Governments and international financial institutions should make a commitment to create social security systems that enable everyone to realize their rights, human rights and economic justice organizations said. Governments and financial institutions should end policies that have been failing millions of people.
For decades, the World Bank and the IMF have promoted this flawed approach, the groups said. They have failed to consider social security as a right and that it contributes to building fairer and more stable societies, and not just charity. This has contributed to a global reality in which 53 percent of people lack any form of social security, and whereas instability, social defiance, and polarization are growing and the needs for resilience are greater than ever in the face of the climate crisis.
Recent reforms in some countries have also eroded the right to social security, leading to reduced coverage and benefits. In some countries, these changes, supported by the World Bank or IMF, involved cuts to employer contributions or reduced benefits for the majority in the public system. Additionally, privatization of social insurance in some places has worsened poverty and inequality, disproportionately affecting women and older people.
The groups strongly urge the IMF and the World Bank, pivotal actors in financing and shaping social security policies in low- and middle-income countries, to take four measures that could improve the lives of hundreds of millions of people:
- Commit to Realizing the Right to Social Security: Support countries’ efforts to realize the right to social security by establishing or strengthening rights-aligned universal social protection systems, beginning with social protection floors.
- End Poverty-Targeted Programs: In countries without universal coverage, stop developing new poverty-targeted programs, and phase out existing ones, replacing them with universal alternatives.
- Support Equitable and Sustainable Public Systems: The IMF and the World Bank should support equitable and sustainable public social security systems adhering to international standards. This includes adequate employer contributions and income security.
- Cease Austerity Measures: The IMF should halt austerity policies that threaten rights and refrain from promoting social spending trade-offs. Investments in health, education, and social security should, at a minimum, meet international benchmarks as a percentage of GDP and national budgets.