重构社会契约：促进经济包容与财政可持续的政策选择.docxVIP

Redefiningthesocialcontract

Policyoptionsfor

economicinclusion

andfiscalsustainability

EXECUTIVESUMMARY

Followingthe1970soilboom,theGulfCooperationCouncil(GCC)1

countriesdevelopedagenerouswelfaremodelofferingawiderange

ofbenefitstonationals,includingpublic-sectoremployment,energy

subsidies,avarietyofnon-means-testedcategoricalbenefits,2andfreepublicservicessuchaseducationandhealthcare.Governmentsnow

understandthatthisimplicitsocialcontractneedsreform,givenfiscalconstraintsanddemographicpressures.

AlthoughGCCgovernmentsarerespondingtothischallenge,thusfarreformshavebeenpiecemeal.Creatinganewsocialcontractrequiressimultaneousfiscalreform,welfare

modernization,andlaborpolicychanges.Moreover,governmentsneedtodesignandimplementthecontractcomponentsspecificallyforeachcountry’sneeds.

TherearefivepolicytoolsthatGCCgovernmentscanconsiderastheyredesigntheirsocialcontracts,describedbelow:

?Permanentincomesupplementsforlowerearnerscanmakeprivate-sectoremploymentmoreattractivetonationals.Suchincomesupportensuresthattheshiftawayfrom

public-sectoremploymentdoesnotresultin“workingpoor.”

?Activelabormarketpolicies,includinglifelonglearning,jobservices,andtraining,cansupportnationals’integrationintotheprivatesector.

?Universalbasicincome(UBI)canprovideallnationalswithincomesecurity,whilemaintainingincentivesforprivate-sectorentrepreneurshipandwork.

?Means-testedsocialbenefitscansupportthosethatneeditmost,whilereducingwelfaredependencyandfraud.

?Integrationofforeignresidentsthroughdedicatedwelfaretools,suchasamodest

minimumwage,canattractandensureareadyworkforceofforeigners,whilereducingthedifferentialinlaborrightsandcoststhatdiscouragesemployersfromhiringnationals.

AnewsocialcontractinGCCcountriescanprovideopportunitiestoa