Adoption of principles of collective financing and social solidarity in Bolivia

Country: Bolivia
Body: ILO Committee of Experts on the Application of Conventions and Recommendations
Case number: Observation (CEACR) - Published 101st ILC session (2012)
Year of judgement: 2011

In 2010 Bolivia adopted a new constitution that established a new hierarchy of legal standards by giving precedence of international instruments ratified by state over national laws. In the spirit of harmonizing existing law to the new Constitution, the State and the Bolivian Workers’ Federation (COB) signed a framework agreement for the reform of Bolivian social security legislation and agreed to amend the parameters concerning retirement in terms that would imply greater solidarity for affiliated workers by maintaining the financial system of individual capitalization and establishing a solidarity component. The Committee welcomed the reinforcement of the involvement of the Bolivarian State and the reconstruction of solidarity mechanisms based on the principle of collective financing as major components of national social security systems. The Committee considers that the principles of collective financing and social solidarity are a powerful weapon against poverty and an effective instrument for making societies more equal and just. Besides improving social security administration, management and supervision, public systems more readily abide by the governance principles set out in ILO social security instruments. The Committee therefore expresses the firm hope that all future reforms of the social security system, such as the reform of the pensions system currently under way, will be based on the principles of solidarity and collective financing established in the new Political Constitution and by the ILO Conventions ratified by Bolivia. Moreover, the Committee notes that the Government has not replied to its observations concerning the extension and restructuring of the social security scheme and the creation of a national strategy for the development of social security.

Significance

The Committee considered that the principles of collective financing and social solidarity are a powerful weapon against poverty and an effective instrument for making societies more equal and just. The Committee acknowledges that the way to progressive development of social security lies in the strengthening and expending social solidarity as the manifestation of the collective value of social cohesion, mutual assistance and sharing responsibilities (Para. 452, Social Security and the Rule of Law). These collective values make communities more resilient to common risk.

 

Case Title: Invalidity, Old-Age and Survivors’ Benefits Convention, 1967 (No. 128) Bolivia, Plurinational State of (Ratification: 1977)

Date of Views: Adopted, 100th Session, 2011 [Link to original record]

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