ROMANIA
Speech
by
Mr. Petre Ciotlos
Secretary of State Ministry of Labour and Social Solidarity
President of National House of Pensions and other Social
Insurance Rights
at the
Second World Assembly
on Ageing
Madrid, Spain
9th April 2002
In a world facing a constant increase of elderly, the dynamic of phenomenon
makes us think about the future of some active aging politics.
It is already well known that the rapid demographic transition (due
to life expectation increase) and the fertility decline led to a rapid
increase of elderly percentage within total population. From this perspective,
with a view to implement best possible arrangements able to ensure a decent
living standard and safety for elderly, as well as proper health services,
consistent with human dignity demands.
I. Different systems,
similar challenges; gender issue, socio-economic status, other social factors
I A. The complex reform
of Romanian social insurance system in the context of a pension system
global crisis
The pension public system (and other social insurance benefits) became
lately an economical politics issue of maximum present interest and a priority
of social protection system reform as a whole.
Recent trends of social insurance system proved the necessity of a
rapid reform, at least from a parameter point of view; next step will be
the completion of a legislative and institutional framework by carrying
on a systemic reform meaning to create a complex pension system based on
more components.
Once Law no. 19/2000 (on pension public system and other social insurance
benefits) came into force (on 1st of April, 2001), the Romanian Government
started the above mentioned reform.
The pension public system stands for a first component of the
multi-pillar system; it's a unique PAYG system state guaranteed, based
on re-distribution principle. It is seen as a modern regulation, consistent
with European legislation.
The new legislation (on pension public system and other social insurance
benefits) provides, as a priority, the increase of social insurance
budget financial sustainability, by growing incomes and lower expenditures.
The pension system reform aims, as main concerns, at adopting and implementing
some measures with a view to fully cover inflation and prices increasing
rate influence on pensions, as well as to eliminate all unbalances and/
or inequities between pension levels granted according to previous legislation.
I B. Pension reform within a multi - pillar system (2nd and 3rd pillar)
The basic principle of multi-pillar pension system is to settle a diversity
of pension incomes financing resources by involving here both public sector
and private one. Next to a defined benefits scheme, based on re-distribution
and solidarity among generations, varied schemes based on capitalization
(defined contributions pensions funds, privately administrated) will also
work.
At present, the Draft-law on Pension Funds is almost elaborated.
It aims at creating necessary legal and institutional framework for both
universal pension funds and optional ones implementation. It is going to
be adopted by the end of current year (2002).
The advantages of a multi- pillar pension system are:
- it creates the opportunity of higher pension levels than that
in the unique, re-distributory system;
- it makes possible a long term financial sustainability of pension
system and an equal treatment for all contributors;
- it leads to a significant capital employed in internal market,
positively influencing upon economic growth rate and, as a consequence,
upon living standard of population.
Structured as presented above, the Romanian pension system reform keeps
in line with those implemented in other central and east-European countries.
It is also consistent with European Commission recommendations in the field.
I C. Social and medical assistance reform; gender issue, social factors
Technological trends are rapidly spreading; most countries have implemented
new technological techniques (now available but not always accessible)
able to ensure treatment procedures development for elderly which may be
carried on safely. Various studies indicated gender differences concerning
both illnesses prevalence and functional abilities. Many instruments used
in functions' quantification have a gender particularity, such as food
preparing or housekeeping management (influenced by gender). Dependency
rate (referring to institutional or daily assistance giving) is influenced
by gender, too. Gender particularities differ according to cultural standards,
social parts and structure. A real challenge in the carrying on of comparative
studies between present-day situation of socioeconomic status, in various
countries.
Late strategy in social assistance centered upon permanent updating
of benefits level for those in most disadvantageous conditions, upon improving
and
implementing new programs able to ensure an effective social protection
for groups with a major social risk, especially for elderly.
Accordingly, the Government adopted certain legislation promoting social
cohesion, by stimulating community solidarity vis-a-vis most vulnerable
persons categories, especially for looking up to elderly rights depending
on their specific needs.
The main goals at national level in the field of elderly social
assistance, according to Governing Program, refer to:
- developing the social assistance system capacity of providing social
services for vulnerable groups;
- encouraging efforts for re-organisation and rehabilitation of elderly
care institutions;
- providing institutional support with a view to develop and diversify
proper social services for vulnerable groups;
- organizing communitary services able to face needs identified at
local level.
II. A multi - disciplinary approach of the phenomena
In order to understand those differences between elderly, one must follow
up more than one kind of approach and, as much as possible, have to integrate
them. Only in this way we are able to examine individual physical and sensorial
health conditions particularities, on one hand, and social factors involved,
on the other.
Romania wishes to involve experts from various fields in the issue
with a view to ensure a comprehensive approach of aging which must refer
to medical, psychological and social factors, their integrative action
having a synergic effect upon the results. The multidisciplinary approach
will be sustained, a higher stress being laid on social and cultural factors.
The biomedical model has been, in recent years, that which helped us
to understand health condition of human being as well as its disabilities.
The involved assumptions are fully valid and useful in understanding numerous
illnesses that affect mankind. Though, they are not fully comprehensive
in understanding incurable, hopeless conditions and/or complex aging process.
Health World Organisation (HWO) revised the International Classification
of Illnesses, Disabilities and Handicaps (I.C.I.D.H.), together with universal
principles seeing incapacity as an universal, continuous and contextual
phenomenon. The new classification is based on a bio-psycho-social model,
an actual synthesis of medical and social models.
Romania wishes to use I.C.I.D.H., recently adopted by HWO, as a conceptual
framework and a common language. I.C.I.D.H. has already been tested in
a few
countries. Although, it has not yet been used for international comparisons,
one of its main objectives.
Romania wishes also to promote a functional approach (physical and
sensorial), to explore the possibility of analyzing differences between
states within a more comprehensive European approach, as well as to identify
primary preventive factors.
As a future approach of aging, Romania aims at:
- analyzing the impact of socio-economic and health factors in early
and mature life;
- continuously studying aging from a multi- disciplinary perspective;
- completing present pension system according to world economy experience
and trend. |