Philippe Marcadent Social Protection Sector International Labour Office

InternationalLabourOffice

Philippe MarcadentSocial Protection Sector International Labour Office

Social protection and the Decent Work Agenda

“All human beings, irrespective of race, creed, or sex, have the right to pursue both their material wellbeing and their spiritual development in conditions of freedom and dignity, of economic security, and of equal opportunity” - Declaration of Philadelphia (1944)


2

Structure of the presentation

One: The Decent Work Agenda

Two: Social security from an ILO perspective

Three:An huge coverage gap – a variety of strategies to overcome this gap

Four: ILO policy framework to extend coverage (including the Social Protection Floor)

Five : Some conditions of success


3

The Decent Work Agenda

The Decent Work Agenda - Four strategic objectives: Creating Jobs Guaranteeing rights at work Extending social protection – working conditions

which are safe, allow adequate free time and rest, take into account family and social values + social security to provide adequate compensation in case of lost or reduced income and to permit access to healthcare

Promoting social dialogue

The ILO Global Campaign to Extend Social Security to All


4

Social security from an ILO Perspective: The roots …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

The ILO Campaign on Social Security and Coverage for All


5

Social security from an ILO Perspective: The roots …The need for social security

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

Any society, state and economy needs social security It prevents and reduces poverty and income inequality It contributes to 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

In time of crisis it not only prevents greater poverty but stabilizes the aggregate demand


6

What does social security encompass for the ILO? Income security + guaranteed access to health care

-> Via social transfers to individuals or households to help them to face defined risks or situations.

Guaranteed access to health care = access to health services with financial protection;

Not all means to provide income security are SS interventions; Not all means to better manage risks are SS interventions; For « All » and not for « All workers »; No a single right model of social security

– A plurality of instruments: contributory –non contributory, based on employment – based on residence, universal or not, categorical or not, under resources conditions or not, based on insurance or not, conditional to behavior or not, etc.

– Public or private provisions Who define risks and situations that fall under the umbrella of SS?



A right and a need … but an huge coverage gap…


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)


8

Social security coverage map

The ILO Global Campaign to extend Social Security to all


9

Effective coverage - pensions


10

Vertical coverage (pensions): OECD

The ILO Global Campaign to extend Social Security to all


11

Familly allowances | Existence of a statutory programme & type of programme Percentage of countries (on a basis of 155 countries)

10

49

5

15

7

3

15

12

29

16

9

6344

230

20

40

60

80

100

Socialsecurity

provision

None Socialsecurity

provision

None Socialsecurity

provision

None

Low income Medium income High income

Per

cen

tag

e o

f co

un

trie

s w

ith

a s

tatu

tory

pro

gra

mm

e

No statutory provision

Employer liability

Social assistance

Social insurance

Universal | Demogrant


12

Proportion of unemployed receiving unemployment benefits from statutory unemployment schemes


13

ILO policy framework for extending social security to All: One priority, a set of principles…

ILC 2001 - A New Consensus: “Of highest priority are policies and initiatives which can bring social security to those who are not covered by existing systems.”

Principles:UniversalityProgressivenessPluralismOutcome (not process) focus



14

ILO policy framework to extend social security to all: A story of two dimensions …


100% Full

benefit

Intermediate benefit

Be

ne

fit

co

ve

rag

e

Basic benefit coverage

Civ

il se

rvan

t p

ub

lic

emp

loye

es

Pri

vate

em

plo

yees

Info

rmal

ec

on

om

y

Non

em

ploy

ed

Wo

rkin

g

age

Non

em

ploy

ed

Ch

ildre

n E

lder

ly

Population coverage by groups

Horizontal: Promoting the Social Protection Floor... Vertical: Promoting the ratification and application of flagship conventions


15

What is the Social Protection Floor (SPF)–Initiative? ..

On April 2009, the UN Chief Executives Board (CEB) has agreed on nine joint initiatives to confront the crisis- SPF part of it

The SPF Initiative aims at joint global and local UN action to promote access to essential services and social transfers for the poor and vulnerable. It includes:

– A basic set of essential social rights and 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



16The ILO Global Campaign to Extend Social Security to All

The social security component of the social protection floor could consist of four essential social security guarantees:

Universal access to health care all residents have …access to a nationally defined set of

essential health care services;

A minimum of income security over the life cycle all children have income security 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 a minimum income security through social assistance …in link with employment policies

all residents in old age and with disabilities have income security through pensions for old age and disability.


17

Cost of basic transfers…

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Bur

kin

a F

aso

Cam

ero

on

Eth

iop

ia

Gu

inea

Ke

nya

Sen

egal

Un

ited

Re

p.

Tan

zan

ia

Ban

gla

des

h

Ind

ia

Nep

al

Pak

ista

n

Vie

t Nam

in p

ecen

t of G

DP

O ld - ag e p e ns io ns C h ild b en ef it s H ea lt h care S o ci al a ssi st an ce/ em p lo ym en t sch em e A dm i ni st rat ive co sts


18

Financing strategies: Lack of fiscal space?


19

Our portfolio of activities : some examples Policy development and research: IPC-ILO, Bolsa Familia, NREGA, Child Grant

+EPWP (SA) and the DWA Support to Countries (30 countries in portfolio/year) for:

– Designing and implementing national SP policies and reforms: (Mozambique)– Extending/improving Social Health Protection: National health insurance

(Ghana), Social insurance, National tax-financed system (Thailand), Occupation and community based schemes (Senegal), etc.

– Extending and reforming pensions schemes: contributory and non contributory schemes (Chile)

– Extending social insurance (pensions + health) to informal economy workers: own-accounts workers, domestic workers, workers in micro and small enterprises (Cape Verde);

– Extending /improving family allowances: universal schemes, CCT (Argentina) – Quantitative studies: Actuarial studies (Greece), SPER (Zambia), Social

budgeting (Thailand)– Etc.

Capacity building (Quatrain programme in Africa) Statistics: Social Security Inquiry (database administrative data) Standards


20

Some conditions of success

Promote employment-friendly macroeconomic frameworks, job-rich growth and transition to formal (decent) employment;

A mix of non-contributory and contributory measures, well coordinated, is most effective in providing universal adequate coverage almost everywhere

Enhancing availability of quality social services is a conditions to increase impact of transfers;

For working age population (able to work) improving coherence and integration of social security and employment policies

Documents

Philippe Marcadent Social Protection Sector International Labour Office