Session 2: Evolution and Key Trends of Social Protection

Social protection systems from a global perspective and lessons for Tanzania

Key messages

• Countries are expanding social protection from emergency safety nets to systems of social protection for those in need

• Countries are adopting systematic approaches to organizing and implementing national social protection floors

• Governments have expanded fiscal space for social protection even in lower income countries.

DEVELOPING COUNTRIES HAVE EXPANDED SOCIAL PROTECTION FOR THOSE IN NEED IN THE AFTERMATH OF CRISIS (2010-…)

Economic crisis and its aftermath (2010-…)

• In the first phase of the financial crisis (2008–09), social protection played a strong role in the expansionary response. In the second phase of the crisis (2010 onwards), many governments embarked on fiscal consolidation. Some developing countries, expanded their social protection systems to the poor in a first phase and underwent fiscal adjustments in the aftermath, curbing, social protection real growth.

• Fiscal adjustments in developing countries meant elimination of subsidies, for fuel, agriculture inputs, etc…

• A few countries used these to design narrowly targeted safety nets, as compensatory mechanisms for the poor.

• However, in many of these countries, debates are under way on building effective social protection floors as part of comprehensive social protection systems.

STARTING FROM TEMPORARY AND AD HOC PROGRAMS, COUNTRIES NOW ARE ORGANIZING EFFECTIVE AND SUSTAINABLE FLOORS OF SOCIAL PROTECTION

Universal access to essential health care for all in need

Family/ child benefits, to provide access to nutrition, education, and care

Income support for the working-age poor underemployed, and unemployed, to be

provided as cash benefits or through

public works programs

Basic pension for all persons in old age in

need or with disabilities.

Including pre, post maternal care and hospitalization

Income transfers for women during last weeks of pregnancy and after childbirth

Especially for chronic food insecure, linking transfers to productive inputs, building up assets and financial inclusion

Social Assistance or Demogrant

SPF are basic social security guarantees which secure protection aimed at preventing or alleviating poverty, vulnerability and social exclusion

The guarantees should ensure at minimum that, over the life cycle, all in need have access to essential health care and to basic income

A SPF needs to be defined in a way that impacts on key dimensions…

1. Income security (pensionsChild benefits…)

4. Access to education, vocational training, job

placement, PWPs2. Access to health care, rehabilitation

3. Access to nutrition

5. Other social services (housing, water, sanitation)

Not only transfers in cash, but combined policies Not the privilege of one ministry, but shared responsibility

R202 Principles – useful guidance

• Universality of protection, based on solidarity (notably role of taxation)• Social inclusion including persons in the informal economy

Universal coverage

• Adequacy and predictability of benefits•Non-discrimination, gender equality and responsiveness to special needs•Entitlements to benefits prescibed by national law•Efficiency and accessibility of complaint and appeal procedures•Respect for the rights and dignity of people covered •Respect for collective bargaining and freedom of association

Rights

• Progessive realization, including by setting targets and timeframes•Regular monitoring of implementation and periodic evaluation•Tripartite participation and consultation with representatives of persons concerned

Implement-ation

• Consideration of diversity of methods and approaches•Fair balance of interests•Transparent, accountable and sound financial management and administration• Financial, fiscal and economic sustainability•High-quality public services that enhance delivery of social security systems•Coherence across institutions responsible for the delivery of social protection

Financing and delivery

Overall and primary responsibility of the State

Organizing SPF through structured Evidence-based National Policy Dialogue

1 What’s in place? (Mapping national social protection

systems)

2. What’s missing? Assess the coverage gap & evaluate effectiveness and efficiency of existing schemes and national social protection system

5. What is feasible?

Tools

Survey of institutions and organizations providing social protection

Social Security Inquiry Performance indicators Social Protection Household

Surveys modules

3. What fiscal space needed for policy reforms? (costing) and4. What impacts reforms may have? (assessing poverty, labour market and economic impacts)

Sim

ulation of future costs and impacts of

policy reforms

Diagnostic of current situation…

Tools Costs:

Actuarial valuations Social budgeting

Simulating impactsPoverty impact assessments

GEM Impact assessments

Tools

Social Protection Expenditure and

Performance Reviews and Social

Budgets(SPERs)

Rapid Assessment Protocols (RAPs)

ILO-UNICEF Costing Tools

Social Employment and Social Protection

Expenditure and Impact Assessments

FISCAL SPACE IS MADE AVAILABLE BY EVIDENCE ON THE RETURN ON INVESTMENT IN SOCIAL PROTECTION AND BY CONSIDERING MORE OPTIONS THAN EVER BEFORE.

This has led over the last ten years to improving fiscal space to social protection, including for Lower Income Countries.

National social protection floors should be financed by national resources.

• A progressive expansion of social protection requires a sustainable tax basis and effective tax administration. Strengthening the effectiveness and coverage of existing direct taxation is critical – it is most equitable tax base.

• Increased option considered is taxing mineral and resource extraction, with investment in “stabilization funds” (Chile’s Copper, Iran’s Oil Stabilization Funds..) As an example, Mongolia is funding a universal child benefit from taxation on copper exports.

• Rather than one single strategy, countries have adopted, a combination of strategies to meet their policy objectives

In way of conclusion : How can SPF guide the NSPF in TZ?(for discussion)

• What principles and approaches can guide the finalization of the National Social Protection Framework and its implementation?

• What aspects of SPF can be identified to concretely inform a multi stakeholder- evidence based national dialogue?