Global Social Policy I

131105 Birgitta Jansson

• Globalisation of social policy – since 1980 – e.g. EU

• Socialisation of global politics – G8– G 20 (B 20 – cambers of commerce and

big business)– G 77

Social Policy

• Redistribution• Regulation• Rights• Social policy as social issues:– Social justice– Social citizenship– Universality and diversity– Autonomy and guarantees – Agency of provision– Care

Welfare states (Esping-Andersen)

• Conservative

• Liberal

• Social democratic

Globalisation

• Increased flows of capital• Increased movements of people for

labour purpose, both legal and illegal.

• Neo-liberal versus social democratic • Social agenda?

Figure 1. Global conflicts of interest and global social policy

Figure 2

Figure 3

• World Bank• IMF• WTO• OECD• UN and its social agencies

World Bank

• Founded 1944• The US minister of finance invited to a

conference to “formulate a proposal for organising an international monetary fond and may be a bank for reconstruction and development”.

• The conference took place in Bretton Woods, USA.

• Harry Dexter White – head of the research at ministry of finance in USA and J M Keynes.

• 44 countries sign the agreement• Voting rights according to the size of

the deposit - if the deposit was to small - not vote.

• Number of votes 100–USA had 35 voting rights. – 80 per cent of the votes had to be in

favour for the proposal.

• Today – 15 percent to block a proposal–USA have 16 per cent. – app. 184 countries are members – The G 8 • (USA, UK, Japan, Canada, France, Russia,

Germany, Italy) countries have 54 per cent of the voting rights.

Group 20

• Established 1999 • Argentina, Australia, Brazil, Canada, China,

France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, Republic of Korea, Turkey, United Kingdom, United States of America and European Union

• the importance of its constituency in the agricultural production and trade

• represents almost 60% of the world population• 70 % of world rural population • 26 % of world agricultural exports

• capacity to translate a vast range of developing countries interests into concrete and consistent proposals

• ability to coordinate its members and to interact with other grouping in the WTO.

• http://www.g20.org/about_index.aspx• http://www.b20businesssummit.com/b20/

Group 77

• Founded 1964 – 77 countries • Today app. 131 countries are members • The Group of 77 is the largest intergovernmental

organization of developing states in the UN• provides the means for the countries of the South to

articulate and promote their collective economic interests

• enhance their joint negotiating capacity on all major international economic issues within the United Nations system, and promote South-South cooperation for development.

• http://www.g77.org/doc/index.html

WB

• Mainly neo-liberal – market oriented • 1950s – Infrastructure development

• 1970s– Finance issue

• 1980s– Human capital formation – create economic

growth• Structural adjustment – cut excessive public spending

to balance their books and develop private economies.• Strategy of export-led growth

• 1990s– Environmental assets– 1999 a social dimension – • Poverty Reduction Strategy Paper (PRSP)

• Distinction between the civil society agenda and the finance agenda

Poverty Reduction Strategy Paper

• The five principles of PRSP:• Country-driven – – the initiative should come from the countries

themselves and based on a broad participation from the civil society and the private sector.

• Result-oriented – – should concentrate on the effects of poverty

reduction

• Comprehensive – – Should include all aspects on poverty not only

the economic

• Partnership-oriented – – the involvement of many different

partners both bilateral donors and multilateral institutions and private organisations and NGO international as well as national.

• Based on the long run – – poverty reduction in the long run – it

takes time and the policy should also have the opportunity to work for a long time and do not shift.

• Helping the poor to “manage risk” – not protecting the poor.

• Opportunities, security and empowerment.

• Still more neo-liberal than social democratic.

Other issues

• Pension – from intergenerational solidarity to individualising risk management – Chile

• Social policy– The capacity of social groups to exercise

agency, transform their relationship with other groups and participate in the development processes.

• Health and education– Basic health insurance and primary education – Including the middleclass?

International Monetary Fond

• Founded 1944.• IMF lends money for development– In dept countries – problem paying back

• Corruption

• 1990s like WB more interests in social issues. – PRSP together with WB – Emphasis safety net –

• to achieve significant real growth in social expenditures including primary education and health.

• Provided assistance in the design of new social security scheme– Algeria, Bolivia, Brazil, Greece, Hungary,

Indonesia and most former Soviet republics.

• Contradiction between IMFs short-term concerns with macroeconomic stability and longer-term poverty reduction goals.

• IMFs rules – Public sector wage to GDP ratio must not exceed

8 per cent – budget deficit not exceeding 3 per cent.  

World Trade Organisation

• WTO created 1994 – From GATT –agreements on trade.– Complement to WB and IMF– Increased global trade and liberalisation

of capital flows – the key to increased world prosperity.

– Principle of non-discrimination in trade (?) – But if race to the bottom and the erosion

of European or other northern social and labour standards?

• Labour standards?– The right of association–Wages for a reasonable standard of living– An eight-hour day and 48-hour week–No child labour– Equal remuneration for men and women– Equal rights for migrant workers

• A social clause inserted in trade agreements?

• Privatising public services?• General Agreement on Trade in Services GATS– Health, Social protection, Education and Public

utilities

• TRIPS – global agreement on intellectual property rights (1995)– Patent on both pharmaceutical processes and

pharmaceutical products for 20 years– New drugs anti-AIDS, TB, malaria. – Exceptions:

• Compulsory licences • Parallel importing

OECD

• Founded 1961, app. today 33 members• “For a stronger, cleaner, fairer world

economy”• Support sustainable economic growth• Boost employment• Raise living standards• Maintain financial stability• Assist other countries' economic development• Contribute to growth in world trade

• More mainstream European social and economic policy

• http://www.oecd.org/home/

• Globalisation reinforce the need for some social protection

• But:– Education enhancing employability – Proposals to add private tire to pension schemes– Mixed funding in health care

• But also:– Legislation that entitles parents to change their

working hours so that they are more compatible with their care commitments.

• Demographic challenges– Ageing and low fertility

International Labour Organisation

• Created 1919• Three parts:

• Industry• Workers • Government

• Regulation of the hours of work including the establishment of a maximum working day and week

• Regulation of labour supply, prevention of unemployment and provision of an adequate living wage

• Protection of the worker against sickness, disease and injury arising out of his/her employment

• Protection of children, young persons and women• Provision for old age and injury, protection of the

interests of workers when employed in countries other than their own

• Recognition of the principle of equal remuneration for work of equal value

• Recognition of the principle of freedom of association

• Organization of vocational and technical education, and other measures.

• http://www.ilo.org/global/lang--en/index.htm

• Report: Economic security for a better world (ILO 2004)

• Address the issue of income insecurity– Social pension– Minimum-income-with schooling schemes

• E.g. Brazil

– Capital grants• Baby bond in UK

– Care work grants• Care is a work – help to people working in the sector.

– Basic income as of right• Brazil, South Africa and Peru