PSIREN

A new book published by the ILO in July 2009 argues that universal social security systems are affordable and necessary element in development for all countries, even low and middle income countries.

Edited by professor Peter Townsend, and co-authored with other international experts, the book criticises the 'shortsighted' policy followed by the major actors in international development of "targeting short-term means-tested benefits at lowest cost to reduce poverty", and the "ambiguous and unsuccessful international anti-poverty strategy – concerned in the broadest and most indirect terms with economic growth, overseas aid, debt relief and fairer trade – rather than with institutional systems serving the poor directly."

It rejects the myths that countries cannot 'afford' a high level of social expenditure, that the benefits of economic growth will 'trickle down', and that there is a conflict between social spending and economic efficiency.

While OECD countries on average spend 13% of GDP on social security systems, low income countries spend on average only 2% of GDP. The book concludes that "lowincome and middle-income countries require social security systems of a scale to match the systems operating in high-income countries."

A summary of the book can be downloaded from http://www.ilo.org/global/What_we_do/Publications/ILOBookstore/Orderonli...

The introduction to the book can be downloaded from http://www.palgrave.com/PDFs/9780230235250.Pdf

Papers on which key chapters are based:
affordability - 'Can Low-Income Countries Afford Basic Social Security?', is available at http://www.oecd.org/dataoecd/26/20/43280726.pdf
impact on employment - 'Social Cash Transfers and Employment' http://www.oecd.org/dataoecd/27/0/43280537.pdf
impact on growth - 'The impact of social transfers on growth, development,
poverty and inequality in developing countries' http://web.up.ac.za/UserFiles/M%20Samson%20paper.pdf