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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?

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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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Page 1: Policy  and  Development: A role for social security?

Policy and Development:A role for social security?

Robert Walker

The Council for Frontiers of Knowledge 2012 Munyonyo, Kampala

Page 2: Policy  and  Development: A role for social security?

Policy and Development:A role for social security?

Robert Walker

The Council for Frontiers of Knowledge 2012 Munyonyo, Kampala

Social

Page 3: Policy  and  Development: A role for social security?

Policy and Development:A role for social security?

Robert Walker

The Council for Frontiers of Knowledge 2012 Munyonyo, Kampala

Social

Page 4: Policy  and  Development: A role for social security?

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

Page 5: Policy  and  Development: A role for social security?

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

Page 6: Policy  and  Development: A role for social security?

Coverage

6

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Page 7: Policy  and  Development: A role for social security?

Coverage

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Page 8: Policy  and  Development: A role for social security?

Coverage

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Old age - similar to survivors & invalidity

Maternity Sickness Family allowances Unemployment

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Perc

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Work injury

Matern-ity Sickness

Family allowce UnemplOld age

Low incomeMedHigh

Page 9: Policy  and  Development: A role for social security?

Coverage

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Old age - similar to survivors & invalidity

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ILO

(201

0a),

Ext

endi

ng S

ocia

l Sec

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to A

ll: A

Gui

de

Thro

ugh

Cha

lleng

es a

nd O

ptio

ns, G

enev

a: IL

O.

Page 10: Policy  and  Development: A role for social security?

Provision in Uganda

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

Page 11: Policy  and  Development: A role for social security?

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.

Page 12: Policy  and  Development: A role for social security?

12

Total social security spending

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

Page 13: Policy  and  Development: A role for social security?

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

Page 14: Policy  and  Development: A role for social security?

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

Page 15: Policy  and  Development: A role for social security?

Constraints• Finance• Limited

administrative capacity

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

• Contracting out administration

• Investment

15

Page 16: Policy  and  Development: A role for social security?

Constraints• Finance• Limited

administrative capacity

• Corruption

• Bribery • Nepotism • Evasion of tax and

social security

16

Page 17: Policy  and  Development: A role for social security?

Constraints• Finance• Limited

administrative capacity

• Corruption

Philippines, 2005• Collected only 26

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

17

Page 18: Policy  and  Development: A role for social security?

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

Page 19: Policy  and  Development: A role for social security?

Constraints• Finance• Limited

administrative capacity

• Corruption• Demographics

Issues• Aging population

19

Page 20: Policy  and  Development: A role for social security?

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

Page 21: Policy  and  Development: A role for social security?

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

Page 22: Policy  and  Development: A role for social security?

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

Page 23: Policy  and  Development: A role for social security?

Innovation in social security provision

1. Penetrating the informal sector

2. Universal social pensions

3. Micro-insurance4. Conditional cash

transfers

23

Page 24: Policy  and  Development: A role for social security?

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

Page 25: Policy  and  Development: A role for social security?

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

Page 26: Policy  and  Development: A role for social security?

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

Page 27: Policy  and  Development: A role for social security?

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

Page 28: Policy  and  Development: A role for social security?

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

Page 29: Policy  and  Development: A role for social security?

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.

Page 30: Policy  and  Development: A role for social security?

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

Page 31: Policy  and  Development: A role for 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

Page 32: Policy  and  Development: A role for social security?

Constraints• Finance• Limited

administrative capacity

• Corruption• Informal economy• Demographics

Issues• Aging population• Migration

32

Page 33: Policy  and  Development: A role for social security?

Provision in Uganda

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