philippe marcadent social protection sector international labour office
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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)
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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
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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
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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
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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
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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?
The ILO Global Campaign to Extend Social Security to All
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A right and a need … but an huge coverage gap…
The ILO Global Campaign to Extend Social Security to All
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)
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Social security coverage map
The ILO Global Campaign to extend Social Security to all
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Effective coverage - pensions
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Vertical coverage (pensions): OECD
The ILO Global Campaign to extend Social Security to all
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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
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Proportion of unemployed receiving unemployment benefits from statutory unemployment schemes
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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
The ILO Campaign on Social Security and Coverage for All
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ILO policy framework to extend social security to all: A story of two dimensions …
The ILO Campaign on Social Security and Coverage for All
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
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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
The ILO Global Campaign to Extend Social Security to All
InternationalLabourOffice
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.
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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
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Financing strategies: Lack of fiscal space?
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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
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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
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