Book SummaryWhat We Owe Each Other, by Minouche Shafik

1-Page Summary1-Page Book Summary of What We Owe Each Other

Crafting a contemporary social contract that is appropriate for the modern era.

It is essential to reassess how duties and responsibilities are distributed between individuals, households, businesses, and society at large.

Technological advancements, demographic shifts, and ecological issues are putting traditional societal contracts to the test.

Shafik argues that the formal and informal agreements enabling our societal cohabitation are not functioning as expected. The conventional view of social contracts, which was based on consistent family structures with men typically serving as the main breadwinners and women primarily taking on caregiving roles, is becoming obsolete as the need for support grows with people living longer lives.

Several powerful trends are driving this shift. The advent of technology, especially through globalization and automation, has led to the erosion of middle-class employment opportunities in numerous developed nations, resulting in a labor market that is more adaptable yet less secure. The considerable entry of women into the workforce has boosted economic output while simultaneously challenging traditional caregiving arrangements. Improvements in healthcare have led to a longer average lifespan, consequently expanding the global elderly demographic and intensifying the pressure on funds allocated for pensions and healthcare. Our growing awareness of the environmental damage caused by past economic growth compels us to reconsider our obligations to the generations that will come after us. Changes in societal standards are leading to a reassessment of the responsibilities we share.

A reimagined social compact ought to prioritize universal security, foster skill development, and distribute risks effectively.

Minouche Shafik suggests establishing a societal framework for the 21st century that is founded on three fundamental principles. First, it is essential that all individuals are assured of the fundamental provisions required to lead a life of dignity. Essential support should encompass crucial medical care, education, and employment-related advantages such as paid sick leave, joblessness insurance, and retirement savings that safeguard against impoverishment during the twilight years of one's life. The baseline standard is set by the resources a society has at its disposal. Society must prioritize enhancing its collective capabilities through strategic investments. Individuals should be afforded the optimal conditions by society to remain productive and to enhance the collective welfare throughout their lifetime. Investing in childcare and elder care is crucial for increasing women's participation in the labor market. A reenvisioned social contract ought to strive for a balance that is both efficient and equitable in the distribution of risks. Society as a whole stands to gain from better handling of various risks that were previously borne by individuals, families, or specific companies.

Reimagining the contributions of government, businesses, and citizens toward societal welfare.

It is the responsibility of governments to guarantee that their citizens are provided with essential services such as education, healthcare, and assistance for senior members of the community.

The author imagines a government that is actively dedicated to ensuring that every citizen has a fundamental level of subsistence, safeguarding their dignity and enabling meaningful participation in community life. Citizenship should confer entitlements that are unconditional, encompassing essential income support, cost-effective housing, funds for education, healthcare for all, and a pension from the state that adjusts with life expectancy. To secure these assurances, the majority of nations will have to increase government spending, which can be underpinned by boosting productivity, overhauling the approach to taxation, and forging a new compact with corporations to take on more responsibility for the welfare of their workers.

The details of its implementation will vary across different communities, reflecting their unique cultural standards and inclinations. Various strategies are employed to secure a fundamental income, including setting minimum wage thresholds, supplementing insufficient wages with tax credits, and channeling financial support towards individuals with the most pressing needs. Initiatives utilizing mobile financial services to allocate resources have proven successful in reducing poverty in developing countries. Assistance for families in need during early childhood should be included in the support for education, along with the creation of an account for lifelong learning that enables individuals to acquire new skills and adjust to shifts in the employment landscape. Universal healthcare packages should be based on a minimum basket of services linked to a country’s average income, so that more expensive interventions become widely available as countries become richer.

Companies are obligated to strengthen the systems that provide social protection for all employees.

Minouche Shafik promotes the idea that private companies should take on a greater role in providing social protections, traditionally duties that fell to the government or the employees themselves. A reimagined pact with the business world would involve companies amplifying their contributions to social initiatives by paying more in corporate taxes, while also guaranteeing a broader spectrum of benefits for all employees, regardless of their job classification. In return, they would benefit from a workforce that is better educated, more productive, and versatile, thriving because of a collective dedication to skill enhancement and the development of crucial infrastructure.

Numerous tactics can be employed to encourage corporations to provide their support. Changes to tax policies should focus on reducing the burden on labor relative to capital. To...

What We Owe Each Other Summary Assistance for families is essential, particularly in nurturing the growth of young children by providing childcare and initiatives focused on their early development.

Ensuring that women have full participation in the workforce is crucial for economic growth and for improving the opportunities for individuals to move within the social hierarchy.

The author argues that integrating more women into the workforce is crucial not only for equity but also because it significantly contributes to enhancing economic growth and prosperity. Women embody a significant reservoir of untapped human potential, crucial for enhancing economic productivity and facilitating the movement of individuals across various social levels. Despite advancements in educational opportunities, the bulk of unpaid domestic duties, such as looking after children and elderly family members, still predominantly falls on women.

The ability for women to engage in the workforce outside of their homes hinges on the provision of childcare that is both superior in quality and economically accessible.

Shafik argues that the complete integration of women into the workforce necessitates the availability of high-quality childcare services, which should be considered a crucial element of societal infrastructure, just as important as educational and healthcare services. The...

What We Owe Each Other Summary Revamping the frameworks that underpin education and vocational training is essential to match the rapid technological advancements and changes in job market dynamics.

Education must shift from rote learning to developing problem-solving and adaptability skills

Shafik acknowledges the crucial impact that structured educational systems have on improving living standards worldwide, highlighting the expansion of opportunities for children to attend elementary and high school, particularly in developing countries. However, she argues that to equip workers for the varied and prolonged professional journeys they will face in the 21st century, education must shift from simply transferring knowledge to nurturing competencies that ensure workers can remain flexible and keep their skills pertinent throughout their careers. Investment in early childhood education and the provision of lifelong learning opportunities for adults should be at the forefront of future educational systems, which should also shift from rote learning to promote critical thinking and flexibility, abilities that are crucial for success in a constantly changing employment landscape.

To guarantee that children are provided with a comprehensive education, establishing a strong foundation in their early stages of development is crucial.

Education should focus on the...

What We Owe Each Other Summary Guaranteeing healthcare for all, managing its associated costs, and maintaining certain fundamental welfare standards.

Healthcare systems must find an equilibrium that respects individual freedom while safeguarding the community's health and aligning with public health objectives.

The community ensures and funds a basic array of necessary health services.

Minouche Shafik posits that citizenship inherently grants individuals the right to extensive healthcare, which subsequently fosters a stronger community and improves the productivity of the labor force. All countries, regardless of their economic standing, must guarantee that their inhabitants can utilize essential health services, including improvements in public health such as supplying clean water, establishing sewage systems, and carrying out immunization programs. As nations grow more prosperous, they ought to be able to bolster a wider range of health programs, with decisions guided by a standard that identifies the medical treatments that qualify for public financing. The standard should increase commensurate with the overall advancement in salary levels.

Countries globally acknowledge the necessity of providing every citizen with the opportunity to obtain health and care services, though the approaches and financial...

What We Owe Each Other Summary Establishing a robust agreement that ensures the welfare of workers and senior citizens, along with a steadfast dedication to protecting the environment, is critically important.

We must adapt our social contracts to address the growing unpredictability and instability in employment circumstances.

Every worker should be entitled to social protection and benefits, irrespective of their job's characteristics.

The author acknowledges that adaptable labor markets contribute to economic resilience, foster innovation, and facilitate the generation of new employment opportunities. However, the rise in adaptability has also introduced new uncertainties, with a growing number of workers engaging in unconventional employment forms such as short-term roles, independent contracts, or part-time work instead of a standard full-time schedule. These workers often lack the benefits and protections enjoyed by those employed full time, such as unemployment insurance, sick pay, and pensions, and are more vulnerable to economic shocks.

Hence, a redesigned structure for social responsibilities in the realm of employment must guarantee benefits and protections for all employees, irrespective of their job contract's characteristics. Regulations could mandate that employers provide benefits to flexible workers in proportion to their working hours, thus maintaining...