Trends in Social Security Reform and the Uninsured
Social Protection for the elderly uninsured should be placed within the wider problem of improving universal coverage of Social Security Programs. Reforms to Social Security are increasing the participation of non-governmental third parties in protecting workers against myopia, risk and uncertainty. If the mix of public and private parties is not adequately built, conflicts between access and the principles that guide their actions may occur. Regional trends in Social Security networks show that, when organized by sectors, they have created Social Security clusters. Guided by equivalence and actuarial principles, private insurance companies and pension fund administrators respectively have come into conflict with the principle of solidarity needed to achieve universal access to minimum guaranteed care/income. To avoid these conflicts, this note suggests (as do other authors) that Social Security systems should be organized by functions instead of by sectors. Solidarity should be implemented at the finance level, and regulation of markets where third parties operate must be put in place to deal with market imperfections.
Last updated: 04/26/07
