The development of social insurance : an analysis of the effects of the introduction of the National Social Security Scheme (NSSS) in Zimbabwe
This thesis that I am submitting to the department of Insurance and Investment studies at the City University Business School is essentially a report on the development, formation, operation and effects of the NSSS to the local Zimbabwean market. The NSSS is a quasi- independent government company that operates under the National Social Security Authority (NSSA) whose formation was to provide a framework for the provision of various social security benefits by such organisations as the NSSS. This thesis is divided into three broad parts. The first part draws from an historical experience of the development of social insurance in general and Zimbabwean oldage insurance in particular. This part is the basis of understanding the foundation and philosophy behind the formation and expansion of the social security programmes as strong economic and political tools across the modem world. The second segment of this report is the focus on political and economic theories that seek to explain the existence of social insurance in various economies. The last part of the thesis is a particular study of the Zimbabwean pensions market following the introduction of the NSSS and draws from household survey and original source material that has not previously been subject to analysis. This study has paid particular attention to the forces that have played crucial roles in shaping the development of the NSSS. Contrary to what we expected at the beginning of this study, the NSSS has had little adverse effect to the private schemes and general perception in risk taking behaviour, particularly to the middle class. The NSSS has in fact, had a marginal and effective positive effect in changing people's attitude towards the risk of longevity and long-term loss of income due to perils otherwise insured under the national scheme. This study has also shown that there was inadequate consultation prior to the formation of the NSSS and that political interests took priority over economic considerations. The scepticism and forces of suspicion within the market are explained within the framework of this thesis.