1. International Labour Office 1 The ILO Global Campaign to Extend Social Security to All Building a Social Protection Floor with the Global Jobs Pact - The Background Report 2 nd African Decent Work Symposium Yaoundé, Cameroon, 6–8 October 2010

2. International Labour Office 2 The ILO Global Campaign to Extend Social Security to All Structure of the presentation One:The Policy context Two: The economic and social context Three:Diagnostics: The state of social protection in Africa Four:The emerging policy paradigm Five: Affordability and feasibility Six:Impact and evidence Seven: Implementation strategies and what can the ILO do?

3. International Labour Office 3 The ILO Global Campaign to Extend Social Security to All One: The Policy context – a reminder We know from more than one century of history of the modern welfare state that social transfers and services are powerful policy instruments to combat poverty, insecurity and inequality and...achieve the MDGs Social services and transfers are an economic necessity to unblock the full economic potential of a country, only people that are healthy, well educated and well nourished can be productive There is now widespread acceptance that social protection/security serve as social and economic stabilisers in times of crisis Countries with existing systems are in a better position to cope with the social and economic fall-out than those who have to introduce new ad-hoc measures And yet, still 75-80% percent of the global population do not enjoy a set of social guarantees that allows them to deal with life’s risks… …There is a need for a social protection floor below which nobody should fall …

4. International Labour Office 4 The ILO Global Campaign to Extend Social Security to All One: The Policy context – a reminder The Assembly of Heads of State and Government of the African Union in September 2004 in Ouagadougou adopting the Ouagadougou Declaration and Plan of Action The Livingstone and Yaoundé conferences (March and September 2006) that recommended the general introduction of a basic package of social security benefits. The 11th ILO African Regional Meeting, held in Addis Ababa in April 2007, which invited all African countries to adopt coherent national social security strategies. The First Session of the African Union Conference of Ministers in Charge of Social Development (Windhoek, Namibia, 27-31 October 2008), adopted the Social Policy Framework for Africa that recommended the implementation of a minimum package of social security benefits. The High Level Committee on Programmes of the UN Chief Executives Board in 2009 adopted the Social Protection Floor…. The International Labour Conference in June 2009 that endorsed the social protection floor approach in the Global Jobs Pact, The Tripartite Meeting of Experts on Strategies for the Extension of Social Security Coverage, Geneva September 2009, recommending the two-dimensional strategy to extend social security. The First African Decent Work Symposium in December 2009 in Ouagadougou, highlighted that building a social protection floor for all is under way in several African countries, and recently The Millennium Summit 2010 endorsing the SP floor…

5. International Labour Office 5 The ILO Global Campaign to Extend Social Security to All Two: The economic and social context… Poverty and GNI per capita, Eastern and Southern Africa (ESA) (latest available year) Source: UNICEF 2010

6. International Labour Office 6 The ILO Global Campaign to Extend Social Security to All Two: The economic and social context… Life expectancy at birth and infant mortality, by region, 2006 Source: UNICEF 2008 - Social protection in Eastern and Southern Africa: A framework and strategy for UNICEF

7. International Labour Office 7 The ILO Global Campaign to Extend Social Security to All Two: The economic and social context… Employment in the informal economy as a percentage of total employment (including agriculture), various years Source: ILO Bureau of Statistics database

8. International Labour Office 8 The ILO Global Campaign to Extend Social Security to All Three: The social protection diagnostics Births attended by skilled health personnel, various years between 2000 and 2008 (percentages, by wealth quintile) Source: WHO Global Health Observatory, in WHO, 2009.

9. International Labour Office 9 The ILO Global Campaign to Extend Social Security to All Three: The social protection diagnostics Old-age pensioners (all ages) as a proportion of the elderly population, 2008 (percentages) Source: ILO Social Security Department database

10. International Labour Office 10 The ILO Global Campaign to Extend Social Security to All Three: The social protection diagnostics Source: ILO Social Security Department database Total public social security expenditure by region, weighted by population, latest available year (percentage of GDP)

11. International Labour Office 11 The ILO Global Campaign to Extend Social Security to All Mandatory social insurance/social security benefits of guaranteed levels for contributors Four: … an emerging policy framework for the ILO campaign to extend social security to all: a staircase and and a story of two dimensions Extension of some income security and access to health care to the whole population seek to provide higher levels of income security and access to higher quality health care THE FLOOR: Four essential guarantees Access to essential health care for all Income security Children Assistance Unemployed/ underemployed & poors Voluntary insurance Income security Elderly & disabled

12. International Labour Office 12 The ILO Global Campaign to Extend Social Security to All Four: The horizontal dimension: The social security component of the social protection floor that could consist of four essential social security guarantees: all residents have …access to a nationally defined set of essential health care services; all children have income security, at least at the level of the nationally defined poverty line level, 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 … all residents in old age and with disabilities have income security at least at the level of the nationally defined poverty line through pensions for old age and disability.

13. International Labour Office 13 The ILO Global Campaign to Extend Social Security to All Four: The vertical dimension: Back to home turf… Promote benefit ranges and levels in the formal economy that comply with ILO Conventions Promote the ratifications of up-to- date Conventions, notably C. 102

14. International Labour Office 14 The ILO Global Campaign to Extend Social Security to All Five: Affordability: The simulation exercise that started the debate – Assumptions Basic old age and invalidity pensions: – 30% of per capita GDP capped at US$ 1 PPP per day Child benefits: – 15% of per capita GDP capped at US$ 0.50 PPP, for a max. of two children in age bracket 0-14 Essential health care: – based on a health system staffing ratio of 300 medical professionals per 100,000 population, overhead 67% of staff cost … Basic social assistance for the unemployed: – 100 day guaranteed employment paid at 30% of per capita daily GDP to 10% of the population Administration cost: – 15% of cash benefit expenditure

15. International Labour Office 15 The ILO Global Campaign to Extend Social Security to All Five:… a basic social protection package is affordable: Cost of basic transfers… Costs for components of a basic social protection package for selected countries in Africa, 2010 (percentage of GDP) Source: ILO Social Security Department. 2008

16. International Labour Office 16 The ILO Global Campaign to Extend Social Security to All Six: Impact…effects on poverty of a basic package of pensions and child benefits

17. International Labour Office 17 The ILO Global Campaign to Extend Social Security to All Six: Financing strategies: Lack of fiscal space? The good news Total public expenditure and social expenditure at different levels of GDP per capita, latest available year Sources: IMF, 2009 (various years); UNDATA database

18. International Labour Office 18 The ILO Global Campaign to Extend Social Security to All Six: Creating fiscal space – an historical example…… Social expenditure in Germany 1950-2008 as a percentage of GDP Percentage of GDP

19. International Labour Office 19 The ILO Global Campaign to Extend Social Security to All Six: Good news: Growing fiscal space Increase of domestic public resources, selected African countries, 2002–07 (percentage of GDP) Source: OECD, 2007.

20. International Labour Office 20 The ILO Global Campaign to Extend Social Security to All Six: Financing strategies Domestic resource mobilisation – Increase the efficiency of tax collection – Reduce waste – Broaden tax base – Introduce self financing insurance systems (largely health care) – Increase overall tax rates International resources (transitional financing) – Modified social security oriented budget support ? – Project financing to build national delivery capacity – International financing of health care goods and services – Financing of the start-up of social protection floor components

21. International Labour Office 21 The ILO Global Campaign to Extend Social Security to All Six: A reality check “Compendium of cash transfer programs in developing countries” …a number of countries are already providing some basic guarantees … Number of countries in study: 28 - 8 in Africa, 9 in Asia, 11 in Latin America Number of studies: 80 studies during 1999 and 2008 Number of programmes: 63 Estimated number of total beneficiaries (primary and secondary, at the end of 2008): between 150 and 200 million people Expenditure starts at less than 0.5% of GDP…

22. International Labour Office 22 The ILO Global Campaign to Extend Social Security to All Six: Impact of SPF policies Realization of the Human Right to Social Security Improved health and nutritional status of children and other houshold members Raising productivity Reduce poverty FASTER => Progress towards MDGs – A basic package of modest pensions and child benefits can reduce the poverty head count by 40 per cent in poor developing countries at a cost of 3-4 per cent of GDP Reduction of economic inequalities and political instability

23. International Labour Office 23 The ILO Global Campaign to Extend Social Security to All Six: The Global Jobs Pact and the SPF as a development strategy The virtuous cycle of development SPF Investments Schooling/Training Good health Employable Employed in formal sector and paying taxes Higher levels of Social Protection

24. International Labour Office 24 The ILO Global Campaign to Extend Social Security to All Seven: Implementation strategy for social protection floors for all Africans At the Global and African level: Adopt a comprehensive development strategy in line with the Global Jobs Pact, the SPF initiative and the recurrent item conclusions on employment Demonstrate political will through an African statement on the two dimensional extension of social security and the Social protection floor building on ARM in 2007 and Windhoek 2008 and … Carry that message to the ILC 2011 including… Signaling to the ILC the necessity of a new mechanism for the Social Protection

25. International Labour Office 25 The ILO Global Campaign to Extend Social Security to All Seven: Implementation strategy for social protection floors for all Africans At the national level: develop a national vision on Social Protection building on the Social Protection Floor and translating the vision into a time-bound plan Define minimum benefits as of right in a national dialogue process Undertake sound costing exercises Create the fiscal space in a national social dialogue process Build national capacities