TNAG-0531-FCO40-626-Application-of-International-Labour-Convention-to-Hong-Kong-1975 — Page 117

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realities falling short of the ideal type of a perfectly self-regulating market mechanism, conventional micro-economics is

highly versatile approach to the discussion of demand for and supply of protection against socio-economic hazards. This article then upholds development economics as the most appropriate kind of economics for an analytical discussion of social security. Implications of development economics are then applied to the interpretation of certain quantitative data on social security development in Asia and Oceania. Plausible as well as implausible ideas expressed by others are also examined in this connection. Finally, the relationship between social security and income distribution is taken up and efforts are made to ascertain the promises and limitations of social security in the context of structural characteristics of developing countries.

I. Economists justification of social security

problems

This section defines social security and explores certain conceptual that arise in relation to the justification of social security as a valid or legitimate area of concern to the State. The discussion is functional and legalistic rather than ethical a nd

normative. The initial task is to offer a definition of social security. This leads to the discussion of key concepts involved in it. The basic issues have to do with relationships between the individual or family on the one hand, and society at large ΟΙ the State on the other. A branch of economic theory called welfare economics has a way of judging whether a change introduced into the status quo of socio-economic conditions contributes to society's aggregate economic welfare. The "efficiency criteria" proposed by welfare economics, considered acceptable even by the most value-free economists, are useful for ascertaining the legitimacy of social security under changing circumstances. Economic growth, which is a change in society's output Fer head of its population, represents the most relevant changing circumstances for the purposes of this paper.

What social security essentially is may be illustrated by resort to statements by the authorities in the field. Arthur J. Altmeyer views social security as governmental programmes "designed to promote the economic and social well-being cf individual workers and their families through providing protection against specific hazards which would otherwise cause widespread destitution and misery."2 A derivative of this view is that social security at least purports to ensure the continuance of life at a minimum standard of health and decency when usual income streams of individuals and their families are temporarily or permanently disrupted by certain socio-economic hazards. It is clear that this derivative statement of what social security purports to do is highly restrictive. It limits protection to those whose usual income streams are above a certain stipulated minimum standard of health and decency. This immediately raises questions dealing with those whom society calls "poor' and whose usual income streams are below the standard of income adopted for purposes of social security. Vladimir Rys's perception of social security seens to include provisions for the "poor" as a part of social security. "The essential task assigned to social security" he points out, is "that cf providing for persons who, through no fault of their own, become victims of a social accident Or find themselves in a socially highly disadvantaged position."3 As for the level and coverage of provisions, Rys's view is suggested by this passage: "social security is primarily designed

for the sake of guaranteeing to all citizens a certain level of living based on a certain concept of social justice."*

The most important words in the foregoing definitions are "hazard" and "accident". Two groups of recipients of social security benefits are identified: "victims of a social accident" and those "in a socially highly disadvantaged

1 Tibor Scitovsky, Welfare and Competition 1951).

(Homewood, Ill.:

Richard Irwin,

2 Arthur J. Altmeyer, The Formative

ive Years of Social Security (Madison, Wisc.: University of Wisconsin Press, 1968), p. 6.

3 Vladimir Rys, "Problems of social security planning with particular reference tc developing countries", East African Symposium on the Relationship of Sccial Security Social Planning and Economic Development, Dar es Salaam: 1973, p. 2.

• Ibid., p. 3.

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