Transcript World Social Protection Report 2014-15

Making social protection
central in the fight against
poverty, inequality and
social exclusion
Trade Union Training on Social Protection
ITC/ILO Turin
ACI Creating and Extending
Social Protection Floors
Content
1. ILO strategic framework on social protection
2. Social protection gaps: WSPR 2014
3. ILO work on social protection: closing the gaps
4. Impact of social protection on poverty
5. Social protection affordability
6. Experiences of extending social protection (floors).
2
Where does Social Protection fit into the
ILO’s strategic framework?
The Decent Work Paradigm and the four strategic ILO objectives to promote social justice
Promote and realize
standards and
fundamental principles
and rights at work
Create greater
opportunities for women
and men to decent
employment and income
Decent Work
Enhance the coverage
and effectiveness of
social protection for all
Strengthen tripartism
and social dialogue
Source: ILO Declaration on Social Justice for a Fair Globalization, 2008
3
A Definition of “Social Security”
according to the ILO
“The notion of social security […] covers all measures
providing benefits, whether in cash or in kind, to secure
protection […] from:
• lack of work-related income (or insufficient income)
caused by sickness, disability, maternity, employment
injury, unemployment, old age, or death of a family
member;
• lack of (affordable) access to health care;
• insufficient family support, particularly for children and
adult dependants;
• general poverty and social exclusion.”
Source: ILO (2014). World Social Protection Report 2014/2015.
Social Security as a Right: Universal
Declaration of Human Rights (1948)
• Art. 22: Everyone, as a member of society, has the right to social
security and is entitled to realization, through national effort and
international co-operation and in accordance with the organization
and resources of each State, of the economic, social and cultural
rights indispensable for his dignity and the free development of his
personality.
• Art. 25: Everyone has the right to a standard of living adequate for
the health and well-being of himself and of his family, including […]
medical care and necessary social services, and the right to
security in the event of unemployment, sickness, disability,
widowhood, old age or other lack of livelihood in circumstances
beyond his control. Motherhood and childhood are entitled to
special care and assistance. […].
Source: Office of the High Commissioner for Human Rights:
http://www.ohchr.org/EN/UDHR/Pages/Language.aspx?LangID=eng
SOCIAL PROTECTION GAPS
ACCORDING TO THE WORLD
SOCIAL PROTECTION
REPORT 2014-15:
73% OF WORLD POPULATION WITHOUT
ADEQUATE SOCIAL PROTECTION COVERAGE
6
39% world population not under any health scheme
Population with Health Coverage
Source: ILO, World Social Protection Report 2014-15
Only 28 per cent of women in employment receive
maternity cash benefits
Source: ILO, World Social Protection Report 2014-15
Only 108 Countries in the World (59%)
operate a Child Benefit Scheme
Source: ILO, World Social Protection Report 2014-15
Only 28 per cent of women in employment receive
maternity cash benefits
Source: ILO, World Social Protection Report 2014-15
Only 12% unemployed workers worldwide receive
unemployment benefits
Source: ILO, World Social Protection Report 2014-15
Only 33% global labour force has employment injury
protection through mandatory social insurance.
Only 51% of older persons receive a pension
Source: ILO, World Social Protection Report 2014-15
ILO WORK ON SOCIAL
PROTECTION AND THE
SOCIAL PROTECTION
FLOORS:
HOW TO COPE WITH GAPS?
14
The Economic Argument (stylized):
Social Protection is Investing in People
Investment in
social
protection
Sustainable
development
based on
inclusive
economic
growth
Human
Rights
Healthier
and better
educated
population
Social
justice
More
decent
employment
Higher
productivity
15
Positive impacts of the extension of social protection
on inclusive growth (short-term)
Positive impacts of the extension of social protection
on inclusive growth (longer-term)
The (UN) Social Protection
Floor Initiative
•
Created in April 2009 by the UN CEB
as one of nine joint crisis response
initiatives
•
Global coalition of various agencies and
development partners
•
Objective: Promote universal access to
– essential services (health, education,
housing, etc.)
– social transfers in cash or in kind, to ensure
income security, food security, adequate
nutrition, and access to essential services.
•
High-level advisory group chaired by
Michelle Bachelet
•
Report: Social protection floors for a fair
and inclusive globalization, 2011
Global lead agencies: ILO, WHO.
Coalition Members: UNESCAP,
UNCEPAL, UN Habitat, UNAIDS,
UNDESA, UNDP, UNESCO,
UNFPA, UNHCR, UNICEF,
UNODC, UNRWA, UNWOMEN,
WFP, WMO, FAO, OHCHR,
UNFPA, IMF, World Bank, Asian
Development Bank, European
Commission, OECD, SIDA
(Sweden), the Netherlands,
Luxembourg, France, Finland,
GIZ (Germany), GIP SPSI,
Education and Solidarity
Network, HelpAge International,
International Council of Social
Welfare, NGO Committee for
Social Development, Save the
Children, Concern...
Social Protection Floors Recommendation 202
approved by world countries
• June 2012: The Recommendation Concerning National Floors
of Social Protection, n°202, was adopted at the 101st session
of the ILC in Geneva, by governments, unions and employers.
 July 2012: Rio+20 – “The future we want” UNGA
A/RES/66/288 Para 156. “We stress the need to provide social
protection to all members of society, fostering
growth, resilience, social justice and
cohesion, including those who are
employed in the informal economy.
We strongly encourage providing social
protection floors for all citizens”
November 2011: SPFs endorsed by G20
Leaders at Cannes Summit
A Change in Paradigm: The Social Protection Floor
Aims To Provide Basic Universal Guarantees
high
Vertical Dimension:
progressively
guaranteeing higher
protection levels,
according to Convention
N°.102
and advanced norms
Extension
Strategy
Protection
Level
Predictable Social Insurance Benefits
(Defined Benefit)
Floor Level
Social Protection Floor:
Access to Essential Health
and Basic Income to all
low
low
Social Protection Floors
Recommendation,
adopted at ILC 2012
Voluntary Insurance
Regulated by the State
Individual/Household Income
high
Horizontal dimension:
Guaranteeing access to essential health and basic
income to all, guided by Recommendation N°. 202
20
Basic Pillars of Recommendation 202
Social Protection Floors
NATIONAL SOCIAL SECURITY SYSTEM
Higher levels
of protection
NATIONAL SOCIAL PROTECTION FLOOR:
nationally defined basic social security guarantees
UNIVERSAL
HEALTH CARE
basic income
security for
CHILDREN AND
FAMILIES
basic income
security for
WOMEN AND
MEN IN
WORKING AGE
unable to earn
sufficient income
OLD AGE
PENSIONS
National social protection floors:
pluralism of approaches
national choice
Most effective
and efficient
combination
of benefits and
schemes in
national context
social
assistance
social
insurance
universal
schemes
others
nationally guaranteed outcomes
Outcomes can be guaranteed through different means
– including benefits in cash and in kind, transfers and services –
there is no one-size-fits-all
Principles as adopted by R. 202
Overall and primary responsibility of the State
Universal
coverage
Rights
• Universality of protection, based on solidarity
• Social inclusion including persons in the informal economy
• Adequacy and predictability of benefits
• Non-discrimination, gender equality and responsiveness to special needs
• Entitlements to benefits prescibed by national law
• Efficiency and accessibility of complaint and appeal procedures
• Respect for the rights and dignity of people covered
• Respect for collective bargaining and freedom of association
Implementation
• Progessive realization, including by setting targets and timeframes
• Coherence with social, economic and employment policies
• Regular monitoring of implementation and periodic evaluation
• Tripartite participation and consultation with representatives of persons concerned
Financing
and delivery
• Consideration of diversity of methods and approaches
• Solidarity in financing and fair balance of interests
• Transparent, accountable and sound financial management and administration
• Financial, fiscal and economic sustainability with regard to social justice and equity
• High-quality public services that enhance delivery of social security systems
• Coherence across institutions responsible for the delivery of social protection
Monitoring of Social Protection Floors
Developments
Nationally-defined monitoring mechanisms
and regular 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
Exchange of
information,
experience and
expertise among
members and
with ILO
involving social
partners
and other
representatives
of persons
concerned
Technical
assistance from
ILO and others
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Significance of the SPF Recommendation
at the national and global level
National level
Contributes to...
● reducing poverty and promoting social cohesion and
investments in people
● facilitating access to essential health care and other
necessary goods and services
● giving effect to the human right to social security by
establishing legal entitlements and consequently
also contributing to realizing other human rights (eg.
the right to health, education, food etc.)
● promoting productive economic activity and
reduction of informality and precariousness
● providing a framework for national social protection
policies in close coordination with economic,
employment and other social policies
● Sustainable development and inclusive growth
● building sustainable institutional structures,
strengthening national dialogue and trust in
institutions, and fostering state-building
Global level
Contributes to...
● promoting rights-based
development policies
● strengthening country ownership
and sustainable development
● fostering policy coherence and
coordination, and deepening
multilateral collaboration
● accelerating progress
towards achieving the MDGs
and informing post-2015
agenda
EXPERIENCES OF EXTENDING
SOCIAL PROTECTION (FLOORS)
ACI Creating and Extending Social
Protection Floors
26
More older persons receiving an old age pension
(2000, 2010) through expanding non-contributory
pensions in Developing Countries
Source: ILO Social
Security Inquiry.
27
.
An important expansion of Cash Transfers in
middle and low income countries
Household Minimum
Income Support
Chile, China, Mozambique, Rwanda, Zambia
Social Pensions
Argentina, Bolivia, Bangladesh, Brazil, Botswana,
Cabo Verde, Chile, Costa Rica, India, Lesotho,
Mauritius, Moldova, Namibia, Nepal, Peru, Samoa,
South Africa, Tajikistan, Thailand, Uruguay,
Vietnam
Child and family benefits
Argentina, Bangladesh, Bolivia, Brazil, China,
Colombia, Costa Rica, Ecuador, Ghana, Honduras,
Indonesia, Jamaica, Kenya, Malawi, Mexico,
How older poor spend
Mongolia, Mozambique, Nepal, Nicaragua,
Philippension cash
pines, South Africa, Senegal, Tanzania, Uruguay
transfer
Cash-for-Work
Argentina, Burkina Faso, Cambodia,
Colombia, Cameroon, Egypt, Ethiopia, Ghana,
Guinea, Honduras, India, Kenya, Madagascar,
Malawi, Mali, Nepal, Niger, Panama, Rwanda, South
Africa, South Korea, Tanzania, Uganda, Vietnam,
Yemen, Zambia, Zimbabwe

Four innovative examples of how to finance
Social Protection Floor Programs
South Africa
Bolivia
The government decided to finance social
programmes in full from public revenue and
shifted budget priorities, which included a
48 per cent decrease in defence spending.
The government introduced a universal
social pension paid annually to everyone
over 60. The benefit is financed by a fund
set up with interests coming from the
privatization of public enterprises and a tax
on hydrocarbon sales.
No single
recipe !
Ethiopia
Ghana
Productive Safety Net Programme, one of
the largest among low-income countries, is
financed through a donor cooperation
group providing long-term funding.
Debt cancellation enabled the initial
financing of the Livelihoods Empowerment
Against
Poverty
Programme,
and
discussions are under way to scale this
programme up.
Fiscal space strategies for extending social protection:
many options are possible
Source: ILO, World Social Protection Report 2014-15
Fiscal space strategies for extending social protection:
many options are possible
Strategy
Pl. State
of Bolivia
Brazil
Botswana
Reallocating public expenditures
Increasing tax revenues
X
X
Costa
Rica
Lesotho
X
X
X
X
X
X
Iceland
Namibia
South
Africa
Thailand
X
X
X
Expanding social security contributions
Reducing debt/debt service
X
X
X
X
X
X
X
X
Curtailing illicit financial flows
X
X
X
Increasing aid
X
X
X
X
X
X
Tapping into fiscal reserves
X
More accommodating macroeconomic
framework
X
X
X
X
X
Source: ILO, World Social Protection Report 2014-15.
31
SOCIAL PROTECTION AND
POVERTY:
SOME EVIDENCE
ACI Creating and Extending Social
Protection Floors
32
Economic and social impacts of investments
in health care: summary
•
•
•
•
•
•
•
•
•
•
development and economic growth, through increased labour productivity;
a growing labour force due to reductions in disability, mortality and life
expectancy;
the contribution of the health sector itself to economic activity;
increased household consumption opportunities as a result of reduced outof-pocket expenditure;
productivity increases through reduced work absenteeism;
income generation, based on increased ability to work;
increased capacity of school learning of children.
employment effects and job growth arising from the improved physical
capacities of workers and from both direct employment in the health sector
and multiplier effects in industry, local businesses and other sectors;
stabilization of the economy in times of crises, by cushioning the impacts of
economic crises on individual health and ensuring continued employment
for those in the health sector and related sectors;
poverty alleviation, through minimizing the private health expenditure of
those who are poor or near to poverty.
Relationship between coverage and poverty at
Affiliation
global
level to a health system or scheme by
Percentage of the population with less than
2 dollars PPP a day
percentage of the population living with less than
2 dollars PPP a day
Total
61.2
More than 75 percent 10.7
50.1 thru 75 percent
14.5
25.1 thru 50 percent
82.2
2.1 thru 25 percent
81.7
Less than 2 percent
93.6
Percentage of total population covered/ affiliated
Poverty levels before and after
catastrophic health expenditure
67.7
64.4
Tajikistan
35.4
32.5
Moldova
Georgia
30.3
44.6
41.2
Armenia
20.6
19
Belarus
Romania
43.9
10.1
9.4
Poverty level after catastrophic expenditure
Poverty level before catastrophic expenditure
Source:
World Bank 2010; Data from most recent household survey,
poverty line used is $2.15 at 2000 PPP.
Global results: Deficits in health coverage by level of poverty
Health coverage deficit in % of people
living with less than 2 dollars a day
Percentage of people living with less
than 2 dollars a day
FORMAL health coverage DEFICIT |
Percentage of the population not covered
100
Less than 2 percent
2.1 thru 25 percent
25.1 thru 50 percent
50.1 thru 75 percent
80
More than 75 percent
60
OUTCOME | Maternal mortality ratio
(per 10 000 live births)
40
20
ACCESS DEFICIT | % Population NOT
covered
due to health professional staff DEFICIT
(Ref. median value in low vulnerability
group of countries)
0
OUT of POCKET | Out of pocket expenditure
as percentage of total health expenditure
Relative DEFICIT in Per capita Health
Spending (Total except Out of Pocket) |
Ref. median value in low vulnerability group
of countries
National deficits in health coverage: Selected African countries
PMAC 2012, January 24-28 2012, Bangkok, Thailand
Deficit in population coverage
100
87
80
60
40
Maternal mortality ratio
95.3
20
Access deficit due to
absence of work force
0
77.4
Relative deficit in per capita
expenditure
Out-of-pocket expenditure
Tunisia
Egypt
Ghana
Burundi
ILO, 2012
Public pensions reduce poverty effectively
50
Korea, Rep.
R² = 0.3952
45
40
Australia
Poverty rate among older persons
35
30
Mexico
25
ISR
Chile
USA
Japan
20
Greece
Turkey
15
New Zealand
Slovakia
OECD
Austria
Italy
Belgium
UK
Portugal
Germany
Finlande
Estonia Poland
Sweden
Denmark
Ireland
Iceland
France
Norway
Czech Rep,
Slovenia
Hungary
Luxembourg
Spain
10
Canada
5
Netherlands
0
0
10
20
30
40
50
60
70
Share of public transfers in older persons' incomes
80
90
100
Social protection reduces poverty and social exclusion
Social protection expenditure (percentage of GDP) and proportion of the population in poverty
Source: ILO, World Social Protection Report 2014-15.
39
SOCIAL PROTECTION FLOOR
IS AFFORDABLE:
EVEN IN LOW-INCOME COUNTRIES
ACI Creating and Extending Social
Protection Floors
40
Affordability of a Social Protection Floor
1.
2.
3.
A Social Protection Floor is
affordable even in low-income
countries.
Not having basic social
protection regimes has a high
toll in terms of development
prospects.
The design of national Social
Protection Floors needs to be
done according to national
circumstances and its
implementation should be
progressive, allowing for the
development of funding
sources and institutional
capacities.
4.
Low income countries may
resort to international
cooperation while building
domestic sources for the longterm financing.
Latin American evidence
shows that well designed and
managed SPF programmes
cost up to approx. 4% of GDP:
5.
–
–
–
–
6.
Child benefits: approx. 0.5%;
Social Pensions: approx. 1.0%;
Unempl. Ben.: approx. 0.5%;
Ess. health: approx. 2.0%.
Recent costing exercises
ILO/IMF (2011): Mozambique
(2.7%), Vietnam (3.6%), El
Salvador (3.8%).
SPF costing exercises in Asian countries (%
GDP), different scenarios
Cambodia; 0.4 – 2.4% GDP (2020)
Indonesia; 0.7 - 2.4% GDP (2020)
Thailand; 0.5 – 1.2% GDP (2020)
Viet Nam; 2% - 6% GDP (2020)
WHAT NEXT? STEPS FOR
DEVELOPING SOCIAL PROTECTION
FLOORS TOWARDS 2030
43
How to Build Social Protection Floors?
Recommendation 202 requests countries to promote national
dialogues and formulate a national social security extension
strategy, with the steps below:
• (a) set objectives reflecting national priorities;
• (b) identify gaps in protection;
• (c) determine appropriate social protection schemes, whether contributory or
non-contributory, or both, as well as the time frame and sequencing for the
progressive achievement of the objectives
•(d) Cost selected schemes
• (e) Discuss financial and human resources with Ministry of Finance
• (f) raise awareness about their social protection floors and their extension
strategies, and consult options through social dialogue.
44
SPFs and Civil Society
Civil Society has a special position and can make a difference in
claiming and implementing SPFs:
Advocacy
• Awareness raising and society-led campaigns;
Education
• Create knowledge about social rights and services;
Dialogue
• Take part of dialogues to build consensus and political
will to expand social protection policies;
Governance
• Ensure that policies are based on laws, transparency,
claim and appeal mechanisms;
Research
Implementation
Monitoring
• Grassroots level experience and information, innovative
visions;
• Link with communities, reach out to the remote and
marginalized, represent the vulnerable without voice.
• Take part of monitoring and evaluation processes,
ensure transparency and feedback processes.
Post 2015 Agenda: Why Social
Protection must be in it
• SP has proven results and impacts on people
• It is action-oriented – Social Protection Floors
are concrete policy steps
• It is concise and easy to communicate
– High visibility
– Addresses households and families’ daily concerns
• Rights-based – eg. children, older persons…
• It is transformational
• Measurable
– Widespread availability of SP statistics, but need for
further investments in LDCs
12 Social Protection Targets to
Change People’s Lives by 2030…
1. All older persons receive a pension
2. All workers covered by employment injury schemes
3. Extend unemployment support for those without jobs
4. All mothers receive social support
5. All persons with severe disabilities receive benefits
6. Labour force contributes to social security
7. Expand benefits to families with children
8. Universalize essential health care coverage
9. Reduce to zero the number of people impoverished due to
health expenditures
10. Countries have Social Protection Strategies as part of their
National Development Plans
11. More resources for social protection
12. All persons have social protection coverage during the lifecycle
… and 12 Feasible Indicators
 Share of older persons receiving pensions
 Share of families with children receiving cash transfers
 Share of women and men in active age protected by schemes disability, maternity benefits, work injury, unemployment
 Share of the labour force contributing to social security (linked to
formalization of the informal economy)
 Share of people with access to essential health
 Share of people impoverished due to health expenditures
 Number of countries that have a National Strategy on Social
Protection Floors as part of National Development Plans
 Social protection expenditures as a %GDP
 Share of persons with social protection coverage during the lifecycle
48
SPF Development: The Need for
Development Partners to engage
Social Protection Programs are long-term commitments to be funded by
national sources.
Develop
local
technical
capacity
Improve
efficiency
and governance
Increase
taxation
base and
compliance
However, technical cooperation requires resources and countries with
insufficient fiscal space will need international technical and financial support to
strengthen institutional capacities and launch SPF programs.
Thank you