Transcript Social security in East and South

The Social Protection FloorInitiative: from concept to
practical implementation
Celine Felix
ILO Decent Work Team, Bangkok
Brunei, 21 November 2010
Decent Work for All
ASIAN DECENT WORK DECADE 2006-2015
Table of contents
1.
2.
3.
4.
5.
Make sure we are talking the same language: Social
protection, social security
What is the issue? The level of social protection
coverage remains low, despite many arguments to
justify the extension
The Social Protection Floor-Initiative and concept
Relevance of the SPF & Staircase: from concept to
practical implementation
The way forward: key messages
Table of contents
1.
2.
3.
4.
5.
Make sure we are talking the same language: Social
protection, social security
What is the issue? The level of social protection
coverage remains low, despite many arguments to
justify the extension
The Social Protection Floor-Initiative and concept
Relevance of the SPF & Staircase: from concept to
practical implementation
The way forward: key messages
Source: from presentation by
Stephen Devereux, IDS, training
course on Design and
implementation of social transfers,
Chiang Mai, 2010
Transformation
Promotion
Rights-based, systemic system against
poverty for all residents
Different mechanisms to make it a
reality
Prevention
Provision
Social protection/ social security
Table of contents
1.
2.
3.
4.
Make sure we are talking the same language: Social
protection, social security
What is the issue? The level of social protection
coverage remains low, despite many arguments to
justify the extension
The Social Protection Floor-Initiative and concept
The way forward: key messages
The issue of coverage gap…
• Only about 20 per cent of the world’s working-age
population (and their families) have effective access to
comprehensive social protection
• In many countries the number of social security branches
to which the population has access is limited..
• For those schemes which are available only a limited
percentage of the population is legally covered (e.g. formal
sector) ..
• These few legally covered are not all effectively covered
• The levels of benefits are often limited, providing therefore
a coverage which is not adequate ..
• Countries in Asia don’t invest enough in social security
(choice of society more than a question of affordability) …
The issue of coverage gap…
Health protection
Proportion of the population covered by law, latest available year
(percentages)
Indonesia, efforts
towards Universal
coverage with
Jamsostek +
Jamkesmas…
Thailand UI scheme
since 2001
The issue of low coverage…
Countries don’t invest sufficiently in Social Protection
• Over the past ten years, the benefits of growth in
Asia have not been equitably shared, levels of
poverty remain very high and inequalities are
increasing in most countries …
The benefits of growth have not been equitably shared
GDP per capita in Asia (current international dollars)
9000
8000
Bangladesh
Cambodia
7000
China, People's Rep. of
India
6000
Indonesia
5000
Lao PDR
Maldives
4000
Mongolia
3000
Nepal
Philippines
2000
Thailand
1000
0
Viet Nam
2000
1
2
3
4
5
6
7
8
92009
10
Source: ADB, Key Indicators for ASIA
and the Pacific 2010
Levels of poverty remain very high
1995
Latest available year
% population below 2$ PPP per day
Source: ADB, Key Indicators for ASIA and
the Pacific 2010
Inequalities are increasing in many countries
1995
Latest available year
Gini coefficient (value of 0 = total equality and
value of 1 = maximal inequality)
Source: ADB, Key Indicators for ASIA
and the Pacific 2010
… Despite many arguments in favor of the
extension… (1/3)
•
Social security is a basic human right :
- Universal Declaration of Human Rights (1948), Article 22:
Everyone, as a member of society, has the right to social
security
-International Covenant on Economic, Social and Cultural
Rights (1966), Article 9: « recognize the right of everyone
to social security, including social insurance »
• As a Consequence :
-States and international community have the obligation to take
appropriate measures to guarantee this right (legal, administrative,
budgetary …)
- Each individual is entitled to a minimum level of social protection,
without exception or discrimination  It is a rights-based entitlement
rather than welfare safety nets
It is about social protection (equity) rather than social
assistance;
It is about social justice rather than livelihoods;
… Despite many arguments in favor of the
extension… (2/3)
•
•
Through a redistribution function,
– SP contributes to protect people from economic and social shocks
– SP contributes to reduce poverty and inequalities :Income transfers
through social security have a short term and a longer term effect on
income inequality & moving out of poverty
Contributes to boost consumption of households & contributes to the
development of domestic markets, and a more balanced economy
– Boost economic growth by raising domestic demand / internal markets
• Enhance human capital and productive employment - a better
educated, healthy and well nourished workforce
• Reduce poverty FASTER => Progress towards MDGs
• Reduction of economic inequalities and political instability
It is important to expand social protection…
• Social protection can be effective to prevent conflict and
create politically stable societies
• Poverty and gross inequities tend to generate intense social
tensions and violent conflict
• Social benefits
ensure the
political/ electoral
support of citizens
I. Despite many arguments in favor of the
extension… (3/3)
• In times of crisis, social protection systems act as social
and economic stabilizers
– They mitigate the economic and financial impact of
Unemployment and Under-Employment on workers and
their families  social stability
• Most of the fiscal stimulus packages adopted by the
governments included social protection components
– They support aggregate domestic demand  facilitate
recovery
.
… Coverage remains low
Social protection measures in the stimulus packages in Asia
Increased support to lowincome households (CCTs and
social assistance)
Bangladesh (destitute women and others), Nepal
(children, elderly, deprived castes), Viet Nam, India
(widows, disabled), China (returning migrants),
Philippines (CCT, very poor)
Increased targeting of
employment programmes at
the poor
Cambodia (small projects in rural areas), Viet
Nam (infrastructure in poorest districts),
Philippines, Pakistan, India
Increasing coverage or level
of old age pensions and
support to the elderly
Bangladesh, Nepal, China
Increasing coverage of
unemployment benefits
Viet Nam, China
Measures to protect
migrant workers
Bangladesh, Nepal, Viet Nam India (Kerala),
Philippines, Pakistan
“If the crisis can leave behind a broad-based
consensus that people in the global economy
and the global society have a right to a basic
level of social protection and that this is
feasible… the crisis has not been wasted.”
Michael Cichon, ILO Social Security Department
Director
Table of contents
1.
2.
3.
4.
5.
Make sure we are talking the same language: Social
protection, social security
What is the issue? The level of social protection
coverage remains low, despite many arguments to
justify the extension
The Social Protection Floor-Initiative and concept
Relevance of the SPF & Staircase: from concept to
practical implementation
The way forward: key messages
The Social protection floor initiative &
concept
• A federative concept
• It is not A NEW intervention but aims to coordinated
fragmented existing ones and fill the gap
• The SPF is a set of guarantees
Allows flexibility as to the delivery mode and combinations of
different systems (universal, targeted, social insurance etc. ) to be
shaped within a framework of nationally specific institutional
structures, economic constraints, political dynamics and social
inspirations
 It Provides an outcome focus
• It is not a safety net
• It is a floor, not a ceiling
• It is recognized as a powerful approach to address low social
protection coverage in Asia
The Social Protection Floor Initiative
(SPF-I)
• The concept emerged in the midst of the crisis and
initiatives were developed to confront it: On April 2009,
the UN Chief Executives Board (CEB) have agreed on
nine joint initiatives to confront the crisis, accelerate
recovery and pave the way for a fairer and more
sustainable globalization
 A window opportunity open: a consensus was reached
that people in the global economy and society have a right
to basic level of social protection and that it is a feasible
option.
Response the global financial
crisis  developmental
instrument
The Social Protection Floor Initiative
(SPF-I)
A story of supply and demand
• A set of basic social rights, services and facilities that
each member of society should be guaranteed
• A SPF should consist of:
Availability of essential
services:
-Housing,
-Education/skills,
-Health care supply,
-Food/Nutrition,
…
Accessibility of these services through basic transfers
in cash or in kind:
-Subsidized health insurance / health cards,
-Scholarships & school buses,
-Minimum income support to families (family/child
benefits), the working poor (cash transfers and PWPs)
and the elderly (minimum pensions) …
• Notion of availability and accessibility – both work hand in hand,
are articulated
The SPF is NOT a safety net
The SPF is NOT a safety net
Criteria
Safety Nets
Social Protection Floor
Overall Objective
Poverty reduction
Giving effect to the Human Right to
Social Security
Type of
interventions
Targeted set of noncontributory transfers,
depending on
government priorities
Universal entitlement to protection
through a defined basic package for
all in need
Benefit levels
Minimum
National poverty lines
Role
SNs as transitory
response measures/
short term (crisis,
reforms)
Rights-based, systemic “insurance”
against poverty for all residents
It is a floor, not a ceiling: the SPF &
SS staircase
Vertical dimension (higher levels of benefits for
those who can contribute)
100% full
coverage
Intermediate
coverage
Partially contributory
& linked schemes
Voluntary
private insurance
Statutory
contributory social
insurance
Basic benefits / social protection floor for all.
Basic
Non contributory for the poor; other groups may contribute …
coverage
Poor and
Informal
Private sector
Civil servants
near poor
economy
employees
Armed forces
Horizontal dimension
(SPF & schemes for informal economy)
Who is supporting the SPF Initiative?
• At country level:
– Government institutions: Ministry of Labour, Health, Finance, Agriculture,
social security institutions…
– Non Governmental Actors: social partners, NGOs, cooperatives, mutuals,
associations, civil society …
– UN Country teams
• At global level:
– 17 Agencies: ILO and WHO (co-leaders), FAO, OHCHR, UN regional
commissions, UNAIDS, UNDP, UNDESA, UNESCO, UNICEF, UNFPA,
UNHABITAT, UNHCR, UNODC, UNRWA, WFP, WMO
– The World Bank and IMF, Regional development banks, bilateral donors,
global funds, EU,
– International NGOs and networks (ICSW, Helpage Int., ISSA, AIM) and
private sector
• The SPF transcends the mandate of any individual UN agency: Need for a
coherent, system-wide approach
SPF-I: what has been done so far?
•
•
•
•
•
•
•
•
•
A coalition in place (17 UN agencies)
A manual & strategic framework
Tools development (ex: rapid assessment)
SPF success stories (South-South exchange initiative)
Knowledge sharing through the GESS platform
Joint training program (Turin)
Joint briefings of UN resident coordinators
Joint advocacy program
SPF teams or working groups in the countries (ex:
Thailand)
• A SPF Advisory Group headed by Mrs Bachelet to
enhance global advocacy activities and to elaborate further the
conceptual and global policy aspects of the social protection floor.
– A flagship Global SPF Report under preparation
– Mission to Viet Nam last week
http://www.ilo.org/public/english/protection/spfag/about/index.htm
SPF = A powerful approach to address
low social protection coverage in Asia
• Conclusions of the 8th ASEM meeting, 4 & 5 October 2010
– Heads of States and of Governments of 46 Asian and European
countries noted with interest the concept of SPF
– Leaders called for further sharing of experiences and for technical
assistance in implementing social welfare policies
• Mrs Michelle Bachelet’s visit to Viet Nam in Oct 2010
– The SPF is relevant for Viet Nam and should be used as a
framework for the implementation of the National SP Strategy
– It will make this strategy more efficient by increasing coherence
between the three core pillars of the strategy (ALMPs, Social
assistance and social insurance), and
– by providing a unique opportunity to develop linkages between
social protection and labour market policies targeting those working
in the informal economy and SMEs.
Table of contents
1.
2.
3.
4.
5.
Make sure we are talking the same language: Social
protection, social security and social transfers
What is the issue? The level of social protection
coverage remains low, despite many arguments to
justify the extension
The Social Protection Floor Initiative (SPF-I)
Relevance of the SPF & Staircase: From concept to
practical implementation
key messages
Social Protection Floor: from conceptual to
practical implementation
AWARENESS RAISING
NATIONAL SPF TASKFORCE, UN SPF TEAM SET UP
SP STOCKTACKING & MAPPING
PRELIMINARY ANALYSIS
PRIORITY AREAS FOR INTERVENTION
IDENTIFICATION OF POLICY OPTIONS
DESIGN & COSTING
ASSESSMENT to be
carried out in Thailand,
Indonesia, Cambodia,
Vietnam
FISCAL SPACE ANALYSIS – LT FINANCIAL SUSTAINABILITY
RECONSIDER DESIGN IN LIGHT OF FISCAL SPACE
TIME
LEGISLATION
IMPLEMENTATION
MONITORING, EVALUATION, COST-BENEFIT ANALYSIS, IMPACT
Have we talked about the Social Protection
Floor Initiative in your country?
Situation in Thailand
76% population
* maternity, invalidity,
death, sickness and
old age benefits
Extension of 5
benefits to Informal
Economy* (article 40)
UCS since 2001 (health) and 500 Bath
scheme (pension) since 2009…
Social assistance
Poor and
near poor
Informal
economy
Provident fund
system
-Govt P Fund
-Private school
teachers WF
Workmen’s
Compensation
Fund (WCF)
-Social Security
Fund (SSF)
-Non contr.
pension sch.
-CS Medical
Benefit Sch.
Private sector
employees
Civil servants
Armed forces
• Challenges to extend coverage to IE workers (+/- 60 people joined)
• Fragmentation of social security schemes
• Inequalities have increased over past years … Capitation amount
under UCS = 2,200 THB/capita whereas under CSMBS = 12,100
THB/capita
Situation in Viet Nam
Vertical dimension
75% population
Voluntary scheme
for SME and IEco
(35,000 people!)
Subsidized Health Insurance
+11 million people covered
Some social assistance (1.23%
population)
Poor and
Informal
near poor
economy
Mandatory Social Insurance
old-age pensions, disability,
health, sickness and
unemployment insurance
9.4 million workers i.e. 18 per
cent of the total workforce
Mandatory Health insurance
30 million people covered
State owned enterprises, public
and private sector
Horizontal dimension
• National Social Protection Strategy 2011-2020 aims to reach universal
health care coverage by 2014, to strengthen existing schemes and
continue extension of coverage to informal and formal sector workers.
Situation in Cambodia
80% population
Scattered CBHI
schemes
NSSF
-Only work injury
-Health insurance
under study
Scattered social assistance programs:
Health Equity funds and others
Poor and
near poor
Informal
economy
Private sector
employees
NSSF-C
-Only
pensions
-Health
insurance
under study
Civil servants
Armed forces
• CARD’s National Social Protection Strategy for the Poor and Vulnerable
(clear reference to the social protection floor)
• Community Based Health Insurance : limited coverage (100,000 people)
• NSSF and NSSF-C provide very limited scope of coverage
Table of contents
1.
2.
3.
4.
5.
Make sure we are talking the same language: Social
protection, social security and social transfers
What is the issue? The level of social protection
coverage remains low, despite many arguments to
justify the extension
The Social Protection Floor Initiative (SPF-I)
Relevance of the SPF & Staircase
key messages
Message 1: Extending Social Protection is
feasible and affordable
Evidence emerges that a minimum package of social security
benefits is affordable in even the poorest countries (recent work by the
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
Old-age pensions
Health care
Adminis trative costs
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A SPF is possible from a financial
and macro-economic point of view
in every country
(3 to 5 % of GDP). SP is rather a
cost-effective investment in human
capital.
in per cent of GDP
ILO on the cost of a minimum package in sub-Saharan Africa, Asia and Latin America).
Child b enefits
Soc ial assis tance/employment sc heme
At country level the ILO conducts SPER and social budget + fiscal
space analysis + cost / benefit analysis of implementing basic social
security benefits …
Message 2: the SPF is a flexible and adaptable
concept
•It is a set of guarantees
Allows flexibility as to the delivery mode and combinations of different
systems (universal, targeted, social insurance etc. ) to be shaped within
a framework of nationally specific institutional structures, economic
constraints, political dynamics and social inspirations
•It Provides an outcome focus
The social transfer of the SPF part is a set of minimum outcome
indicators rather than a prescriptive list of benefits
Message 3: We do not start from scratch
• Elements of the SPF already exist in many developing
countries (85)
Examples from your countries?
Comprehensive
SPF: Brazil,
Mexico, Chile,
Uruguay
Social pensions: Brazil, South
Africa, Bolivia (pension dignidad),
Chile (pension basica solidaria),
Thailand (500 Bath scheme),
China (rural old age pension)…
CCTs: Brazil (Bolsa Familia),
Mexico (Oportunidades)
HEALTH: China (urban &
rural), India (RSBY), Thailand
(UCS), Mexico (Seguro
popular), Colombia (regimen
subsidiado), Uruguay, Chile
(plan AUGE), Burkina Faso,
Rwanda …
Employment guarantee schemes: India (NREGA),
Uruguay (Política de empleo promovido),
Argentina (Plan jefes y jefas de familias)
Message 4: Access to a SPF has a positive
impact on employability
More employable &
productive
Availability & Access to
essential services:
-Housing,
-Education/skills,
-Health care supply,
-Food/Nutrition,
…
Being fit &
educated
Easier to find a
decent job
Vocational training & other
measures to increase
employability more
effective
Message 5: Access to a SPF should
facilitate beneficiaries in WA’s return to
employment
• The SPF is based on solidarity principles since basic
levels of benefits and services are to be provided by
society as a whole to those who, most in need, will use
them.
• The SPF programs are meant to be at all times available
but they should be designed in such a way that their
beneficiaries in working age progressively graduate
(access to higher levels of benefits and sustainable
employment)
• Therefore, it is not a “hand-out”. By linking SPF with
active labour market policies targeting vulnerable
groups, informal economy workers and the selfemployed, it facilitates return to employment.
What next? Translating a federating concept
into practice – Which role for CSOs?
http://www.socialsecurityextension.org
Thank you!
[email protected]