Transcript In search of increased aggregate demand and sustainability

Social protection floors and
beyond: Implementation issues
Vinicius Pinheiro
Deputy Director, ILO Office for the UN in New York
Seoul, 7 October 2013
Social Protection: accelerating progress
in achieving the MDGs…
• Poverty, hunger and employment
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Reducing poverty and inequality
Labour participation and entrepreneurship
Food consumption and nutritional level
• Health
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Access health services and quality preventive and curative care
for child and maternal health
Reducing risk factors for diseases among disadvantaged
populations.
Mitigating the impact of illness, supporing HIV-AIDS infected
people and orphans
• Education
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Educational attainment, school enrolment rates
Reducing drop-out rates and child labour
• Gender empowerment
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Greater participation of women in the economy
Strengthening women’s position in the household
… and enhancing policy coherence in the
sustainable development framework
Economic
Automatic
stabilizer
Aggregate
demand
Labour force
participation
Productivity
Economic
resilience
Inclusive growth
Social
Poverty and
Inequality
Employment
Food and
Nutrition
Heath
Education
Gender
Environmental
Climate change
mitigation and
adaptation
Resilience
Just transition
Social Protection Floor:
a changing paradigm
• 20 per cent of global lacks
access to adequate social
protection
Poor
Rest of informal sector
Population
Level of
protection
Formal sector
Social Protection Floor:
a changing paradigm
• All residents should enjoy at
least a minimum level of social
security
• Countries should establish SPFs
as a fundamental element of
their social security systems
Level of
protection
Social Protection Floor
Poor
Rest of informal sector
Population
Formal sector
A global south revolution:
Increase in the health coverage in
selected developed and developing
countries
National floors of social protection
(ILO Recommendation 202)
National Floors of Social Protection
(ILO Recommendation 202)
access to a set of
goods and services
constituting essential
health care including
maternity care and
nutritio n
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
Social protection floors - changing
paradigm
Safety nets (90’s)
Social Protection Floors
Temporary
Permanent
Compensatory
Prevention, Protection and
Empowerment
Fragmented
Integrated, coherent, holistic
Needs-based
Rights-based
Lack of institutionality
Rule of law, governance and social
dialogue
Residual to the economic model; shock
mitigation
Integral part of the economic model,
connected to productivity, consumption
investment in human capital, and
sustainable development
Implementation challenge 1:
Financing and sustainability
• Affordable even in low income countries
• Efficiency and re-allocation of public
expenditures
• Increasing tax revenues
▫ Mineral-based taxation or similar single taxes for
specific purposes (earmarked taxation)
• Borrowing or restructuring existing debt
• Macroeconomic framework
• International aid
Political will is the game changer
The guiding principles in practice
Affordability & fiscal space
Cambodia; 0.4 – 2.4% GDP by 2020
Indonesia; 0.7 to 2.4% GDP by 2020
Thailand; 0.5 – 1.2% GDP by 2020
Viet Nam; 2% to 6% GDP by 2020
Implementation challenge 2:
Design
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Build on existing structures
Entitlement to benefits prescribed by Law
Adequacy & predictability
Links between contributory and non
contributory schemes
• Universality of protection
• Eligibility criteria, targeting criteria and
particular attention to vulnerable groups
• Links with other social (education, housing,
sanitation, environment) and economic policies
Implementation challenge 3:
Governance and Delivery
• Coordination across institutions involved
• Participation of social partners, beneficiaires and
other stakeholders
• Partnerships
• Communication, information and awareness
• Identification, membership registration and
outreach
• Intensive use of ITs, integration of databases and
systems, single window services
• Monitoring and evaluation
• High quality delivery services
THANK YOU!