Regional Seminar Rethinking social protection in a changing Arab region Session 2: The Social Protection Floor and its relevance for the Arab region 13-15 May 2014 Le Meridien Hotel, Amman - Jordan Ursula Kulke, Senior Regional Social Security Specialist, ILO Regional Office for Arab States, Beirut - Lebanon
Social security: A human right and a social and economic necessity Article 22 of the Universal Declaration of Human Rights and Article 9 of the ICESCR established the right to social security for everyone as a member of society Social transfers and services are powerful policy instruments to combat poverty, insecurity and inequality and...to achieve the MDGs There is now widespread recognition that social protection serves as social and economic stabiliser in times of crisis and beyond and is an important tool for economic growth And yet, it is estimated that less than 50% of the people in Arab States enjoy adequate social protection There is the need for a social protection floor to ensure that everyone can live in dignity
Ratification Map of Convention the Social Security (Minimum Standards) Convention, 1952 (No. 102) 2
Social security programmes: Regional overview Bahrain Iraq Jordan Kuwait Lebanon opt Oman Qatar Saudi Arabia Syria UAE Yemen Old age SI SI SI SI OI SI SI SI SI SI Survivors SI SI SI SI... SI SI SI SI SI Invalidity/ disabiliy SI SI SI SI OI SI SI SI SI SI Employment injury SI SI SI SI SI SI SI Sickness SI Medical care SI Maternity SI Unemployment SI (SI) Family SI Social assistance SN SN SN SN SN SN SN SN SN SN SN SN SI = Social Insurance; OI = Other Ins. Arrangement (Prov. Fund, etc.); SSA = statutory social assistance (rights- based); SN = Safety Net Programme (not rights-based) Source: ISSA Observatory Country profiles
Social security programmes: Regional overview Algeria Egypt Libya Morocco Sudan Tunisia Old age SI SI SI SI SI SI Survivors SI SI SI SI SI SI Invalidity/ disabiliy SI SI SI SI Si SI Employment injury SI SI SI No info Si SI Sickness SI SI SI SI SI Medical care SI SI Si SI SI Maternity SI SI No info SI SI Unemployment SI SI No info SN Family TF SI SI Social assistance SN SN SN SN SN SI = Social Insurance; OI = Other Ins. Arrangement (Prov. Fund, etc.); SSA = statutory social assistance (rights- based); SN = Safety Net Programme (not rights-based), TF = Tax financed Source: ISSA Observatory Country profiles
Social security deficits: Contributory schemes Benefit provisions are too generous Average contributory period for qualifying for old-age pensions were and are too low Early retirement provisions are too generous Statutory retirement age for women and public sector employees are particularly low There are also considerable coverage deficits: Even if most countries cover workers in the public sector and private sector on regular contracts, temporary workers, agricultural workers, domestic workers, informal workers, migrant workers, and to a large extent self-employed workers are excluded from legal coverage 5
Social security deficits: Non-contributory schemes All countries offer some kind of social assistance programmes, however, benefits are granted on a discretionary basis, as opposed to clear rights and entitlements. The providers of these programmes range from governments to NGOs. A lack of coordination is of concern, resulting in the duplication of support to some groups, while others are hardly covered. Another issue is funding, often decided ad hoc and creating a high level of insecurity for institutions and beneficiaries. 6
The Social Protection Floor: The Instrument to fight social protection coverage deficits The SPF is a global and coherent social policy concept that promotes nationally defined strategies for the provision of a minimum level of access to essential services and income security for all. For such purposes, the SPF promotes a holistic and coherent vision of national social protection systems, rights-based, as a key component of national development strategies. In 2012 the ILO adopted the Social Protection Floors Recommendation, 2012, No 202, which provides guidance to countries in setting up national social protection floors and extending social security to higher levels of benefits. 7
The Social Protection Floor: Four nationally-defined guarantees A national social protection floor guarantees that: Outcomeoriented approach taking account of national conditions, priorities and institutions All residents have access to essential health care including maternity care All children enjoy basic income security (providing access to nutrition, education and care) All persons in active age who are unable to earn sufficient income (e.g. in case of sickness, maternity, unemployment, disability) enjoy basic income security All older persons enjoy basic income security 8
The Social Protection Floor can be achieved through different systems National choice Social assistance Social insurance Universal systems Combination of those Nationally guaranteed outcomes
The Social Protection Floor is affordable: Cost of basic transfers In % of GDP 6 5 4 3 2 admin Soc asst Child Pensions 1 0 10
ILO s Recommendations development of coherent social security systems What to do: Creating the necessary fiscal space (SPF financed by domestic resources) Political will Cost-control mechanism Effective institutions Maximize administrative capacity to deliver benefits efficiently and to minimize waste and misuse of resources Sound implementation structure and good governance: Process for efficient delivery, monitoring and evaluation and proper financial management Progressive formalization of the economy High levels of productive employment And enabling social dialogue
Provision of higher levels of income security and access to higher quality health care (Vertical Dimension) ILO s two-dimensional social security strategy towards the right to social security Voluntary insurance Mandatory social insurance/social security benefits of guaranteed levels for contributors THE FLOOR: Income security Children Four essential guarantees Access to essential health care for all Assistance Unemployed/ underemployed & poor Income security Elderly & disabled Extension of some income security and access to health care to the whole population (Horizontal Dimension)
Comprehensive social security with a social protection floor - political and institutional stability, and social cohesion Comprehensive social protection systems represent important social tools that can temper exclusion and latent or simmering unrest. Thereby they can contribute to creating more cohesive and inclusive societies. National social protection floors go beyond providing basic social relief: They also fosters forms of democratization that build citizenship, and Break down barriers that impede fuller participation by the poor in political processes that affect their lives. 13
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