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3.
Social security in Asia: effectiveness and short- comings of various
arious types of social security measures adopted_by_developing countries in Asia: and perspectives of social security development in Asia (working papers prepared by Kenneth Thompson)
administration.
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The discussions which took place on these working papers were in essence divided into two major categories issues relating to principal policy questions on the one hand and, on the other, various practical aspects of social security priorities in For example, discussions about the determination of the development of social security, the effectiveness and shortcomings of provident fund schemes as compared with pension insurance schemes, etc., belonged to the first category, whereas the second category included discussions concerning wages as the basis of fixing contributions, methods of providing medical care, the need for workers' education programmes for the effective implementation of a social security scheme.
The
Having noted the present position of social security development in Asia and the effectiveness and shortcomings of various measures of social security adopted by developing countries of the region, the seminar discussed the question of how to approach the problem of establishing priorities in policy decisions for future development; for example, whether or not the effort should be directed towards the introduction of new benefit branches, instead of towards the extension of the existing scope of protection to the sectors of the population not so far covered for instance to rural workers. In this regard, the seminar noted that there was по exact programne or model which could be universally introduced ΟΙ followed. need for further development might differ from one country to another and there were many other factors to be taken into account when a particular country decided to establish a priority order. Such factors would include the administrative feasibility, the stage of infrastructure development, the availability of medical personnel and facilities, etc. Some participants favoured the further extension ct the present scheme, while others pointed out the possibility of both extending the present scope and introducing new benefit branches. It seemed to be the consensus of the seminar, however, that there should be a balance to be struck and that a careful study was necessary when a country had to decide its policy ОГ further promotion of its social security system.
In the discussion of various measures of social security, the seminar noted with interest that in one of the countries
represented where its population had grown sharply in recent years and where the majority of establishments were of a very small size, a social assistance scheme was in operation to provide protection to needy persons, subject to a test of means. There seemed to be a consensus that it was necessary to adjust the social security system to the particular needs and prevailing conditions of the country concerned.
The seminar devoted some considerable time to the discussion of provident funds versus pension schemes under social security, including the advantages a nd disadvantages of lump sum payments and periodic benetits. Some participants considered that a provident fund scheme was effective enough to provide a meaningtul social protection in an inflationary economy, if it was linked with a state programme to encourage workers to purchase their own houses. They also indicated that a lump sum payment provided by the provident fund scheme could be employed wisely by the recipient to meet his requirements during the contingency concerned, and therefore the effectiveness of a lump sum payment should not be categorically denied.
In this connection it was pointed out that where provident fund contributions amounted to as much as 30 per cent of wages, it should be possible to introduce a pension scheme as well as the provident fund which might be used for the housing purpose, So that a worker having meagre resources ог none would have a pension in addition to his house. One of the participants, however, considered that whenever a country attempted to convert one scheme to another, it was essential to make proper feasibility studies to find out whether or not the country could afford that. Some other participants from the countries where a provident fund scheme had been in existence for ma ny years were, however, of the view that certain modifications and improvements would be necessary to ensure effective social protection by overcoming the well-known shortcomings of such a scheme that were discussed in the working paper. Where private but approved provident funds were in operation, a worker frequently changed his employment simply to obtain payment of the lump sum so far accumulated in his account. A lump sun benefit under a
provident fund scheme might not be enough to cover the need of persons protected, particularly in the case of invalidity and death at a younger age, because only a
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