1 SOCIAL SECURITY & THE NATIONAL ECONOMY CHAPTER SIX 6 SOCIAL SECURITY & ECONOMIC DEVELOPMENT.

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SOCIAL SECURITY & THE NATIONAL ECONOMY

CHAPTER SIX 6

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CHAPTER OUTLINE

The impact of social security towards the– economic and social development, – and the relationship to the consumption, – production, – investment, – savings and

the issues behind it

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6.1 SOCIAL SECURITY AND ECONOMIC DEVELOPMENT

The issue in social security may affect in various aspect in the national economy or economic development. It can be seen from two areas as such:

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Social security and economic development…..

6.1.1 Improving the quality of life

The good implementation of social security programmes within the country may improve the quality of life of the citizens especially in financial issue.

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Social security and economic development…..

6.1.2 Reducing of government’s burden

If the social security is improved, the government expenditure may also be reduced through reducing the allocation of money, subsidies and welfare expenditure.

The privatization of certain programmes also leads to the reducing of government’s responsibility in social security.

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6.2 SOCIAL SECURITY AND SOCIAL DEVELOPMENT

The social condition of country may also be affected by the social security system applied within the country. Eg

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Social security and social development…..

6.2.1 Improving the quality of lifeThe quality of life in terms of health, span of life, education etc can be improved through proper and total implementation of social security programmes.

6.2.2 Welfare programmes Social security programmes provide welfare assistance towards the people who are really in needs, and thus may improved social condition of people.

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6.3 SOCIAL SECURITY AND CONSUMPTIONS

The savings made by the contributor can lead to the consumptions in the economic circle.

Purchasing power

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6.4 SOCIAL SECURITY AND PRODUCTIONS

Social security covers in many areas. The employment injury may affect the productions of the organization as well as the country as a whole.

Motivational factor

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6.5 SOCIAL SECURITY AND LABOUR MARKET

Labour market is affected by social security through the incentives provided for the workers especially provided discretionally by the organization.

Social protection also needs to be taken into consideration in order to ensure the resource of labour in the market is sufficient to generate the economic growth.

Attraction to work

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6.6 SOCIAL SECURITY AND INVESTMENT

Social security programmes promote the investment among the public through the social insurance or private insurance programmes.

The fund accumulated through some social security organization may become as the investment sources by the government to gain revenue.

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6.7 SOCIAL SECURITY AND SAVINGS

Social security programmes also promotes public to saving for old-age.

The funds accumulated for financing social security may also become a savings for the government

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6.8 ROLE OF GOVERNMENT IN SOCIAL SECURITY

There are several roles played by the government in order to secure the social security programs:

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Role of government in social security…..

6.8.1 As the policy maker– As the government holds the supreme power within

the country, which is the policy formulator through the legislative body, the government needs to keep abreast with the current situation to meet current needs.

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Role of government in social security…..

6.8.2 As the enforcer– The government also indirectly can become an

enforcer through the time-to-time observation towards the implementation of policies

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Role of government in social security…..

6.8.3 As the mediatorUnder the ILO concept of tripartite, government plays their role as a mediator in international convention to bring the issues related to social security or social protection.

Government also as a mediator in handling the dispute between the employees, employers and NGO to achieve the mutual consent in social protection issues

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6.9 TRENDS AND ISSUES

Social security gives a big impact towards the national socio-economic within one country.

The rising of cost, the enforcement of laws and regulations, new development of social security measures, may lead to the effectiveness and efficiency of the social security in Malaysia.

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Trends and issues…..

6.9.1 Cost cutting measures– Throughout the years, there are some programmes

of social protection in Malaysia has been amended in order to cut the cost faced by the social security organization.

– Question. Is the cost cutting measures affect coverage of the assistance or protection in social security?

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Trends and issues…..

6.9.2 Privatization– Initially, all the social security organizations are

under the government control. Due to the development of economic trend and political administration, they are privatized with minimum control by the government.

– Question. Is the privatization lead to the effectiveness of social security programmes?

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Trends and issues…..

6.9.3 Stricter qualifying conditions– The qualifying conditions of certain programmes

become stricter compared to early years of the development of social security organizations.

– Question. Is this action needed and helps for the efficiency and effectiveness of social security?

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Trends and issues…..

6.9.4 Private insurance– Government nowadays is move towards the

promotion of having private insurance among the public.

– Question. Effective of vice versa?

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TUTORIAL

Discuss the recent issues regarding this topic.Outline the important points of each facets.Discuss the other roles of government in social security administration and programmes.

TUTORIAL