The role of Eastern Caribbean Currency Union (ECCU) Social Security Systems is critical to national development.
Speaking on the second of a two-part interview, recently Retired Director of the Anguilla Social Security Board, Dr Timothy Hodge and Acting Deputy Director Research Department, ECCB, Shernnel Thompson, discuss the roles of social security systems; some of the challenges the systems are facing; and steps that can be taken to protect and preserve these important systems.
Dr Hodge says that over the years, social security systems have provided a much stronger and bigger framework to prevent social chaos by removing the likelihood of persons who may end up as wards of the State. He adds that the social safety net provided by the region’s social security systems allows people to retire with some sense of dignity. In addition, Dr Hodge says that the fund provides an avenue for investment when loaned to governments in the form of bills and bonds. Hence, he concludes that social security systems are often aligned with the ECCU governments’ development agenda.
Speaking from a central banking perspective, Thompson notes that social security systems comprise one of the largest depositories of commercial banks. hence it is important for close monitoring of these systems, given their link to the health and stability of the financial sector.
Dr Hodge reiterates that, in the face of major challenges like the economic crisis of 2008, Hurricane Irma and the COVID-19 pandemic, social security systems must remain strong, robust and sustainable. He calls on the citizens of the ECCU to demand good governance, proper legislation, management and compliance to ensure these systems continue to function effectively.