A Christmas troika from the ILO
Three excellent titles have been released by the International Labour Organization (ILO) since November, the Global Wage Report 2010-11, World Social Security Report 2010-11 and Extending Social Security to All.
Global Wage Report 2010-11. Social security represents an investment in a country’s “human infrastructure” no less important than investments in its physical infrastructure. At an early stage of economic development the priority is, of course, to put in place a basic level of provision; the evidence adduced in this Guide points to its affordability for, essentially, every country. While this message lies at the heart of the Guide, it is important to keep in mind that, at a later stage, the basic level can and should be augmented, and the ILO’s long-standing approach to social security offers the framework to do so.
While the financial, fiscal and economic affordability and sustainability of social protection systems has become – rightly or wrongly – a major concern for countries at all stages of economic development, the Guide provides testimony showing that some level of social security can be afforded even at early stages of national development. Social security systems remain affordable moreover when economies mature and population age. Hence, a country’s national investment in social security can be well justified, whether or not an extensive social security system has already been developed.
World Social Security Report 2010-11. This is the first in a new series of biennial reports that aim to map social security coverage globally, to presenting various methods and approaches for assessing coverage, and to identifying gaps in coverage. Backed by much comparative statistical data, this first report takes a comprehensive look at how countries are investing in social security, how they are financing it, and how effective their approaches are. The report examines the ways selected international organizations (the EU, OECD and ADB) monitor social protection and the correlation of social security coverage and the ILO Decent Work Indicators. The report’s final section features a typology of national approaches to social security, with a focus on countries’ responses to the economic crisis of 2008 and the lessons to be learned, especially concerning the short- and long-term management of pension schemes.
Social security systems play a critical role in alleviating poverty and providing economic security, helping people to cope with life’s major risks and adapt to change. They can have a remarkable effect on income inequality and poverty in developing countries through income transfers. The 2008-09 financial crisis has shown that they are also powerful economic and social stabilizers, with both short- and long-term effects. However, there are serious problems of access to social security around the world which the crisis has shown into sharp relief, and the financing of systems has been put at risk by shrinking national budgets.
Extending Social Security to All. The second in a series of ILO reports focusing on wage developments, this volume reviews the global and regional wage trends during the years of the economic and financial crisis of 2008 and 2009. In Part I, the report highlights the slow down in the growth of monthly average wages as well as some short-term fluctuations in the wage share. These changes happened against a backdrop of wage moderation in the years before the crisis and a long-term trend of rising wage inequality since the mid-1990s. Part II of the report discusses the role of wage policies in times of crisis and recovery. Collective bargaining and minimum wages can help achieve a balanced and equitable recovery by ensuring that working families share in the fruits of future economic growth.
At the same time, preventing the purchasing power of low-paid workers from falling can contribute to a faster recovery by sustaining aggregate demand. The report shows that policy strategies and design are crucial to ensure that low-paid workers benefit from union representation and minimum wages, and argues that wage policies must be complemented with carefully crafted in-work benefits and other income transfers. Part III concludes with a summary of the report and highlights issues that are critical for improving wage policies.
Written by makanaka
December 22, 2010 at 16:01
Posted in Uncategorized
Tagged with 2010-11, decent work, economic crisis, economic development, employment, EU, financial crisis, human infrastructure, ILO, inequality, International Labour Organization, labour, minimum wage, OECD, pension, poverty, social protection, social security, trade union, wage, wage report, work