## A New Social Contract

_IMF Blog, November 30, 2018_

## Source details

**Canonical URL:** [A New Social Contract](https://www.imf.org/en/blogs/articles/2018/11/30/a-new-social-contract)

## Other formats

- [Markdown version](/en/blogs/articles/2018/11/30/a-new-social-contract/index.md)
- [Structured JSON version](/en/blogs/articles/2018/11/30/a-new-social-contract/index.json)
- [Bundle manifest](/en/blogs/articles/2018/11/30/a-new-social-contract/bundle-manifest.json)

## Bibliographic details
- Published: November 30, 2018

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### Context and challenges
- Publication date: November 30, 2018.
- Core diagnosis: economic insecurity is at the heart of rising populism and nationalism.
- Contributing forces:
  - After the global financial crisis, "voters in wealthy countries began to lose faith in the state’s ability to protect them."
  - "The profound changes sweeping labor markets, caused by the rise of technology and continued globalization, have only deepened this anxiety."
  - In poor countries, many people "still have not attained even basic standards of living, with many risking their lives in search of a more prosperous future."
  - Automation and the gig economy have blurred responsibility for worker protection and left some workers marginalized with "no prospect for employment at all."
  - Population aging increases the burden of caring for the elderly while the pool of younger workers shrinks.
  - Advances in health care increase longevity, yet "even basic care remains out of reach for many poor people."

### Rethinking social protection
- Partnership noted: this issue of F&D highlights work in partnership with the London School of Economics and Political Science (LSE), which launched a research project "to redefine the welfare state."
- Guiding proposition (quote): "A new social contract is essential to restoring a sense of security and sustaining political support for open economies and societies," writes LSE Director Nemat Shafik.
- Political dimension: Ultimately, choices about social protection and how to pay for it "comes down to political choice."

### Policy options and considerations
- Possible policy responses listed:
  - Universal basic income.
  - Better targeting of existing safety nets.
  - More investment in education and health.
  - Combinations of the above tailored to each society's "unique characteristics."
- Implementation principle: "Whether through universal basic income, better targeting of existing safety nets, more investment in education and health, or a combination of all these policies, each society will need to find an answer that works for its unique characteristics."

### Imperative and timing
- Call to action: "In this age of insecurity, we should act now to strengthen the bonds that unite us."

### About the blog and institutional context
- IMFBlog description: a forum for the views of the International Monetary Fund (IMF) staff and officials on pressing economic and policy issues of the day.
- Organizational fact: "The IMF, based in Washington D.C., is an organization of 191 countries, working to foster global monetary cooperation and financial stability around the world."
- Disclaimer: "The views expressed are those of the author(s) and do not necessarily represent the views of the IMF and its Executive Board."

*Source: A New Social Contract (IMFBlog), November 30, 2018.*

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## References

- [https://www.imf.org/wp-content/uploads/2018/11/1024x600-fd1218r.jpg](https://www.imf.org/wp-content/uploads/2018/11/1024x600-fd1218r.jpg)
- [profound changes sweeping labor markets](https://www.imf.org/external/pubs/ft/fandd/2018/12/world-bank-reimagining-social-protection-rutkowski.htm)
- [A new social contract](https://www.imf.org/external/pubs/ft/fandd/2018/12/lse-a-new-social-contract-shafik.htm)
- [universal basic income](https://www.imf.org/external/pubs/ft/fandd/2018/12/what-is-universal-basic-income-basics.htm)
- [better targeting](https://www.imf.org/external/pubs/ft/fandd/2018/12/developing-economies-and-social-protection-hanna.htm)
- [each society will need to find an answer](https://www.imf.org/external/pubs/ft/fandd/2018/12/case-for-universal-social-protection-ortiz.htm)
- [how to pay for social protection](https://www.imf.org/external/pubs/ft/fandd/2018/12/taxes-and-social-protection-coady.htm)
- [political choice](https://www.imf.org/external/pubs/ft/fandd/2018/12/affordability-of-basic-social-protection-cichon.htm)
- [Finance & Development: December 2018](https://www.imf.org/external/pubs/ft/fandd/)

_Source: https://www.imf.org/en/blogs/articles/2018/11/30/a-new-social-contract_