Japanese experience of social insurance discussed

Regarding the social insurance package bill submitted by the government of Mongolia, the Standing Committee on Social Policy organized a meeting to study the experience of Japan on May 29.

In the 28 years since its adoption in 1994, the Social Insurance Law has been amended more than 30 times. However, as social and economic relations change, there is a need to expand the coverage of social insurance, create real accumulation of insurance premiums, establish fair pensions, increase pensions in line with inflation, and improve the financial capacity of the Social Insurance Fund by protecting the interests of the insured. In connection with this, the government developed a bill to reform the sector.

During the meeting, Ambassador of Japan to Mongolia Kobayashi Hiroyuki said that Mongolia’s transition to a free democratic market economy in the early 1990s was a major impetus for today’s development. He emphasized that it is very important to strengthen a stable social security system to protect people from various problems in life, such as old age, and enjoy medical and nursing care.

About 28.9 percent of Japan’s population is over 65, making it the “oldest” country in the world. Although the percent of life expectancy of the country is high, it is considered that it has the following problems. The labor force, an important driver of economic growth, has declined. In addition, the number of working-age people per senior citizen decreased from 11.2 people in 1960 to 7.4 people in 1990 and 2.4 people in 2014, and the burden of social security expenses per person is increasing, which is causing problems.

At the meeting, Senior Advisor on Social Security at Japan International Cooperation Agency (JICA) Shintaro Nakamura gave a speech on overview of Japan’s social security, changes in Japanese society, the impact on social security, understanding how Japan’s social security is related to change, and socio-economic change.

Chairwoman of the Standing Committee on Social Policy P.Anujin, lawmakers S.Ganbaatar and B.Jargalmaa, Ambassador of Japan to Mongolia Kobayashi Hiroyuki, JICA President Tanaka Akihiko and related officials attended the meeting.