Policy and Development: A role for social security?

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The Council for Frontiers of Knowledge 2012 Munyonyo , Kampala. Policy and Development: A role for social security?. Robert Walker. The Council for Frontiers of Knowledge 2012 Munyonyo , Kampala. Policy and Development: A role for social security?. Social. Robert Walker. - PowerPoint PPT Presentation

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Policy and Development:A role for social security?

Robert Walker

The Council for Frontiers of Knowledge 2012 Munyonyo, Kampala

Policy and Development:A role for social security?

Robert Walker

The Council for Frontiers of Knowledge 2012 Munyonyo, Kampala

Social

Policy and Development:A role for social security?

Robert Walker

The Council for Frontiers of Knowledge 2012 Munyonyo, Kampala

Social

Right to social security• Everyone, as a member of society, has the right to

social security and is entitled to realization, through national effort and international cooperation and in accordance with the organization and resources of each State, of the economic, social and cultural rights indispensable for his dignity and the free development of his personality.

Article 221948 Universal Declaration of Human Rights

4

Social security Goal

• Protect against inadequate income caused by:

• Sickness, disability, maternity, employment injury, unemployment, old age, the death of a family member or by insufficient family support

• Casual/under employment

Mechanisms• Contributory benefits• Universal schemes • Categorical benefits • Conditional benefits • Social employment

guarantee schemes, • Mutual benefits (e.g.

micro-insurance) • Occupational benefits

5

Coverage

6

Low

inco

me

Med

ium

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High

inco

me

Low

inco

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ium

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High

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Med

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Low

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me

Med

ium

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High

inco

me

Low

inco

me

Med

ium

inco

me

High

inco

me

Work injury - similar to survivors & invalidity

Old age - similar to survivors & invalidity

Maternity Sickness Family allowances Unemployment

0

10

20

30

40

50

60

70

80

90

100

Perc

enta

ge

Work injury

Matern-ity Sickness

Family allowce UnemplOld age

Low incomeMedHigh

Coverage

7

Low

inco

me

Med

ium

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me

High

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ium

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me

High

inco

me

Low

inco

me

Med

ium

inco

me

High

inco

me

Work injury - similar to survivors & invalidity

Old age - similar to survivors & invalidity

Maternity Sickness Family allowances Unemployment

0

10

20

30

40

50

60

70

80

90

100

Perc

enta

ge

Work injury

Matern-ity Sickness

Family allowce UnemplOld age

Low incomeMedHigh

Coverage

8

Low

inco

me

Med

ium

inco

me

High

inco

me

Low

inco

me

Med

ium

inco

me

High

inco

me

Low

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me

Med

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me

Low

inco

me

Med

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me

High

inco

me

Low

inco

me

Med

ium

inco

me

High

inco

me

Low

inco

me

Med

ium

inco

me

High

inco

me

Work injury - similar to survivors & invalidity

Old age - similar to survivors & invalidity

Maternity Sickness Family allowances Unemployment

0

10

20

30

40

50

60

70

80

90

100

Perc

enta

ge

Work injury

Matern-ity Sickness

Family allowce UnemplOld age

Low incomeMedHigh

Coverage

9

Low

inco

me

Med

ium

inco

me

High

inco

me

Low

inco

me

Med

ium

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me

High

inco

me

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me

Med

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me

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inco

me

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me

Low

inco

me

Med

ium

inco

me

High

inco

me

Low

inco

me

Med

ium

inco

me

High

inco

me

Work injury - similar to survivors & invalidity

Old age - similar to survivors & invalidity

Maternity Sickness Family allowances Unemployment

0

10

20

30

40

50

60

70

80

90

100

Perc

enta

ge

Work injury

Matern-ity Sickness

Family allowce UnemplOld age

Low incomeMedHigh

ILO

(201

0a),

Ext

endi

ng S

ocia

l Sec

urity

to A

ll: A

Gui

de

Thro

ugh

Cha

lleng

es a

nd O

ptio

ns, G

enev

a: IL

O.

Provision in Uganda

10ILO (2010b), World Social Security Report 2010/11: Providing Coverage in Times of Crisis and Beyond, Geneva: ILO.

Total social security expenditure

Low income Middle income

High income Total (138) 0

2

4

6

8

10

12

14

Per c

ent G

DP

11

Uganda0.4%

ILO (2010b), World Social Security Report 2010/11: Providing Coverage in Times of Crisis and Beyond, Geneva: ILO.

12

Total social security spending

ILO (2010b), World Social Security Report 2010/11: Providing Coverage in Times of Crisis and Beyond, Geneva: ILO.

Constraints• Finance • ILO minimum social

security package of – basic child benefits– an employment

guarantee scheme (100 days)

– universal basic old-age – disability pension– Universal essential

health care

13

Constraints• Finance • The projected cost

– around 2.2 per cent of GDP for Viet Nam and Pakistan to

– 5 per cent for Kenya and Tanzania

– 5.7 per cent for Nepal

14

Constraints• Finance• Limited

administrative capacity

• System design– MT/CCT X– MIG/U categorical

• Contracting out administration

• Investment

15

Constraints• Finance• Limited

administrative capacity

• Corruption

• Bribery • Nepotism • Evasion of tax and

social security

16

Constraints• Finance• Limited

administrative capacity

• Corruption

Philippines, 2005• Collected only 26

per cent of contributions due for employees working in the formal sector

17

Constraints• Finance• Limited

administrative capacity

• Corruption

India, 2001• Improved

enforcement resulted in addition of 116,000 enterprises 11.5 million workers to the Employees’ Provident Fund, 5.79 million of them first time members

18

Constraints• Finance• Limited

administrative capacity

• Corruption• Demographics

Issues• Aging population

19

Constraints

20

2000 2005 2010 2030 20500

5

10

15

20

25

30

35

40

45

50

More developed regions

Less developed regions

Least developed countries

Less developed regions, excluding least developed countries

Less developed regions, excluding China

Old

age

dep

ende

ncy

ratio

Constraints• Finance• Limited

administrative capacity

• Corruption• Demographics• Informal economy

Definitions• to activity that falls

de facto or de jure out of the reach of law and social security

21

Constraints• Finance• Limited

administrative capacity

• Corruption• Demographics• Informal economy

Conundrum

• Without social security, point at which labour demand matches the supply of labour generates wages that are so low that they are at or below subsistence level.

• The lack of social security perpetuates the dominance of the informal economy the characteristics of which inhibit the introduction of social security provision.

22

Innovation in social security provision

1. Penetrating the informal sector

2. Universal social pensions

3. Micro-insurance4. Conditional cash

transfers

23

Innovation in social security provision

1. Penetrating the informal sector

2. Universal social pensions

3. Micro-insurance4. Conditional cash

transfers

Ghana Informal Sector Fund (SIS) 2008

1. Principal goal: retirement income

2. Participants can use their savings as collateral, enabling them to access microcredit

3. Members can also withdraw part of their contributions

1. to cope with financial shocks, 2. school fees3. health insurance premiums4. other urgent expenses.

24

Innovation in social security provision

1. Penetrating the informal sector

2. Universal social pensions

3. Micro-insurance4. Conditional cash

transfers

Mauritius1. A universal non-contributory

minimum income guarantee for older people (the Basic Retirement Pension).

2. Mandatory income-related pension schemes– the National Pension Fund (NPF) and the National Savings Fund (NSF)

3. Targeted voluntary schemes for persons not covered by above

25

Innovation in social security provision

1. Penetrating the informal sector

2. Universal social pensions

3. Micro-insurance4. Conditional cash

transfers

Mauritius1. A universal non-contributory

minimum income guarantee for older people (the Basic Retirement Pension).

2. Mandatory income-related pension schemes– the National Pension Fund (NPF) and the National Savings Fund (NSF)

3. Targeted voluntary schemes for persons not covered by above

26

Innovation in social security provision

1. Penetrating the informal sector

2. Universal social pensions

3. Micro-credit/insurance

4. Conditional cash transfers

27

Mugabi (2010), sample of 120 users in Iganga

Innovation in social security provision

1. Penetrating the informal sector

2. Universal social pensions

3. Micro-credit/insurance

4. Conditional cash transfers

28

Mugabi (2010), sample of 120 users in Iganga

Innovation in social security provision

29

101st Session of the International

Labour Conference,

30 May - 14 June 2012

II. National social protection floors4. Members should put in place and complete as rapidly as possible, and maintain,their social protection floors comprising basic social security guarantees. The guarantees should ensure at a minimum that, over the life cycle, all in need haveaccess :a) to essential health care and b) to basic income security which together secure effective access to goods and services defined as necessary at the national level.

Social Policy and Development:

A role for social security?Robert Walker

The Council for Frontiers of Knowledge 2012 Munyonyo, Kampala

Development needs Social Policy and

Social Security

Constraints• Finance• Limited

administrative capacity

• Corruption• Demographics• Informal economy

India, 2001• Improved enforcement

resulted in addition of • 116,000 enterprises• 11.5 million workers to

the Employees’ Provident Fund, – 5.79 million of them

first time members

31

Constraints• Finance• Limited

administrative capacity

• Corruption• Informal economy• Demographics

Issues• Aging population• Migration

32

Provision in Uganda

33ILO (2010b), World Social Security Report 2010/11: Providing Coverage in Times of Crisis and Beyond, Geneva: ILO.

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