Institutional and Non-institutional Mechanisms of Social Policy | Social Work Practice |

(caps)Social security refers to a set of measures and programs aimed at providing financial and social support to individuals and families during times of need, such as old age, disability, unemployment, and other life events. These mechanisms can be broadly categorized into two categories like Institutional mechanisms and Non-institutional mechanisms:

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Institutional mechanisms

Institutional mechanisms for social security are government-sponsored programs and policies designed to provide social protection to citizens. These mechanisms are typically based on contributions from individuals and employers and are managed by government agencies. Some common institutional mechanisms include:

1. Social Security Systems: These are government-run programs that provide financial support to retirees, disabled individuals, and survivors of deceased beneficiaries. Contributions are made by workers and their employers throughout their working lives, and benefits are paid out based on certain eligibility criteria.

2. Unemployment Insurance: This system provides temporary financial assistance to individuals who lose their jobs involuntarily. Workers contribute to the unemployment insurance fund through payroll taxes, and eligible individuals can receive benefits for a limited period while they search for new employment. For example, Finland in Europe had undertaken the experiment of giving basic income to the unemployed people.

3. Workers' Compensation: This program provides compensation and medical benefits to employees who suffer work-related injuries or illnesses. Employers contribute to this fund, and workers are entitled to receive benefits if they experience a workplace injury.

4. Public Assistance/Welfare Programs: These programs offer financial aid to low-income individuals and families who may not qualify for other social security programs. They can include cash assistance, food stamps, housing support, and other essential services.

In India, programme like Atal Mission for Rejuvenation and Urban Transformation (AMRUT) Mission, Ayushman Bharat, Food Subsidy and the National Food Security Act, Jal Jeevan Mission (JJM), Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), and Mission Vatsalya, Mission Shakti are the best example of it. (alert-success)

Non-institutional mechanisms

Non-institutional mechanisms for social security are community-based or privately organized initiatives that offer informal support and safety nets. While not government-sponsored, they play a significant role in providing social security. Some examples of non-institutional mechanisms are given below:

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1. Family and Community Support: In many societies, families and communities play a crucial role in providing social security. Support from family members during times of financial hardship or crises can be essential for individuals without formal institutional support.

2. Charitable Organizations: Non-governmental and non-profit organizations often provide aid and assistance to vulnerable populations, such as the homeless, refugees, and individuals facing emergencies or disasters.

Smile Foundation: In 2002, the Smile Foundation was established in Delhi to support disadvantaged children’s education. This foundation assists over 15 lakh children and their families each year. In 25 Indian states and over 2,000 rural villages, they have established humanitarian initiatives focused on healthcare, women’s empowerment, and education. A group of young business workers founded this charity in an effort to make their life brighter, happier, and more pleasant. Some of their programs are Smile on Wheels, Mission Education and Smile Twin e-learning.(alert-success)

3. Informal Savings Groups: Informal savings and lending groups within communities can serve as a financial safety net for members during times of need. These groups pool resources and provide loans or financial assistance to their members. These informal saving groups are based on a predetermined rotation where every member is able to obtain a loan. Among these groups, credit is perceived as a human right, therefore, a development financial model is utilized. Informal saving groups have between 10 and 30 members who meet on a monthly basis.

4. Microfinance Institutions: Microfinance institutions offer financial services, including small loans and savings options, to low-income individuals and entrepreneurs, helping them build economic resilience.

Microfinance Institutions in India;

1. Annapurna Microfinance Pvt Ltd. 

2. Arohan Financial Services Pvt Ltd.

3. Asirvad Microfinance Pvt Ltd.

4. Bandhan Financial Services Pvt Ltd.

5. BSS Microfinance Pvt Ltd.

6. Cashpor Micro Credit.

7. Disha Microfin Pvt Ltd.

8. Equitas Microfinance Pvt Ltd. (alert-success)

Lastly, these institutional and non-institutional mechanisms for social security are essential in providing a comprehensive safety net for individuals and societies, especially during times of economic uncertainty and social challenges.