A Comparative Perspective On Provident Funds: Their Present And Future Explored

Abstract

Abstract Provident funds operate in 23 Third World countries as compulsory savings schemes. Because their members can identify “their” social security savings they tend to claim proprietary rights to them. This brings into question whether “social security” should be defined narrowly (income maintenance or income replacement) or broadly (including “quality of life” dimensions, such as improved housing and health care). Provident funds are popular with their members, participating employers and sponsoring governments, for they achieve a mix of economic, social and social security objectives. This has made them resilient to fundamental change. To a significant degree, however, social security objectives have become subservient to social and economic objectives, although perhaps not to the disadvantage of provident fund members.