Social Protection: a mechanism for inclusive development

EU Africa Economic and Social Stakeholders’ Network Brussels, 5 March 2014 Griet Cattaert, ILO

Overview

The need for social protection SPF – R202 National experiences ILO 2

The need for social protection

Pervasive poverty and income inequality

The need for social protection SPF – R202 National experiences

Pervasive Poverty

     

1.4 billion people

are still living on less than US$1.25 a day (World Bank).

1.75 billion people

experience multidimensional poverty with deprivations in heath, economic opportunities, education and living standards (UNDP).

925 million

suffer from chronicle hunger (FAO).

2.6 billion people

do not have access to improved sanitation and 884 million people do not have access to improved sources of drinking water (WHO/UNICEF).

796 million adults

are illiterate (UNESCO).

8.8 million children

problems (WHO).

under the age of five die every year from largely preventable health ILO About

75 per cent of the population

is not covered by adequate social security.

 1 out of every 4 person (ILO).

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The need for social protection

Pervasive poverty and income inequality

The need for social protection SPF – R202 National experiences 

Income Inequality

The richest 20 per cent of the world population received more than 80 per cent of the world’s income in 2007, while

the poorest 20 per cent received about one per cent

.

ILO 4

The need for social protection

Pervasive poverty and income inequality

Income Inequality

The need for social protection SPF – R202 National experiences ILO 5

The need for social protection

Pervasive poverty and income inequality

The need for social protection SPF – R202 National experiences

More demographic challenges to come

ILO    Ageing: the share of the population at age 65 and over is estimated to

increase from 8 per cent in 2013 to 16 per cent by 2050

(UNDESA, Population division, 2013).

Migration: at least

232 million

international migrants today, a

particularly vulnerable group

(IOM, 2014) Rural-urban shift: urban populations are forecast to

exceed rural ones

(this may threaten the traditional mechanisms of solidarity).

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The need for social protection SPF – R202 National experiences

The need for social protection Social and economic necessity of social protection systems

ILO • • • • We know from more than one century of history of the modern welfare state that social transfers and services are powerful policy instruments to

combat poverty

, insecurity and inequality and ...achieve the

MDGs

Social services and transfers are an potential of a country,

economic necessity

to unblock the full economic

Only people that are well nourished, well educated and as healthy as possible, and have been brought up in socially secure families will in the long run be productive contributors to national and the global economies and constructive, participating and responsible members of societies who can forcefully make their voices heard

There is now widespread acceptance that social protection/security serve as

and economic stabilisers social

in times of crisis - Countries with existing systems are in a better position to cope with the social and economic fall-out than those who have to introduce new ad-hoc measures.

Social protection is one of the

foundations for inclusive, equitable and sustainable development A floor of social protection is thus a prerequisite investment in the development process and in people.

The need for social protection

Coverage Gap

The need for social protection SPF – R202 National experiences ILO 80% of the world population do not have access to comprehensive coverage 50% of the children are living in poverty, many lack access to health and education

Social protection coverage gap

30% of the population do not have access to essential health care 60% of the elderly do not receive a pension Only 15% of the population has access to unemploymen t benefits 8

The SPF Concept

The virtuous cycle effect

The underlying development policy paradigm: “Growing with equity” The need for social protection SPF – R202 National experiences ILO Quality education for all, strong social protection, prudent macroeconomic policies, active labour market, policies, and effective bargaining Stable and resilient GDP growth, high employment and social peace

Virtuous cycle

Rapid productivity growth with income gains shared broadly, a strong middle class Sustained and broad-based growth in domestic effective demand, low levels of indebtness Source: SPF-AG discussion notes, by Kemal Dervis.

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Social Protection Floors R202

Global legal roots

The need for social protection SPF – R202 National experiences ILO 

Adoption of R202 on National Floors of Social Protection (ILC 2012) “Social protection floors are nationally defined sets of basic social security guarantees

which secure protection aimed at preventing or alleviating poverty, vulnerability and social exclusion” • • •

Legal roots

Recalling that the Declaration of Philadelphia Considering the Universal Declaration of Human Rights, in particular Articles 22 and 25, and the International Covenant on Economic, Social and Cultural Rights, in particular Articles 9, 11 and 12 Considering also ILO social security standards 10

Social Protection Floors R202

Objective

The need for social protection SPF – R202 National experiences ILO Provides guidance to Members to (a) establish and maintain, as applicable,

social protection floors

as a fundamental element of their national social security systems; and (b) implement social protection floors within strategies for the extension of social security that progressively

ensure higher levels of social security

to as many people as possible, guided by ILO social security standards.

The need for social protection SPF – R202 National experiences ILO

Social Protection Floors R202

NATIONALLY-DEFINED GUARANTEES:

The guarantees should ensure at a minimum that, over the life cycle, all in need have access to essential health care and to basic income security which together secure effective access to goods and services defined as necessary at the national level.

They should comprise at least the following

basic social security guarantees:

access to a set of goods and services constituting essential health care basic income security for children basic income security for persons in active age unable to earn sufficient income

national definition of minimum levels

basic income security for persons in old age

SCOPE:

Guarantees should be provided to at least all residents and children, as defined in national laws and regulations, subject to Members’ existing international obligations. (para. 6) 12

The need for social protection SPF – R202

Social Protection Floors R202

SPF Guarantees Existing

When formulating and implementing social security extension strategies, Members should (para. 14): • (a) set objectives reflecting national priorities; HEALTH CHILDREN ELDERLY WORKING AGE • (b) identify gaps in, and barriers to, protection;

Gaps

National experiences

Reccomend ations

ILO • (c) seek to close gaps in protection through appropriate and effectively coordinated schemes, whether contributory or non-contributory, or both, including through the extension of existing contributory schemes to all concerned persons with contributory capacity; •(d) complement social security with active labour market policies, including vocational training or other measures, as appropriate; • (e) specify financial requirements and resources as well as the time frame and sequencing for the progressive achievement of the objectives; NATIONAL DIALOGUE • (f) raise awareness about their social protection floors and their extension strategies, and undertake information programmes, including through social dialogue.

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The need for social protection SPF – R202 National experiences ILO

National experiences

SPF in practice

2. What as been done so far?

• 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, Signature campaign • Two: Country operations in Cambodia, Burkina Faso, Mozambique, Nepal, Togo, Benin, Vietnam... with other agencies and IMF on basis of joint UN manual Uruguay • Three: Brazil, Mexico, Chile, HEALTH: China (urban & rural), High-level Social Protection Floor Advisory Group report issued in October 2011 “Social protection floor for a fair and inclusive globalization” Mexico (Oportunidades) Uruguay, Chile (plan AUGE), Burkina Faso, Rwanda … Social pensions: Brazil, South Africa, • pension)… The 100th ILC and the emergence of a new policy paradigm Chile (pension basica solidaria), Thailand (500 Bath scheme), China (rural old age Employment guarantee schemes: India (NREGA), Uruguay (Política de empleo promovido), Argentina (Plan jefes y jefas de familias)

• • • •

National experiences

The need for social protection SPF – R202

Fiscal space for Social Protection exists even in the poorest countries

National experiences ILO There is national capacity to fund social protection floors in virtually all countries Spending on SP is an investment , as it can result in positive, immediate and long-term economic and social return Affordability and financing are not only technical questions but also political choices There are many options, supported by UN and IFI policy statements:  Re-allocating public expenditures  Increasing tax revenues  Fighting illicit financial flows  Lobbying for increased aid and transfers  Tapping into fiscal and foreign exchange reserves  Restructuring debt  Adopting a more accommodative macroeconomic framework (e.g. tolerance to some inflation, fiscal deficit)

The need for social protection

ILO Follow-up and strategy for implementation: support for countries in…

SPF – R202 National experiences ILO Building and strengthening partnerships

Making social protection floors a national reality worldwide

Supporting national dialogue processes Promoting the implementation of R.202 – Awareness raising Building the capacities of national constituents – Technical advisory and capacity building Supporting constituents through knowledge sharing, technical cooperation and advice Policy, knowledge and tools development

The need for social protection SPF – R202 National experiences

ILO’s right based approach to social protection

ILO • Supporting national scale-up • • Providing

technical support and critical policy advise

in the design, legal framework, costing, implementation and/or monitoring and evaluation of social protection programmes and capacity development promoting social inclusion worldwide.

• •

Encouraging national social dialogue

responsive and have national ownership.

to ensure that development decisions are socially-

Building linkages

to eliminate the worst forms of exploitation, like child labour, and to ensure that people in rural areas, the informal economy, domestic workers, migrant workers, people with disabilities and others are included in development.

Being a global leader and advocate

of social protection floors. ILO has nearly 100 years of experience in advocating for policies and approaches that protect workers and vulnerable people.

“The world does not lack the resources to eradicate poverty, it lacks the right priorities.”

Juan Somavia, Director General of the ILO

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