Inter-American Committee on Social Development CIDES – OASInter-American Committee on Social Development CIDES – OAS
Second Meeting of Ministers and High Second Meeting of Ministers and High Authorities of Social Development:Authorities of Social Development:
Strengthening and Supporting Social Strengthening and Supporting Social Protection SystemsProtection Systems
Presidency of Colombia Presidency of Colombia 2008-20102008-2010
JUAN MAURICIO RAMÍREZJUAN MAURICIO RAMÍREZGeneral SubdirectorGeneral Subdirector
National Department of Planning (Colombia)National Department of Planning (Colombia)April 2010April 2010
Inter-American Committee on Social Inter-American Committee on Social Development (CIDES) of the OASDevelopment (CIDES) of the OASPresidency of COLOMBIA 2008-2010Presidency of COLOMBIA 2008-2010
1. Background: The impact of the crisis on social protection systems of the Region.
2. Proposal of CIDES work areas for the 2010-2012 period, based on the work plan of the 2008-2010 period.
3. Support of Colombia on specific themes focused on strengthening work priorities.
Content
SOCIAL PROTECTION NETWORKS
Vulnerable Population
SOCIAL PROTECTION SOCIAL PROTECTION SYSTEMSYSTEM
GeneralPopulation
HEALTH
MITIGATING
NATURAL DISASTE
RS
STRENGTHENING HUMAN CAPITAL
PENSIONS
RISK OF UNEMPLOYME
NT
The impact of the crisis on social protection systems in the Region
Social Programs
Social Programs
Integral and multidimension
al policies
Integral and multidimension
al policiesGeneral
protection against
multiple risks
General protection
against multiple risks
• Decrease in the volume of exports• Decrease in remittances• Decrease in tax revenueECONOMY
• Youth drop out from schoolEDUCATION
• Reduction of tax revenue may reduce spending in the health sectorHEALTH
• Rising food prices impacted the commercial balance of the food industry, resulting in inflation and reduction of consumer capacity of households.
NUTRITION
SOCIAL• Deceleration decreasing trend of poverty and inequality• Increase in unemployment rates• Deterioration of job quality for poorest population
The impact of the crisis on social protection systems in the Region
Over the last decade, the region has shown a downward trend in the incidence of poverty and it is very important to prevent this trend from reversing.
COMPARISON OF THE GNP PER CAPITA AND THE INCIDENCE OF POVERTY, 1980-2008* LATIN AMERICA (19 COUNTRIES) (in dollars and percentages of population)
•Source: ECLAC (2009) Panorama Social en América Latina., p. 35, sobre la base de tabulaciones especiales de las encuestas de hogares de los respectivos países y cifras oficiales. *Promedio ponderado
33.2
US $4.59
7
The impact of the crisis on social protection systems in the Region
The region enacted strategies that positively impacted the population during the crisis and its institutions responded more effectively to its effects.
INSTRUMENTS OF SOCIAL POLICY USED IN THE ECONOMIC CRISIS
Monetary transfers that mitigate the decrease in income
Social programs of delivery of food and subsidies to gain access to social services
Policies to increase the demand for jobs in the housing and infrastructure sectors
Policies that favor employability of the poorest and most vulnerable population
Source: ECLAC (2009) Panorama Social en América Latina y el Caribe.
The impact of the crisis on social protection systems in the Region
In Colombia: The policy to confront the economic crisis is based on 4 principles
Investment in infrastructure to generate
jobs and promote competitiveness
Investment in infrastructure to generate
jobs and promote competitiveness
Investment in the social protection network to maintain consumption levels of the vulnerable
population
Investment in the social protection network to maintain consumption levels of the vulnerable
population
Strengthen investor confidence to maintain the
dynamic of private investment
Strengthen investor confidence to maintain the
dynamic of private investment
Ensure access to financingEnsure access to financing
4 PRINCIPLES4 PRINCIPLES
Colombia: Characteristics of countercyclical policyColombia: Characteristics of countercyclical policy
Creation of a High Presidential Council for Countercyclical Policy
Setting goals for public investment and social protection with monthly monitoring through a system of traffic lights
Countercyclical monetary policy of the independent Banco Central (Central Bank)
Impact: Growth of GNP in 2009: +0.4% Growth of public demand: +10.2% Growth of GNP without public demand: -2.4% Job creation: 642.000
The expansion of public spending compensated the decrease in private demand
Source: ECLAC (2009) Panorama Social en América Latina y el Caribe.
The countercyclical policy was applied with fiscal responsibility
The countercyclical policy was applied with fiscal responsibility
Change in debt* (Projection 2010-Observed 2008) (% of GNP)
20.2
11.5
4.6
0.0
5.0
10.0
15.0
20.0
25.0
Advanced economies Emerging
and developing
economies
Colombia
The effects of the crisis were greater in the Caribbean countries, increasing the unemployment rate higher than that of the Latin American average
Source: ECLAC (2009) Panorama Social en América Latina y el Caribe.
The impact of the crisis on social protection systems in the Region
• With more solid market variables, the Latin American and the Caribbean region was able to confront the crisis more easily than in the past.
• Despite the return to positive growth, recovery of social variables is usually slower.
• Three main challenges:• recover the capacity to increase and sustain high rates (what is
the potential growth rate of the Latin American and Caribbean economies?)
• Accelerate the recovery of social variables (poverty/unemployment) – catching up vis-a-vis economic recovery (pro-poor growth)
• Promote effective social protection and social promotion (CIDES AGENDA)
• Reach these goals while guaranteeing the fiscal sustainability and a stable macroeconomic environment.
Post-Crisis ChallengesPost-Crisis Challenges
Proposal of work areasProposal of work areasCIDES 2010 - 2012CIDES 2010 - 2012
1. Tools to promote efficient and effective social protection for the entire population
2. A policy for more and better employment for the region
3. Strengthening Food and Nutritional Security policy
4. Promote Public-Private Partnerships as a mechanism to strengthen the impact of development in the region
5. Strengthen the processes of Risk Management in the Hemisphere with the goal of reducing social, physical and financial vulnerability, in the occurrence of adverse natural and/or unintentional anthropic events.
Tools to promote efficient and effective social protection social protection for for the entire populationthe entire population
Proposal of work areasProposal of work areasCIDES 2010 - 2012CIDES 2010 - 2012
• Update and deepen the diagnostic on the different tendencies that the LAC countries have adopted as they designed and put into practice their Social Protection Systems.
• Guarantee the inclusion of the poorest and most vulnerable people in Social Protection Systems.
• Guarantee the sustainability of Social Protection Systems in the demographic challenges that confront the region: i) improving the living conditions of persons over 60 years of age, especially those lacking social protection; and ii) promoting active aging throughout the life cycle.
• Strengthen the response mechanisms of Social Protection Systems in adverse shocks of a covariant nature like financial, epidemiological, economic, or humanitarian crises, or natural disasters with the goal of ensuring the quality of life of the entire population.
A policy for more and better employment for the region
Promote exchange of information exercises that allow identification of best practices in development and short and long term instruments to protect or reactivate the labor market.
Analyze the most prominent actions and tools employed in the region as a response to the restrictions imposed on the majority of the vulnerable population in terms of autonomous income generation or access to labor opportunities.
i) Promote the identification of successful experiences in terms of income generation, as well as the implementation of pilot projects to test their effectiveness in other scenarios.
ii) Develop exchange of information exercises in the framework of the CIDES to make a joint evaluation of the promoted pilot projects.
Proposal of work areasProposal of work areasCIDES 2010 - 2012CIDES 2010 - 2012
Strengthening Food and Nutritional Security Food and Nutritional Security policypolicy
The approach of an integral policy for food and nutritional security should incorporate the following principles: a) Availability of food; b) Physical and economic access to food; c) Consumption of foods; d) Biological use; and e) Quality and safety.
Develop an integral public policy framework in the area of food and nutritional security.
Socialize and strengthen best practices, highlighting integral care programs and nutritional rehabilitation during childhood, the practices of consumption, and productive projects with small producers.
Generate regional networks that involve commercial agreements.
Define a group of priority foods to which the food and nutritional security policy is aimed.
Strengthen regional integration through the creation of an information network on management of and activities for food and nutritional security in the region.
Proposal of work areasProposal of work areasCIDES 2010 - 2012CIDES 2010 - 2012
Identify the obstacles to generating and developing the partnerships to define viable and appropriate mechanisms that facilitate their implementation.
Strengthening mechanisms to arrange and negotiate alliances among various actors that increase the relevance, impact, and definition of roles.
Generate viable and sustainable projects that promote the complementary public and private actions with alternatives to philanthropy (i.e. inclusive business)
Guide the private actions toward the development priorities of the country, strengthening systems of focus that channel the efforts to segments with the highest poverty indices.
Identify the best practices and lessons learned to be socialized on a regional level.
Proposal of work areasProposal of work areasCIDES 2010 - 2012CIDES 2010 - 2012
Public-Private Partnerships as a tool to promote development and fight poverty
Public-Private Partnerships as a tool to promote development and fight poverty
Strengthening the Risk and Social Reconstruction Management to reduce vulnerability of the victims of natural disasters Promote cooperation mechanisms between countries and exchange of experiences, technical and scientific assessment in the following aspects:
• Risk evaluation.
• Incorporation of risk management in territorial and sectoral planning and development.
• Coordinate efforts to care for the victims of disasters and evaluate how Social Protection Systems can respond immediately or adapt to the social consequences of these unexpected events.
• Disaster mitigation and reduction projects.
• Design and implementation of financial protection mechanisms in disasters.
• Post-disaster reconstruction Promote agreements of mutual assistance between countries in case of national disasters.
Proposal of work areasProposal of work areasCIDES 2010 - 2012CIDES 2010 - 2012
Colombia’s support on specific Colombia’s support on specific themes focused on strengthening themes focused on strengthening
job prioritiesjob priorities
Strengthening Social Protection Systems
Technical assistance, through the National Department of Planning to countries interested in applying the “Sisben” index (Beneficiary Identification System):
• Breakdown of the index
• Dimensions and vulnerability
• Statistical method
• Technological platform
• Inter-institutional coordination and among levels of government
• Benefits and limits to applying Sisben
Design and Implementation of the new Sisben III
Improvements included in Sisbén III
Design of the Index
1. Starting point: Evaluation of Sisben II
2. Redefining variables: Include new living conditions, include vulnerability elements and exclude highly malleable variables (Estrato, geographic area)
3. Change in the statistical methods: Conjuntos Borrosos (antes, prinqual/componentes principales). Reasons: better characterization of the poor population, fewer errors of inclusion and exclusion, and greater robustness
4. Change in geographic disaggregation: Previous 2 indices (Urban and rural). Now 14 main cities, the rest urban and rural
SISBEN
1. The targeting should be seen as a process:• Identification• Selection• Assignment
2. SISBEN responds to the first process
i) Normative support, ii) update, control and quality of the information (certified basis), iii) interoperability (intersection), iv) integration of the different levels of government and entities, and v) evaluation of the instrument
SISBEN
3. Define cut-off points for each program (selection)
4. An important targeting example is the RED JUNTOS. 86% of the population belong to the top two quintiles of the 1st level of Sisben (the poorest
of the poor)
Job training in the Caribbean Basin
Strengthen job training strategies through the improvement of learning processes based on technology, information, and communication training – TICs. Institutional strengthening for the implementation of favorable learning environments and modernizing curricula.
Technical training in person and online, relevant to and situated in the productive sector.
Colombia has an initial total of US$200.000 for its development.
Colombia’s support on specific Colombia’s support on specific themes focused on strengthening themes focused on strengthening
job prioritiesjob priorities
ConclusionsConclusions
I. Strengthen the regional cooperation and technical assistance spaces for institutional development and of Social Protection Systems – the Inter-American Social Protection Network.
II. Strengthen Social Protection Systems to confront the challenges of the post-crisis stage, taking best practices and learning from the experiences of least impact.
The 2010 – 2012 Work Plan should:
THANK YOU