Social protection floors and beyond: Implementation issues

Vinicius PinheiroDeputy Director, ILO Office for the UN in New YorkSeoul, 7 October 2013

Social Protection: accelerating progress in achieving the MDGs…

• Poverty, hunger and employment▫ Reducing poverty and inequality▫ Labour participation and entrepreneurship▫ Food consumption and nutritional level

• Health▫ Access health services and quality preventive and

curative care for child and maternal health▫ Reducing risk factors for diseases among

disadvantaged populations.▫ Mitigating the impact of illness, supporing HIV-AIDS

infected people and orphans• Education

▫ Educational attainment, school enrolment rates ▫ Reducing drop-out rates and child labour

• Gender empowerment▫ Greater participation of women in the economy▫ Strengthening women’s position in the household

… and enhancing policy coherence in the sustainable development framework

Automatic stabilizerAggregate demandLabour force participationProductivityEconomic resilienceInclusive growth

Poverty and InequalityEmploymentFood and NutritionHeathEducationGender

Climate change mitigation and adaptationResilienceJust transition

Economic

Social Environmental

Social Protection Floor: a changing paradigm

• 20 per cent of global lacks access to adequate social protection

Population

Level of protection

Poor Rest of informal sector Formal sector

Social Protection Floor: a changing paradigm

• All residents should enjoy at least a minimum level of social security

• Countries should establish SPFs as a fundamental element of their social security systems

Population

Level of protection

Poor Rest of informal sector Formal sector

Social Protection Floor

A global south revolution: Increase in the health coverage in selected developed and developing countries

National floors of social protection (ILO Recommendation 202)

National Floors of Social Protection (ILO Recommendation 202)

access to a set of goods and services

constituting essential health care including maternity care and nutritio n

basic income security for

children

basic income security for

persons in active age unable to earn sufficient

income

basic income security for

persons in old age

Social protection floors - changing paradigmSafety nets (90’s) Social Protection Floors

Temporary Permanent

Compensatory Prevention, Protection and Empowerment

Fragmented Integrated, coherent, holistic

Needs-based Rights-based

Lack of institutionality Rule of law, governance and social dialogue

Residual to the economic model; shock mitigation

Integral part of the economic model, connected to productivity, consumption investment in human capital, and sustainable development

•Affordable even in low income countries•Efficiency and re-allocation of public

expenditures•Increasing tax revenues

▫Mineral-based taxation or similar single taxes for specific purposes (earmarked taxation)

•Borrowing or restructuring existing debt•Macroeconomic framework•International aidPolitical will is the game changer

Implementation challenge 1: Financing and sustainability

The guiding principles in practiceAffordability & fiscal space

Cambodia; 0.4 – 2.4% GDP by 2020 Indonesia; 0.7 to 2.4% GDP by 2020

Thailand; 0.5 – 1.2% GDP by 2020 Viet Nam; 2% to 6% GDP by 2020

•Build on existing structures •Entitlement to benefits prescribed by Law•Adequacy & predictability•Links between contributory and non

contributory schemes•Universality of protection•Eligibility criteria, targeting criteria and

particular attention to vulnerable groups•Links with other social (education, housing,

sanitation, environment) and economic policies

Implementation challenge 2: Design

• Coordination across institutions involved• Participation of social partners, beneficiaires and

other stakeholders• Partnerships• Communication, information and awareness• Identification, membership registration and

outreach• Intensive use of ITs, integration of databases and

systems, single window services• Monitoring and evaluation• High quality delivery services

Implementation challenge 3: Governance and Delivery

THANK YOU!