Transcript Outline of envisaged TC activities in the field of social

Extending Social security to all: The
ILO, the 100th ILC and the UN Social
Protection Floor Initiative
Show and Tell seminar
Bonn, 5 May 2011
ILO Social Security Department, Geneva
Outline
A.
Towards an ILO policy position:
Regional and global consultation
process (2001 -2011)
B.
Strategic and policy context
C.
Excursion: The UN SPF Initiative
D.
Back to the ILO: The Points for
discussion at the 100th Labour
Conference and the ideal outcome
Show and Tell 2011· slide 2
A. Regional and global consultation process on the
ILO strategy for the extension of social security
Global consultations and policy documents
• General Discussion at 90th Session of International Labour Conference (2001),
Social Security: A New Consensus (2001)
• Global Campaign on Social Security and Coverage for All (2003)
• Tripartite Meeting of Experts on Strategies for the Extension of Social Security
Coverage, September 2009
• Policy briefings: Social Security for All: Investing in Global and Economic
Development (2006/2009), Social Health Protection (2008), Setting Social
Security Standards in a Global Society (2008)
Regional consultations
• Reunión regional tripartita sobre el futuro de la protección social en América
Latina, Santiago de Chile, Chile (December 2007)
• Interregional Tripartite Meeting on the Future of Social Security in Arab
States, Amman, Jordan (May 2008)
• Asia-Pacific Regional High-level Meeting on Socially-Inclusive Strategies to
Extend Social Security Coverage, New Delhi, India (May 2008)
• 8th European Regional Meeting, Lisbon, Portugal (February 2009)
• Second African Decent Work Symposium, Yaoundé, Cameroon (October 2010)
> Yaoundé Tripartite Declaration on the Implementation of the Social
Protection Floor
Show and Tell 2011· slide 3
Regional and global consultation process on the
ILO strategy for the extension of social security
8th European
Regional
Meeting
(Lisbon)
Arab
Employment
Forum (Beirut)
General
discussion on
social security
during 90th
Session of the
ILC
Launch of the
Global
Campaign on
Social Security
and Coverage
for All
2001
2003
Social security:
A new
consensus
2006
Policy
consultation:
Social Security
for All:
Investing in
Global and
Economic
Development
Reunión
regional
tripartita sobre
el futuro de la
protección
social en
América Latina
(Santiago de
Chile)
2007
Regional
meetings in
the Arab States
(Amman), and
Asia and Pacific
(New Delhi)
Tripartite
Meeting of
Experts on
Strategies for
the Extension
of Social
Security
Coverage
2nd African
Decent Work
Symposium,
Yaoundé,
(Yaoundé
Tripartite
Declaration on
the Implementation of
the Social
Protection
Floor)
2008
2009
2010
Policy
briefings:
Social Health
Protection ,
Social Security
Standards in a
Global Society,
Affordability of
Basic Social
Security?
Social
Protection
Floor Initiative
reflected in
Global Jobs
Pact and
endorsed by UN
CEB
Independent
evaluation of
the ILO´s
strategy to
extend the
coverage of
social security
World Social
Security Report
2010/11
Recurrent
Discussion on
Social
Protection
(Social
Security), 100th
Session of the
ILC
2011
2011
Show and Tell 2011· slide 4
The 100th International Labour
Conference (June 2011): Report Story
1. …restates the right and the need for social security
Social protection benefits are the most powerful, most direct tool for
reduction of poverty and investments in social and economic
development, and a key tool to achieving MDG targets.
2. …requests support for the two-dimensional strategy for
the extension of social security coverage and
3. = > possibly a mandate for a new instrument on the
Social Protection Floor
Show and Tell 2011· slide 5
B. Policy Context: The underlying development
policy paradigm: “Growing with equity”
…that could look as follows…:
Higher levels
of Social Protection
Employed in formal
sector and
paying taxes
SPF
Investments
The virtuous
cycle of
development
Employable
Schooling/Training
Health
Context: The Social Protection Floor* in the ILO
concept of overall national Social Protection
Architecture
Voluntary insurance
Level of protection
Mandatory social insurance/social security
benefits of guaranteed levels for contributors
THE FLOOR:
Four essential guarantees
1. Access to essential health care for all
2. Income security
Children
3. Assistance to
Unemployed, underemployed & poor
4. Income security
Elderly & disabled
Individual/household income
*Focus on financial protection, not service components of the floor
Translating the SPF definition into four
guarantees and life cycle language
1. all residents have access to a nationally defined set of essential
health care services;
2. all children have income security, at least at the level of the
nationally defined poverty line level, through transfers in cash or
kind aiming at facilitating access to essential goods and
services, such as nutrition, education and care;
3. all those in active age groups who are unable to earn sufficient
income on the labour markets should enjoy minimum income
security through social assistance transfers aiming to achieve
access to essential goods and services;
4. all residents in old age and with disabilities have income security
at least at the level of the nationally defined poverty line through
pensions/transfers in kind that guarantee access to essential
goods and services.
The four guarantees mean
Universal benefit
Systems
Residual
targeted
systems
Social insurance+
Social assistance
Social
assistance
benefits
...can all ensure the same guarantees
Universal
Income
systems
C. Excursion: The UN Social
protection Floor
The SPF Initiative aims at joint global and local UN
action to promote access to essential services and
social transfers for the poor and vulnerable.
It includes:
– A basic set of essential social rights and transfers, in
cash and in kind, to provide minimum income and
livelihood security for poor and vulnerable populations and
to facilitate access to essential services, such as health
care
– Geographical and financial access to essential
services, such as health, water and sanitation, education,
social work
Show and Tell 2011· slide 10
The Rationale of the UN Social
Protection Floor Initiative
1. With an investment of about 4% of GDP for basic
social transfers, we can reduce the “food poverty”
rate in low income countries by about 40%, a major
contribution to achieve the MDG targets ...
2. With an investment in essential health care for all,
we can probably reduce “food poverty rates” by
another 20% ...
3. If and ONLY if national governments, national
stakeholders, social partners, the UN, major
donors, and NGOs act together, this potential can
be exploited ...
The roots …
1. Article 22 of the Universal Declaration of Human Rights states: “Everyone, as a
member of society, has the right to social security” further explained by
article 25 and echoed by the International Covenant on Economic and Social
Rights (1966,1976)
2. As commented by the Committee on Economic, Social and Cultural Rights in
2008 which stated the need for
–
Progressive implementation of the right to social security while
maintaining
–
a core obligation to select a core group of social risks and contingencies
for immediate implementation
3. The ILO constitution charges the ILO with “...promoting programmes that will
achieve ...the extension of social security measures to provide a basic income
to all in need of such protection and comprehensive medical care “
4. The SPF for the first time defines the concrete core content of the Human
Right to social security and to the ILO mandate
Show and Tell 2011· slide 12
What else has been done so far?
3 Things…
1. One:
Advocacy at global, regional, national
levels => e.g. UNCSocD Resolution 2010,
UN Millennium Summit, G8, G20, Yaounde
Triparite Declaration, South South
Dialogue, input to G20
2. Two:
Country operations in Cambodia, Burkina
Faso, Mozambique, Nepal, Togo, Benin,
Vietnam... with other agencies and IMF on
basis of joint UN manual
3. Three:
High-level Social Protection Floor Advisory
Group established under chairpersonship of
Ms. Michelle Bachelet
Developments at country level by SPF activity
Raising
awareness
National
SPF Task
force
Social
protection
stocktaking
Elaboration
of measures
Analysis
Implementation
Monitoring
Burkina Faso
Benin
Togo
Senegal
Rwanda
Cameroon
Mozambique
Ghana
Zambia
Haiti
Thailand
Cambodia
Viet Nam
Indonesia
Lao PDR
Argentina
Example
Vietnam: Analysis of cost to close
the SPF Gap
3.0
3. Working age
income security
(scenario 1 - high
cost )
0.7
0.6
0.6
0.80
0.79
0.77
2020
2019
2018
2017
2016
2.b Child benefit
(scenario 2bTargeted for ALL
poor children cash
and kind )
The impact of filling the SPF gap on the General Government deficit
as a percentage of GDP
1b. Old age
universal pension
(65+)
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
0,0
As a percentage of GDP
0.7
0.82
0.79
0.8
0.85
0.82
0.81
0.89
0.91
0.7
0.88
2015
2014
2013
0.56
0.5
0.37
0.0
2012
0.5
2011 0.170.2 0.35
0.6
1.0
0.6
0.71
1.5
0.92
0.93
2.0
1.00
1.02
2.5
2010
Total child benefit cost as percentage of GDP
Total additional costs to fill the gaps toward the SPF components
as a percentage of GDP
-1,0
-2,0
-0,2
-3,3
0,0
-1,2
-2,5
-3,0 -3,0 -3,0 -3,0 -3,0 -3,0
-3,9 -3,8 -3,6 -3,3
-3,0
-4,0
-5,0
-6,4
-9,0
-0,9 -0,8 -0,8 -0,8 -0,8 -0,8
-0,4 -0,6 -0,9 -0,7
-0,2
-0,2
-0,8 -0,7 -0,7 -0,6 -0,6
-0,5
-0,6
-0,4
-0,6
-0,7 -0,9
-0,9 -0,8 -0,8 -0,8
-1,0 -1,0 -0,9
-6,0
-7,0
-8,0
-9,0
-10,0
3. Working age income security
2.b Child benefit (targeted for ALL poor children | cash and kind )
1b. Old age universal pension (65+)
General government fiscal balance (IMF) - STATUS QUO
Assessing potential poverty impacts
(poverty gap in % of GDP)
Working age
12,000,000,000
0.80
Elderly
0.70
Children 11-15
10,000,000,000
Children 6-10
0.60
Children <5
8,000,000,000
Total poverty gap as a percentage of GDP
0.50
0.40
6,000,000,000
0.30
4,000,000,000
0.20
2,000,000,000
0.10
0.00
Initial situation |
Poverty rate
BEFORE benefit
ELD2 | Poverty post CHILD 1 | Poverty
CHILD2 | Poverty
WA1 | Poverty post
Poverty post ALL
universal pension to post means-tested post means-tested
100 days
three benefits (ALL
all (Same as scenario children (all children children (limited to 2
employment
Elderly ELD2 + ALL
1 + 50 % poverty line
in poor HH)
per poor HH)
guaranteed and children per poor HH
for contributory
disability benefit
CHILD1 + WA)
scheme pensionners)
Poverty post ALL
three benefits (ALL
Elderly poverty line
ELD2 + limited to 2
children per poor HH
CHILD2 + WA)
Show and Tell 2011· slide 16
Total poverty gap as a percentage of GDP
Total poverty gap BEFORE and POST benefits (Millions VND)
Total poverty gap (Millions VND) and composition
D. Back to the ILC: Points for discussion ...
1. What is the role of social security in promoting economic growth and
social development? How can social security, in coherence with other
policies, contribute to increase participation in formal decent and
productive employment, ensure income security, and accelerate the
achievement of the MDGs? What role are social security measures playing
in the economic crisis recovery in the context of the Global Jobs Pact?
2. Which policies contribute best to the extension of adequate social
security coverage at all levels of development? How can governments,
workers and employers collaborate to put into effect these policies? How
can the ILO’s two-dimensional strategy for the extension of social security
best support their efforts? How could the gender dimension be
strengthened in policies to extend the social security coverage?
3. Which policies can ensure the affordability, adequate financing
arrangements (such as pay-as-you-go funded schemes, prefunded
individual savings accounts or different combinations of both) and
sustainable fiscal space for inclusive and effective social security systems
in a context of demographic, economic and social change?
Show and Tell 2011· slide 17
Further points for discussion and…
4.
How can governments, workers and employers contribute to
enhancing the design, governance, and administration of social
security systems? How can institutional frameworks be improved to
support these efforts?
5.
What is the role of ILO standards in further promoting the extension
of social security coverage for all? What further measures should be
taken to enhance the ratification and application of Convention No.
102 and other up-to-date ILO social security standards?
6.
What further instruments or other mechanisms (conventions,
recommendations, guidelines, codes of practice, etc.) could be
developed to guide the implementation of the social protection floor
in the context of the two-dimensional strategy for the extension of
social security for all?
7.
In addressing the above questions, the Conference Committee may
provide guidance on how the Organization and the Office can
respond more effectively and efficiently to address constituents’
Show and Tell 2011· slide 18
needs in each of these areas.”
...ideal outcome
Mandate in the conclusions for
- A new recommendation of social protection
/security for all (focussing on the two dimensional
strategy ...including the social floor);
- Best practice guide for higher levels of protection
- Expand activities re
-
knowledge generation and sharing,
-
technical advisory services,
-
capacity building and promotion of existing instruments
notably C. 102
Show and Tell 2011· slide 19