Norway and Iceland
14 March 2007
Comprehensive social security and social welfare may be expensive but it is
a good and cost effective investment because it reduces poverty, the Minister
of Social Development, Dr Zola Skweyiya has been told by his counterparts in
Norway and Iceland during his tour of the two countries to study the Nordic
model of social welfare and social security.
The visit has been undertaken against the background of President Mbeki's
directive for a reform and improvement of South Africa's social security
system, during the State of the Nation address last month. Dr Skweyiya began
his tour on Wednesday, 7 March 2007 and it will end today on Wednesday, 14
March 2007.
The Nordic countries have a generous social security system. Norway has been
a pioneer in the field of social welfare, as accident insurance for factory
workers was introduced in 1895, unemployment insurance in 1906 and compulsory
health insurance in 1909. The country introduced other schemes in the 1930s,
such as an old age grant, disability insurance and unemployment insurance for
all workers including domestic workers and self-employed people.
The Norwegian National Social Insurance Act, which came into effect in 1967,
provides old age pensions, rehabilitation allowances, disability pensions,
widow and widower pensions and survivor benefits to children. Membership to the
national insurance scheme is mandatory to all citizens.
The Icelandic National Health Insurance scheme was initiated in 1936 and
includes cover against sickness, accident and unemployment, pensions for the
aged and disabled and a health service. Dr Skweyiya met with Ministers
responsible for Health and Social Security, Education, Church and Culture,
Finance and International Development, as well as representatives of the Church
of Norway, Social Welfare Union and non-governmental organisations (NGOs).
Dr Skweyiya said: "We are encouraged by the Nordic principle that while a
comprehensive social security system is too expensive, it is also too expensive
not to have it, given its ability to reduce poverty and create safety nets and
stable families and communities."
He was impressed by the caring nature of the welfare system. "Our
government's vision is for South Africa to be a truly caring State and there
are many lessons to be learnt from the Nordic countries in this regard,
especially the manner in which they care for their people from the cradle to
the grave. I am also most impressed by the programmes for the development of
children, especially early childhood development. The focus on education, to
the extension of ensuring access to education even when a child is in hospital
where a teacher is sent to the bedside was also very instructive.
Obviously with our population numbers and legacy we cannot be able to
transplant most of the social development programmes but we can adopt the
principles behind them. The fact that a country like Iceland grew from a poor
nation of fishermen to one of the most advanced countries in Europe in only
about 50 years convinces us even more that our goals of achieving a better life
for all our people is achievableââ, said Dr Skweyiya.
Dr Skweyiya added: "The Nordic model requires amongst other things that
people should have jobs. We are therefore on the right track in our campaign to
create jobs in the country, to be able to efficiently finance the comprehensive
social security system."
Another key lesson learnt is the need to strengthen municipalities. The
social welfare and social security function in the two countries is implemented
at local government level. "Our strengthening and rebuilding of local
government should ultimately enable us to transfer most of our own welfare
programmes to municipalities, as they are the most relevant sphere of
government, being closest to the people. We are keen to study further how the
Nordic countries run their programmes at local government level to inform our
debates in this regard."
Minister Skweyiya paid a courtesy call on the President of Iceland, Mr
Olafur Ragnar Grimsson. The President pledged the support of his country and
urged partnerships between South Africa and Iceland on the socio-economic
development of South Africa and the continent. The visit to Norway and Iceland
has paved the way for intensive collaboration in various areas in the field of
social development.
Minister Skweyiya will stop over in Paris, France to attend the conference
on "Covering the Risk of Illness in Developing Countries: Breaking the Vicious
Cycle of Illness and Poverty," on Thursday 15 to Friday, 16 March 2007.
Enquires:
Lakela Kaunda
Cell: 082 782 2575
Issued by: the Department of Social Development
14 March 2007
