Side Event Organized by Global Action on Aging and the Friedrich Ebert Stiftung during the Commission for Social Development

Introduction

In partnership with the Friedrich Ebert Stiftung, NY, Global Action on Aging organized a Side Event focusing on Social Security for older persons. In the midst of the current economic crisis, both older persons and current workers find themselves at serious risk since many have invested their pension accounts in stocks and bonds that were unregulated by state authorities.

The Panel

Werner Puschra, Director, Friedrich Ebert Stiftung, New York Office opened the side event with welcoming remarks. The panel was composed of Susanne Paul, President, Global Action On Aging and Co chair, NGO Sub-Committee to Promote a Human Rights Convention on Aging; Gemma Adaba, Representative of the ITUC (International Trade Union Confederation) to the United Nations; Ashwini Sukthankar, Director, International Commission for Labor Rights (ICLR); Christopher Rude, Adjunct Professor of Economics, New School University, Former Federal Reserve Bank and Wall Street Economist. Sara Burke, Policy analyst, Friedrich Ebert Stiftung, New York moderated the event. 

Participants

Various international NGOs, UN staff and diplomats attended this side event. 

Discussion

Susanne Paul, President, Global Action On Aging and Co chair, NGO Sub-Committee to Promote a Human Rights Convention on Aging

For the past twenty years we have witnessed a rapid demographic transition with people living longer and longer in every region of the world. The current economic and financial crisis is affecting everybody, especially older persons as they see their pensions declining or disappearing in the stock markets. 

Family patterns are changing. Urban migration has separated many older persons from their children. Before, older persons relied on their children and grandchildren to take care of them. With the geographical separation of families this seems impossible nowadays. As a result, many older persons live by themselves, and their numbers are rising. Also, governments have an increasing responsibility, especially in the midst of the economic crisis, as families face unemployment and debt. 

As the economic crisis strikes, there is a lot of pressure to cut back on pension and nursing homes. In regards to pensions, many conservatives, including billionaire Pete Peterson, wish to cut entitlement programs and privatize pensions. This will only aggravate the already precarious situation of older persons, including those in nursing homes. Less than 10% of US nursing homes pass inspections and health care providers have less time for patient care. 

Susanne Paul argued that employment needs to be restructured. Also older women’s issues need to be included in the discussions as they are living longer and longer. Finally, she argued in favor of a Human Rights Convention, a legally-binding document that would protect the rights of older persons worldwide. 

Gemma Adaba, Representative of the ITUC (International Trade Union Confederation) to the United Nations 

There are 340 Trade Union centers in the US and approximately 168 million Trade Union members. Trade unions defend social security, social justice and the right to work. Intergenerational and social inclusion are very important topics in their campaigns. 

The International Trade Union Confederation supports the ILO declaration, adopted in June 2008, which defines and protects the concept of decent work for a decent life. The ILO commits Member States to put into practice decent work. The ITUC representative also pointed out the difficult situation of workers in the informal economy as they have no access to social security. As a consequence, she promoted the idea of “social security for all” which would meet the needs of a changing population. 

In the current economic crisis, there is a strong urge to privatize pension schemes. However, the ITUC representative reminded us of the consequences of such World Bank and IMF policies in the 80’s. Argentina was one country that privatized its pension scheme system but then later on renationalized it before the situation got worst. Many Latin Americans faced a poverty stricken old age due to the conditionalities that the IMF insisted on from Latin governments. In conclusion, Gemma Adaba said, “As a trade union movement, we will try to be in the movement. This is a critical time [for workers and retirees]; we have to seize the opportunity.” 


Ashwini Sukthankar, Director, International Commission for Labor Rights (ICLR)

Ashwini Sukthankar focused her presentation on the freedom of association. She also mentioned the erosion of employers’ funding towards employees’ pensions and its impact on workers. 

Also, as a result of the economic crisis, the concessions on wages have been dramatic. To keep jobs, employees have agreed to severe wage cuts. 

Finally, she called for the creation of a retirement security system. It is a global issue and the current trends do not represent only problems. They are opportunities as well. 

Christopher Rude, Adjunct Professor of Economics, New School University, Former Federal Reserve Bank and Wall Street Economist

The pension system in the US is much different than the European model. Privatization has been the key structure of the US pension model. For better or worse, the system has now collapsed. We should take this as an opportunity to restructure the system. 

The US is going through a demographic change: people are living longer. This should not be seen as a burden but as a success. 

With today’s economy, the gap between the well-off and the poor has increased. The argument between people who are working and those who are retired is also rising and creating a generation gap. Is it a human right for an older person to retire? Is it a duty for younger generations to support the elderly? The market cannot resolve these questions. By definition, there is no viable market solution. It is the solidarity between generations and the solidarity between social groups that can resolve the problem. 

Christopher Rude concluded by saying that a “good thing” [the market and the privatized pension schemes] collapsed because it wasn’t a good thing to begin with.”