17.5% of the world’s GDP is spent on social security. Quite impressive would one be tempted to say! But that number actually hides huge regional discrepancies. At the scale of the planet, it is estimated that only 20% of people have access to an exhaustive social security – unemployment, sickness and retirement – as defined by the International Labour Organisation (ILO).
The opening of national borders to trade has de facto created a global market for goods and ever more for services. Only the labour market has remained contained within national borders. To preserve their competitiveness, certain developing countries have clearly taken a step back on pushing through higher social security standards.
Recognising the urgency of the situation, France has made the establishment of minimal universal social norms one of the priorities of its G20 presidency. The objective is simple: to guarantee to each and everyone in need access to a minimal revenue and to essential healthcare services. The Mediterranean should become a laboratory for this initiative.
For Southern countries, putting in place such a system will nevertheless prove to be extremely challenging; beyond the financial aspect of it, the informal dimension of their economies is a real obstacle to developing inclusive social security systems.
Certain European countries have suggested to include the abidance to a set of defined social norms in their trade policy. A promising lead that should be tried out at the regional level.
