Transcript Outline of envisaged TC activities in the field of social

Civil Society Forum
The Social Protection Floor Initiative: poverty
eradication, international standard setting and the
role of civil society
Michael Cichon, Christine Bockstal, Griet Cattaert,
Social Security Department, ILO
New York, 31 January2012
Structure
● Point One:
The Rationale for a Social Protection
Floor
● Point Two:
The UN Social Protection Floor
Initiative
● Point Three:
The 100th ILC and the emergence of a
new policy paradigm
● Point Four :
What next ?
1
One.
The rationale for the
Social Protecion
Floor
2
Rationale: social and economic
necessity of social protection systems
…
1.
We know from more than one century of history of the modern welfare tate
that social transfers and services are powerful policy instruments to combat
poverty, insecurity and inequality and ...to achieve the MDGs, i.e. social
transfers are a social necessity
2.
Social services and transfers are an economic necessity to unlock the full
economic potential of a country, only people that are healthy, well educated
and well nourished can be productive
2a.
There is now widespread acceptance that social
protection/security
serve as social and economic stabilisers in times
of crisis
3.
Basic social protection systems are affordable as many calculations and real
life experience shows
3
Rationale: social and economic
necessity of social protection systems
…
1.
2.
>>>>
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, Social and
Cultural Rights (1966,1976) as commented by the Committee on Economic,
Social and Cultural Rights in 2008 stating the need for
–
Progressive implementation of the right to social security while
maintaining
–
a core obligation of State parties to ensure the satisfaction of a core
group of social risks and contingencies through immediate
implementation
And yet, still 75-80% percent of the global population do not enjoy a set
social guarantees that allows them to deal with life’s risks……
of
So what is more logical than saying...let us promote some basic level of
social protecion for all
4
The slide that changed the
debate: a basic social protection
package is affordable: Cost of
basic transfers…
In percent of GDP
6
5
4
3
admin
Soc asst
2
Child
Pensions
1
0
and ... real live evidence
Programme
Cost in % of GDP around
2008/2009
Effects
Old age
South-Africa: Old-age grant
1.4
Poverty gap of the elderly would be 2/3 larger without
pension
Namibia: Non-contributory pensions
0.9
One or two elderly in a household can provide a safety net for
the entire household
Brazil: Rural Pensions
1.5
Reduced poverty incidence among members of households
with a pensioner by about 21%
Brazil: Bolsa Familia
0.3
Accounts for 20 to 25% of reduction in inequality
Mexico: Opportunidades
0.3
Has been responsible for 21% reduction of inequality
South Africa: Child Support grant
0.7
Reduced child poverty rate from 42.7% to 34.3%
1.5
Has helped to reduce the intensity of poverty
Child benefits
Transfers for people in active age groups
India: NREGA
Lack of fiscal space ?...
Total public expenditure and social expenditure at different levels of GDP per capita,
latest available year
60
Belarus
Slovenia
Hungary
Ukraine
50
Belgium
Seychelles
Italy
Croatia
Portugal
Greece
Czech Republic
Republic of Moldova
United Kingdom
Slovakia
Morocco
40
Germany
Poland
Bulgaria
Mongolia
Romania
Tunisia
Viet Nam
Azerbaijan
30
Estonia
New Zealand
Uruguay
Russian Federation
France
Argentina
Germany
Bahrain
Albania
Burundi Georgia
Panama
10
Uganda
0
Hungary
Israel
Malta
Singapore
New Zealand
Chile
Estonia
United Arab Emirates
Kazakhstan
Viet Nam
Japan
Czech Republic
South Africa
Korea, Republic of
Mexico
India
Spain
Korea, Republic of
Slovakia
Argentina
Bolivia
Georgia
Burundi
Ethiopia
0
Poland
United Kingdom
Latvia
Russian Federation
Mongolia
Belgium
Italy
Greece
Portugal
Trinidad and Tobago
Panama
Croatia
El Salvador
Uruguay
China
Chile
Indonesia
Thailand
Belarus
Nepal
Dominica
Bulgaria
India
Republic of Moldova
20
Kuw ait
Costa Rica Mauritius
Ukraine
Linear (Public SP &
health expenditure as a
percentage of GDP)
Japan
South Africa
Kuw ait
China
Bhutan
5 000
Bahrain
Thailand
10 000
15 000
Public government
expenditure as a
percentage of GDP
Spain
Latvia
Bolivia
Ethiopia
Public SP & health
expenditure as a
percentage of GDP
20 000
GDP per capita PPP
25 000
30 000
35 000
Linear (Public
government
expenditure as a
percentage of GDP)
Sources: IMF, 2009 (various years); UNDATA database
Public SP & health expenditure as a percentage of GDP and
Total government expenditure as a percentage of GDP
France
Assessing poverty potential impacts (poverty
gap in % of GDP): Example Vietnam
0.80
Working age
12,000,000,000
Elderly
0.70
Children 11-15
10,000,000,000
Children 6-10
0.60
Children <5
Total poverty gap as a percentage of GDP
8,000,000,000
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 benef it
CHILD2 | Poverty WA1 | Poverty post Poverty post ALL
ELD2 | Poverty post CHILD 1 | Poverty
three benef its (ALL
100 days
universal pension to post means-tested post means-tested
Elderly ELD2 + ALL
employment
children (all children children (limited to 2
all (Same as
children per poor HH
guaranteed and
per poor HH)
in poor HH)
scenario 1 + 50 %
CHILD1 + WA)
disability benef it
poverty line f or
contributory scheme
pensionners)
Poverty post ALL
three benef its (ALL
Elderly poverty line
ELD2 + limited to 2
children per poor HH
CHILD2 + WA)
Total poverty gap as a percentage of GDP
Total poverty gap BEFORE and POST benefits (Millions VND)
Total poverty gap (Millions VND) and composition
Two.
The UN Social
Protection Floor Initiative
9
What is the Social Protection Floor
(SPF)–Initiative? ..
•
In April 2009, the UN Chief Executives Board (UN CEB)
agreed on nine joint initiatives to confront the crisis,
among them the Social Protection Floor Initiative
• The SPF Initiative aims at joint global and local UN action lead
by ILO+WHO 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 a minimum income and livelihood security
– Geographical and financial access to essential public services,
such as health, water and sanitation, education, social work
What as been done so far? Three 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, the Conclusion of the 100th ILC,
the Conclusions of the G20 Labour Ministers,
Development Group and Summit
2. Two:
Country operations in Cambodia, Burkina
Faso, EL Salvador, Mozambique, Nepal,
Togo, Benin, Vietnam... with other agencies
and IMF on basis of a joint UN manual (total
umber of country activities: 25)
3. Three:
High-level Social Protection Floor
Advisory Group established
under chairpersonship of Ms.
Michelle Bachelet ; report launched at the
UN ON 27 October 2011
The Bachelet report…makes the case for the
SPF :
1. The SPF is a tool to
–
Realizing Human Rights and social justice
–
Combat poverty and inequality
–
Accelerate progress towards achieving
the MDGs
-
Ensure adequate opportunities for Decent Work
-
Address the social and economic impact of
the crisis
-
Help redressing global imbalances
-
To support gender empowerment
-
Support nation building
-
Facilitate social transformations and is
-
...affordable even in low income countries...
… and recommends…:
1. The implementation of nationally defined social security extension
policies based on a SPF everywhere as an indispensable contribution to
social and economic development
2. A number of principles for the implementation of the SPF close to the
ones identified by the ILC
3.
National monitoring mechanisms, that map progress on coverage and
quality of social security
4.
Co-ordination and co-operation of international agencies in
implementing social protection and the SPF
5.
Linking the SPF to the MDGS
6.
International standard setting on the SPF, notably the ILO
recommendation
7.
Greater focus of international development aid on the SPF
Three.
The 100th ILC and
the emergence of a
new policy paradigm
14
Outcome: Summary of results
of the ILC 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)
●Endorsement of ILO two-dimensional strategy for the extension of
social security coverage
●Discussion on a possible Recommendation on Social Protection Floors
at ILC 2012
●Reaffirmed mandate for ILO to assist member States in the extension
of social security coverage and building social security systems,
including
●
Technical assistance to support design and implementation of
two-dimensional extension strategy, including Social Protection Floor
●
Assistance in promotion and implementation of ILO social security
standards (notably C. 102)
●
Facilitation of exchange of experiences and good practices, including
development of a good practices guide
15
The ILO‘s two-dimensional strategy
for the extension of social security coverage endorsed:
Towards comprehensive social protection systems
high
Vertical
dimension:
progressively Level of
ensuring
protecti
higher levels of
on
protection
guided by C.102
and higher-level
standards
Voluntary insurance
under government
regulation
Higher
levels
min. c102
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
16
Minimum income security and access to
essential health care can be achieved
by different delivery systems
national choice
social
assistance
social
insurance
universal
systems
combination
of
these+others
nationally guaranteed outcomes
17
The Social Protection Floor:
Core of the office draft: four nationallydefined guarantees
TRANSFERS in cash or in kind
Outcomeoriented
approach
taking
account of
national
conditions,
priorities
and
institutions
all residents
• have access to a nationally defined set of essential
health care services
all children
• should enjoy minimum income security through
transfers in cash or kind securing access to essential
goods and services, such as nutrition, education and care
All people in a active
age groups unable to
earn sufficient income
in the labour market
all residents
in old age and
with disabilities
• should enjoy minimum income security through social
assistance transfers/employment guarantee programs
securing access to essential goods and services
• should enjoy minimum income security through
pensions/transfers in kind that securing access to
essential goods and services
Transfers in cash and in kind should guarantee geographical and financial access to
essential services such as water and sanitation, health, and education
And a set of principles
for national social protecion extension
strategies
Solidarity based
universal
protection
Sustainability
Rights-based
approach
Adequacy and focus
on outcomes
Progressiveness
• Universal coverage of all residents
• if necessary gradual implementation based on rational priority-setting
in a social dialogue process
• Fiscal, financial and economic sustainability
• Fair balance of interests of beneficiaries and financiers
• Benefit entitlements prescribed by law, non-discrimination
• Adequacy of guarantee levels with clear focus on outcomes
• Flexibility as to institutional arrangements (pluralism)
• Coherence and efficiency of overall social security system
• Encouraging progress towards completion of floor and towards C102
and higher-level ILO standards
19
And a set of principles
for national social protecion extension
strategies
Diversity of
methods
policy coherence
Good governance
Overall and
primary
responsibility of
the state
• Flexibility as to institutional arrangements (pluralism) including
financing and delivery systems
• Coherence with social, economic and employment policies
• Transparent, sound financial management and administration
• Involvement of employers and workers and other stakeholders
• implementation can be delegated to non-state actors but entitlements
have to be legislated and monitored by the state
20
Four.
Next steps...
21
...AND THE NEXT MILESTONES in the Global
Policy agenda :
1. ILC 2012 with a new recommendation
2. As a follow–up to the G20, concepts for :
–
Joint knowledge platform of the UN system and the WB
–
Collaborative structure for the UN and the IFIs
...UN system, governments, social partners
and civil society should collaborate on...
• Raise national awareness
• Create political will+ start national
movements+dialogues on SPFs
• Undertake social protection stocktaking exercises
• Achieve national consensus on the design, level of
the SP and policy priorities in the progressive
implementation = national SPF development
plans/social protection extension strategies
• Monitoring of progress of SPF and wider social
protection schemes
...and what you all can do today ...
• Sign up to the petition:
http://www.gopetition.com/petitions/signaturecampaign-social-protecion-floor.html
We are looking for a million more signatures
If 100 of you sign up today, convince 10 more friends
each, they convince 10 more friends each tomorrow,
and so on… then we are done on Saturday…