Transcript Outline of envisaged TC activities in the field of social

Moving ahead with the extension of
social security:
The ILO Social Protection Floors
Recommendation, 2012
International Training Centre of the ILO
Turin, 17 October 2012
Structure of the presentation
1. Why do we need social protection and where do
we stand as regards social protection coverage
2. The ILO Strategy to extend Social Protection to
all: the process leading towards the adoption of
the Recommendation, 2012
3. The Social Protection Floors Recommendation,
2012: Structure and content
4. Significance of the new instrument
2
Point one
Why do we need social protection and
where do we stand as regards social
protection coverage
3
Extending social protection to all
● Social security is a human right
(a) Article 22 of the Universal Declaration of Human Rights states: “Everyone, as a
member of society, has the right to social security”
(b) Article 25: Everyone has the right to a standard of living adequate for health and
well being for himself and of his family
● Social security is a social necessity
(a) Economic growth does not automatically reduce poverty
(b) Social security transfers are a powerful tool to reduce poverty and inequality reduce
poverty by at least 50% in almost all OECD countries,
(c) All socially and economically stable societies have extensive social security systems
● Social security is an economic necessity
(a) Access to social health protection and education improves productivity levels an has
a positive impact on growth
(b) The famous trade-off between efficiency and equity is a myth. Cash transfers in
developing countries have multiplier effects on local markets
(c) Social security benefits are widely recognised as social and economic stabilisers in
times of crises
ILO Global campaign on Social Protection
“Social protection has proven to be a powerful anti-crisis
measure. It protects and empowers people, and contributes to
boosting economic demand and accelerating recovery. It is also
a foundation for sustainable and inclusive economic growth,”
ILO Director-General Juan Somavia
Social security coverage:
Statutory and effective coverage
6
The global state of social security coverage
and recent policy initiatives
80 % of the
world
population do
not have access
to
comprehensive
coverage
Social
security
coverage
gap
50% of children
are living in
poverty, many
lack access to
health and
education
National social security strategies, based
on social dialogue
30% of the
population do
not have
access to
essential
health care
60% of the
elderly do not
receive a
pension
Strengthening social
health protection
Social pension programmes
Child and family benefits
7
Point two
The ILO Strategy to extend Social
Protection to all
8
Where did we come from....
2001 ILC
General
discussion: New
Consensus on
Social Security
2003Global
Campaign for
Social Security
and Coverage
for All
2005-2008
Policy papers
and policy
consultations
2011 ILC
Recurrent
discussion:
Resolution and
Conclusions on
social protection
(social security)
2012 ILC
Standard-setting
discussion on a
new
Recommendation
on Social
Protection Floors
2007-2010
Regional
consultations
and tripartite
expert meeting
Milestones
Yaoundé
Triparite
declaration
October
2010
9
Summary of results of the International
Labour Conference 2011 and follow-up
Resolution and Conclusions on social protection (social
security) adopted by the tripartite delegations represented at
International Labour Conference (183 member States)

Deepening the ‘new consensus on social security’ (2001)
and putting it into broader context of the Decent Work
Agenda

Endorsement of the ILO’s two-dimesnional strategy for the
extension of social security coverage

Underlining importance of Convention 102 and other ILO
social security standards

Agreement on the need to discuss a possible
Recommendation on Social Protection Floors at ILC 2012

Reaffirmed mandate for the Office to assist member States
in the extension of social security coverage and building
comprehensive social security schemes
10
Effective national social security extension strategies:
Building comprehensive social security systems
high
Vertical
dimension:
progressively
ensuring
higher levels of
protection
guided by C.102
and higher-level
standards
Voluntary insurance
under government
regulation
Higher
levels
min. c102
Level of
protection
social security benefits
of guaranteed levels
Floor
level
Access to essential health care
and minimum income security for all
low
low
individual/household income
high
Horizontal dimension:
Guaranteeing access to essential health care
and minimum income security for all
11
Pluralism of means –principal option I
high
Vertical
dimension:
progressively
ensuring
higher levels of
protection
guided by C.102
and higher-level
standards
Voluntary insurance
under government
regulation
Higher
levels
min. c102
Level of
protection
Floor
level
Social insurance
Social
assistance
low
low
Outcomes can
be guaranteed
through
different means
– there is no
one-size-fits-all
individual/household income
high
Horizontal dimension:
Guaranteeing access to essential health care
and minimum income security for all
12
Pluralism of means –principal option II
high
Vertical
dimension:
progressively
ensuring
higher levels of
protection
guided by C.102
and higher-level
standards
Voluntary insurance
under government
regulation
Higher
levels
min. c102
Level of
protection
Floor level
low
Social insurance
Soc ass.
Universal benefits
low
Outcomes can
be guaranteed
through
different means
– there is no
one-size-fits-all
individual/household income
high
Horizontal dimension:
Guaranteeing access to essential health care
and minimum income security for all
13
Guidance on possible Recommendation on
Social Protection Floors according to
Conclusions (ILC 2011) (1)
 Flexible but meaningful guidance to member
States in building social protection floors
within comprehensive social security schemes

Tailored to national circumstances and levels of
development

Promotional and gender-responsive

Should be applied by all member States, using
different methods and according to their own
needs, resources, and their time frame for
progressive implementation
14
Guidance on possible Recommendation on
Social Protection Floors according to
Conclusions (ILC 2011) (2)

The Recommendation should…

encourage member States to design, through an effective national
social dialogue process, a social security strategy seeking to
progressively close coverage gaps and built a comprehensive social
security system

emphasize national ownership and flexibility: strategies should be
country-led and responsive to national needs, priorities and resources

set out principles for the design and implementation of such
strategies

encourage the implementation of effective monitoring mechanisms

encourage ratification and effective implementation of C.102 and
other ILO social security standards
15
Elaboration of the proposed
Recommendation for the ILC 2012:
Consultation process
Replies from
118 member States
Vote: 453 votes in
favour, 1 abstention
Point three
The Social Protection Floors
Recommendation 2012: Structure and
Content
17
Social Protection Floor
Recommendation at a glance
Preambule
Social Security
as human right
and social and
economic
necessity
I. Objectives,
scope and
principles
Objective and
scope
Definition of
national social
protection floors
Reference to
various
international
instruments
II. National
social
protection
floors
III. National
Strategies for
the extension
of social
security
Definition of basic
social security
guarantees
Prioritize
implementation of
national SPFs
Legal Foundations
Progression to
higher levels of
protection
Establishment and
review
Building and
maintaining social
security systems
Provision
Policy coherence
Financing
ILO social security
standards
Principles
IV. Monitoring
National
monitoring
National
consultations
International
exchange of
information,
experiences and
expertise
18
Objective: National social protection floors
Provides guidance to members to
(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
(a) Establish and maintain, as applicable,
social protection floors as a fundamental element
of their national social security systems
nationally defined
sets of basic social
security guarantees
which secure
protection aimed at
preventing or
alleviating poverty,
vulnerability and
social exclusion
19
National social protection floors:
At least four nationally-defined guarantees
The social protection floors should comprise at least the following basic social security
guarantees:
access to a set of
goods and services
constituting
essentail health
care
basic income
security for
children
basic income
security for
persons in active
age unable to earn
sufficient income
basic income
security for
persons in old age
National definition of minimum levels
Guarantees should be provided to at least all resident and children, as defined in
national laws and regulations, subject to Members’s existing international obligations
20
Principles
entitlement
to benefits
prescribed by
national law
coherence
with social,
economic and
employment
policies
social
inclusion
including of
persons in the
informal
economy0
universality of
protection,
based on
social
solidarity
respect for
the rights and
dignity of
persons
covered by
guarantees
progressive
realization,
including by
setting targets
and
timeframes
overall and
primary
responsibility
of the State
solidarity in
financing and
fair balance
of interests
Transparent,
accountable
and sound
financial
management
and
administration
Full respect
for collective
bargaining
and freedom
of association
high-quality
public
services
diversity of
methods and
approaches
adequacy and
predictability
of benefits
nondiscrimination,
gender equality
and
responsiveness
to special
needs
Involvement
of social
partners and
consultations
with other
stakeholders
regular
monitoring of
implementation and
periodic
evaluation
financial,
fiscal and
economic
sustainability
Coherence
across
institutions
responsible
for the
delivery
Efficiency and
accessibility
of complaint
and appeal
procedures
21
National Social Protection floors:
Pluralism of approaches
national choice
Most effective
and efficient
combination of
benefits and
schemes in
national context
(para.9(1))
social
assistance
social
insurance
universal
systems
combination
of these
and others
nationally guaranteed outcomes
Benefits may include child and family benefits, sickness and health-care benefits, maternity
benefits, disability benefits, old-age benefits, survivors’ benefits, unemployment benefits and
employment gaurantees, and employment injury benefits as well as any other social benefits in
cash or in kind (para.9(2))
22
National social security extension strategies:
Formulation and implementation
• set objectives reflecting national priorities
• identify gaps in, and barriers to, protection
• seek to close gaps in protection through appropriate and
effectively coordinated schemes
• complement social security with active labour market
policies
•specify financial requirements and resources, time frame and
sequencing for the progressive achievement of the objectives
• Raise awareness about social protection floors and their
extension strategies
support
disadvantaged
groups and people
with special needs
support growth of
formal employment
and the reduction of
informality
consistent with and
conductive to the
implementation of
national social and
economic
development plans
23
National social security strategies:
Normative orientations
Members should…
aim to achieve the
• range of benefits
• level of benefits
specified in these instruments in
building national social security
systems
consider, as early as national
circumstances allow,
• ratification
• giving effet to these
instruments
Other ILO social security
Conventions and
Recommendations setting out
more advanced standards
Social Security (Minimum
Standards) Convention, 1952 (nº
102)
24
Monitoring
Nationally-defined monitoring mechanisms
and national consultations
Collection,
compilation and
publication of
social security
data, statistics
and indicators
Legal
framework to
protect private
individual
information
Taking into
consideration
relevant
guidance
provided by ILO
and other
international
organisations
involving social
partners
and, as appropriate,
other stakeholders
Exchange of
information,
experience and
expertise
among members
and with ILO
Technical
assistance from
ILO and others
25
Point four
Significance of a
Social Protection Floor
Recommendation
26
Significance of a
Social Protection Floors Recommendation at
the national and global level
National level
Contributes to…
Global level

Reducing poverty and promoting social
cohesion and investments in people
Contributes to…

Giving effect to the human rigth to social
security by establishing legal entitlements

Accelerating progress towards achieving the
MDGs

Faciltating access to essential goods and
services

Promoting rights-based development policies

Promoting productive economic activity
and reduction of informality and
precariousness

Building sustainable institutional structures in
poor countries

Providing framework for national social
protection policies in close coordination
with economic, employment and other
social policies

Fostering policy coherence and coordination,
and deepening multilateral collaboration

Strengthening national dialogue,
institutional frameworks and state-building
27
SPF as development strategy
Higher levels of
social protection
Employees paying
contributions or taxes
Investments in the
social protection
floor
The virtuous circle of
the social protection
floor and
development
Education/training
Health, food
Human capital
”Employability”
28
Reference documents
ILO two-dimensional strategy and adoption
of Social Protection Floors Recommendation
●
ILO Recommendation concerning national floors of social
protection (Social Protection Floors Recommendation), 2012
(No. 202), www.ilo.org/ilc/ILCSessions/101stSession/
reports/provisional-records/WCMS_183326/lang--en/index.htm
●
Social protection floors for social justice and a fair
globalization, Report IV(2A and 2B), 101th Session of the
International Labour Conference 2012,
www.ilo.org/ilc/ILCSessions/101stSession/on-theagenda/social-protection-floor/lang--en/index.htm
●
Social protection floors for social justice and a fair
globalization, Report IV(1), 101th Session of the International
Labour Conference 2012,
www.ilo.org/wcmsp5/groups/public/@ed_norm/@relconf/doc
uments/meetingdocument/wcms_160210.pdf
●
Report of the Committee for the Recurrent Discussion on
Social Protection (including Resolution and Conclusions), 100th
Session of the International Labour Conference, Provisional
Records No. 24),
www.ilo.org/ilc/ILCSessions/100thSession/reports/provisionalrecords/WCMS_157820/lang--en/index.htm
●
Social security for social justice and a fair globalization , 100th
Session of the International Labour Conference, Report VI,
www.ilo.org/ilc/ILCSessions/100thSession/reports/reportssubmitted/WCMS_152819/lang--en/index.htm
More general
●
ILO, 2010: World Social Security Report 2010/11: Providing
coverage in the time of crisis and beyond (Geneva:
International Labour Office),
www.socialsecurityextension.org/gimi/gess/RessFileDownl
oad.do?ressourceId=15263
●
ILO, 2010: Extending social security to all. A guide through
challenges and options (Geneva: International Labour
Office),
www.socialsecurityextension.org/gimi/gess/RessFileDownl
oad.do?ressourceId=16152
●
Social Protection Floor Advisory Group, 2011: Social
protection floor for a fair and inclusive globalization
(Geneva: International Labour Office),
www.ilo.org/wcmsp5/groups/public/---dgreports/--dcomm/---publ/documents/publication/wcms_165750.pdf
●
UNDP, Special Unit for South-South Cooperation, and ILO,
2011: Sharing Innovative Experiences: Successful Social
Protection Floor Experiences (New York and Geneva:
UNDP, Special Unit for South-South Cooperation and ILO),
www.socialsecurityextension.org/gimi/gess/RessFileDownl
oad.do?ressourceId=20840
●
See also GESS web portal:
www.social-protection.org/
29
Thank you for your attention
30
Group discussion: ...
You are in a developing country with a small formal sector
...and a tax to GDP ratio of say 15%
•
The Minister of Welfare Planning Group:
•
•
Give a number of good reasons why your country should invest in social security
The Minister of Finance Planning Group:
•
Give a number of good reasons why you cannot invest in social security
1. Advisors to the Prime Minister
•
List the information in addition to the arguments from the two Groups that would be
necessary to make a rational decision