The Social Protection Floor as development strategy: island of hope in the midst of the great ambivalence

Transcription

1 The Social Protection Floor as development strategy: island of hope in the midst of the great ambivalence Michael Cichon, President, International Council of Social Welfare Stockholm, October

2 Structure One : Two: Three: Four : Social protection on the move Social Protection Floor(s) as SP development strategy The great ambivalence: A fragile consensus and the age of austerity Cornerstones of a global strategy for trade unions and NGOs

3 One. SP on the move 3

4 Social protection is a set of policy tools that addresses all four dimensions of the global social problem Poverty Inequality Insecurity Exclusion from formal employment Inequality of what? Poverty 20% of the Global pop. Insecurity 80 % of the global pop....and the fourth (employment exclusion) at least indirectly... And at least some level of SP is affordable and financeable nearly everywhere

5 the World remains poor Poverty headcount, , Source : World Bank under1.25 under East Asia and Pacific Europe and Central Asia Latin America and Caribbean Middle East and North Africa South Asia Sub Saharan Africa 5

6 And insecure :Health Health social protection coverage by region Definition: Health care %: combined of the population indicator covered of coverage: (members % of of the health population insurance covered schemes, corrected free public by the health proportion of total health provision expenditure or private not financed insurance by out and of micro-insurance). pocket payments Global average weighted by by population. Corrected by the proportion of health expenditure Serious Results NOT financed by Limitations High out of estimates pocket of Estimate coverage payments. of which From Definition covered are 61.5% somehow of by the health Proportion insurance corrected population or covered of by the population public contradicted (financial health covered by still by service high protection) health out officially pocket for insurance provided payments health to for 41.6% in free some having but countries when no corrected. indicator access i.e. to of public effective expenditure 36% health if excluding access services taken directly China into covered for account free by or at households limited this 17% stage in costs Africa

7 Extent of statutory coverage Old age pensions Extent of effective coverage Two dimensions of coverage: Persons protected (future beneficiaries of an old age pension) and the actual beneficiaries Worldwide 29.9% of the working age, contribute to an old age pension scheme (entitled to pension cash benefits one reaching pensionable age) 54.6% of the elderly above retirement age receive an old age pension (45.1% without China)

8 And coverage by CCTs as a percentage of (1) households and (2) total population D D Percentagf amilies covered From 5% in Chile or Expenditure Panama (6.4% as a and percentage 8.1% of total of GDP From population 0.13% of GDP in respectively, Chile or Peru to to Just 51% over of households 1 % of GDP and 64% in Ecuador of the population in Ecuador

9 Two. The Social protection Floor Recommendation as SP development strategy 10

10 ILO s two-dimensional strategy for the extension of social security: Building comprehensive social security systems high Vertical dimension: progressively ensuring higher levels of security, guided by Convention No.102 an d the principles of R.202 advanced standards level of protection floor level low extension strategy Voluntary insurance under government regulation Social security benefits of guaranteed levels Social Protection Floor: Access to essential health care and basic income security for all Outcomes can be guaranteed through different means there is no one-size-fits-all Social Protection Floor Recommendation, adopted at ILC 2012 low individual/household income Horizontal dimension: seeking protection against poverty first, guided by Recommendation No. 202 high 11

11 National social protection floors: At least four nationally-defined guarantees The social protection floors should comprise at least the following basic social security guarantees: (para. 5) access to a set of goods and services constituting essential health care including maternity care basic income security for children basic income security for persons in active age unable to earn sufficient income basic income security for persons in old age national definition of minimum levels Guarantees should be provided to at least all residents and children, as defined in national laws and regulations, subject to Members existing international obligations. (para. 6)

12 ...and its principles that address insecurity, inequality, poverty and seek to dynamically increase security without jeopardising access to employment Overall and primary responsibility of the State Universal coverage Rights Implementation Financing and delivery 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 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 Consideration of diversity of methods and approaches Solidarity in financing and optimal 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 13

13 A key point: the term guarantees encompasses transfers in cash and in kind... Para 4 of the recommendation states: Housing security Health security The guarantees should ensure at a minimum that, over the life cycle, all in need have access to essential health care and to basic income security which together secure effective access to goods and services defined as necessary at the national level. national definition of minimum levels Other ess. services Water and sanit. education Food security

14 Three: Implementation: A fragile consensus in the age of austerity 15

15 the club of international agencies seems to approach a level of consensus in 2012 ILO s new strategy... and R.202 WFP new SP strategy UNICEF s new SP strategy The new Social Protection consensus World Bank SP and Labour Strategy EC Communic ation and Council decision 16

16 The interagency consensus : Social Protection is social and economic necessity. Social protection is a social, economic and societal necessity. Only people that are well nourished, well educated and as healthy as possible, and have been brought up in socially secure families will in the long run be productive contributors to national and the global economies and constructive, participating and responsible members of societies who can forcefully make their voices heard. Social Protection and notably a floor of social protection is thus a prerequisite investment in the development process and in people. 17

17 ...and at the same time we face the age of austerity Number of governments changing government spending in % of GDP (number of countries) Income group comp comp comp contracted expanded contracted expanded contracted expanded Developing High income Total Source: Ortiz and Cummins,

18 ...and a biased nature of fiscal consolidation... 19

19 Four. A coalition strategy for the post 2015 discussions: Focus 20

20 .. Possible social protection strategies for a global coalition of Trade Unions and Civil Society for social protection in the post 2015 debate and beyond Use the global consensus on the SPF recommendation as a stratgic basis basis to ensure that Social Protection Floors to play an umbrella role for all social protection targets in the post 2015 development agenda, Demand a UN convention on SPFs Support the demand of a Global Fund for Social Protection that the UN rapporteurs for the Right to Food and Human Rights have jointly issued, Support the International Financial Transaction Tax as a source of funds for investments in social protection 21