The future of social protection systems
What are some of the innovations that will be needed to fill the gaps that are emerging in our social protection systems as individuals shoulder greater responsibility?
An issue underlying the rise of disaffection with the political and economic status quo is that social protection systems are at breaking point. Employers are backing away from traditional employment models and social protection contributions, and individuals once again are shouldering a larger share of the risks.
This concern is also the second risk in focus in this chapter of the Global Risks Report 2017 which relates to the functioning of society and politics.
The report suggests some of the innovations that will be needed to fill the gaps that are emerging in our social protection systems as individuals shoulder greater responsibility for costs associated with economic and social risks such as unemployment, exclusion, sickness, disability and old age.
New systems will need to address gaps in social protection across typical life events including periods of education, raising families, work including career gaps, retirement, and later elder care.
Systems will need to provide sufficient flexibility to support individuals following substantially different life and career paths while maintaining some inter-group equity, and bolster individual resilience.
A sustainable social protection system will need to address these changes and challenges, ensuring fair payments from employees and employers during times of earning to fund payments that ensure appropriate income support when earnings are not possible.
