TNAG-0531-FCO40-626-Application-of-International-Labour-Convention-to-Hong-Kong-1975 — Page 220

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4.

Speech delivered by Mr. Jaime C. Laya Deputy Director, National Economic and Development Authority

Mr. Laya said that the relationship between social security and national planning was an important one for two major reasons: the first was social security as an objective of national planning in itself and the second was social security particularly through its funding as a means of achieving national development objectives. It was a dual relationship, a symbiotic and simultaneous relationship that deserved a longer and more careful treatment than what it had obtained so far. He therefore considered that the occasion was a very auspicious and very productive one in the light of national development planning, not only for individual countries but for the region in general.

In the Philippines development plan, growth targets were expressed in terms of domestic capital formation, in terms of consumption of government as well as the private sector. The premiums received by the social security institutions were mentioned as a major source of domestic capital formation particularly for medium and long-term capital. And so it was to this extent that social security served as an intermediary and a mobiliser of funds; therefore it contributed directly to the attainment of growth targets in this light. The second growth target, major growth target of the national development plan, was in terms of consumption. And it was to this extent, therefore, that social security achieved success in redirecting consumption patterns towards the benefit of its members and for increasing the bene- fits received of member-employee and individuals. Therefore it contributed as well to the growth in private consumption.

The major problems of development were many and his country was faced with population growth problems, with unemployment, with income inequality, low living standards, inadequate infrastructures, price problems and with balance of payment problems. He hoped that the seminar would address itself to the question as to how the social security and welfare objectives of development might be addressed to and explored in greater detail and in greater depth.

The national development plan of the Philippines was concerned with maximising employment and with equitable income distribution. His country was concerned with regional development and social development and in order to be able to achieve these components of the development strategy, there were certain key programmes of land reforms, housing, food, co-operatives, health and generally social welfare and community development.

And,

therefore, there were the two major objectives which the seminar might consider as pertinent. One, in terms of the consumption and in terms specifically of services rendered to the member individuals of social security schemes, was direct income distributive measures. They included fringe benefits and other direct benefits in times of sickness, old age and retirement, and even consumption loans which may not be available to the members ctherwise. These shculd be considered as the package of measures

and services rendered to members and, therefore, as an element of the consumption which was precisely a part of the national development plan.

The other role that should be considered was the role of social security as a mobiliser of savings in the sense that it acted as financial intermediaries to be able to gather small streams of funds in order to be able to collect them intc a large Fool of savings that might be available for meaningful purposes that would be either contributive directly to the objectives of social security but also contribute to the objectives of development. Thus the funds were mobilised by the system for development priorities, not only for industries and agricultural enterprises but perhaps mainly for social security services and related programmes including hospitals, schools, housing and short-term consumption loans

and SO on. This constituted, therefore, a major source of long and medium-term financing as well as consumption loan financing that might not be elsewhere available.

The Deputy Director stated that the concern of the Philippine national development planning was primarily in terms of growth and in terms of income distribution. The new dimension that was the subject of this particular seminar was very welcome and very timely because this particular area which was often taken as implicit in the development process now deserved explicit attention. He and his agency would, therefore, look with great interest on the results of the seminar.

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