Content
Social security
Social security: an important instrument in the fight against poverty
"Everyone, as a member of society, has the right to social security…"
Universal Declaration of Human Rights, 1948
Three quarters of the world’s population have to live without any sort of social security. They have no protection against risks such as sickness and unemployment. One hundred million people each year fall below the poverty line simply because they cannot cope with the financial burden entailed by sickness. Sickness is the most common cause of impoverishment in the world.
Social security is a human right. But it is also essential to sustainable economic development and successful poverty reduction – and thus a key to attaining the Millennium Development Goals. Those who are ill and living in poverty cannot participate in economic and social development.
The absence of social security seriously weakens a country’s economic productivity. Conversely, it is clear that countries that invest in social security systems are more successful economically.
In many developing countries traditional mutually supportive groups – first and foremost the family – are the only form of social security. But demographic developments, the rapid spread of HIV/AIDS and the growth of migration mean that more and more of these structures are stretched to breaking point. Women are the hardest hit. For this reason – and on account of growing social inequality in many countries – supplementary social security systems are becoming increasingly important. They contribute to social equity and thus help to maintain stability and peace.
Social security is not a luxury. Studies conducted by the International Labour Organization (ILO) have shown that they are financially feasible even for low-income countries, given the necessary political will. These countries must invest, roughly, between one and three per cent of their gross domestic product to set up basic countrywide social security programmes. There are no ready-made templates for such programmes: the crucial thing is to develop systems adapted to the particular requirements of each country. Experience has shown that reform processes are only effective in the long term if the state, civil society and the private sector work closely together. They can then create a common social security system for the whole population, taking the interests of all stakeholders into account.
Publications
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Strengthening Social Protection Systems in Developing Countries and Emerging Economies
(PDF 388 KB, accessible) -
Social and Ecological Market Economy Principles in German Development Policy
Strategies 158
(PDF 234 KB, accessible) -
Microinsurance as a social protection instrument
(PDF 492 KB, accessible)
