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Small Jurisdictions; Their Common Features, in General and as Far as Social Security Is Concerned

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Social Security Law in Small Jurisdictions

Part of the book series: The World of Small States ((WSS,volume 8))

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Abstract

In this chapter a state of the art of the literature on small jurisdictions is provided, focusing on the features most relevant to social security, such as: the impact of economic and environmental shocks; scale disadvantages and flexibility; the limited human resources and infrastructure; the training needs; the limited number of people covered by social security; the importance of migration; and the strong ties with other states. Issues related to homogeneity and proximity, to the unity of administration and the lack thereof in the benefit schemes, and financial issues will be discussed. In this chapter, we also give an overview of the existing literature dealing with the common features of small jurisdictions, focusing on the features relevant to social security. As such, this part gives a status quaestionis concerning our central theme: are small jurisdictions confronted with specific issues or problems when dealing with social security?

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Notes

  1. 1.

    Baehr (1976), pp. 163 ff.

  2. 2.

    Panke (2010), quoted by Thorhallsson (2017), p. 40.

  3. 3.

    Mumford asks a similar question in relation with taxation, suggesting that perhaps taxation can better be considered from the perspective of the globalised South or from the perspective of developing countries (Mumford 2017, pp. 96 ff).

  4. 4.

    Christmas-Møller (1983), p. 46.

  5. 5.

    Moitrier (1980), pp. 77–78, adding that this is true even if in theory first thoughts would lead to the opposite conclusion that as regards both objectives and manner of execution no such specific distinction exists: from the point of view of objectives, whatever its size may be, a social security system fulfils the same needs and ensures the same objectives; and from the point of view of its manner of execution, it could be considered that a social security system does not depend upon the number of beneficiaries it may have.

  6. 6.

    Bertram (2011), p. 1.

  7. 7.

    Irving (2011), p. 227.

  8. 8.

    Srebrnik (2004), pp. 329–341.

  9. 9.

    Consell General (2014), p. 10.

  10. 10.

    Williams et al. (2013), p. 15.

  11. 11.

    Henry (2013), pp. 32–33 and 37; Williams et al. (2013), p. 2.

  12. 12.

    Encouraging small jurisdictions to do so is e.g. Bernal (2018), pp. 98–99.

  13. 13.

    Butler and Morris (2017), p. v; Williams et al. (2013), p. 9; Castro-Guttiérrez (2008), p. 2; International Social Security Association (1980a), p. 14.

  14. 14.

    International Social Security Association (1980a), pp. 13–14.

  15. 15.

    International Social Security Association (1980a), pp. 13–14.

  16. 16.

    Brown (2010), p. 58.

  17. 17.

    International Social Security Association (1980a), p. 13.

  18. 18.

    On this, see Briguglio (2018).

  19. 19.

    See also Briguglio (2018), p. 88.

  20. 20.

    Brown (2010), p. 58; see also Bernal (2018), pp. 95–96.

  21. 21.

    An island like Granada was nearly completely destroyed by hurricane Ivan in 2004; many more other examples could be given.

  22. 22.

    Castro-Guttiérrez (2008), p. 2.

  23. 23.

    Williams et al. (2013), p. 2.

  24. 24.

    Williams et al. (2013), p. 52; Castro-Guttiérrez (2008), p. 2; International Social Security Association (1980a), p. 13.

  25. 25.

    International Social Security Association (1980a), p. 13.

  26. 26.

    Castro-Guttiérrez (2008), p. 2.

  27. 27.

    International Social Security Association (1980a), p. 14.

  28. 28.

    Williams et al. (2013), p. 52.

  29. 29.

    Prasad et al. (2013), p. 8; Brown (2010), pp. 51–52; Osborne (2012), p. 3; Caruana and Kalweit (2019), pp. 13–14; Williams et al. (2013), p. 29.

  30. 30.

    Bouchet (2019), p. 6.

  31. 31.

    Prasad et al. (2013), p. 8; Brown (2010), pp. 51–52.

  32. 32.

    Butler and Morris (2017); Caruana and Kalweit (2019), pp. 13–14.

  33. 33.

    Osborne (2012), p. 3; see also Bouchet (2019), p. 7.

  34. 34.

    Henry (2013), pp. 32–33; Castro-Guttiérrez (2008), p. 2.

  35. 35.

    Grön Caroline, as quoted in Thorhallsson (2017), p. 40.

  36. 36.

    Prasad et al. (2013), p. 34, referring to Bertram (2011); the Seychelles and Malta being given as examples.

  37. 37.

    International Social Security Association (1980b), p. 40.

  38. 38.

    Williams et al. (2013), p. 9; Brown (2010), p. 56.

  39. 39.

    International Social Security Association (1980b), p. 40.

  40. 40.

    Brown (2010), pp. 51–52; see also International Social Security Association (1980b), p. 40.

  41. 41.

    Brown (2010, p. 56), referring to Baker (1992) making the point that “in case of small states, only a few brains need be drained before a serious systemic crisis occurs.” A report from the OECD on the characteristics of the populations of 28 OECD countries around the year 2000 found that the Caribbean region loses between 25 and 47% of its nationals with higher education through emigration each year.

  42. 42.

    X (Latin American Economic Outlook) (2019a), pp. 193–194; also Moitrier (1980), p. 83.

  43. 43.

    Wettenhall (1992) as referred to in Brown (2010), p. 56.

  44. 44.

    Brown (2010), p. 56.

  45. 45.

    Brown (2010), p. 61.

  46. 46.

    Brown (2010), p. 61.

  47. 47.

    Donlan et al. (2017), pp. 207–208.

  48. 48.

    Brown (2010), p. 57; in the same sense International Social Security Association (1980b), p. 40 and Moitrier (1980), p. 83.

  49. 49.

    Castro-Guttiérrez (2008), p. 5.

    The heads of the CARICOM Social Security Organisations meeting in 2019 asked for special attention for the modernisation of the social security schemes, the use of ICT, as well as for training and research (X. (CARICOM. Social security schemes urged to modernize) 2019b). Also the year before the Governor of the Eastern Caribbean Central Bank called for a more functional cooperation among social security schemes in areas such as corporate governance, research and development and investment (SKNIS 2018).

  50. 50.

    Brown (2010), p. 56.

  51. 51.

    Butler and Morris (2017), p. 5.

  52. 52.

    On these issues, see: Azzopardi Muscat and Camilleri (2018).

  53. 53.

    Bertram (2011), p. 13.

  54. 54.

    International Social Security Association (1994), p. 2; Hartley Lees (1994), p. 8.

  55. 55.

    Henry (2013), pp. 33 and 51; Williams et al. (2013), pp. 2, 49 and 56.

  56. 56.

    Gales (1994), p. 64.

  57. 57.

    Thorhallsson (2017), pp. 41–42.

  58. 58.

    International Social Security Association (1980b), p. 40.

  59. 59.

    Prasad et al. (2013), p. 5.

  60. 60.

    Prasad et al. (2013), p. 5.

  61. 61.

    Brown (2010), p. 60.

  62. 62.

    See also Brown (2010), p. 56 in favour of in situ training.

  63. 63.

    Brown (2010), p. 61.

  64. 64.

    Brown (2010), p. 61.

  65. 65.

    Castro-Guttiérrez (2008), p. 6.

  66. 66.

    Castro-Guttiérrez (2008), p. 6.

  67. 67.

    Castro-Guttiérrez (2008), pp. 8–9.

  68. 68.

    See e.g. International Social Security Association (1980b), p. 42 and Moitrier (1980), p. 81.

  69. 69.

    International Social Security Association (1980d), pp. 93–94.

  70. 70.

    International Social Security Association (1980d), p. 94; Castro-Guttiérrez (2008), p. 2.

  71. 71.

    International Social Security Association (1980d), p. 94.

  72. 72.

    On health in small states, see: Azzopardi Muscat and Camilleri (2018).

  73. 73.

    International Social Security Association (1980c), p. 56. Iceland would be one of the few exceptions. For the Caribbean small states emigration and to a lesser extent immigration is very important (Williams et al. 2013, p. 16).

  74. 74.

    Sometimes the emigration of larger amounts of people from one larger state to the small country reflects particular historic coincidences; we can refer e.g. to the important Portuguese migration to small states like Andorra or Luxembourg.

  75. 75.

    For some small countries the number of foreigners resident in the country outnumbers the nationals (sometimes up to 2 foreigners to 1 national) (Moitrier 1980, p. 82). See also Bartumeu (1994, p. 76 or 56); Ewen (1994, p. 91) and International Social Security Association (1980c, pp. 56–57).

  76. 76.

    The processing of a pension application for a migrant worker was often considerably lengthier than if he/she had worked in only one country. From 10–12 October 1979 the ISSA held a regional European meeting in London on the problems of speeding up the processing of migrant workers’ benefit claims, a brief record of which appeared in No. 4/79 of the International Social Security Review. See also International Social Security Association (1980c), pp. 56–57.

  77. 77.

    Castro-Guttiérrez (2008), p. 2; also Moitrier (1980), p. 82.

  78. 78.

    International Social Security Association (1980c, pp. 56–57): The participants also devoted special attention to the question of movements of tourists; each year streams of temporary migrants, sometimes of considerable intensity, passed through many of the small states represented at the meeting. “This could not fail to influence the operation of social security”. See also with relation to health care: International Social Security Association (1980c), p. 58.

  79. 79.

    Prasad et al. (2013), p. 34. On the issue of remittances in the small Commonwealth states, see: Cover-Kus et al. (2018), here pp. 11–12.

    An interesting social security issue with relation to remittances, consist in the question whether these remittances should be included in the income of the recipients of income tested social security benefits.

  80. 80.

    Baldacchino (2011).

  81. 81.

    Prasad et al. (2013), p. 31.

  82. 82.

    On this issue, see: Von Brockdorff and Vella (2018).

  83. 83.

    On this issue, see Bertram (2011, p. 12), where we read: “So long as diaspora members retain their citizenship and the right of return, they are effectively part of the set of individuals and groups to whom social policy applies. Social policy is here understood as policy that shapes the long-term structure and functioning of all social groups for which the small state is their economic, cultural and political ‘home’ and source of identity.”

  84. 84.

    See also Moitrier (1980), p. 82.

  85. 85.

    Bertram (2011), p. 20.

  86. 86.

    Forteza (2008); Organisation of American States and Inter-American Council for Integral Development (2015), pp. 8–9; X (Projects of the Caribbean Community); Williams et al. (2013), pp. 18, 33 and 54.

  87. 87.

    Forteza (2008), pp. 25–26; Organisation of American States and Inter-American Council for Integral Development (2015), p. 9.

  88. 88.

    See e.g. for Jersey: Gales (1994), p. 62.

  89. 89.

    See also Hartley Lees (1994), p. 8.

  90. 90.

    It is remarkable that in some literature, especially relating to the Caribbean coordination agreements, there seems to be a confusion between the concepts ‘harmonisation’ and ‘coordination’, using the first concept when the latter is meant. See e.g. Williams et al. (2013), pp. 18 and 54.

  91. 91.

    External financing is important for many small states. More specifically, foreign assistance and concessionary loans have often played an important role in subsidizing development and the welfare et al. 2013, p. 34).

  92. 92.

    Bertram (2011), p. 12; Prasad et al. (2013), pp. 33–34 referring to Baldacchino (2011).

  93. 93.

    Prasad et al. (2013), p. 28 referring to Bertram (2011) for a summary.

  94. 94.

    Brown (2010), pp. 46–47.

  95. 95.

    Prasad et al. (2013), pp. iii and 28–29.

  96. 96.

    Prasad et al. (2013), p. 29 referring to for instance Grenada and Trinidad and Tobago.

  97. 97.

    Prasad et al. (2013), p. 29.

  98. 98.

    Caruana and Kalweit (2019), p. 13.

  99. 99.

    Prasad et al. (2013), p. 8 referring to the studies of Anckar (2002, 2004) and Srebrnik (2004); Prasad et al. (2013), p. 30 referring to Hintjens (2012), who points out that small size certainly does not necessarily translate into more democracy.

  100. 100.

    Veenendaal (2013), p. 245.

  101. 101.

    Brown (2010), p. 48, referring to Collings and Warrington (1997).

  102. 102.

    This can be the consequence of legally relevant texts being in the older national language (e.g. Italian in Malta) or the continued use of the language of the former colonisator, which often is then even elevated to the rank of official language of the state (exclusively or in combination with the broadly spoken national language, as with Papiamento in Aruba).

  103. 103.

    Dahl and Tufte (1973), p. 13; Butler and Morris (2017), p. vii.

  104. 104.

    Brown is hard in its critics: “These are seductive arguments – usually put forward by analysts whose life experiences are almost exclusively in large countries – that distort and romanticize the observed reality of small states. It is a ‘big country’ view of small states” (Brown 2010, pp. 47–48).

  105. 105.

    Brown (2010), pp. 46–47.

  106. 106.

    Brown (2010), pp. 46–48; also Veenendaal (2013), p. 247.

  107. 107.

    Brown (2010), pp. 46–48 referring to Collins and Warrington (1997).

  108. 108.

    Brown (2010), pp. 46–48.

  109. 109.

    Brown (2010), pp. 46–48.

  110. 110.

    Sometimes this is even reflecting custom. Mrs Kuautonga, a young Solomon Islands lawyer reports: “[…] there is a custom called the wantok system that is very common in Solomon Islands, whereby the position as public servant is used to serve the benefit of relatives, family members and friends. It is a form of corruption that has been imprinted in the minds of the general public. As long as one is public servant, you have to serve your wantoks despire the fact that you have certain codes of conduct to abide by. So it’s a conflict between performing to the expected standard and using the office for the best interest of wantoks…” (Caruana and Kalweit 2019, pp. 13–14).

  111. 111.

    That corruption was a problem needing further examination in small jurisdictions was recognised by the meeting of law ministers and attorneys general of all commonwealth jurisdictions. See: The Commonwealth (2018).

  112. 112.

    Veenendaal (2013), p. 247; Brown (2010), pp. 46–48 referring also to Collins and Warrington (1997).

  113. 113.

    Prasad et al. (2013), p. 30.

  114. 114.

    An exception, being Osborne writing: “Most programs, however, are plagued by varying degrees of political interference” (Osborne 2012, p. 3).

  115. 115.

    Castro-Guttiérrez (2008), p. 1; also International Social Security Association (1980b), p. 41 and Moitrier (1980), pp. 79–80.

  116. 116.

    Castro-Guttiérrez (2008), p. 1; also Moitrier (1980), pp. 79–80.

  117. 117.

    Moitrier (1980), p. 81.

  118. 118.

    Castro-Guttiérrez (2008), p. 2.

  119. 119.

    International Social Security Association (1980b), p. 41.

  120. 120.

    Moitrier (1980), p. 81.

  121. 121.

    International Social Security Association (1980b), p. 41.

  122. 122.

    See Bertram (2011), pp. 13–14.

  123. 123.

    Prasad et al. (2013), p. 27.

  124. 124.

    Castro-Guttiérrez (2008), p. 3.

  125. 125.

    This integration in broader institutions is seen by some as problematic: see Hartley Lees (1994), p. 8.

  126. 126.

    The lesser fragmentation of schemes was seen as an advantage of the social security of smaller jurisdiction; see: Moitrier (1980), p. 80.

  127. 127.

    Henry (2013), p. 31.

  128. 128.

    Henry (2013), p. 32–33 and 39; Williams et al. (2013), p. 33.

  129. 129.

    Williams et al. (2013), pp. 54–55.

  130. 130.

    Especially small island developing states have a weak internal tax base and rely on ‘border taxes’ (Williams et al. 2013, p. 35); see also Bertram (2011), pp. 15–16. By border taxes we understand trade taxes collected by customs, which in some small states may account for a disproportionately large share of total revenues vis-à-vis personal/corporate income or property taxes (Brown 2010, p. 53).

  131. 131.

    Paddison (2006), p. 20.

  132. 132.

    International Social Security Association (1980a), p. 14.

  133. 133.

    International Social Security Association (1980a), p. 14.

  134. 134.

    Williams et al. (2013), p. 28.

  135. 135.

    Williams et al. (2013), pp. 44–45.

  136. 136.

    Prasad et al. (2013), p. 34.

  137. 137.

    Wolf (2016), p. 7.

  138. 138.

    Veenendaal and Wolf (2016), p. 281.

  139. 139.

    International Social Security Association (1980b), p. 40.

  140. 140.

    Bartumeu (1994), p. 75.

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  1. Department of Law, KU Leuven, Leuven, Belgium

    Danny Pieters

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Pieters, D. (2021). Small Jurisdictions; Their Common Features, in General and as Far as Social Security Is Concerned. In: Social Security Law in Small Jurisdictions. The World of Small States, vol 8. Springer, Cham. https://doi.org/10.1007/978-3-030-78247-4_2

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  • DOI: https://doi.org/10.1007/978-3-030-78247-4_2

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