Are the recently adopted reforms of social protection "recession-proof"?
At CINEFOGO’s first final conference in Brussels 17-18 March 2009 prof. Bjørn Hvinden from the Norwegian Social research institute in Oslo asked whether the reforms are recession-proof and gave his policy recommendations on the topic.
For many years, the European Union has sought to modernize national systems of
social protection. However according to prof. Hvinden, it is unlikely to see any
strong trend towards union in the overall packages of actual policies, citizens’
rights or the amount of public resources.
Activation reforms have since
the mid 90’s shifted from passive support for people out of work to more active
forms of support which on the one side have tightening up of systems of income
maintenance and on the other side have stepped up their investment in human
resource. However, prof. Hvinden allarmed: "if European economies are on their
way into a deep recession both sides of the activation support may be contested
or undermined".
Prof. Hvinden also concluded that pension reforms have
depended on the overall pension system in individual Member States.
Nevertheless, in many Member States an ambition has been to discourage early
retirement and postpone the retirement. In recession periods this ambition may
be undermined as many companies may be obligated to fire employees. It is
therefore an open question how much choice the elderly individual has in
practice on postponing the retirement. Moreover, prof. Hvinden emphasized that
if occupational pensions or private savings make up substantial parts of the
overall pension package, these parts may be at greater risk in a deep recession
and the elderly is more dependent on publically provided pensions.
Reforms within social protection for persons with disabilities have
sought to provide more relevant support by acquiring better skills or improving
financial support. Still, in many cases assistance for workplace accommodation,
independent living and suitable transport are needed and if provisions are
governed by local administrations or limited budget, they will be vulnerable in
recession.
On these statements, Prof. Hvinden’s recommended Member
States to:
1) review the rules and requirements introduced under the
activation reforms to ensure that the situation of people out of work not gets
worse.
2) review the changes introduced as part of pension reforms to hinder
unnecessary negative consequences
3) review the relationships between the
different parts of their social protection systems for persons with disabilities
to hinder economic or social exclusion
Working paper and presentation are
available to download from the CINEFOGO database:
http://cinefogo.cuni.cz/index.php?&id_result=33515&l=0&w=16&id_event=90
Contact:
Communications consultant Ellen-Kristina Kristensen
Phone number +45 4674 3307
E-mail ellenk@ruc.dk