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OECD to re-examine social policies
PARIS, Dec 10: Minister* from the world s richest countries qgreed on Wednesday to re-examine their social policies in the light of changing priorities and severe budgetary constraints, the OECD said, writes Reuter.
The social affairs ministers from the 24 Organisation for Economic Cooperation and Development Countries met here on Tuesday and Wednesday, their first gathering since 1988.
Since then, persistent unemployment, ageing populations and slow growth have made a policy review inevitable, and many states
have already made a start, particularly on health care.
The aim was not to spare back social spending, but to refocus it tn recognition of the fact that social policy complemented economic policy, ministers said.
"Social expenditure should be regarded as investment in society which enhances its growth potential, underpinning the efficient operation of the market economy. OECD Secretary General Jean-Claude Paye said In his opening speech on Tuesday.
Economic progress made by the OECD's rich member countries had not been matched by progress in social
fields, he said. The result was widespread social dislocation — marginalisation, educational failure, urban unrest and rural decline.
Spain's Minister of Labour and Social Security, Luis Martinez Noval, who chaired the meeting, told news conference that the welfare state — seen as an outmoded concept in the 1980s — was being rehabilitated.
"One of. the conclusions Is that it is important to maintain the welfare states, but to bring In up todatc,'' he told a news conference after the meeting.
The private sector had a role lo play, especially in the area of retirement policy, he
said
The OECD is concerned al the trend towards earlier retirement. which takes employees who have much to offer out of the workforce and adds lo the lax burden of those left In work.
"We would like businesses to be much more flexible, for example to have possibilities of much more part-time work," Australia s Social Security Minister Neal Blewett said
The ministers decided they needed more information on the results of policy in the social and health fields, and have asked the OECD to work on appropriate Indicators.