Social security is a well-established part of the societal landscape in traditional westernized countries. There are a variety of approaches, and there are substantial differences between the operation of social security under the predominantly insurance-based (or Bismarckian) systems and the social assistance (Beveridge) systems. But both were developed and matured in the context of the industrialization of societies and both reflect the need to provide social protection in mass-scale workforces.
Nothing is stable in social security and, thus, the social security structures and financing mechanisms are constantly evolving.Therefore, governments may need to adapt these structures and mechanisms to the new circumstances, especially those arising after the recent economic downturn. Still remains the question how we can move forward in social security with efficiency and effectiveness with regard to the financing of the social security schemes.
This report contends that as social policy continues to evolve, governments now may need to look beyond the traditional structures of social security and taxation. Today, there are varying levels of interaction between those organizations in European nations.
