This is discussion about Social Security for Rural populations through sustainable and interdependent livelihoods.
I would love to have your critical inputs and comments on this model, as it would help me in identifying the gaps and plugging them.
Thanks and Regards
Pradeep Ghosh (Ashoka Fellow)
On July 10, 2009 the judges reviewed the entries for the Changemakers “Cultivating Innovations: Solutions for Rural Communities” competition and would like to pass on the following feedback (listed below) for your entry. Thank you for applying and for your hard work in the field. We are excited to archive your entry to serve as a leading solution for the worldwide community of innovators. We wish you continued luck with your innovative, sustainable, and socially impactful initiatives.
All the best, The Changemakers Team
“This is an innovative idea with a brilliant plan for market success. It demonstrated significant social impact, but I would like to know more about its plans for sustainability. This initiative addresses an urgent need and demonstrates good solution-based thinking, but setting up a social insurance scheme is a huge undertaking. The ability to generate the pool of capital to provide the social security is difficult, so I would love to learn more about how this initiative addresses the situations when people draw on the insurance and ensuring that there are sufficient resources to fill these pools.”
- Changemakers “Cultivating Innovations: Solutions for Rural Communities” Judges: TED, General Mills, Bill & Melinda Gates Foundation, StuffedandStarved.org, Instituto de Pesquisas Ecológicas (Institute for Ecological Research).
Many thanks for your encouraging comments.
In any country there are a number of competing social security instruments (Insurances) that intend to provide economic protection against specific uncertainties. The premiums for these insurances vary, but become economical when provided in a group. The best and most economical instruments are selected by the villagers and stacked into a social security package for the entire group/village. This makes the premium per head very economical.
Primarily the social security package consists of a Life Insurance policy (for the main earning member), a Health Insurance policy (for the entire family), Livelihood Insurance (eg Crop/Cattle insurance) and Old-age pension. Whatever accrues in a family's social security account is used first to pay the insurance premiums and the balance is transferred to an endowment policy for old-age pension.
Whatever they draw as claims, comes from the insurance companies who ensure good risk spread across the country to have sufficient resources in their pool.
The objective of the model is not to create a pool for insurances, but building up the capacities of people, to purchase available insurances. Also it gives a new and concentrated market of people (earlier considered non-insurable, because of their incapacity to pay premiums) to insurance companies.
The model has now matured enough to be implemented in different economic scenarios (countries/regions) tailored to their needs. OASiS would be happy to provide all support to countries who would like to implement the model at the state/national level.