The Organisation for Economic Cooperation and Development (OECD) has warned that cutbacks in government spending on social policies risk worsening the effects of the recent recession.
In a new report on social indicators, Society at a Glance 2014, the OECD says that many of those who benefitted least from economic growth before the crisis have borne a heavy burden during the recession.
Poor families and young people hardest hit by crisis
It highlights that while governments must do more with less money in some areas of spending, such as safety nets for poor families, governments may need to increase spending in other areas. In particular, the OECD says young people and children have been hardest hit by income poverty.
It also says that high rates of joblessness and income losses are worsening social conditions in many countries, while budget cutbacks risk adding to the hardships of the most vulnerable in society and could create more problems for the future.
The report outlines that young people who suffer long periods of unemployment, inactivity, or poverty face a lifetime of diminished earnings and weakened job opportunities.
Warning against cuts in education funding
The OECD also warns governments against cutbacks to education spending, as it risks closing off access to educational opportunities for some families. This, it says, causes long-term damage to economies.
Cutbacks in public health spending are also advised against, with the OECD saying public health spending must be targeted where it will have most effect.
It notes that three in five low-income earners say they have good health, but for high-income earners the figure is four in five.
It says countries that have been hit especially hard should ensure access to quality services for children and prevent labour market exclusion for school leavers. And it says maintaining and strengthening support for the most vulnerable groups must remain a crucial part of any strategy for an economic and social recovery.
‘Crisis proof’ policies
The report urges governments to target social spending on the most needy, as this can generate substantial savings in expenditure while protecting vulnerable groups. It says healthcare reforms in particular should prioritise the most vulnerable.
It also says governments need to increase structural reforms of social spending, and says the crisis has accelerated the need for these. In designing future social policies, governments need to ensure that they are “crisis-proofed”, and can operate in bad times as well as good.
“For our societies to remain prosperous and stable, it is essential that social policies support families in troubled times and ensure that short-term problems do not turn in to long-term disadvantages,” OECD Secretary General José Ángel Gurría said.
EI: Government responsibility to ensure quality education
“The crisis must not be used as an excuse by governments anymore,” said EI General Secretary Fred van Leeuwen. “They are responsible for ensuring that all citizens can enjoy quality public services, such as education and health, by appropriately financing these services.”
He went on to say that EI and its affiliates are currently leading the Unite for Quality Education campaign to put pressure on public authorities and decision makers the world over, for them to guarantee access to quality teachers, quality teaching and learning environments and tools for all, therefore ensuring fair and sustainable future for all.