In the first chapter of this book we briefly recalled the history of social security from the time of its institutional predecessors to its conceptual reorganisation and expansion in the post-war years and the beginning of its retrenchment in more recent decades. In this chapter we will review in more detail the changes that have taken place in our societal environment, leading to the situation of growing social insecurity throughout the globalised world and to the present economic crisis, the impact of which on the institution is still difficult to measure.

The road to social insecurity

Among the most important changes that have taken place in advanced societies enjoying a reasonable degree of social protection has been a relatively rapid and profound modification of their age structure. Spectacular improvements have been achieved in longevity – life expectancy at birth, which was about 66 years in the middle of 20th century, is currently 80 years – while there has been an overall decline in fertility. As a result, the ageing society is unable to maintain old-age provisions as c onceived during the post-war years and cannot provide security in old age through public provisions only. These have to be reduced to an economically acceptable level and completed by other measures requiring diversification of resources. Whatever the resulting mix, it seems obvious that the individual capacity to save and contribute rather than an objectively defined need will determine the level of old-age benefits in future.

Profound mutations have also occurred in the economic life of global society. While democratic countries based on capitalist market economy experienced growing difficulties, triggered by abrupt changes in the supply and price of oil, the ruling regimes in planned economy countries, failing to adapt to social and economic evolution, lost the remaining political support of their populations and collapsed in the middle of serious upheavals. At the same time, helped by the revolution in communication technology and carried by a human rights vision of neoliberal ideology, a rapid globalisation process was set into motion, spelling the end of former prosperity of the Western world. As a result of that, the reduced economic growth was no longer sufficient to finance what has been known as ‘acquired rights’ and benefits of the post-war welfare state.