Social security reform and economic development: the case of India

Rapid ageing presents an unprecedented policy challenge for the provision of social security, especially for lower income countries. These challenges have been exacerbated by the current fragile global macro-economic environment on one hand, and domestic public policy constraints on the other. There is, however, increasing consensus among policymakers and stakeholders on the role of social safety nets in protecting the vulnerable against adverse shocks, and on the role of social security systems in fostering economic growth and development. The main functions of any retirement programme, usually referred to as a social security system, are to smooth out consumption over a lifetime, to ensure that retirement benefits last until death and are sufficient to avoid poverty in old age on a universal basis.