Fundamental welfare reform is needed within the 24 member nations of the Organization for Economic Co-operation if these states are to protect their most vulnerable citizens without endangering their economies. Welfare costs, principally for pensions, healthcare, unemployment benefits and family support are rapidly becoming insupportable. The costliest item is pensions, which continue to grow due to increased coverage, benefit levels and an aging population. In order to address this problem, a new social compact has been proposed by OECD countries that would replace existing pension systems with one based on individual contributions. In a competitive global economy, no country can burden its businesses with higher welfare costs than its neighbors.
Fundamental welfare reform is needed within the 24 member nations of the Organization for Economic Co-operation if these states are to protect their most vulnerable citizens without endangering their economies. Welfare costs, principally for pensions, healthcare, unemployment benefits and family support are rapidly becoming insupportable. The costliest item is pensions, which continue to grow due to increased coverage, benefit levels and an aging population. By the year 2040, people over age 65 will rise from their current 19% of total population to 37%. In a competitive global economy, no country can burden its businesses with higher welfare costs than its neighbors.