce an element of stability and protection in the midst of the stresses and strain of modern life. It is the function of an ideal welfare state to give every citizen the opportunity of earning his living and freedom from fear, fear especially of economic ruin which involve physical and even moral ruin.
This is in contrast to a police or Laissez Fair state [ 2 ]. The concept of social security is a broader term, which includes both social insurance and social assurance. The difference between the two lies in the scope of operation. Social insurance is primarily aimed at protection from want and hunger, whereas social security besides want and hunger also helps removal of squalor, diseases, ignorance and exploitation.
So social assistance is supplemented in nature rather than substitutive. The benefits of social insurance are admissible to those who are so insured and make their regular contribution towards it.
Social insurance is an institution jointly operated by industrialists, workers and Government. Social Insurance benefits are allowed to tall injured persons irrespective of their status, economic need whereas the benefit of social security is allowed strictly on the basis of needs and requirements. Social security is an incentive for development. Substituting the gear of risk and inadequacy of working class through social security improves efficiency of the workman.
Poverty constitutes a danger to prosperity everywhere. There is thus a changed trend of thought that want is not only undesirable, but also unnecessary under all circumstances. The testimony for this and its acceptance by all nations can be found is the Universal Declaration of Human Rights. Hence, it has been declared that the right of Social security is one of the significant human rights. The declaration in Art 25 proclaimed that everyone as a member of society has a right to social security and is entitled to the realization through national effort t and international cooperation.
The need and scope of social security has not only been recognized and expanded from time to time in the national scenario but also in the International level. There has been continuous thinking. This is evident not only for declaration of human rights by also from the declaration of Philadelphia and of acceptance promotion of right of social security by the ILO since its inception in The ILO played a pivotal role in evolving universally accepted principle and standard of social security throughout the world.
Through its conventions and recommendations it has exerted influences to extend the range and the class of persons protected, the contingencies covered and to improve the efficacy of the benefits assured. Besides this in to ILO has passed twenty eight 28 social security conventions. Out of this India has ratified only 5 conventions viz. This facility has been extended to the Railway employees under the contributory P. All the State Government have not played the roles of passive un-looker and have stepped into legislating social security legislation relating to Old Age Pension, Provident Fund etc.
All most all the Five year plans adopted by the Central Govt. Inspite of the step taken by the Govt. These are available to a very limited section of society. Unfortunately, India is more prone to want, disease, ignorance squalor and unemployment than any other developing country in the World. Therefore, there is a need not only the wider scope and coverage of social security benefits both in terms of quality and quantity meaning thereby covering more number of people which is always being recommended by ILO.
Social security as a concept is very wide and it is indispensable in any developing economy more essentially when it is a welfare state. By the very fact that it strikes at the root of poverty, unemployment etc. In order to appreciate fully the meaning of social security various definitions may be examined The role of welfare state principles and generosity in social policy programmes for public health: an international comparative study.
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