The message of the brief history of social security developments worldwide that were reviewed in the previous chapter is fairly clear: the social security institution is in danger and steps should be taken to prevent its progressive institutional dismantlement. What is at stake is not only the preservation of its chief functions regarding the security of existence of the individual but also the preservation of some of the basic values of the society we live in. The call for a major institutional reform with a view to safeguarding social security should be logically accompanied by an effort to clarify the main issues involved in its current operations. This chapter is intended to provide some guidance in this respect.

Social security in a globalised world: the changing environment

According to the estimates emanating from the International Labour Office and quoted in several of its publications, only some 20-30% of the total world population have access to meaningful social security cash benefits; the remaining 70-80% live in conditions of social insecurity, in spite of the progress of human rights. These figures indicate the magnitude of the problem the world has to face at present and the deep gap that separates the developing world from the old industrialised countries.

There seems to be, as part of the general impact of globalisation, a move in favour of an overall coordination of social policies. Through the institutional network of international organisations monitoring the globalisation process, a political commitment is being created calling for expansion of social protection and its extension to the rural sector and informal economy. But this is not a simple task since for the vast majority of the rural population in a developing country the very concept of income replacement has little meaning. Furthermore, not all rural societies have the same social needs and the process of developing adequate methods of social protection may require heavy financial investments. The global interdependence of social policies thus adds another dimension to the difficulties of adaptation of social security to the conditions of the 21st century.

Another important change is being felt in the everyday life of Western societies: people are growing older.