- 80 -
there is the widest public understanding of the purposes and achievements of social security schemes in contributing to social and economic progress through self- financing systems. This can be promoted by vigorous public information programmes conducted through government agencies, any existing social security institutions, and especially by organisations representing employers and workers. of necessity, the latter have to undertake the major task of educating and informing their members, and must be closely involved in the planning and implementation of social security programmes. These organisations can also do much to explain the rationale of these measurES to a wider public. In many countries there appears to be a growing public consciousness of and participation in national development planning and implementation. With informed public opinion, and the resulting increasing con- sensus for the promotion and development of social security schemes, more favourable conditions may be created for their rapid and effective development.
In
25. One aspect of basic importance is the extent to which social security institutions are equipped by
governments for their heavy and exacting tasks. some respects, administrative weaknesses have retarded the growth and impact of a number of schemes. It is only logical that social security organisations should be accorded the most suitable status and given all essentials for the discharge of their mandate. One objective should be to realise the many advantages of a unified administration over the whole field of social security. With sound and integrated administrative structures, responsive to the needs and aspirations of their populations, the prospects for the effective development of social security will be considerably enhanced.
schemes
6. FINANCIAL ASPECTS OF SOCIAL SECURITY AND SOCIAL SECURITY STATISTICS
(prepared by the Social Security Branch of the ILO and presented by Albert H. Robertson)
A.
Financing of social security schemes
Introduction
occurrence
The operation of a social security scheme essentially involves the provision of benefits in cash or in kind to the persons protected by the scheme on the of certain specified contingencies. The types of benefits, the conditions to be satisfied for their award, the rates of benefits, the duration for which they may be payable, etc., determine what may be termed the benefits structure of the scheme.
Given the
benefit structure of a scheme, there arises the problem of finding the money required to meet the periodic outgo on the benefits
and on the administration of the scheme, if this expenditure is also to be met from the resources of the scheme that is to say, determining the financial organisation of
the scheme.
-
It must be remarked, however, that the balancing of the income and expenditure of a social security scheme in such a way as to ensure its solvency is only one aspect of the problem. A social security scheme, being an integral part of the whole national economy, its financing can have important repercussions on the economy of the country. This paper is mainly concerned with the tormer aspect and will only occasionally refer to the latter aspect, which is treated in greater detail in other papers to be presented at this symposium.
Sources of revenue
One of the important problems to be settled in connection with the financing of a social security scheme is the determination of the sources from which the money required to finance the scheme will be drawn. Now, the possible sources of finance are the following:
the insured persons themselves;
E-1195-2D:5