Open Conference Systems, ICQQMEAS2009

Font Size: 
THE EVOLUTION OF ROMANIA’S SOCIAL INSURANCE REDISTRIBUTION SYSTEM
Ana Anton Carp, Ciprian Carp

Last modified: 2015-09-15

Abstract


The social insurance systems have emerged and developed as redistribution systems. The demographic phenomena’s trend and the free circulation of citizens towards free labor force markets have imposed the redistribution systems’ resetting and the initiation of reforms in all the countries dependent on the only existing system of social insurances, the redistribution one. The social insurance systems cover a transition period in which there is a coexistence between redistribution and accumulative systems, based on investments. Basing oneself on fundamental universal principles, the redistribution systems remodel themselves on scientific basis. The balance between contributors and beneficiaries bends permanently by reducing the population’s employment rate, imposing therefore the necessity of reshaping the system also in the situation of economic growth. In this article, we present the results of the evolutional analysis of the redistribution system in Romania’s legislative and economic outlines. Within the initiated reform, Romania has introduced the principle of contribution. This principle is analyzed in a distinct chapter and considered a fundamental principle of the reform by Romania. In our study, we illustrate the functionality and the distortions of functionality to the Romanian principle, in the way it is implemented and applied in Romania. The authors suggest that only the actuarial reshaping, on its components of accumulation and redistribution of resources, offers solutions to the integral functionality of the contribution principle into a redistribution system. The study results are presented in the article. The authors conclude that the sustainability of a redistribution system is determined by the system’s stimulating and anticipating character, coexisting with the principles of contribution and social cohesion

Full Text: PDF