Financial crisis and consolidation/expansion measures
Social protection systems have played a key role in providing a social and economic buffer in time of crisis and have mitigated the negative social impacts resulting from an economic downturn. They have stabilized household incomes and aggregate demand, thereby contributing to economic recovery, employment and social cohesion. These experiences underscore that in time of crisis it is fundamental for countries to strengthen, rather than to shrink, social investments.
However, the increased pressures on public budgets have also limited the policy space for social protection, and have led to significant retrenchment in many countries, which in many cases negatively affect the realization of human rights.
Photo credit: “zanzibar 007” by holydog (CCBY 2.0 via Flickr).
Protecting pensions against austerity measures in Latvia
Summary: Latvian pensioners formed a petition and challenged the constitutionality of Latvia’s Law on State Pension and State Allowance Disbursement – commonly known as the ‘Disbursement Law’ – in the period from 2009 to 2012. The overall economy in Latvia was rapidly declining in 2009, and the Latvian Parliament, with advice from the International Monetary […]
The Forthcoming Adjustment Shock
This policy brief is based on the working paper The Decade of Adjustment: A Review of Austerity Trends 2010-2020 in 187 Countries. Read the working paper here.
Alternatives to Austerity: a human rights framework for economic recovery
This article argues that the effects of the crises themselves are being compounded rather than relieved by the measures that many governments are taking in response. These are seriously threatening the lives and livelihoods of millions of the poorest people, and are having a devastating effect on their enjoyment of economic, social and cultural rights (ESCR). […]
Social protection floor for a fair and inclusive globalization
This report, prepared under the guidance of Ms Michelle Bachelet and members of the Advisory Group, shows that the extension of social protection, drawing on social protection floors, can play a pivotal role in relieving people of poverty and deprivation. It can in addition help people adapt their skills to overcome the constraints that block […]
Optimal financing and self-adjusting mechanisms for sustainable retirement systems
This brief paper first recapitulates the main pension financing options and reviews the theoretical pros and cons of pension funding seeking for a logical synthesis. In the second part of the paper, a broad review of the historical experience of pension reforms since the 1980’s is presented as well as in the context of the […]
Social security: Three lessons from the global crisis
This article focuses on three lessons that can be drawn from responses to the global crisis: People covered by different social security arrangements with respect to financing, design and coverage are exposed to economic shocks in different degrees. With adequate financing, design and coverage, social security acts as an economic and social stabilizer during a crisis. […]