GARY RYNHART: Effective social security systems often have multiple objectives

People queue for their Covid-19 social relief of distress grants at Makhado post office in Limpopo in this file photo. Picture: SUPPLIED

In more recent times, the big social security initiatives in some countries were borne of crises or political expediency. In the 1870s, German chancellor Otto von Bismarck was the first to introduce a national system to protect workers in sickness, injury and old age. What drove Bismarck was not altruistic beliefs but rather fear of getting outflanked by rising socialist parties.

However, the main point is not affordability, it is design. Take two illustrative examples. Bolsa Família, an income grant, was introduced by the Brazilian government in the early 2000s. It has additional social goals beyond alleviating poverty, such as requiring school attendance and health checks. To receive cash transfers, recipients have to prove compliance. Targeting multiple social goals simultaneously has been very successful in reducing poverty and inequality.

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