Transcript Apresentação do PowerPoint - Social Protection Platform

MPS – Ministry of Social Security
SPS – Secretary of Social Security Policies
SOCIAL PROTECTION:
CHILDREN, WORKING POOR
AND UNEMPLOYED
Delivered by Carlos Eduardo Gabas (Vice-Minister for
Social Security, Brazil)
GENEVA, AUGUST 2009
LIMITS TO COVERAGE BY
CONTRIBUTIVE SYSTEMS
• Strong Importance of Contributive Social
Security, regarding:
–
–
–
–
Financing;
Entitlements;
Solidarity between and within Generations;
Reduction of Vulnerabilities and Poverty.
• However, standard wage relationship has not
universalized and hence contributive systems
need to be supplemented, in order to achieve
larger coverage.
COVERAGE & FINANCING
• Mix of contributive and non-contributive
elements required:
– Basic universal tax-financed benefits, or
– Subsidization of those which have low income.
• Since poverty relief is a public good (the whole
society benefits from it), tax-financing is a
correct approach for poverty fighting benefits.
• Taxation sources (earmarking if possible):
– General revenue;
– Tax on oil/energy consumption;
– Solidarity Tax on the rich;
- Tax on financial transactions;
- Tax on mineral production/rents;
- Pension reform imposing ceiling on
the privileged.
THE BRAZILIAN EXPERIENCE:
COVERAGE EXPANSION IN
SOCIAL SECURITY FOR THE
WORKING AND ELDERLY
POOR
SOCIAL SECURITY COVERAGE OF THE
WORKING POOR
 Simplified Plan for the self-employed and small
entrepeneurs with low income;
 Tax relief to stimulate the formalization of
domestic workers;
 Different
rules
for
the
contribution
(on
production) and the benefits (flat-rate 1 minimum
wage) of rural workers.
Ministério da
Previdência Social
Coverage Evolution among Workers
Aged 16 to 59 – 2003 to 2007 – % of all workers
(Rural area of Northern Region excluded, except for Tocantins)
Source: PNAD/IBGE – Several years. Elaboration: SPS/MPS.
SOCIAL PROTECTION FOR THE ELDERLY POOR
SOCIAL ASSISTANCE BENEFITS
 Social Assistance Pension (BPC/LOAS):
 Payment of a minimum wage/month for:
 persons aged 65+ or with disability for an
independent life, and
 with per capita family income of less than
¼ of the minimum wage.
 Foreseen in the Constitution of 1988 and
Introduced in 1996.
SOCIAL PROTECTION ELDERLY POOR
SOCIAL ASSISTANCE
Evolution of Benefit Emission Social Assistance Pension (BPC/LOAS)
Dec/2003-Jul/2009
3.500.000
3.056.272
+ 79,6% from
Dec/03 to Jul/09
3.000.000
2.934.472
2.680.823
2.477.485
2.500.000
2.277.365
2.061.013
2.000.000
1.701.240
1.500.000
1.000.000
500.000
0
dec/03
Source: CGEP/DRGPS/SPS/MPS
dec/04
dec/05
dec/06
dec/07
dec/08
jul/09
SOCIAL PROTECTION ELDERLY POOR
SOCIAL ASSISTANCE
Social Assistance Pension Value of payments as % GDP
0,6
0,5
0,6
2007
2008
0,5
0,5
0,4
as % GDP
0,4
0,3
0,2
0,1
0,0
2005
2006
year
Source: CGEP/DRGPS/SPS/MPS –including RMV.
Benefit Emission Social Insurance and Social Assistance
Brazil dec 2000-2008 and July/2009
Benefit Emission Social Insurance and Social Assistance Brazil
30.000.000
25.000.000
benefit emission
26.630.431
21.851.685
21.125.512
20.000.000
24.593.390
23.951.320
23.146.969
26095625
25.170.283
20.032.858
19.572.748
15.000.000
10.000.000
5.000.000
month/year
Source: CGEP / DRGPS / SPS / MPS.
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Ministério da
Previdência Social
Poverty rates* in Brazil
With and without Social Security Transfers – 2007
(Rural Area of Northern Region Included)
With Social Security
Transfers
Without Social Security
Transfers
+22,2 million
persons below
poverty line
Source: PNAD/IBGE – 2007. Elaboration: SPSMPS. * Poverty Line = ½ minimum wage per person.
Obs: Considering only households where all inhabitants have valid declarations for the whole of their income souces.
10
Effects of Social Security/Social Protection
on Poverty in Brazil 2007
Transfers of Social Security in Brazil - 22.2 million people out of poverty
As % of Total
Description
184.628.821
100,0%
Poor With Transfers of
Social Security (a)
56.872.657
30,8%
Poor Without Transfers of
Social Security (b)
79.100.465
42,8%
22.227.808
12,0%
Population
Per Capita Family Income <
½ minimum wage
Effects of Social Security / Social Protection on Poverty
in Brazil 2007 (b) - (a)
Source: CGEP / DRGPS / SPS / MPS
SOCIAL PROTECTION
FOR THE UNEMPLOYED
UNEMPLOYMENT INSURANCE
 formal employee fired without just cause are entitled to
unemployment benefits during 3 to 5 months, regarded
he/she has worked at least 6 months in the last 36 months;
 possibility of extension for 2 additional months, in
moments of crisis (sectors most hit by crisis);
 there is unemployment protection for other groups of
workers such as domestic, artisanal fishermen, freed from
slave labor and scholarship qualification for workers on
lay-off, but with different rules;
Resources unemployment insurance for formal workers
2008: 0,5% GDP.
SOCIAL PROTECTION
FOR CHILDREN
(BESIDES CONTRIBUTIONRELATED FAMILY AND
MATERNITY BENEFITS FOR
FORMAL WORKERS)
Program “Bolsa Família”
 The “Bolsa Família” is a program of direct income transfer with conditionalities
(education, health and others), which benefits poor families (with monthly income per
person of less than R$ 140 - approximately US$ 2 a day ) ;
 promotes immediate relief of poverty through the direct transfer of income to the
family;
 strengthens the exercise of basic social rights in the areas of health and education,
through the fulfillment of conditionalities, which contributes to that families can break
the cycle of intergenerational poverty;
 supplementary programs that are aimed at the development of families, so that the
beneficiaries of Bolsa Familia become able to overcome the situation of vulnerability
and poverty like programs to generate jobs and income, adult literacy, provision of
civil registration and others.
Program “Bolsa Família”
 Benefit per family: from R$ 22 to R$ 200 , depending on the level of
poverty and the number of children;
Three types of benefits: the Basic, the Variable and Variable Linked
to Youth Person:
basic benefit - R$ 68 to families considered extremely poor
(monthly income of up to R$ 70 per person – about US$ 1 per
day);
variable benefit - R$ 22 for each child up to 15 years, max. of 3;
variable benefit linked to youth - R$ 33 for each youth aged
16/17, limited to 2.
Program “Bolsa Família”
 Coverage:
11,6 millions of families in 2008;
 Main results:
reduction of poverty and inequality;
breaks the intergenerational poverty cycle;
 Resources (2008): 0.4% of GDP;
Administered by Federal Government in
partnership with Municipalities.