National Pension System: Reconciliation of Freedom & Tradition with UN Expertise
It is not uncommon in Georgia to see a 50-year-old employee being called up by her mother asking when she is on her way home. After the call, the mother’s expectations for her daughter to understand the importance of a family support system are high, in hopes she’ll be quick on her feet to make it to dinner, or even to help prepare it. Family traditions occasionally strike foreigners with awe, as this unique arrangement, not a singularity in this world, is yet manifested in a cautiously unique way unseen in other parts of the globe. It almost seems as if the bond of individual family members generates the foundations of a functioning family arrangement incorporating friends and extended family members into this protected and cared-for circle. As with so many cultural quirks, the opinions on such traditions diverge, finding refuge in either side of the debate. However, one fact is undeniable: the importance of family support to enable the elderly to receive decency and a modest lifestyle.
The UN Human Rights expert Rosa Kornfeld-Matte clearly understands the contentiousness of the issue, being an advocate and former policymaker for the rights of older persons herself. Since her appointment as the first Independent Expert for Human Rights for Elderly People by the UN Human Rights Council (UNHRC) in 2014, she has travelled the world tasked with evaluating national pensions schemes and putting recommendations for their improvement on policymakers’ tables.
Last month, the Georgian government welcomed her to Tbilisi. “I want to thank the Georgians for their warm welcome and reform-driven approach. I also want to thank all the people I had the chance to meet, such as ministers, representatives of NGOs and other public and private organizations,” Kornfeld-Matte stated before diving into the complexity of Georgian pension reforms. At a press conference held in French and translated into Georgian last week, the expert showcased her expertise by elaborating on the current situation in Georgia.
Georgia is the most aged country in the South Caucasus region, and, according to the last census, every fifth person is aged 60 or over. This ratio will further increase to over 30% by 2050. This simple demographic math calls for short- and long-term solutions to make the pension scheme fit for the decades to come.
“Population decline, paired with an ageing society, has significant implications for the enjoyment of human rights by older persons,” Kornfeld-Matte noted, adding the point that care of older persons in general remains an area that needs to be improved. “There is no comprehensive strategy on long-term care and despite the introduction of the state-funded Universal Health Program, older persons remain particularly vulnerable to significant out-of-pocket payments, especially for medication.”
Problems have not only been identified with the set-up of pensions schemes, but with human rights for elderly people in a family context, peppering the debate of traditions and personal freedom. The independent expert highlighted the reports of various forms of violence against and abuse of older persons. These reports often mention fellow family members as the main perpetrators, questioning the family environment as a shield against outside threats to elderly people.
The inclusiveness of our oldest members of society can enhance their well-being and happiness but defining inclusiveness teeters on a knife’s edge. The divided camps are adamant that it is zero-sum game, either they enjoy the freedom and financial independence, or families are tasked with such matters ensuring the closeness and family bond. The reality sheds a different light, as hybrid solutions are the most common features of strong national pension schemes. Said freedom is often nothing more than the option of choice. Financial independence allows the freedom to choose on what to spend time, ranging from caretaking of grandchildren to a weekend vacation in Batumi.
During the press conference, Kornfeld-Matte’s attitude reflected this intersectional understanding, emphasizing on a strengthening of the national foundations to allow for personal freedom leading to self-fulfillment and self-realization. National working papers on the pension scheme couldn’t escape her experienced eye, and she pinpointed the recent adoption of the National Action Plan for the implementation of the State Policy Concept on Population Ageing in Georgia as a long awaited step towards transforming the main policy directions into concrete actions for older persons.
Her findings and recommendations address the importance of speed when it comes to the implementation of proposed legislations. A plan de travail is necessary to spur reforms and revamp the pension system sustainably and effectively. The role of the media is mentioned as a key aspect to sensibilize the wider public. This can help to challenge misconceptions of pension schemes and spawn an informed and serious debate. Furthermore, the younger generation can greatly profit, as it raises their awareness of their rights in future too. Her main proposal is a revamped tax-supported national pensions scheme, which is financed by a proportional tax of 4% (2% is paid by the employer, 2 % is paid by the employee) based on income, alongside a 2% contribution by the state. The implementation and supervision of the scheme can be conducted by a national panel, supported by international experts familiar in the field.
Kornfeld-Matte’s preliminary comments (the final report will be published by the UNHCR in September) are more elaborate than a simple pension reform proposal. She explained at length how access to public transport and medical services catalyzes efforts to reach the ultimate goal of barrier-free access for elderly people, be it in rural or urban areas. The government can benefit greatly by providing prevention check-ups to hinder the outbreak of illnesses, whose treatment tears a bigger hole in the budget than regular check-ups do. Georgia’s climate tends to generate strong influenza viruses and a general vaccination scheme can forestall national outbreaks.
Reforms are multi-fold, ranging from education over health to public awareness. Kornfeld-Matte helped to reignite an essential debate about the treatment of the weakest members of our society. Her final remarks on the culture of older people to remain in a common family household can be seen as a positive stimulant for opportunities of self-realization in a sheltered ambiance. It simply requires the right mix of spices to make such a reinvention of the traditional family recipe successful. The UN can give recommendations, but only cultural flexibility and understanding, which stem from Georgians themselves, can spawn this perfect mix.
Benjamin Music