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The level of income maintenance benefits will depend on the econcric possibilities and the political will of decision makers in different countries; for the time being, the level most frequently aimed at seems to range from the subsistence level to that of minimum wages. The application of planning methods to the social security field is not likely to change anything in the nature of the above-mentioned determinants of benefit levels. It may, however, bring a major improvement in rationalising social policy decisions on these matters by making them more transparent and by bringing them within the reach of understanding of every citizen. This can be achieved if, for the purpose of planning, benefit levels are linked to some clearly defined standards, whether they are related to earnings, con- sumption levels or poverty lines. If this is done, the benefit level will no longer be the result of an ad hoc compromise or of a more or less accidental mix of social, economic and political factors, but will be related to some objectively measurable basis which can also be used for measuring improvements in the quality of protection offered by the scheme. 1
The question of the system of finance used by different social security schemes represents, of course, one of the central issues of the whole problem both in industrialised and in developing countries. As long as a relatively low level of benefits is aimed at in covering a more or less homogeneous population under one social protection measure, a uniform system of finance based either on uniform contributions ΟΙ on payments out of the general revenue may be adequate. However, when it is intended to provide for a higher level of benefits or cover population groups of different socio-economic conditions, more complicated systems of finance are normally sought, permitting closer adaptation of the system to the particular situation of each group.
In the case of schemes for wage earners, normally financed by a tripartite contribution of the
employee, the employer and the State, there should not theoretically be a difference as between these three sources of finance since, in the last analysis, the cost is paid for by the citizen in his different capacities as wage earner, consumer and taxpayer. In practice, however, there will be a difference in the amounts cóntributed by the citizen under each of the three headings, depending on the amount of contributions and the incidence of direct and indirect taxation. The decision regarding financial systems will therefore depend largely on the particular conditions prevailing in any given country.
Social protection measures for the agricultural sector require a special system of finance adapted to the income position of the population groups to be covered. Thus, for instance, the Mexican scheme of social security for agriculture provides for three different systems of finance, depending on whether the protected person is a wage earner, a member of an agricultural or rural credit society or an independent smallholder. In other schemes, account is taken of the fact that the cash income of the agricultural population is not available regularly throughout the year.3
It is evident that new methods of finance would have to be developed in order to cover the cost of measures in favour of the urban marginal groups previously mentioned in this chapter. What is needed is not only a great deal of research into the questions concerning the economic impact of social security schemes but alsc a spirit of innovation in facing the challenge of social policy problems in developing countries.
With regard to planning of the administration of social security schemes, the problem in developing countries depends entirely on whether it is a question of introducing a new sheme in a country without any administrative experience in this field, or whether it is a question of enlarging an existing sheme by covering new population groups and new contingencies. In the former case, the essential issue is
1 On this subject see M.-M. Ramalho: "Setting of Standards in Social Security Planning" in Current Issues of Social Security Planning - Concepts and Techniques, op. cit.
2 In the case of smallholders, urban undertakings are required to cover 12.5 per cent of the state contribution in`order to help finance the scheme. See: Lucila Leal de Araujo, op. cit., p. 309.
3 See T. Higuchi: "Medical Care Through Social Insurance in the Japanese Sector", in International Labour Review, March 1974, p. 268.
Rural
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