Extending
Opportunities
HOW ACTIVE SOCIAL POLICY
CAN BENEFIT US ALL
,Extending Opportunities
HOW ACTIVE SOCIAL POLICY
CAN BENEFIT US ALL
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
, ORGANISATION FOR ECONOMIC CO-OPERATION
AND DEVELOPMENT
The OECD is a unique forum where the governments of 30 democracies work together to
address the economic, social and environmental challenges of globalisation. The OECD is also at
the forefront of efforts to understand and to help governments respond to new developments and
concerns, such as corporate governance, the information economy and the challenges of an
ageing population. The Organisation provides a setting where governments can compare policy
experiences, seek answers to common problems, identify good practice and work to co-ordinate
domestic and international policies.
The OECD member countries are: Australia, Austria, Belgium, Canada, the Czech Republic,
Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea,
Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, the Slovak Republic,
Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. The Commission of
the European Communities takes part in the work of the OECD.
OECD Publishing disseminates widely the results of the Organisation’s statistics gathering and
research on economic, social and environmental issues, as well as the conventions, guidelines and
standards agreed by its members.
This work is published on the responsibility of the Secretary-General of the OECD. The
opinions expressed and arguments employed herein do not necessarily reflect the official
views of the Organisation or of the governments of its member countries.
Also available in French under the title:
Accroître les chances de chacun
Pour une politique sociale active au bénéfice de tous
© OECD 2005
No reproduction, copy, transmission or translation of this publication may be made without written permission. Applications should be sent to
OECD Publishing: or by fax (33 1) 45 24 13 91. Permission to photocopy a portion of this work should be addressed to the Centre
français d'exploitation du droit de copie, 20, rue des Grands-Augustins, 75006 Paris, France ().
, FOREWORD
Foreword
E conomic growth has resulted in huge improvements in the social conditions of millions of OECD
citizens over the past 50 years. Sustaining the pace of economic growth will remain critical for these
improvements in social conditions to continue in the future. But economic growth alone is not
enough. Also important is the existence of well-functioning institutions, in particular those devoted
to providing social protection to families and individuals.
This document builds on the experiences of OECD countries over the past two decades. It argues
that social protection is as important as ever for attaining a broad range of social goals. Recent policy
experimentation – together with better research and evaluation – has started to pay off. More is
known today about effective policies to address problems that seemed intractable only a few years
ago. In particular, we have learned how to better integrate social and labour market interventions
aimed at reducing poverty, exclusion and dependency among some groups dependent on welfare
benefits. However, while many policies have been effective in achieving desired outcomes, others
have not, and difficult challenges lie ahead. Indeed, the recent optimism that we can improve the
lives of those most exposed to disadvantage poses a challenge in itself: citizens – knowing that social
protection can do more to help people on welfare or with disabilities, or to enhance the life chances of
children and to help parents – expect quality interventions in each of these fields. But society has
already committed vast resources to meeting other social policy challenges – in particular, to provide
old-age pensions to an increasing number of elderly persons. In this context, is an expansion of public
responsibilities affordable or desirable? If not, how can society rebalance its interventions to meet the
needs of individuals at different stages of their life-cycle? Are there better means of achieving social
goals? These are some of the questions that will be confronting Social Policy Ministers as they meet
in Paris on 31 March and 1 April 2005 (www.oecd.org/socialmin2005). This report has been
prepared by the OECD Secretariat to inform those discussions.
The heart of this report puts the case for active social policies, a concept that stresses the
importance of shifting the focus of social programmes from insuring individuals against a few, well-
defined, risks towards investing in their capabilities and making the best use of them. This report –
which complements the evidence provided in the recently released bi-annual compendium of social
indicators, Society at a Glance – brings together results from a range of analyses carried out by the
OECD in recent years, in particular work undertaken in the Directorate for Employment, Labour and
Social Affairs, the Centre for Tax Policy and Administration, the Directorate for Education and the
Economics Department.
This report, which has been prepared by Marco Mira d’Ercole of the OECD Social Policy Division,
draws on contributions by various members of the OECD Social Policy Division: Peter Whiteford
EXTENDING OPPORTUNITIES: HOW ACTIVE SOCIAL POLICY CAN BENEFIT US ALL – ISBN 92-64-00794-6 – © OECD 2005 3
Opportunities
HOW ACTIVE SOCIAL POLICY
CAN BENEFIT US ALL
,Extending Opportunities
HOW ACTIVE SOCIAL POLICY
CAN BENEFIT US ALL
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
, ORGANISATION FOR ECONOMIC CO-OPERATION
AND DEVELOPMENT
The OECD is a unique forum where the governments of 30 democracies work together to
address the economic, social and environmental challenges of globalisation. The OECD is also at
the forefront of efforts to understand and to help governments respond to new developments and
concerns, such as corporate governance, the information economy and the challenges of an
ageing population. The Organisation provides a setting where governments can compare policy
experiences, seek answers to common problems, identify good practice and work to co-ordinate
domestic and international policies.
The OECD member countries are: Australia, Austria, Belgium, Canada, the Czech Republic,
Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea,
Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, the Slovak Republic,
Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. The Commission of
the European Communities takes part in the work of the OECD.
OECD Publishing disseminates widely the results of the Organisation’s statistics gathering and
research on economic, social and environmental issues, as well as the conventions, guidelines and
standards agreed by its members.
This work is published on the responsibility of the Secretary-General of the OECD. The
opinions expressed and arguments employed herein do not necessarily reflect the official
views of the Organisation or of the governments of its member countries.
Also available in French under the title:
Accroître les chances de chacun
Pour une politique sociale active au bénéfice de tous
© OECD 2005
No reproduction, copy, transmission or translation of this publication may be made without written permission. Applications should be sent to
OECD Publishing: or by fax (33 1) 45 24 13 91. Permission to photocopy a portion of this work should be addressed to the Centre
français d'exploitation du droit de copie, 20, rue des Grands-Augustins, 75006 Paris, France ().
, FOREWORD
Foreword
E conomic growth has resulted in huge improvements in the social conditions of millions of OECD
citizens over the past 50 years. Sustaining the pace of economic growth will remain critical for these
improvements in social conditions to continue in the future. But economic growth alone is not
enough. Also important is the existence of well-functioning institutions, in particular those devoted
to providing social protection to families and individuals.
This document builds on the experiences of OECD countries over the past two decades. It argues
that social protection is as important as ever for attaining a broad range of social goals. Recent policy
experimentation – together with better research and evaluation – has started to pay off. More is
known today about effective policies to address problems that seemed intractable only a few years
ago. In particular, we have learned how to better integrate social and labour market interventions
aimed at reducing poverty, exclusion and dependency among some groups dependent on welfare
benefits. However, while many policies have been effective in achieving desired outcomes, others
have not, and difficult challenges lie ahead. Indeed, the recent optimism that we can improve the
lives of those most exposed to disadvantage poses a challenge in itself: citizens – knowing that social
protection can do more to help people on welfare or with disabilities, or to enhance the life chances of
children and to help parents – expect quality interventions in each of these fields. But society has
already committed vast resources to meeting other social policy challenges – in particular, to provide
old-age pensions to an increasing number of elderly persons. In this context, is an expansion of public
responsibilities affordable or desirable? If not, how can society rebalance its interventions to meet the
needs of individuals at different stages of their life-cycle? Are there better means of achieving social
goals? These are some of the questions that will be confronting Social Policy Ministers as they meet
in Paris on 31 March and 1 April 2005 (www.oecd.org/socialmin2005). This report has been
prepared by the OECD Secretariat to inform those discussions.
The heart of this report puts the case for active social policies, a concept that stresses the
importance of shifting the focus of social programmes from insuring individuals against a few, well-
defined, risks towards investing in their capabilities and making the best use of them. This report –
which complements the evidence provided in the recently released bi-annual compendium of social
indicators, Society at a Glance – brings together results from a range of analyses carried out by the
OECD in recent years, in particular work undertaken in the Directorate for Employment, Labour and
Social Affairs, the Centre for Tax Policy and Administration, the Directorate for Education and the
Economics Department.
This report, which has been prepared by Marco Mira d’Ercole of the OECD Social Policy Division,
draws on contributions by various members of the OECD Social Policy Division: Peter Whiteford
EXTENDING OPPORTUNITIES: HOW ACTIVE SOCIAL POLICY CAN BENEFIT US ALL – ISBN 92-64-00794-6 – © OECD 2005 3
