ILO policies on Social Protection & Standards on Social Security ACTRAV-TURIN
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1 ILO policies on Social Protection & Standards on Social Security ACTRAV-TURIN
2 Social Protection Enhance the coverage and effectiveness of social protection for all - One of the four strategic objectives of the Decent Work agenda Seen as a human right and an essential element of social justice BUT Social Security is also a development tool - helps to redistribute growth, lifts people out of poverty, sustains consumption & demand, reduces income inequalities, is an investment in productive capacity of the people and source of domestically raised investment capital (pension funds & other contributions)
3 But what is the global situation? Roughly speaking. 20% of world population = adequate coverage 50% + of world population = no coverage Less than 10% in least developed countries covered 20 to 60% in middle-income countries From close to 100% in most industrialised countries, situation now going down
4 What is Social Protection? Protection organised by society for its members through a set of public measures the year 2000 vision (World Labour Report 2000 Income security and social protection in a changing world ) Components of Social Protection - Social security - Safety and Health at work - Working conditions - Labour migration - HIV/AIDS However, the way ILO looks at social protection is changing
5 MAIN SOCIAL SECURITY MECHANISMS TAXES CONTRIBUTIONS SOCIAL ASSISTANCE SOCIAL INSURANCE TO ALL TO A FEW TO CONTRIBUTORS
6 SOCIAL SECURITY: A RIGHTS-BASED APPROACH SOCIAL SECURITY A FUNDAMENTAL HUMAN RIGHT (1948) Duty of the State to provide SOCIAL SECURITY to all citizens UNIVERSAL, PUBLIC/STATE PROVIDED, NON- DISCRIMINATORY, ADEQUATE, FUNDED THRU TAXES & TRIPARTITLY MANAGED IN THE ASIAN CONTEXT, CAN WE THINK OF MORE BENEFITS?
7 Conventions key conventions on social security/protection C Social Security (Minimum Standards) Convention, 1952 C Employment Injury Benefits Convention, 1964 C Invalidity, Old-Age & Survivors Benefits Convention, 1967 C Medical Care and Sickness Benefits Convention, 1969 C Employment Promotion and Protection against Unemployment Convention, 1988 C Maternity Protection Convention, 2000 C Equality of Treatment (Social Security) Convention, 1962 C Maintenance of Social Security Rights Convention, 1982 Major Recommendations R 67 - Income Security Recommeendation, 1944 (No. 67) R 69 - Medical Care Recommendation, 1944 (No. 69) Which of the conventions has your countries ratified?
8 C Social Security (Minimum Standards) Convention, ) Establishes the aims that must be met instead of describing the techniques that are to be applied 2) C 102 provides for 9 contingencies Health care/insurance Sickness Old age Invalidity Unemployment Employment injury Maternity Family responsibilities Death/survivors 3) Flexibilities provided States ratifying C102 can chose any 3 contingencies (incl. one long-term or unemployment benefit) to provide for & progress as its capacities increase 4) Workers participation in the management of social security
9 Benefits Sickness Unemployment benefits Invalidity Maternity Pensions Medical care Employment injury benefits Family allowances Survivors
10 Ratification map of Convention No. 102 (46 ratifications as of July 2010)
11 Govts & Employers Arguments against C 102 Covers very few people & that too only in organized formal sector needs of women and workers in informal economy not reflected. Benefits level too high for tax financed universal schemes not easy for developing countries to provide Needs of workers in developing countries excluded (such as water, santitation,needs of children, minimum nutrition & role of public distribution, etc) & therefore need for new standard that can provide social protection floor for all. But is this true? C.102 can be used as an instrument for the provision of a social floor if countries are guided in choosing all the different elements that would constitute such a social floor from among the 9 benefits that C102 provides for.
12 ILC 2001: THE NEED TO COMPLEMENT THE EXISTING MECHANISMS THE CONSTITUENTS IDENTIFIED 4 STRATEGIC WAYS THAT COULD CONTRIBUTE TO THE EXTENSION OF SOCIAL SECURITY TO ALL EXTENSION OF SOCIAL INSURANCE (CONTRIBUTORY SYSTEMS) PROMOTION OR DEVELOPMENT OF SOCIAL ASSISTANCE PROGRAMS (TAX-FINANCED) INTRODUCTION OF UNIVERSAL BENEFITS SYSTEMS (TAX- FINANCED) ENCOURAGEMENT OF MICRO-INSURANCE SCHEMES (community based)
13 SOCIAL SECURITY EXTENSION: THE MECHANISMS UNIVERSAL BENEFITS SOCIAL ASSISTANCE SOCIAL INSURANCE MICRO- INSURANCE TAX TAX CONTRIBUTIONS CONTRIBUTIONS WORKER + EMPLOYER + GOVERNMENT (?) MEMBER ALONE?
14 Campaign for extension of coverage the year 2009 vision 1. Basic coverage for all, universal but not necessarily uniform coverage (accepting pluralism) 2. Responsibility of the state but delivery can be shared with private sector & communities where feasible 3. Rights based Everyone has the right to social security (Article 22 of the Universal Declaration of Human Rights) 4. Social outcomes in terms of adequate benefit levels have to be reached, independent of the organization. ILO conventions are important as global safeguards and benefit benchmarks.
15 Basic social package Social Security Floor A new instrument in the making proposal: 1) Universal basic essential health care for all - through a public health service funded by taxes, social and private insurance and micro-insurance systems 2) Basic child benefits aimed to facilitate access to basic social services - nutrition, education, housing 3) Income support access to basic means tested/self targeting social assistance for the poor and the unemployed in active age groups 4) Income security for people in old age, invalidity and survivors through basic pensions
16 The campaign strategy: the social security development staircase Voluntary participation Contributory social security Semi-contributory social security SP Floor (non contributory) Family benefits Unemployment insurance & minimum revenue Social pensions, old age and special needs Access to health care and essential services
17 Extending Social Security: Some Initiatives 1. Extension of the Universal Family Allowance: The Universal Child Allowance Argentina 2. The Rural Social Insurance Programme Brazil 3. Developing a Basic Rural Medical Security System China 4. Rashtriya Swasthya Bima Yojana India 5. The Mahatma Gandhi National Rural Employment Guarantee Act India 6. Child Support Grants South Africa 7. The Universal Coverage Scheme Thailand 8. The 500 Baht Universal Pension Scheme Thailand
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