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International Monetary Fund. Communications Department

find an answer that works for its unique characteristics. That same principle applies to the vexed issue of how to pay for social protection. Ultimately, it comes down to political choice. In this age of insecurity, we should act now to strengthen the bonds that unite us. WJ CAMILLA LUND ANDERSEN , editor-in-chief ON THE COVER The changing nature of work is challenging the effectiveness of industrial-era social insurance policies. Michael Waraksa’s December 2018 F&D cover highlights the stark difference between those who are covered and those who

International Monetary Fund. Communications Department
This paper focuses on overcoming fears of technology and globalization means rethinking the rights and obligations of citizenship. While the causes of our discontent vary, they all point to the need to revitalize politics, economics, and social contract to provide citizens with a greater sense of security and confidence in the face of impending changes. The backlash highlights the need for a new social contract, one that adapts to changed economic realities and better manages the social implications of globalization. The social contract includes the payment of taxes in exchange for public goods, and the way that society looks after the old, the young, the infirm, and those who have fallen on hard times. Countries with greater social mobility grow faster because they more effectively match people to the right jobs. Another way to address inequality would be to put a floor under incomes, which would help ensure that even low-wage earners can enjoy a reasonable standard of living.

New systems that do not rely on standard employment contracts are needed Michal Rutkowski The changing nature of work is upending traditional employment and its benefits. In developed economies, global drivers of disruption—technological advances, economic integration, demographic shifts, social and climate change—are challenging the effectiveness of industrial-era social insurance policies tied to stable employment contracts. Those policies have delivered formidable progress, but they have also increasingly harmed labor market decisions and