ASSA rejects WB proposal program<\/p>\n
JIMBARAN, Bali (JP): The ASEAN Social Security Association
\n(ASSA) has turned down a Word Bank (WB) proposal to allow private
\nfund managers to handle workers' pension funds and other social
\nsecurity programs.<\/p>\n
Delegations from ASEAN member countries's financial
\ninstitutions running social security programs for their workers,
\nwho are here for a three-day annual meeting, warned on Tuesday
\nthat the proposal to privatize the compulsory social security
\nprogram, including pension funds, violated human rights and
\nfurthermore was too risky because of the absence of a financial
\nand legal guarantee that all funds collected from workers and
\ntheir employers would be well managed.<\/p>\n
Awaloedin Djamin, chairman of the Association of Social
\nSecurity Programs in Indonesia (AJSI), suggested that western
\ncountry-backed financial institutions such as the World Bank and
\nInternational Monetary Fund (IMF) avoid intervention into ASEAN
\ncountries' internal affairs.<\/p>\n
\"The proposal won't be able to work. With the proposal, the
\ndonor countries of international financial institutions will eye
\nhuge amounts of money collected under the program in ASEAN
\ncountries.<\/p>\n
\"Government-run social security firms in the region should
\nremain free to invest their funds and we won't let the World Bank
\nand the IMF meddle with our internal affairs,\" he said at the
\nmeeting's opening ceremony.<\/p>\n
Awaloedin said the social security program was based on
\nInternational Labor Organization (ILO) conventions and universal
\nhuman rights and was aimed at providing basic protection for
\nworkers, civil servants, servicemen and public transportation
\npassengers.<\/p>\n
\"Besides the universal human rights ILO convention, ASEAN
\nmember countries' constitutions also stipulate an obligation to
\nprovide their people social protection,\" he said.<\/p>\n
He said it would impossible to obtain a guarantee from private
\nfund managers in case of possible mismanagement or bankruptcy.<\/p>\n
Tan Sri Sallehuddin bin Mohammed, chief of Malaysia's
\nEmployees' Provident Funds (EPF), criticized the Bank's proposal,
\nsaying his country was no longer confident in developed country-
\ndominated international financial institutions.<\/p>\n
He questioned the Bank's interests behind the proposal and
\nsaid Malaysia would not invest its workers' funds in the
\ninternational market.<\/p>\n
\"Our government, which has run the social security program for
\nworkers since 1952, is confident of its own system,\" he said.
\nMalaysia has established the EPF and the Social Security
\nOrganization (SOCSO), two government agencies running the social
\nsecurity program for more than eight million employees, including
\nmigrant workers.<\/p>\n
Leopoldo S. Veroy, vice president of the Philippines' Social
\nSecurity System, agreed and said his country would lobby other
\nASEAN member countries present at the meeting to issue a joint
\ncommunique to improve the maximum benefits workers could gain
\nfrom domestic social security programs.<\/p>\n
\"Our common but fundamental mission is to provide maximum
\nbenefit to the social security program's participants and not how
\nto invest the funds we have collected from workers,\" he said.<\/p>\n
He said despite their professionalism, private funds managers
\ncould not guarantee that the funds they collected from workers
\nwould be managed well.<\/p>\n
He said delegations from Singapore, Thailand and Vietnam, the
\nmost recent ASEAN member country to join ASSA, had also expressed
\ntheir objections to the proposal.<\/p>\n
Hector Inductivo, director of the International Social
\nSecurity Association (ISSA) Asia-Pacific Region, said ISSA would
\npay no attention to the Bank's proposal and would instead help
\ncreate better labor conditions in the region following the
\neconomic crisis.<\/p>\n
He said labor conditions and the social security program in
\nIndonesia could not progress significantly because of the
\nprolonged economic crisis. But he expressed optimism that
\nIndonesia would equal Thailand, Malaysia, South Korea and other
\nrecovering countries, thanks to its economic performance over the
\npast year and its democratic government. (rms)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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