Building Social Security: The Challenge of Privatization
International Social Security Series
In cooperation with the International Social Security Association (ISSA)
Neil Gilbert; Series Editor
Targeting Social Benefits: International Perspectives and Trends
Neil Gilbert, editor
Social Security at the Dawn of the 21st Century: Topical Issues and New Approaches
Dalmer D. Hoskins, Donate Dobbernack, and Christiane Kuptsch, editors
Activating the Unemployed: A Comparative Appraisal of Work-Oriented Policies
Neil Gilbert and Rebecca A. Van Voorhis, editors
Recent Health Policy Innovations in Social Security
Aviva Ron and Xenia Scheil-Adlung, editors
Who Returns to Work and Why: A Six-Country Study on Work Incapacity and Reintegration
Frank S. Bloch and Rienk Prins, editors
Building Social Security: The Challenge of Privatization
Xenia Scheil-Adlung, editor
Building Social Security:
The Challenge of Privatization
Xenia Scheil-Adlung
editor
International Social Security Series
Volume 6
First published 2001 by Transaction Publishers
Published 2017 by Routledge
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Routledge is an imprint of the Taylor and Francis Group, an informa business
Copyright 2001 by Taylor & Francis
The International Social Security Association (ISSA) was founded in 1927. It is a nonprofit international organization bringing together institutions and administrative bodies from countries all over the world dealing with all forms of compulsory social protection. The objective of the ISSA is to cooperate at the international level, in the promotion and development of social security throughout the world, primarily by improving techniques and administration in order to advance peoples social and economic conditions on the basis of social justice.
The responsibility for opinions expressed in signed articles, studies, and other contributions rests solely with their authors, and publication does not constitute an endorsement by the International Social Security Association of the opinions expressed by them.
All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers.
Notice:
Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe.
Library of Congress Catalog Number: 2001027203
Library of Congress Cataloging-in-Publication Data
Building social security: the challenge of privatization / edited by Xenia Scheil- Adlung.
p. cm. (International social security series ; v. 6)
Includes bibliographical references and index.
ISBN 0-7658-0878-1 (pbk.: alk. paper)
1. Social securityFinance. 2. Privatization. 3. Individual retirement accounts. 4. Social securityFinanceCase studies. I. Scheil-Adlung, Xenia. II. Series.
HD7101 .B85 2001
368.4dc21
2001027203
ISBN 13: 978-0-7658-0878-3 (pbk)
The International Social Security Association (ISSA) has for several decades published a report, usually once every three years, on the principal developments in social security programs around the world. The primary purpose of this report, customarily published on the occasion of the ISSAs General Assembly, is to highlight significant social security reforms and innovations that have recently occurred in the different regions of the world and in the various branches of social security, including old age, disability, health, unemployment, occupational risks and family allowances.
Whereas the previous reports focused on significant changes within the different geographical regions and branches of social security, this first report of the new century addresses a single development affecting all regions and branches: the trend toward the privatization of social security protection. Private provision is hardly a new phenomenon, since illustrations are to be found in the very origins of social security. However, examples of privatization have increased in number and frequency in recent years and the intensity of the debate about the implications of this trend has increased sharply almost everywhere.
Whereas, in the past, privatization could often be seen as being associated with the charitable efforts of religious organizations and community associations or as a complement to basic social security protection, today we find that in many countries it is related to market forces which have a significant impact on government decisions concerning social security protection as a whole.
What is the role of privatization today in the development of national social security systems? This is the critical question this publication tackles from different points of view, expressed by administrators, researchers, social protection experts, and representatives of international financial organizations, non-governmental institutions and other sectors. While the perspective of each of the contributors to this publication is markedly different, the overall objective cuts across differences: namely, to develop the most efficient and cost- effective system of social security protection.
The Authors
The ISSA is very grateful to all the authors who contributed to this publication. The different chapters have been written by well-known international experts and practitioners who analyze the pros and cons of various developments related to privatization in the different branches of social security.
The authors views and knowledge are derived from their first-hand experiences with social security in Africa, Asia, the Americas and Europe. Representatives of the leading international organizations dealing with social security issuesthe International Labour Organization, the OECD, the World Bank, and the World Health Organizationfurther expand the parameters of the viewpoints and experiences expressed.
Acknowledgments
I would like to thank the members of the project team whose efforts led to the successful conclusion that this publication represents. Xenia Scheil-Adlung was the editor, and developed the publication from its inception to its final outcome. She provided both policy and technical guidance to the project. Renate Schmitz was the administrative assistant who accurately supervised the work involved in the production of the four language editions of the publication.
The translators and many other persons whose names do not appear here also made significant contributions to the different language versions. A multilingual publication of this importance obviously requires a high degree of teamwork and coordination, and I profoundly appreciate the contributions made by all the ISSA staff members and other persons involved in the realization of the volume.
The debate over the respective roles of the public and private sectors in the provision of social security protection will continue for many years to come, with varying degrees of intensity, in all parts of the world. The ISSA fully intends to take part in this important debate which will inevitably influence the future direction of social security in the years to come.
