Geneva, Switzerland (AHN) – India’s social security network is poor, leaving its citizens “very highly vulnerable” to poverty and unfair labor practices, according to a report this week by the International Labor Office.
The international organization claimed that the country could have done better in terms of providing social security cover to its citizens, in tandem with its fiscal status.
ILO’s social security criteria is based on factors such as proper healthcare, pensions, social assistance and unemployment benefits. According to the report, issued Tuesday, India is yet to bring itself at par with the world standards in social security, as a large majority of its population remains deprived of any such benefits as described by the ILO.
Krzystof Hagemejer, one of the authors of the report, said, “Clearly, this is one side of the coin, where India performed below its capacity in coverage and expenditure for broad social security measures until recently.” At the same time, he added, the effect of new schemes such as the National Employment Guarantee Scheme and the health policy for 300 million Indians is yet to measured.
The report, entitled “World Social Security Report,” also mentioned that while India, along with its immediate neighbor China, has turned into a popular destination for manufacture of goods and propagation of services, the country has ignored social security protection. However, the report added that both the countries have shown “considerable change” in the recent years.
Meanwhile, another study, conducted by the Center for Decentralization and Development in Bangalore, asked the Indian government to follow the South African model for social security. In South Africa, the social security policy considers earnings of the beneficiary and spouse.
The Center is of the opinion that if India adopts the South African model, it would be able to meet its goal of “extending the social security net to all sections of the population.” The report also suggested that the government could increase the social security assessment on income tax in order to mobilize resources for widening the social security cover.
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