TNAG-0531-FCO40-626-Application-of-International-Labour-Convention-to-Hong-Kong-1975 — Page 98

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the limited government health budgets, a significant proportion are deployed in the private sector. Due to the general lack of paying capacity and of an organised demand, these medical resources may be underutilised and the preserve of small groups of persons by virtue of their employment or ability to pay. It may be considered justifiable to make a more rational use of the medical resources in a self-financing scheme providing medical care is organised in the fullest co- ordination with the public health authorities, and especially so if it is regarded as a springboard for a similar initiative in less well-favoured areas. Such schemes of medical care under social security have the important general advantages of removing some of the burden from the public health system, of generating an effective demand for medical services which results in an increased supply, and of providing additional means of promoting family planning in accordance with government programmes in this key field.

9.

There have been recent instances of amendments to employer liability legislation relating to maternity benefits effecting reductions in the amount of leave and also limiting entitlement to a certain number of pregnancies. This may be due to a belief that maternity benefits are inimical to family planning programmes. Although in many developing countries the internationally agreed standards for maternity protection2 have been in force for some years, there is no evidence that they have a significant effect on the birth rates. Maternity benefits, which are easy and inexpensive to administer, should be taken over or introduced by the social insurance schemes. In the interests of mother and child, adequate periods of leave should be allowed before and after the confinement, at rates equal to, or higher than, for sickness, and without limitation of the number of pregnancies which qualify.

10.

It should be borne in mind that whilst the financing of employment injury protection under social insurance is the sole responsibility of the employer, the usual system of bipartite or tripartite contributions applies to sickness and maternity schemes. The apportionment of social security contributions between employers and workers should reflect the fact that the programmes under replacement are entirely financed by employers, otherwise the new systems, even with enhanced benefits, may not be fully acceptable to workers.

Old-age, invalidity and survivors' benefit schemes

11.

In the rapidly-changing social and economic condition prevailing in developing countries in Asia, there is an undoubted general need for more effective provisions for old age, invalidity and death of the breadwinner. There are already a number of pension schemes, although not all cover the three contingencies, and some statutory provident funds. In view of the fundamental deficiencies of the national provident funds, they cannot be regarded as fully effective forms of long- term income maintenance. In other Asian countries, there are no statutory programmes of financial support other than public assistance, measures for the needy, and in some instances these are of a very rudimentary nature.

The

12.

Social insurance principles have their greatest value in respect of the long-term contingencies, in which benefits corresponding to the social needs of the beneficiary are payable periodically and can be made available within a few years of the inception of pension schemes. Their financial systems are flexible and can be selected according to some of the main requirements regarding the level of con- tributions to be borne in the initial phase and the optimum size of reserves. most promising area of development of pension schemes, necessarily on a modest scale but corresponding closely to the internationally agreed minimum standards3, would seem to be the conversion of the provident funds, because there is a growing realisation of the need for such a reform, and with their relatively high contribution rates, wide coverage and proven administrative systems a changeover could be effective very quickly. In some instances, it will be necessary, possibly with the assistance of trade union channels of education, to disseminate information to the members on the overriding advantages of pension schemes, and thus create the conditions for the necessary political decisions. Undoubtedly, a crucial question

↑ "Social Security in Asia", Appendix III (ASS/11/2/1974).

2 Convention No. 103 concerning Maternity Protection, 1952.

3 Convention concerning Minimum Standards of Social Security (No. 102), 1952.

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