Social Protection Floor an update on ILO and international agenda

Transcription

1 Social Protection Floor an update on ILO and international agenda Krzysztof Hagemejer Social Security Department December 7,

2 Structure of the presentation Need for social security, right to social security and coverage gap: those with the strongest needs are most often uncovered ILO Campaign on coverage extension Wider international agenda 2

3 All women and men need social security Everybody, poor and rich, needs social security, to be able to deal with uncertainty and social and economic risks over the life-cycle Everybody is vulnerable, as without adequate protection - may fall into poverty as a result of employment injury or other sickness, disability, old-age, loss of employment or loss of other income sources Some are however more vulnerable than others in particular those with no income or with low and irregular incomes Social security does not just alleviate poverty but through reduced vulnerability enables individuals to take economic risks and thus unlocks economic activity 3

4 Any society, state and economy needs social security It reduces poverty and income inequality and it is proved that inequality is economically inefficient It generates growth as: Raising the incomes of the poor increases domestic demand and, in turn, encourages growth by expanding domestic markets It enhances human capital and productive employment thanks to a better educated, healthy and well nourished workforce Promotes peace, stability and social cohesion and facilitates economic change It is thus an indispensable part of the institutional tissue of an efficient market economy In crisis it not only prevents greater poverty but stabilizes the aggregate demand Without social security poverty reduction and development are not possible 4

5 Everybody has the right to social security Article 22 of the Universal Declaration of Human Rights states: Everyone, as a member of society, has the right to social security The ILO s Declaration of Philadelphia laid out for the ILO to further among the nations of the world programmes which will achieve. the extension of social security measures to provide a basic income to all in need of such protection and comprehensive medical care. Confirmed by the ILO Declaration on Social Justice for a Fair Globalization in 2008 ILO conventions define the range and levels of essential social security benefits 5

6 But majority still has no access to social security Coverage gap: those with the strongest needs are most often uncovered Coverage has two dimensions: Horizontal who is covered? Vertical how adequate are the benefits and services provided? Lower income countries: huge horizontal coverage gap (majority of the world s population uncovered) but even those minority groups covered are not covered adequately (scope of benefits narrow and level/quality low) Higher income countries: still exist here and there gaps in horizontal coverage (domestic workers, temporary workers) and issues in vertical coverage (like inadequate benefits for those with short or broken careers as a result of some recent pension reforms) 6

7 Social security coverage map 7

8 Effective coverage - pensions 8

9 A set of principles guiding ILO Campaign on extension of coverage Based on the ILO standards and other documents the following principles for the policy of the campaign can be deduced Universality Progressive realization Pluralism Outcome (not process) focus on Universal coverage Benefits as of right Actuarial equivalence of contributions and benefits Sound financing Responsibility of governance by state and social partners 9

10 Campaign two dimensional strategy: Voluntary insurance Mandatory social insurance/social security benefits of guaranteed levels for contributors THE FLOOR: Four essential guarantees Access to essential health care for all income security assistance income security children unemployed and poor elderly and disabled 10

11 Recent developments in the ILO (1) The idea of a socio-economic floor and its relationship to social protection was emphasized by the World Commission on the Social Dimension of Globalisation that stated A certain minimum level of social protection needs to be an accepted and undisputed part of the socio-economic floor of the global economy. Since then, the term social floor or social protection floor has been used to mean a set of basic social rights, services and facilities that the global citizen should enjoy. The term social floor can correspond to the existing notion of core obligations, to ensure the realization of, at the very least, minimum essential levels of rights embodied in human rights treaties. 11

12 The social security component of the social protection floor could consist of four essential social security guarantees: all residents have access to a nationally defined set of essential health care services all children have income security, at least at the level of the nationally defined poverty line level, through family/child benefits aimed at facilitating access to nutrition, education and care all those in active age groups who are unable to earn sufficient income on the labour markets should enjoy minimum income security through social assistance all residents in old age and with disabilities have income security at least at the level of the nationally defined poverty line through pensions for old age and disability 12

13 Recent developments in the ILO (2): Declaration on Social Justice for Fair Globalization June 2008 Conference Resolution Declaration on Social Justice for Fair Globalization reconfirms ILO mandate contained in the ILO Constitution, which recognizes that the ILO has the solemn obligation to: further among the nations of the world programmes which will achieve the objectives of full employment and the raising of standards of living, a minimum living wage and the extension of social security measures to provide a basic income to all in need, and comprehensive medical care. and provides the ILO with the responsibility to examine and consider all international economic and financial policies in the light of the fundamental objective of social justice 13

14 Recent developments in the ILO (3):GLOBAL JOBS PACT June 2009 Conference Resolution Calls countries to give consideration to the following: introducing cash transfer schemes for the poor building adequate social protection for all, drawing on a basic social protection floor including: access to health care, income security for the elderly and persons with disabilities, child benefits and income security combined with public employment guarantee schemes for the unemployed and working poor; Calls international community to provide development assistance, including budgetary support, to build up a basic social protection floor on a national basis 14

15 Safety Nets versus Social Protection Floor Criteria Safety Nets Social Protection Floor Overall Objective Type of interventions Benefit levels Role Poverty reduction/ Support government choices that support efficiency and growth Targeted set of noncontributory transfers, depending on government priorities Minimum consistent with adequacy, defined as meaningful benefits Transitory response measures/ short term (crisis, reforms) Giving effect to the universal right to social security Universal entitlement to protection through a defined basic package for all in need Adequate to bring people above the national poverty lines Rights-based, systemic insurance against poverty for all residents 15

16 Commonalities: safety nets / social protection floor policies Are one element of a broader social protection policy / social policy framework Aim at redistribution, risk management, poverty reduction, investment opportunities Require a substantial investment in institutional structures/ administrative and implementation capacities Need sustainable financing Need to be flexible/dynamic 16

17 Social security, social protection floor and safety nets Safety nets Social security social protection floor 17

18 Strategies to provide basic social security should differ depending on labour market structures and other social cultural and economic factors Contributory social security schemes are more effective where there is less myopia in perception of risks (i.e. rather health than pensions) Contributory schemes are effective for those with regular incomes well above subsistence level (regular employees, higher income self-employed) The quickest strategy to provide basic but wide coverage in largely informal economies is through non-contributory taxfinanced programmes A mix of non-contributory and contributory measures is most effective in providing universal adequate coverage everywhere Creating political will and designing policies through representative social dialogue is a sine qua non condition for investments in social security which are both sufficient in size and efficient in outcomes 18

19 What needs to be discussed nationally? How can a realistic national strategy be defined? How can/should a country establish its own benefit priorities? How can/should countries sequence initiatives in relation to the social protection floor? How should benefit levels be established taking into account national poverty thresholds and prevailing income levels? How can fiscal space be preserved, freed, and/or extended to ensure the financing of adequate benefit levels? How can the benefit mechanisms, which are necessary to an effective guarantee under the social protection floor concept, be promoted, at both national and international levels? 19

20 Recent developments in the ILO (4): Next steps Tripartite consultations: experts meeting (September 2009) on strategies and additional mechanisms needed to guide member states in extending social security coverage: Workers and a number of Governments made the case for the creation of an international labour standard on the Social Protection Floor... The Employers expressed a preference for a non-binding mechanism given that for them a pragmatic approach based on best practices Important milestone to come: Social security to be discussed by the Conference in 2011 On the way there: General Survey of four international social security standards: Social Security (Minimum Standards) Convention, 1952 (No. 102); Employment Promotion and Protection against Unemployment Convention, 1988 (No. 168); Income Security Recommendation, 1944 (No. 67); Medical Care Recommendation, 1944 (No. 69) 20

21 Recent developments in the UN What is the UN Social Protection Floor (SPF) Initiative? The SPF Initiative aims at ensuring access to essential services and social transfers for the poor and vulnerable. It includes: A basic set of essential social transfers, in cash and in kind, to provide a minimum income and livelihood security for poor and vulnerable populations and to facilitate access to essential services, such as health care Geographical and financial access to essential services, such as health, water and sanitation, education, social work ILO and WHO are leading, working with UNICEF and other UN agencies (manual on country operations etc.) Interagency meetings in Turin (October 2009) and Geneva November 2010) South-South exchange of experiences Coming: Report of the Advisory group on social protection floor chaired by Ms. Bachelet 21