The world economy is going through a serious crisis, which is having an impact on all types of societal institutions. Social security is in the front line, both on account of the volume of its financial flows and on account of its importance for the preservation of the minimum standard of living of every individual. This seems to be an opportune moment to review briefly the way the institution has developed since its beginnings, take note of the changes that have taken place in its societal environment and in the perception of its overall mission and bring home a few lessons to serve as guidelines for a necessary reorientation of its path.

The global trends in the evolution of the institution prior to the onset of the world financial crisis were already indicating the presence of some negative features representing risks for the continuation of its mission. In industrial societies, no new social protection mechanism has been invented to deal with new risks and socially precarious situations. What has happened has been a series of shifts in emphasis on different elements in the existing social security structures and in the roles assigned to specific actors. Thus, the state, while reducing its direct involvement in the actual running of social security schemes, has been greatly increasing its powers regarding the regulation of occupational and private arrangements. And there has been a shift of responsibility back to employers and different forms of occupational welfare, back to families and their supporting role and also back to individual citizens and their personal capacity to save. While some of these features may be considered as a step towards a more appropriate equilibration of respective responsibilities, the move towards the disengagement of the state is an obvious historical regression; it has gone too far and – as shown by the present evidence of the state's decisive role in economic governance – its equivalent role in social matters needs to be reaffirmed.

Another important global trend points towards an increasing mix in the sources of finance of social welfare measures and in the benefits they provide often in a way unrelated to their principal mission.