THE SUSTAINABLE DEVELOPMENT GOALS AND SOCIAL PROTECTION Ms Nelisiwe Vilakazi Acting Director General- Ministry of Social Development REPUBLIC OF SOUTH AFRICA Global Practitioners Learning Event Oaxaca, Mexico 28 30 June 2017
PURPOSE To present South Africa s Social Protection Programme and its contribution to the SDGs with the Global Practitioners Learning Event 2
PRESENTATION OUTLINE Purpose Context Overview of NDP and Social Protection Multistakeholder Coordination and reporting Impacts Lessons Learnt Challenges Conclusion 3
SOUTH AFRICAN CONTEXT Population Population size grew noticeably from 40.5 million in 1996 to 44.8 million in 2001, reaching 51.8 million in 2011 (females, 51% and males, 49% - the last Census year). Mid-year estimates of 2016, has grown to just above 55.9 million. GDP growth rate Contracted by -0.7% (2017Q1). Labour Force Quarter 1 2017, total employed was 16.2 million, with those in formal employment at 69.9%, while informal employment constituted 16.5%. Unemployment rate Very high at 27.7% (Official rate) but grows to 36.4% if discouraged work-seekers are included (Expanded definition) (Quarter 1, 2017), Inequality The Gini coefficient of consumption of 0.65 makes South Africa one of the world s most unequal countries in the world (Statistics South Africa, 2014). 4
NDP Macro Analysis 5
THE NATIONAL DEVELOPMENT PLAN IN BRIEF (1) South Africa s National Development Plan (NDP) Vision 2030 states that by 2030 we aim to: Eliminate income poverty Reduce the proportion of households with a monthly income below R419 per person (in 2009 prices) from 39 percent to zero. Reduce inequality The Gini coefficient should fall from 0.69 to 0.6. Enabling Milestones Increase employment from 13 million in 2010 to 24 million in 2030. Raise per capita income from R50 000 in 2010 to R120 000 by 2030. Increase the share of national income of the bottom 40 percent from 6 percent to 10 percent. Establish a competitive base of infrastructure, human resources and regulatory frameworks. Ensure that skilled, technical, professional and managerial posts better reflect the country's racial, gender and disability makeup. Broaden ownership of assets to historically disadvantaged groups. Increase the quality of education so that all children have at least two years of preschool education and all children in grade 3 can read and write. Provide affordable access to quality health care while promoting health and wellbeing. Establish effective, safe and affordable public transport. Produce sufficient energy to support industry at competitive prices, ensuring access for poor households, while reducing carbon emissions per unit of power by about one-third. 6
THE NATIONAL DEVELOPMENT PLAN IN BRIEF (2) South Africa s National Development Plan (NDP) Vision 2030 states that by 2030 we aim to: Eliminate income poverty Reduce the proportion of households with a monthly income below R419 per person (in 2009 prices) from 39 percent to zero. Reduce inequality The Gini coefficient should fall from 0.69 to 0.6. Enabling Milestones Ensure that all South Africans have access to clean running water in their homes. Make high-speed broadband internet universally available at competitive prices. Realise a food trade surplus, with one-third produced by small-scale farmers or households. Ensure household food and nutrition security. Entrench a social security system covering all working people, with social protection for the poor and other groups in need, such as children and people with disabilities. Realise a developmental, capable and ethical state that treats citizens with dignity. Ensure that all people live safely, with an independent and fair criminal justice system. Broaden social cohesion and unity while redressing the inequities of the past. Play a leading role in continental development, economic integration and human rights. 7
OVERVIEW OF SOCIAL PROTECTION SYSTEM Based on a human rights approach Section 27 of South Africa s Constitution states that: (1) Everyone has the right to have access to a. health care services, including reproductive health care; b. sufficient food and water; and c. social security, including, if they are unable to support themselves and their dependants, appropriate social assistance. (2) The state must take reasonable legislative and other measures, within its available resources, to achieve the progressive realisation of each of these rights. (3) No one may be refused emergency medical treatment. Government prioritises spending on water, housing, health care, education and social security in line with the Constitution, the Bill of Rights and the National Development Plan objectives. 8
Free basic services Social grants Household Food & Nutrition Security Programmes: CNDCs, HCBCs, Luncheon clubs, etc Housing Works programmes (CWP & EPWP) Adult pregnant mothers Social protection through the life cycle in RSA New born Comprehensive social protection services Child Birth 18 years Child support grant 1000days Early childhood development (ECD) Primary Health Care & immunisation National Student Financial Aid Scheme (NSFAS) Teenager adult 3 yrs No fee schools National School Nutrition programme SRD (Uniform & etc) 6 yrs
THE NATIONAL SOCIAL PROTECTION SYSTEM AND THE SDGs In the NDP, a full chapter (11) is devoted to social protection, which has been elevated as a key Government Outcome in the Medium Term Strategic Framework (MTSF). Outcome 13: An inclusive and responsive social protection system Key priorities in the(mtsf) 2014 2019 Outcome 13 include: Reforming the social welfare sector and services to deliver better results. (sdg 4) Improving the provision of Early Childhood Development (ECD). (sdg 4) Deepening social assistance and extending the scope for social security (sdg1, 10) Strengthening community development interventions. (sdg 5) Establishing social protection systems to strengthen coordination, integration, planning, monitoring and evaluation of services. (sdg1,10) Developing a sustainable model of funding social development. (sdg 1) Increasing human resource capacity for the social welfare sector. Expand Child and Youth Care Services (Isibindi programme). (sdg 1) Improving household food and nutrition security (Food for All). (sdg 2) The protection and promotion of the rights of older persons and people with disabilities. Sdg 10)
MULTISTAKEHOLDER COORDINATION and REPORTING The coordination of the government in South Africa s young democracy continues to evolve, to improve transparency and accountability to our people, as well as to fully implement our international commitments, including to the SDGs; The Government Programme of Action comprises of 14 Outcomes, each of which is coordinated by a Cabinet Minister; Ministers enter into a performance agreement with the President, and have to report progress on their portfolios quarterly; http://www.poa.gov.za: the purpose of the website is to communicate the performance by government on the implementation of the NDP 2030 vision, which is linked to the SDGs; The Minister of Social Development coordinates implementation of the Social Protection outcome, and provides quarterly reporting to Cabinet on all work related to the outcome, including from local governments, provinces, and related government departments, i.e.: Departments of Social Development (South African Social Security Agency and the National Development Agency); Basic Education; Transport (Road Accident Fund); Labour (Compensation Fund and the Unemployment Insurance Fund); Home Affairs; Health; Mineral Resources; Higher Education & Training; and the National Treasury 11
THE 14 OUTCOMES AND THEIR CORRESPONDING NDP 2030 CHAPTERS 1. Quality basic education (Chapter 9) 2. A long and healthy life for all (Chapter 10) 3. All people in South Africa are and feel safe (Chapters 12 & 14) 4. Decent employment through inclusive economic growth (Chapter 3) 5. Skilled and capable workforce to support an inclusive growth path (Chapter 9) 6. An efficient, competitive and responsive economic infrastructure network (Chapter 4) 7. Vibrant, equitable, sustainable rural communities contributing to food security for all (Chapter 6) 8. Sustainable human settlements and improved quality of household life (Chapter 8) 9. Responsive, accountable, effective and efficient local government system (Chapter 13) 10. Protect and enhance our environmental assets and natural resources (Chapter 5) 11. Create a better South Africa, a better Africa and a better world (Chapter 7) 12. An efficient, effective and development orientated public service (Chapter 13) 13. Social protection (Chapter 11) 14. Nation building and social cohesion (Chapter 15) 12
CONSOLIDATED GOVERNMENT EXPENDITURE BY FUNCTION Functions that contribute to social protection outcomes R million 2016/17 2017/18 2018/19 2019/20 Revised estimate Medium-term estimates Basic education 226 643 242 968 261 292 280 139 Health 170 888 187 483 201 377 217 131 Post-school education and training 68 952 77 550 80 856 89 839 Employment, labour affairs and social security funds 72 275 75 935 79 936 84 462 Human settlements and municipal infrastructure 179 834 195 751 210 170 226 402 Social assistance Grants 164 936 180 046 193 548 209 088 Health: expenditure expected to grow from R170.9 billion in 2016/17 to R217.1 billion in 2019/20. Social Assistance Grants provide a social safety net expenditure rises from R164.9 billion in 2016/17 to R209.1 billion in 2019/20. (Beneficiaries expected to reach 18.1 million in 2019/20). * June 2017: 1US$ = ZAR 12,90
Percentage of households and persons who have benefited from social grants vs households and persons vulnerable to hunger, 2003-2015 Although access to grants increased, vulnerability to hunger stubbornly remains 14
IMPACT OF INTERVENTIONS ACCESS TO SERVICES % of households with access to housing, piped water and toilet facilities HOUSING 1996 2001 2011 2016 Formal dwelling 65.1 68.5 77.6 79.2 Traditional dwelling 18.3 14.8 7.9 7.0 Informal dwelling 16.2 16.4 13.6 13.0 Other 0.4 0.4 0.9 0.8 ACCESS TO PIPED WATER 1996 2001 2011 2016 Inside the dwelling 44.2 32.2 46.3 44.4 Inside the yard 16.6 29 27.1 30.3 Access point outside the yard 19.6 23.2 17.9 15.5 No access 19.7 15.5 8.8 10.1 ACCESS TO TOILET 1996 2001 2011 2016 Flush toilet (connected to sewerage) 49.1 57.0 60.6 Flush toilet (with septic tank) 2.8 3.1 2.7 Chemical toilet 1.9 2.5 4.2 Pit toilet with ventilation (VIP) 5.7 8.8 12.2 Pit toilet without ventilation 22.8 19.3 13.7 Ecological toilet 0 0 0.3 Bucket toilet 4.1 2.1 2.2 Other 0 2.1 1.6 None 13.6 5.2 2.4
IMPACT OF INTERVENTIONS SOCIAL GRANTS ARE THE PRIMARY INCOME SOURCE FOR POOR HOUSEHOLDS Source: Murray Leibbrandt, 2015 16
IMPACT OF INTERVENTIONS - IMPACT OF THE CHILD SUPPORT GRANT (CSG) The CSG has since its inception had major positive impacts on poor children including: Reduced Poverty rates (by up to 48.7%) Improved Health and Nutrition Increased Gender Equity (98% of caregivers are women) Improved school attendance (majority of the 11.9 million recipients (96.4%) are in schools)
IMPACT OF INTERVENTIONS POVERTY RATES AND GINI INDEX Poverty rates have been declining over the years. POVERTY RATES 2006 2009 2011 % of the population that is poor (Those living below the upper bound poverty line) 57.2% 56.80% 45.50% Number of poor people (millions) 27.1 27.8 23.0 UPPER BOUND POVERTY LINE R431.00 R577.00 R620.00 % of the population in extreme poverty (Those living below the food poverty line) 26.6% 32.40% 20.2 Number of extremely poor people (millions) 12.6 15.8 10.2 FOOD POVERTY LINE R210.00 R305.00 R321.00 Marginal reduction of the Gini coefficient 2006 2009 2011 Gini coefficient (income per capita including salaries, wages and social grants) 0.72 0.70 0.69 Gini coefficient (expenditure per capita excluding taxes) 0.67 0.65 0.65 Source: StatisticsSouth Africa Poverty trends in South Africa, 2014
LESSONS LEARNED: SOCIAL PROTECTION AS A TOOL Social protection in South Africa proves to be most effective in addressing poverty and inequality challenges, especially to the most vulnerable members of our society. Social security in the form of cash transfers and social relief of distress as implemented by a state entity (SASSA) is the most efficient system and reaches over 17 million beneficiaries in South Africa. The rights-based approach to social protection has provided impetus to the implementation of funding for social protection. Social protection funding is critical in the allocation of resources. Social protection measures help to empower households and improve the wellbeing of children and other beneficiaries, and their communities. Political will to make radical transformation is critical. The democratically elected Government inherited a fragmented system of social protection that was designed to serve only a minority of the population, and it began to reverse the then status quo. Government is committed to addressing the remaining challenges and gaps in our social protection system.
POLITICAL/TECHNICAL OBSTACLES/BOTTLENECKS/CHALLENGES Historical patterns of poverty and inequality continue to prevail, with the poor and unemployed remaining predominantly black and female. Fiscal limitations due to low economic growth Concentration of unemployment among the youth, our largest population age group, presents a significant risk to the achievement of SDGs.
CONCLUSION While RSA has made great progress in social protection over the past 15 years, continuous efforts are needed to address gaps and strengthen the national social protection floor. Social investments in the youth will enhance our ability to reap the demographic dividend. South Africa remains committed to the attainment of the SDGs, and lessons learnt in this Global Practitioners Learning Event will be used as a benchmark to better integrate the components of social protection that will provide a strong social protection floor for all. 21
Thank you Gracias