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Posted on April 20th, 2012, by

Today, the social security system is an integral part of the modern state and modern society cannot exist normally without the existence of an effective social security system. However, this is exactly where the major problem of the modern social security system arises. To put it more precisely, the major problem of the modern social security system is just and efficient use of funds which are directed either by the state or by private companies and organizations to fund social security programs, such as health care services. In such a situation, the effectiveness of the social security system heavily relies on the effectiveness of its funding and the proper use of the funds. In fact, the modern social security system is imperfect because it still fails to enroll all people in need to social security programs and a considerable part of the population is left aside.

In this respect, it should be said that the social security system’s problems are, to a significant extent, caused by the lack of historical experience of the implementation of social security programs. In fact, the social security system has been started since the mid-20th century. Today, the social security system involves not only the state that is supposed to guarantee the social security to all citizens, but it has also expanded on companies which are growing more and more concerned with social responsibilities policies. At first glance, such a situation is favorable for the development of an effective social security system. However, the modern social security system faces a number of problems.

First of all, it is possible to name the problem of the availability of the social security system in the modern society.

What is meant here is the fact that, in spite of existing social security programs and guarantees from the part of the state to citizens concerning their social security, the latter still remains unavailable for a considerable part of the population. For instance, on analyzing the current situation in the USA, it is worth mentioning the problem of the availability of health care services, which are an essential element of the social security system. Today, a considerable part of the American population is uninsured that means that these people are practically deprived of a possibility of receiving health care services of a normal quality. The same may be said about the system of education, where the system of public schools has proved its inefficiency, while the higher education is still unavailable for a considerable part of the population (Heintz and Folbre, 147). Hence, the social security system still cannot provide all citizens with equal opportunities to benefit from the existing advantages of basic services which are essential for people, such as health care and education. In fact, the existing social security system cannot provide these services to all people or, to put it more precisely, provide the equal access of all people to these services.

Furthermore, the use of funds spent on the social security system is another important problem. In actuality, many specialists (Denney, 239) argue that funds are used ineffectively, especially state funds which are directed from the state budget to social security system. On analyzing the funding of the social security system by the state, it should be said that it can hardly provide the efficient funding because the funds are not directed to specific programs but rather to the larger institutions. For instance, the funding of public schools by the state has become a serious burden for the state budget, but the system is not changing because there are no alternatives developed by the state to substitute the system of public schools.

In addition, it is necessary to remember about the problem of bureaucracy which limits the access of ordinary citizens to the social security system even more. In fact, the development of the social security system from the part of the state inevitably involves the bureaucratization of the system because the provision of financial aid or certain services funded by the state inevitably implies the creation of the specific state agency which develops, implements and controls the implementation of a social program. As a result, instead of using state funds effectively, the funds are spent on a huge bureaucratic apparatus, while the rest of the funds are used ineffectively because people who do need social support either have to spend a lot of time to get it or this aid is insufficient to maintain normal standards of living.

In such a context, it is possible to suggest reforming the existing social security system. In this respect, the development of public, non-profit organization may be crucial in overcoming the existing problems. In fact, public, non-profit organizations should substitute state agencies in regard to the provision of social security programs. For instance, the state should fund public organizations working on specific social programs with specific categories of the population. To define what organization should be funded it is possible to choose among a number of applicants, i.e. public organizations that need state funding, and a state commission including representatives of the public can take a decision on those public organizations that can get the state funding and those that cannot.

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