Roddy McKinnon

Problems and Limitations of Institutional Investor Participation in Corporate Governance

During the past decade, major governance breakdowns in public limited companies have brought issues of corporate governance to the forefront of debate. As a result, a series of governance codes have been introduced into the UK that have sought to obligate publicly listed companies to certain practices in their overall operations. One of the codes, the Hampel Code, specifically called for an increased role for institutional investors in governance issues. Using financial system theory as a framework for discussion, this paper questions the viability of institutional investors taking a more active role in monitoring and enforcing governance in the UK. It is argued that, if institutional investors choose to increase participation, then it could create anomalies to the efficient operation of the capital markets, involve institutional investors as delegated monitors, increase costs and create free rider problems.

An Ageing Workforce and Strategic Human Resource Management: Staffing Challenges for Social Security Administrations

Public-service employment grew rapidly through the 1970s and early 1980s in the high-income countries. During this period, the social protection sector was one of the areas that grew most extensively. Many of the public-service employees hired during these years have retired or are soon to do so. As a consequence, social security administrations across the OECD area are set to lose significant proportions of their current staff across all grades over a relatively short time-period. Despite calls for a greater use of strategic staff planning and a growing awareness of the challenges presented by an ageing public-service workforce, public-service organizations, including social security administrations, have been slow to react. This article addresses the human resource management challenges for social security administrations posed by an ageing public-sector workforce, outlines proposed policy responses and assesses the difficulties of successfully implementing these in a systematic manner.

Social risk management and the World Bank: resetting the ‘standards’ for social security?

Global ‘standards’ in social security are set by the UN Specialist Agency, the International Labour Organization (ILO). The ILO ‘Standards’ prioritize one model of social security system in particular; namely, contributions‐financed social insurance. Specifically, social insurance systems are designed to mitigate the negative impacts of formal labour market risks. Accordingly, social security systems typically fail to address adequately many informal labour market and nonlabour market risks. The inherently limited focus of social protection provided by many social security systems is recognized to be of major concern for least developed countries (LDCs) in particular for whom western‐centric definitions of life‐cycle risk remain largely inappropriate for the majority. This realization has led the World Bank to experiment with a reconceptualized definition of social protection; Social Risk Management (SRM). Seeking to encourage wider debate across the multidisciplinary field of risk management research, this article outlines critically the tenets underpinning SRM and highlights the policy limitations of this innovative World Bank venture in two key respects. First, by outlining the likely policy implications of World Bank approaches to social protection for global social security standards and practice. Second, by questioning the short‐term contribution that SRM can make to poverty reduction, not least amongst the elderly poor.

The role of national social protection floors in extending social security to all

In June 2011 the International Labour Conference (ILC) adopted a Resolution and Conclusions setting out the Organizations new social security strategy, which aims at supporting Members in building and maintaining comprehensive social security systems on the basis of a two-dimensional approach: (1) (“horizontal” dimension) establishing – as a priority – nationally-defined sets of basic social security guarantees to provide a floor of protection to all in need as soon as possible; (2) (“vertical” dimension) extending the scope and levels of social security coverage as guided by Convention No. 102 (1952) and other existing social security standards to as many people as possible and as soon as possible. In June 2012, the ILC completed this strategy with a new international labour standard: Recommendation concerning national floors of social protection, 2012 (No. 202). The Recommendation is deemed a breakthrough in global social policy, whereby the establishing of national social protection floors may close prevailing gaps in social security coverage and help countries to effectively address poverty and vulnerability. This special double issue offers analysis of the process that culminated in the Recommendations adoption and addresses practical fiscal, legal, political and institutional challenges that must be addressed if the Recommendations goals are to be successfully implemented.

The Design and Implementation of Public Pension Systems in Developing Countries: Issues and Options

Developing countries are increasingly aware of the need to design and implement improvements in public systems for providing pensions to the elderly. Such systems may aim to smooth consumption and thus provide reliable income to older people, reduce poverty among the elderly, insure those no longer working against the risk of running out of funds, and promote equal treatment of men and women in retirement security even when lifetime earnings and projected average life expectancy may differ greatly. The increasing share of the elderly in the population of all countries makes implementation of sustainable pension systems both more urgent and more difficult. Planners must consider numerous options in pension system design and choose the combination of policies that will optimize coverage, benefits, and financing given a country’s demographics, history, practices regarding family support of the elderly, political system, extent of informal labour, and fiscal situation.

The ISSA and Dynamic Social Security Global Social Governance and Local Social Action

Worldwide, many social security administrations, and their respective programmes and policies, show signs of adapting positively to evolving and new challenges. To better articulate and promote these developments, the International Social Security Association (ISSA) is fostering an innovative conceptual framework: Dynamic Social Security (DSS). This article investigates, first, some of the potential wider implications for the common understanding of social security arising from the ISSAs decision to foster DSS and, second, the feasibility for ISSA member organizations generally of implementing policies and practices inspired by DSS.

The Bulgarian pension reform: post-accession issues and challenges

Focusing on the social impacts of the 2000—2 pension reform in Bulgaria, the article examines how Bulgarian pensioners cope with income risk in old age. Reporting that old-age pensions are frequently inadequate to household consumption needs, the authors argue for more generous tax-financed social pensions alongside contributory pension provision, to combat old-age poverty. As the poorest country to date to achieve European Union accession, the article concludes by suggesting that Bulgarias pursuit of fuller integration and development within the EU cannot be divorced from better meeting the social security needs of its ageing population.

Social pensions and policy learning : the case of southern Africa

In the last decade and particularly since the publication of the Millennium Development Goals, social pensions have captured the interest of those concerned with the well-being of older people across that large part of the world where formal, contributions-financed, old-age benefit systems cover only a minority of the population. International organizations have turned their attention to such schemes and some see them as having a valuable role to play. However, information about what they are and how they work, and about their efficacy in meeting the objectives set for them, is still limited. Learning has been taking place not only in the international organizations but also in the region where they are most prominent – southern Africa. Such learning should be encouraged and the International Social Security Association has a part to play in this learning process.

Social security contribution collection and compliance: Improving governance to extend social protection

Using survey evidence collected from social security organizations and contribution collection agencies, a major aim of this article is to advance knowledge sharing and good practice on contribution collection and the enforcement of compliance. Although contribution collection and compliance have important social protection, political and fiscal dimensions, this article frames the pursuit of these objectives as an aspect of administrative good governance. The evidence suggests that seven core factors combine often to form the basis of success in contribution collection and compliance. In addition to improving benefit adequacy and the financial health and public standing of programmes, such success may support also national and international efforts to extend social protection coverage. Ultimately, the achievement and scale of any such success may be determined and delimited by the broader national policy environment, over which most social security organizations have little or no influence.