Breaking Down Global Demand for Universal Social Security: Examining the Urgent Need for Comprehensive Social Protection Systems

Global Demand for Universal Social Security Groups Press Governments, IMF, World Bank for New Eco-Social Contract

October 3, 2023

Governments and international financial institutions are being urged by 43 human rights and economic justice organizations to prioritize the creation of universal social security systems that ensure the rights and well-being of all individuals. In a joint statement sent to the World Bank and International Monetary Fund (IMF) ahead of their annual meetings in Marrakesh, Morocco, these groups emphasize the urgent need for change and call on governments and financial institutions to abandon policies that have failed millions of people. The statement argues that social security is a fundamental human right that is crucial for sustainable economies and just societies.

The Case for Universal Social Security

Social security is regarded as one of the cornerstones of human rights, sustainable economies, and just societies. It is protected by multiple legally binding international treaties and encompasses a range of public policies and programs known as social protection. These programs aim to ensure income security throughout all stages of an individual’s life, providing support during events such as childbirth, old age, illness, disability, unemployment, and situations like climate disasters that increase the risk of income insecurity.

The current social security approach in many countries relies on means-tested programs, which determine eligibility based on income, assets, or narrow poverty indicators. Research has shown that these programs are often ineffective due to high error rates, corruption, and social mistrust. By focusing solely on individuals in poverty or extreme poverty, these programs exclude significant portions of the population who may not be officially classified as poor but still experience economic instability.

Rethinking Social Protection Policies

The organizations behind the joint statement argue that poverty-targeted programs, which have been promoted by the World Bank and IMF, have contributed to the exclusion and marginalization of large segments of the population. These programs have also undermined national social contracts and eroded trust in governments. Instead, they call for a shift toward a modern system of universal life cycle social security that provides protection for all individuals, from childhood to old age.

Moreover, recent reforms in some countries have further weakened social security systems, resulting in reduced coverage and benefits. The groups stress that government, the World Bank, and IMF must prioritize the investment in and strengthening of social protection measures that uphold international standards. This includes guaranteeing adequate employer contributions and income security.

The Role of International Financial Institutions

The joint statement calls on the IMF and the World Bank, as pivotal actors in financing and shaping social security policies in low- and middle-income countries, to take four key measures to improve the lives of millions of people:

1. Commit to Realizing the Right to Social Security

The IMF and World Bank should support countries in their efforts to establish or strengthen universal social protection systems that are aligned with human rights. This commitment should begin with the establishment of social protection floors.

2. End Poverty-Targeted Programs

Countries without universal coverage should cease the development of new poverty-targeted programs and gradually phase out existing ones. Instead, these programs should be replaced with universal alternatives that ensure the inclusion of all individuals.

3. Support Equitable and Sustainable Public Systems

The IMF should back equitable and sustainable public social security systems that meet international standards. This includes the provision of adequate employer contributions and income security.

4. Cease Austerity Measures

The IMF should halt austerity policies that compromise human rights and should refrain from promoting trade-offs in social spending. Investments in health, education, and social security should meet minimum international benchmarks as a percentage of GDP and national budgets.

A Call for Transformation and Justice

The signatory organizations emphasize the need for a comprehensive restructuring of social protection policies and reject incremental reforms that perpetuate injustice. They argue that genuine social protection empowers marginalized groups, eradicates poverty, and ensures ecological justice. Anything less than this would undermine efforts to address the global crisis and perpetuate inequality.

The joint statement underscores that the current combination of political, economic, and climate crises is disproportionately affecting individuals without access to social protection measures. By investing in universal social protection, governments and financial institutions can provide security, dignity, and fulfill the right to social security for all. This can have transformative effects, enabling children to stay in education, improving healthcare, reducing poverty and income inequality, and strengthening trust in government, democracy, and social contracts.

The Way Forward

To address the urgent need for universal social security, it is crucial for governments, the World Bank, and the IMF to take immediate action. By prioritizing the establishment of comprehensive social protection systems, these institutions will play a pivotal role in promoting human rights, reducing inequality, and fostering more just and resilient societies.

The signatory organizations behind this joint statement have highlighted the immense responsibility borne by international financial institutions in achieving universal social protection. By shifting away from the flawed approach of poverty-targeted programs and adopting a rights-aligned model, governments and financial institutions can pave the way for a more equitable and sustainable future.

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