SOCIAL SECURITY: VOLUNTARY OR COMPULSORY (ABSTRACT)

Murtaz Kvirkvaia

In post-Soviet area, economic reforms are followed by insoluble social problems. Very often introduction of incorrect mechanisms of social security turns into an obstructing factor.

The insoluble problem of pensioners’ security has become especially acute of late years. The problem is common to the solidarity of nations, i.e. countries of Bismark model. The way out of the situation is transition to the qualitatively new system of social security. From this point of view, pension reform in Chile serves as an example to Georgia and many other countries of the world. The reform has showed that it is possible to create an efficient social security mechanism for the promotion of economic growth. The 10 years’ analysis of the mentioned reform has revealed the fact that the system of individual capitalisation based on voluntary social insurance provides for the following: cost expenditure reduction and pension increase of the insured; independence from the national budget; capital growth accumulated in economy, etc.
The present state of pensioners’ social security sphere in Georgia requires immediate transition to voluntary social security sphere that will be based on accumulated funds or capitalisation system. To achieve this, we should view the approach based on the full responsibility of state for population’s social security and abandonment from voluntary social security mechanism as negative.