Transcript The CFK Mentor Program - The Council for Frontiers of Knowledge

The Council for Frontiers of Knowledge 2012
Munyonyo, Kampala
Policy and Development:
A role for social security?
Robert Walker
The Council for Frontiers of Knowledge 2012
Munyonyo, Kampala
Policy and Development:
A role for social security?
Robert Walker
The Council for Frontiers of Knowledge 2012
Munyonyo, Kampala
Policy and Development:
A role for social security?
Robert Walker
Right to social security
• Everyone, as a member of society, has the
right to social security and is entitled to
realization, through national effort and
international cooperation 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.
Article 22
1948 Universal Declaration of Human Rights
4
Social security
Goal
• Protect against
inadequate income
caused by:
• Sickness, disability,
maternity, employment
injury, unemployment,
old age, the death of a
family member or by
insufficient family
support
• Casual/under
employment
•
•
•
•
•
•
•
Mechanisms
Contributory benefits
Universal schemes
Categorical benefits
Conditional benefits
Social employment
guarantee schemes,
Mutual benefits (e.g.
micro-insurance)
Occupational benefits
5
Low income
Med
High
Work
injury
Coverage
MaternFamily
ity
Sickness allowce
Old age
Unempl
100
90
80
70
50
40
30
20
10
Work injury - similar to Old age - similar to
survivors & invalidity
survivors & invalidity
Maternity
Sickness
Family allowances
High income
Medium income
Low income
High income
Medium income
Low income
High income
Medium income
Low income
High income
Medium income
Low income
High income
Medium income
Low income
High income
Medium income
0
Low income
Percentage
60
Unemployment
6
Low income
Med
High
Work
injury
Coverage
MaternFamily
ity
Sickness allowce
Old age
Unempl
100
90
80
70
50
40
30
20
10
Work injury - similar to Old age - similar to
survivors & invalidity
survivors & invalidity
Maternity
Sickness
Family allowances
High income
Medium income
Low income
High income
Medium income
Low income
High income
Medium income
Low income
High income
Medium income
Low income
High income
Medium income
Low income
High income
Medium income
0
Low income
Percentage
60
Unemployment
7
Low income
Med
High
Work
injury
Coverage
MaternFamily
ity
Sickness allowce
Old age
Unempl
100
90
80
70
50
40
30
20
10
Work injury - similar to Old age - similar to
survivors & invalidity
survivors & invalidity
Maternity
Sickness
Family allowances
High income
Medium income
Low income
High income
Medium income
Low income
High income
Medium income
Low income
High income
Medium income
Low income
High income
Medium income
Low income
High income
Medium income
0
Low income
Percentage
60
Unemployment
8
Work injury - similar to Old age - similar to
survivors & invalidity
survivors & invalidity
Maternity
Sickness
Family allowances
High income
Medium income
MaternFamily
ity
Sickness allowce
Low income
High income
Medium income
Low income
High income
Medium income
Low income
High income
Old age
Medium income
Low income
High income
Medium income
Work
injury
Low income
High income
Medium income
Low income
Percentage
ILO (2010a), Extending Social Security to All: A Guide
Through Challenges and Options, Geneva: ILO.
Low income
Med
High
Coverage
Unempl
100
90
80
70
60
50
40
30
20
10
0
Unemployment
9
Provision in Uganda
ILO (2010b), World Social Security Report 2010/11: Providing
Coverage in Times of Crisis and Beyond, Geneva: ILO.
10
Total social security
expenditure
14
Per cent GDP
12
10
Uganda
0.4%
8
6
4
2
0
Low income
Middle income
High income
ILO (2010b), World Social Security Report 2010/11: Providing Coverage in
Times of Crisis and Beyond, Geneva: ILO.
Total (138)
11
Total
social
security
spending
ILO (2010b), World Social Security
Report 2010/11: Providing Coverage
in Times of Crisis and Beyond,
Geneva: ILO.
12
Constraints
• Finance
• ILO minimum social
security package of
– basic child benefits
– an employment
guarantee scheme
(100 days)
– universal basic old-age
– disability pension
– Universal essential
health care
13
Constraints
• Finance
• The projected cost
– around 2.2 per cent
of GDP for Viet Nam
and Pakistan to
– 5 per cent for Kenya
and Tanzania
– 5.7 per cent for
Nepal
14
Constraints
• Finance
• Limited
administrative
capacity
• System design
– MT/CCT X
– MIG/U categorical 
• Contracting out
administration
• Investment
15
Constraints
• Finance
• Limited
administrative
capacity
• Corruption
• Bribery
• Nepotism
• Evasion of tax and
social security
16
Constraints
• Finance
• Limited
administrative
capacity
• Corruption
Philippines, 2005
• Collected only 26
per cent of
contributions due for
employees working
in the formal sector
17
Constraints
• Finance
• Limited
administrative
capacity
• Corruption
India, 2001
• Improved
enforcement resulted
in addition of 116,000
enterprises 11.5
million workers to the
Employees’ Provident
Fund, 5.79 million of
them first time
members
18
Constraints
• Finance
• Limited
administrative
capacity
• Corruption
• Demographics
Issues
• Aging population
19
Constraints
50
More developed regions
Old age dependency ratio
45
40
Less developed regions
35
30
Least developed countries
25
20
Less developed regions,
excluding least developed
countries
Less developed regions,
excluding China
15
10
5
0
2000
2005
2010
2030
2050
20
Constraints
• Finance
• Limited
administrative
capacity
• Corruption
• Demographics
• Informal economy
Definitions
• to activity that falls
de facto or de jure
out of the reach of
law and social
security
21
Constraints
• Finance
• Limited
administrative
capacity
• Corruption
• Demographics
• Informal economy
Conundrum
• Without social security, point
at which labour demand
matches the supply of labour
generates wages that are so
low that they are at or below
subsistence level.
• The lack of social security
perpetuates the dominance
of the informal economy the
characteristics of which
inhibit the introduction of
social security provision.
22
Innovation in social security
provision
1. Penetrating the
informal sector
2. Universal social
pensions
3. Micro-insurance
4. Conditional cash
transfers
23
Innovation in social security
provision
1. Penetrating the
informal sector
2. Universal social
pensions
3. Micro-insurance
4. Conditional cash
transfers
Ghana
Informal Sector Fund (SIS) 2008
1.
2.
3.
Principal goal: retirement
income
Participants can use their
savings as collateral, enabling
them to access microcredit
Members can also withdraw
part of their contributions
1.
2.
3.
4.
to cope with financial shocks,
school fees
health insurance premiums
other urgent expenses.
24
Innovation in social security
provision
1. Penetrating the
informal sector
2. Universal social
pensions
3. Micro-insurance
4. Conditional cash
transfers
Mauritius
1.
2.
3.
A universal noncontributory minimum
income guarantee for older
people (the Basic
Retirement Pension).
Mandatory income-related
pension schemes– the
National Pension Fund
(NPF) and the National
Savings Fund (NSF)
Targeted voluntary
schemes for persons not
covered by above
25
Innovation in social security
provision
1. Penetrating the
informal sector
2. Universal social
pensions
3. Micro-insurance
4. Conditional cash
transfers
Mauritius
1.
2.
3.
A universal noncontributory minimum
income guarantee for older
people (the Basic
Retirement Pension).
Mandatory income-related
pension schemes– the
National Pension Fund
(NPF) and the National
Savings Fund (NSF)
Targeted voluntary
schemes for persons not
covered by above
26
Innovation in social security
provision
1. Penetrating the
informal sector
2. Universal social
pensions
3. Microcredit/insurance
4. Conditional cash
transfers
Mugabi (2010), sample of 120 users in Iganga
27
Innovation in social security
provision
1. Penetrating the
informal sector
2. Universal social
pensions
3. Microcredit/insurance
4. Conditional cash
transfers
Mugabi (2010), sample of 120 users in Iganga
28
Innovation in social security
provision
II. National social protection floors
4. Members should put in place and complete
as rapidly as possible, and maintain,
101st Session of
their social protection floors comprising
the International
basic social security guarantees.
Labour
The guarantees should ensure at a minimum
Conference,
that, over the life cycle, all in need have
access :
30 May - 14 June
a) to essential health care and
2012
b) to basic income security
which together secure effective access to
goods and services defined as necessary at
the national level.
29
The Council for Frontiers of Knowledge 2012
Munyonyo, Kampala
Development
Social Policy needs
and
Social
Policy and
Development:
A role
for social
security?
Social
Security
Robert Walker
Constraints
• Finance
• Limited
administrative
capacity
• Corruption
• Demographics
• Informal economy
India, 2001
• Improved
enforcement resulted
in addition of
• 116,000 enterprises
• 11.5 million workers
to the Employees’
Provident Fund,
–
5.79 million of them
first time members
31
Constraints
• Finance
• Limited
administrative
capacity
• Corruption
• Informal economy
• Demographics
Issues
• Aging population
• Migration
32
Provision in Uganda
ILO (2010b), World Social Security Report 2010/11: Providing
Coverage in Times of Crisis and Beyond, Geneva: ILO.
33