Social Security

Ms. Nirja Mattoo,
Executive Director (CASP)

Definition

"Social Security means that Government, which is the symbol and representative of society is responsible for fixing a minimum standard of living for all its citizens". G.H.D. Cole (Social Scientist).

"Social Security is an instrument for social transformation and progress and must be preserved, supported and developed as such. Furthermore, far from being an obstacle to economic progress, as is all too often said, social security organized on a firm and sound basis will promote such progress, since once men and women benefit from increases security and are free from anxiety for tomorrow, they will naturally become more productive.' (Preface to " Into the 21st Century: the Development of Social Security")

Need for social security

The concept of social security has evolved out of man kinds quest for protection from the hazards arising out of vagaries of nature and from arising out of life and work in modern societies. With the advent of industrial revolution in Europe a new class of "workers" emerged. Broken away from their families and villages they were totally dependent on wages for subsistence. In due course, a comprehensive social security systems was developed covering all eventualities from conception and birth till death like pre-natal and maternity benefits, paid leave, medical care, pensions, unemployment benefits, family allowances and old age pensions, etc.

Historical background

The first beginning for realization of social security were made at the time of French revolution when a declaration of rights of man was proclaimed which later went to serve as a preamble to French Constitution. After the First World War the International Labor Organization (ILO) was established under the treaty of Versailles. The treaty referred to need for the workers providing them the right to social security. Later in 1944 a declaration was adopted by ILO along with other Nations of the World covering the extensions of social security measures.

The ILO since its inception has been adopting resolutions, recommendations and conventions on various aspects of social security. But in 1952, a comprehensive convention (No.102) concerning Minimum Standards of Social Security was adopted in which provisions were made for Medical Care, Sickness Benefit, Unemployment Benefit, Old Age Benefit, Invalidity Benefit, Employment Injury Benefit, family Benefit, Maternity Benefit and Survivor's Benefit. Subsequently ILO has formulated a number of Conventions and Resolutions amplifying and extending the scope of various measures of Social Security.

The concept of Social Security has been further widened, so as to include provisions for housing, safe drinking water, sanitation, health, educational and cultural facilities as also a Minimum wage, which can guarantee workers a decent life.

UN resolution

The United Nations General Assembly adopted in its Universal Declaration of Human Rights stating that "every member of a society has a right to social security". As Mr. Francis Blanchard, Director General, ILO says, "Social security is an instrument for social transformation and progress".

South Asian perspective

The developing countries in Asia and Pacific are predominantly agricultural. The societies in these countries have derived their support and sustenance from their time tested mechanisms, founded on the caring for the individuals by the family and community. The growing urbanization has produced a two-fold effect. Firstly, it has eroded the homogenous character of a rural community and secondly, it has brought about the need to provide an alternative form of social security in vulnerable environment. The diversity of historical factors and a noticeable variation in the pattern of social security development have made the countries in Asia and Pacific to adopt various schemes. This was done also in the interest of vast unprotected groups and the informal sectors but the inadequacy of infrastructure and the high operational costs in extending social security and protection to various groups like marginal farmers, artisans, agricultural workers, fishermen, etc. have constrained the planners to adopt a conservative approach of maintaining the status quo and deferring the extension to the excluded groups.

Availability of basic facilities for primary education and primary health care is very poor in South Asia. Poverty with malnutrition and deterioration in the health of women signify very low levels of social development in these economies. With the emerging ageing of the population, old age social security also assumes special significance.

The developing countries in Asia and Pacific have to adopt a critical approach towards the implementation of social security schemes. The enormous social needs and a host of contending priorities of the entire population cannot be covered and a selective approach has been adopted.

The main obstacle in the extension of social security coverage is due to high operation cost and inadequate infrastructure, which has always been unaffordable and unavailable as a resource to a developing nation. The problem for rural coverage has also contributed in many ways in large-scale implementation. Many Governments find their rural communities with a weak economic capacity, low educational levels, and seasonal work making it difficult in determining wages.

Social Security is one of the important dimensions of the development process. It assumes a place of special significance in the developing countries, where poverty, destitution and income inequalities abound in large measure.

While growth is an important precondition for expanding the scope of social security, no less important is the need for adopting special social security policies. The concept of social security includes many crucial aspects of human development. Education and health facilities, old age pension, security of jobs, insurance against risks, unemployment and deprivation, are some of the issues that come within the scope of social security. There is a major on-going debate on finding ways and means of bringing the informal sector into the fold of social security schemes in a more effective manner. This kind of widening of scope of social security schemes is a socially desirable objective. But achieving it is a daunting task as the informal sector in South Asian countries is excessively large (usually larger than 50%). It has significant policy implications in terms of allocation of resources and implementation of schemes. Some efforts are on but we need to put these issues at the forefront.

Social security in Indian context

Several developing countries in Asia and Pacific have been searching for extending alternatives social security protection to various groups. Each country is faced with a different situation. India as such is a vast nation with one-sixth of the world human population. The social security measures planned and implemented in India in the post Independence era has been limited to organized sectors whereas the majority of the work force earns wages through unorganized labor markets. The Government of India has been dealing with a population that has been ever growing. The planners with the limited resources have barely been able to cope with the ever-increasing demands. The rapid disorganization of a joint family system due to urbanization is leaving more and more families in secured, vulnerable and devoid of social security. The Government institutions and NGOs have to build up a system in order to built in a community-based network.

The social security in India have been addressed partially as the Government of India has incorporated various Acts:

1. Workmen's Compensation Act, 1923;
   
   
2. Maternity Benefit Act, 1961;
   
   
3. Employment State Insurance Scheme, 1948;
   
   
4. Measures for Old Age, Invalidity and Death:
   1. Employment Provident Fund Scheme, 1925;
      
   2. Coal Mines Provident Fund Bonus Scheme, 1948;
      
   3. Employees Provident Fund Act, 1952;
      
   4. Employees Family Pension Scheme, 1971;
      
   5. The Assam Tea Plantation Provident Fund Act, 1965;
      
   6. The Seamen's Provident Fund Act, 1966.
      
      
5. Health Safety and Welfare of the Workers;
   
   
6. Safety Health and Welfare of Dock Workers (The Dock Workers Regulation of Employment Act, 1948);
   
   
7. Other measures:
   
   1. The Survivorship Pension Scheme, 1971;
      
   2. The Lay-off and Retrenchment Compensation (Industrial Dispute Act, 1947 with amendment in 1953);
      
   3. The Old Age Pension Scheme (The Family Pension Scheme, 1964).
      
      
8. Social Security Measures under consideration:
   
   1. Gratuity Trust Funds
      
   2. Unemployment Insurance
      
   3. Integrated Social Security Scheme

The above schemes from time to time have been discussed, amended in the Parliament as per the need. Many more schemes encompassing the larger context of social security is being discussed. The Government is trying to bring aspects like environment, habitat, health and nutrition in a larger gamut of social security interventions.

On 1st November, 1999, in his inaugural address in an International Conference on "Social Security Policy: Challenges before India and South Asia, Mr. K.C.Pant, Deputy Chairman, Planning Commission highlighted

" Just extending the formal sector schemes to the informal sector would be too simplistic. One point is often made that if we do so the amount to be redistributed from the income of formal sector employees to those belonging to the informal sector would be enormous and would have implications for further taxation of a very high order. This highlights the imperative need to find new alternatives to ensure social security in the informal sector rather than simply attempting to expand the scope of formal sector schemes.

Similarly, we cannot simply borrow a social security policy design that has been successful in some other developed or developing country. We need to critically evaluate the experiences of both developed and developing countries in order to gain insights into the nuances and interplay of different factors within the overall design of their social security schemes. Taking into account the South Asian region-specific economic and social characteristics and, within the region, country-specific realities, in evolving a framework for social security policies, is a major challenge to which this Conference would have to address itself."

In the broader context, all vulnerable groups need social security. The most vulnerable group consists of those who have neither physical endowments nor financial resources for gainful employment and therefore they do not have the purchasing power to afford a minimum standard of living. Even though India has achieved self-sufficiency in food production at the national level, food and nutrition security at the household level is yet to be achieved. This is the new challenge. In recognition of this fact, a targeted Public Distribution System was introduced with the objective of providing the people access to food at prices they could afford, particularly in deficit and inaccessible regions of the country with a concentration of the poor. In addition, pre-school children and pregnant and lactating mothers receive supplementary nutrition through the ICDS, and a new mid-day meal programme has been introduced to provide nutritional support to school going children. In order to enhance incomes of the rural people supplementary wage employment programmes like Jawahar Rozgar Yojana and Employment Assurance Scheme are in operation. These schemes ensure that in the lean agricultural season, casual manual employment is available in public works to those who are in need of work. Schemes like Prime Minister's Rozgar Yojana (PMRY), Integrated Rural Development Programme and the Swarna Jayanti Rozgar Yojana (SJSARY) encourage self-employment. While the first scheme is to provide self employment to the educated unemployed, the last scheme is for the urban areas."

Social security and women

The Government of India from time to time has moved legislations that concern social security of women. Although all its Acts are gender sensitive, however, newer dimensions have been provided to make women rights more relevant in modern sense. The Hindu Marriage Act, 1956 reasons out the division of property in a Hindu joint family structure and the rights of a woman. Maternity Benefit Act, 1961 addresses the need of maternity leave for a workingwoman in various sectors during and after childbirth. In case of separation, the woman is given the equal right to guardian the child by a court of law, which leads to a high degree of emotional security. We therefore understand that various laws have been enacted by the Governing Bodies to provide inbuilt support system for providing social security to women.

Also recently, the Supreme Court of India has given landmark judgment protecting women against Sexual Harassment in workplace but again the judgment has only remained on paper and again 'the workplace' is only confined to organized workplace and there are no laws to protect women against their exploitation in the large unorganized work areas.

Social transformation and change

Provision of social security in a dynamic society by State Legislations can be seen as an element of social change. In a modern context the provision of social security does not limit itself as a State subject. The time has come when people, citizens and institutions by and large should come forward and participate in the decision making process that affects them while designing the policy matters on social security concerns. As this can be seen from the fact that various Governments have addressed the need of various notified communities and groups and thereby helped them to join the development main streams e.g.

1) The Untouchability Offences Act, 1955 - By Act of Parliament, Government of India.
2) The Women Reservation Bill - Under consideration.

Strategies & development of social security in a rapidly changing environment

The challenges of social security have become increasingly acute. There is apprehension that the fast pace of liberalization and globalization would increase social tensions since the system is not geared to the task of providing social security in an adequate manner. It is accordingly urged that the pace of liberalization and globalization should be in conformity with our ability to put in place a suitable social security system. National pension programmes have an effect on saving and investment decisions, the nature of labor supply, international competitiveness, and sustainability of development in general. Therefore, while undertaking macroeconomic reforms, these issues would have to be taken into account.

We must, however, recognize that the pressures of modernization have undoubtedly led to a weakening of these social support systems. The large-scale migration that has taken place over the years from our villages to the cities has taken people away from their social milieu and placed them in a situation where there is little support they can count upon. Therefore, there is need to take steps to ensure that in this period of rapid transition in which disruption and displacement are natural consequences of a process of economic growth, we can provide support to the people. Also, there is need to assist social groups who are being marginalized in this process of development. India is undertaking large-scale disinvestments of its public sector undertakings and the key 'mantra' given by the government to the employees is "VRS" (Voluntary Retirement Scheme), which is also referred to as the golden handshake. As the saying goes - All that glitters is not gold and the VRS scheme has come in from a lot of criticism from many corners. Hundreds of individuals from the organized and unorganized sector are getting displaced from their positions by the means of technology or large / small development projects like dams / infrastructure / MNCs. There is no provision of any effective Relocation and Rehabilitation package for the Project Affected Persons (PAPs). The large-scale displacement of people during the Narmada Project is a glaring example of no social security net available to the local inhabitants who were displaced by the project.

The city of Mumbai (formerly Bombay) has seen the displacement of nearly 50000 families since last year due to the displacement of people from notified land or for expansion of railway projects. Not even a quarter of the displaced have been rehabilitated.

While the process of globalization and liberalization expands the scope of the opportunities for development, it has also implicit in it the threat of ignoring many of the concerns of social development.
One issue that particularly warrants our attention is the minimization of social costs while aiming at economic efficiency. This poses special policy problems. If we succeed in balancing the objectives of technological modernization with employment growth, we would have taken a major step forward towards a secured society.

Views gathered from experts

Views gathered from experts at a recent three-day international conference on 'social security in India and South Asia' organized by the Research and Information system for the non-aligned and other developing countries (RIS).

Among those who participated in the event included well-known economists, political and other social scientists, senior Government officials and social activists from Sri Lanka, Bangladesh, Nepal, Malaysia and Australia.

Expert Recommendations on Social Security

• Experts have called for stronger cooperation at the political level as inconsistencies and lack of coordination among various programmes, departments, ministries and states is leading to denial of benefits to vulnerable sections as well as marginalized groups in the unorganized sector.
  
  
• Policy experts and social activists are also of the opinion that it is necessary to seek savings outside the formal system.
  
  
• India should learn a lesson from its Asian neighbors that there should be enough safety nets for the poor, including workers and unemployed in liberalized economy. While economic reforms would lead to greater economic opportunities, there are substantial sections of society, which do not have resources to enter market operations.
  
  
• The experts said there were too many expectations from the Government. It was necessary to move away from such a mindset. Government should be a promoter not a preventer of risk management. It was important to rely on micro credit and insurance taking clue from successful models, they said.
  
  
• Dr Panchamukhi said while the prospects of higher growth and greater efficiency in resource management have become greater than ever before, the challenges of social security, particularly for the old people, destitute, unemployed, economic stability and social justice have increased both in scope and complexity. Reforms in the fields of pension system, insurance, labor markets and financial markets will have to be suitably designed and implemented with a view to increasing the effectiveness of the reforms, in general in generating high growth and greater efficiency in a sustained manner, Dr Panchamukhi said.

Many feel that there is no social security in India. Even the concept of it does have neither credence nor subsistence in the country. Some feel that Indian laws are not up to international standards and cannot help meet the social security needs of the country.

Only 0.2% of GDP is allocated for Social Security. Out of the scarce resources allocated, most of them do not reach the concerned populations because of high red-tapeism. Though there are many laws and legislations to protect many vulnerable groups the justice is often delayed. There is a big gap between the policy and implementation. Also the laws and legislations are only enforced in 10% of the economy, which is the organized sector. There is wide spread exploitation of women and children.

It is needless to say that it is the bounden duty of every society to ensure that each child born regardless of the denominations that he was born into should be ensured social security. Each individual should be given an opportunity to realize a happy life and no worker who has contributed to society should be made to die of hunger and other needs. The social safety nets were required to protect each member of the society and unlike in many other countries, India had yet to realize the dream of a socially secure society.

Role of institutions

Institutions by and large are an important entity for developing and supporting a proactive social security network in a democratic society. In recent past we have seen development of people's participation in formation of cooperative institutions for providing financial support. The larger corporations may it be banking, finance, service or welfare are focusing more attentions towards social security packages that leads towards sustainable development process. Several International agencies are also building support systems in developing countries for reaching the marginal people to deliver a security network. Lately we have seen the rise of UNDP, ADB, ICICI, IDBI, World Bank and various corporate entities designing themselves to take up the issues on social security. The academic institutions also contribute towards policy decision making by providing technical inputs.

NGOs (non-governmental organizations)

The voluntary organization in a participating process towards implementation of social security measures has mostly risen during and after the post world war scenario. The non-Governmental organization focusing towards any developmental activities have sustainability factor in mind for its beneficiaries. The activities designed by and large cover the overall development may it be in an institutionalized or de-institutionalized form. They also promote to cover the larger perspective of education, health, income generation, community development and social responsibility, which provide a security net directed towards sustainable development. In Indian context most NGOs follow the Gandhian concept of development whereby every village becomes a self-sustained village and every family plays an integral role in the development of the village.

CASP

CASP is a child focused, humanitarian organization without any religious or political affiliations. It has been working for the development of children, their families and communities (below poverty line) for the past 25 years. Currently CASP is sponsoring nearly 75000 children in nine states of India

Community Aid & Sponsorship Programme (CASP) has been playing a key role to provide inbuilt support system to its clients for promoting social security. The organization thus deals and addresses the overall need of a child, family and its community. The programmes that have been undertaken start with educational and health needs of the child, covering infra-structural and income generation requirements of the family and with environment responsible for progressive development in the community. The activities include health insurance, accidental insurance, and formation of credit and industrial cooperatives, women income generation groups, children's banks, scholarships and community based service oriented functional groups.

Our major thrust

CASP has a philosophy of achieving its objectives through people's participation and different stakeholders who are involved while implementing various programmes. Keeping in view the social security aspect CASP as an organization firmly believes that security should be culture specific and woven with the emotional bonds. Merely providing economic security will not lead to the development in totality. Hence strengthening institutions like family and community is very significant towards sustainability of the safety net. It is essential to integrate these institutions with the outside resources so as to make a stronger society.

CASP has been moving with the time and providing inputs to its beneficiaries to become sustainable to various developmental interventions. Training and networking are our core components.

CASP has enabled families and groups towards formation of cooperatives. These infrastructures have become institutions today with an objective of creating safety net for the people e.g. In one of the slum areas 107 cooperative housing societies have been formed which takes care of all the housing and environmental issues of that particular slums. The population covered in this area is approx. hundred thousand people. Similarly the credit co-operatives of women groups take care of the financial aspects and needs of the neighborhood communities. CASP being a child-focused organization has also trained children and has inculcated the habits of saving and working in a team. The schools have started a bank where these children save and use amount for their school needs and supplies. The children have also formed their own cooperative wherein they purchase material in bulk and supply at a very reasonable rate. These are some of the program interventions, which have become an integral part of slum development.

With a view of development, social security should have holistic features combining social structures, institutional resources, family bonds, community organizations and resources so as to create an environment of strong relationships, which provide safety nets at all levels.