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Interamerican Committee on Social Development– OAS Main conclusions of the seminar: Intersectoral Approach to Employment and Income Generation Policies.

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Presentation on theme: "Interamerican Committee on Social Development– OAS Main conclusions of the seminar: Intersectoral Approach to Employment and Income Generation Policies."— Presentation transcript:

1 Interamerican Committee on Social Development– OAS Main conclusions of the seminar: Intersectoral Approach to Employment and Income Generation Policies for Vulnerable Populations COLOMBIA LUZ STELLA RODRIGUEZ NOVOA Coordinator, Special Projects Group National Planning Department (DNP), Colombia April, 2010

2 Intersectoral Seminar on Employment and Income Generation Policies Cartagena, October 19 – 20, 2009 Objetive To learn and discuss, from a multi-sectoral perspective, the progress and challenges of employment and income generation policies in the Hemisphere, focused on the poor and vulnerable populations, in order to contribute to the strengthening of capabilities of the ministries of social development in the implementation of programs that respond to these challenges, especially in light of the current global economic crisis. Ministers, high-level authorities and national technical officers in social development and employment from 26 OAS Member States as well as representatives of the IDB and the ILO. Participants

3 Intersectoral Seminar on Employment and Income Generation Policies Cartagena, October 19 – 20, 2009 Agenda Income generation in the context of the global crisis (ILO – IDB) Towards an intersectoral approach in the institutionalisation of employment and income generation policies (Colombia, El Salvador) Employability and income generation for population in conditions of vulnerability (Brazil, USA) Successful experiences in income generation for persons in extreme poverty and conditions of vulnerability (Chile, Paraguay, Haiti)

4 To develop policies that are relevant and which respond to the particular features of families in poverty, so that in the long term, their incomes are improved in a sustainable manner. In institutional terms, this requires multidimensional interventions and inter- sectoral with high levels of inter-sectoral and inter-agency coordination, linking non-traditional actors (private and third sector). There should be an effort to strengthen social protection systems that can be activated in moments of crisis. Given that employment is the area that experiences the greatest delay in recuperating after a crisis, therefore it is fundamental that we protect the human capital of families and those at risk (microcredit, technical assistance, business development). Intersectoral Seminar on Employment and Income Generation Policies Cartagena, October 19 – 20, 2009 Main conclusions and challenges presented at the seminar

5 Increasing unemployment creates challenges for Social Protection Systems and therefore short and long term interventions are necessary. Rigorous diagnostics on the labor situation of LAC and the existing institutional capacities to create active employment policies and mechanisms to cover the risks of income shocks Develop policies tailored to the populations (relevant, timely, sufficient) Avoid generating incentives for informality Make sure that transitory measures do not become permanent. Improve the policies aimed at improving competition in companies, increasing human capital, Reform benefit systems and better coverage in pension systems. Incentives to keep the youth in the education system. Intersectoral Seminar on Employment and Income Generation Policies Cartagena, October 19 and 20, 2009 Main conclusions and challenges posed at the seminar Short term Long term

6 The issue of employment and income generation is a regional priority: it is one of the requirements for ensuring graduation from the programs aimed at overcoming poverty. Intersectoral Seminar on Employment and Income Generation Policies Cartagena, October 19 – 20, 2009 Main conclusions and challenges presented at the seminar 1.Complement employment promotion programs with programs providing support to households in structural poverty 2.Give priority to an approach that promotes the development of capabilities to access assets/credit, within a framework of co-responsibility on the part of the families. 3.Strengthen the institutional framework: integrate the national governments supply and generate greater capacity at the local government level. 4.Promote fiscal and financial sustainability of the social insurance programs: Avoid falling into the informality trap by financing social programs with taxes increasing burdens on the labor and formal sector. 5.The need to start with a productive view with a growing importance of knowledge, human capital and the generation of added value.

7 Intersectoral Seminar on Employment and Income Generation Policies – Cartagena, October 19 – 20, 2009. 1.Background: –Poverty and employment in the Region –Income generation and employment measures adopted by the countries –Income generation policy in Colombia 2.Conpes Document 3616 Income Generation Policy for persons in situations of extreme poverty and displacement 3.Challenges and Conclusions Contents

8 Background Based on the current situation it is most probable that between 2008 and 2009 regional poverty would increase by 1.1 percentage points, while indigence is likely to increase by approximately 0.8 percentage points. "This means an expansion of the number of poor people to 9 million, of which, more than half is in extreme poverty" Source: ECLAC (2009) Social Panorama of Latin America and the Caribbean. Poverty ang Employment in the Region LATIN AMERICA: ANTICIPATED EFFECT OF THE ECONOMIC CRISIS ON POVERTY AND INDIGENCE (In percentages and millions of persons)

9 Background 8.5 54.4 In spite of the increase in unemployment, the employment rate tended to stay constant and to even increase in more than half of the cases. Although the employment rate at the regional level fell from 55.1% in the first semester of 2008 to 54.4% for the same period in 2009, all the countries do not show a negative variation of this indicator. Source: ECLAC (2009) Social Panorama of Latin America and the Caribbean. Poverty and Employment in the Region LATIN AMERICA (9 COUNTRIES): EMPLOYMENT AND UNEMPLOYMENT RATE, FIRST SEMESTER OF 2006 TO SECON SEMESTER OF 2009 (In percentages) Employment RateUnemployment Rate

10 The population in poverty usually has lower rates of participation in the labor market, it is more affected by increases in unemployment, and depends much more on self-employment than on salaried work. Two complementary approaches are required: a) programs directed towards the population with lower possibilities of participating in the labor market; b) programs directed at supporting households in (extreme) structural poverty. Income generation and employment measures that countries have adopted

11 Actions of Latin American countries: some examples Labor Formalization Argentina: Incentives for companies that regularize the status of their employees Chile: Severance fund for all workers. Guatemala: Normative reform for regularizing part-time work. Unemployment Protection Costa Rica: Increase of social security coverage for the unemployed. Brazil: Broadening of security the unemployed. México: More social security (health, severance) for the unemployed. Conditional Subsidies Strengthening the CCT (Conditional Cash Transfer) in: Training Colombia: Training courses for unemployed youth Nicaragua: Training for unemployed in priority sectors Uruguay: Subsidized labor training. Programs for the Vulnerable Population Costa Rica: Scholarship program for youth Dominican Republic : Buying food for older adults. México: Program for food support in priority areas. Increase in Public Spending Brazil Colombia El Salvador Paraguay Barbados* * In the design process Greater public social spending: Colombia Costa Rica El Salvador México Nicaragua Perú Source: Comparativo de medidas adoptadas a nivel internacional para enfrentar la crisis económica, CEFP 2009 Income generation and employment measures that countries have adopted

12 Background Poverty and Indigence Figures in Columbia Fuente: MESEP, Misión para el empalme de las series de Empleo, Pobreza y Desigualdad, Agosto 2009 Income Generation Policy in Columbia

13 Background 13 Overall participation rate Labor market indicators Unemployment rate Employment rate Youth unemployment rate (18-26) 57.5 10.2 18.6 51.6 59.7 8.6 15.9 54.5 % Wage earners 39 51 % Self-employed 48 42 Extreme poverty (%) Non-extreme poverty (%) Source: Cálculos SSS-DDS-DNP con base en DANE- ECV-2008 Income Generation Policy in Colombia

14 …social protection is much broader than traditional social segurity (health, pension, protection of unemployed and persons at risk professionally) It incorporates the notion of citizenship and social inclusion. It deals with guaranteeing improvements in living conditions. It guarantees economic and social rights. It is based on an integrated approach to Social Risk Management. It includes elements of prevention, mitigation and overcoming Risk (access to physical and financial assets, building human capital). Colombia: Social Protection System

15 1. It is based on an approach involving the generation of skills and capabilities a.Development of skills and capacity. b.Accompaniment in the intervention c.Relevance to the needs d.Arrticulation of supply and demand 2. Universal. Includes the entire population a.Access to social services : Some are contributing and others are subsidized. b.Public Resources : Focussing first on those most in need c.Universalisation of basic needs Colombia: Social Protection System

16 3. Seeks the integration of services a.Ensures impacts on all the individuals in a family b.Allows us to attack the needs of the most vulnerable population, in comprehensive manner c.Supports the capabilities approach 4. It has mechanisms and programs which address structural problems in a multidimensional way (Network Together [Red Juntos], Income Generation Policy) 5. Places special emphasis on the factors related to the intergeneration of poverty (Education – Building Human capital, Early Childhood). Colombia: Social Protection System

17 Comprehensive Social Security Access to Credit Building Human Capital Managemen t of Covariant Risks SOCIAL PROMOTION SYSTEM Poor and vulnerable population 100% of the population SOCIAL PROTECTION SYSTEM 1111 2222 3333 5555 4444F.A. Institutional location of the program Development of Social Protection and Social Promotion Systems (1151 Law of 2007). Development of the strategy, Network Together for overcoming extreme poverty (Conpes Social 102, 2006) Colombia: Social Protection System

18 Compreshensive Social Security This is the fundamental pillar of social protection. It is universal in nature and promotes insurance for the population (through their own means and subsidies) against various risks. Health Persons at Risk Professionally Unemployment Protection Contributory Subsidized Employees Trabajadores Independientes SeverancePensionsSubsidies Volver The Colombian Social Protection System

19 Access to Credits/ Assets Support to families so they could generate income and acquire assets, as a tool for improving their living conditions. Physical - Financial Housing – Public Services Financial Services Insurances Volver The Colombian Social Protection System

20 Building Human Capital Enables all individuals to develop the necessary skills to become adequately inserted into the labor market. Advances with the idea of a training system that is articulated throughout the life cycle of the individual. Education Job training Volver Superior (Univ. – T&T) Basic - Medium Early Education CertifiedComplem.Informal The Colombian Social Protection System T & T: Carreras Técnicas y Tecnológicas

21 Management of Covariant Risks Flexible component which seeks to provide timely support in the event of a particular shock which affects the living conditions of part or all of the population. It is anti-cyclical in its financing. Covariant Risks Volver Emergency Employment Segurity – SNAIPD SISPAD – SIVIGILA The Colombian Social Protection System SNAIPD: National System for Comprehensive Care to Displaced Persons SISPAD: National System for Disaster Prevention and Care SIVIGILA: System for Epidemiological Surveillance

22 Social Promotion System Directed at the poorest and most vulnerable population requiring additional support from the State to overcome their situation. It goes beyond the charity or welfare appropaches by seeking to promote the expansion of possibilities of this population to achieve social inclusion and income generation. Poverty Family Compensation Family Wellbeing Conditional Subsidies Volver The Colombian Social Protection System

23 It is an action or intervention by the State to guarantee rights. It is directed at a group in conditions of deprivation and vulnerability that are socially unacceptable and clearly indentified (targeted). Generally it implies a cash or in-kind transference. It has a redistributive criteria (Stiglitz). It is transitory for the individual or the family. It must have explicit exit conditions. In its design, it considers the multiple dimensions of deprivation. It is comprehensive as far as the design of the intervention and the understanding of the family as a subject of intervention. It must be relative in the satisfiers: equality in the ends and the means. Promotes the generation of self-sustaining measures. Characteristics Strategy Demographic Focus The Elderly: economic subsidy. Childhood: Nutrition, accumulation of human capital and care. Youth: Training and insertion into the labor market Women: Empowerment How is Social Promotion defined in Colombia (II) Sector Access to credit/assets: Social Interest Housing, Banking. Development of human capital Food security Social security in health Family Accompaniment Objectifying risks Family plan Co-responsibility

24 Background 1.5 Millones de familias en extrema pobreza y desplazadas Identificación Educación y capacitación SaludNutriciónHabitabilidad Dinámica familiar Acceso a la Justicia Bancarización y Ahorro Ingresos y trabajo Dimensions CONPES 3616 Income Generation Policy in Colombia Banking and Savings Income and Work Identification Education and Training Health Access to Justice Family Dynamics Housing and Living Conditions Nutrition 1.5 Million families in extreme poverty and displaced

25 Background The initiative to develop this CONPES document of Policy Guidelines for Income Generation for the population in extreme poverty or who have been displaced emerges by: Generating tools that would allow the population in extreme poverty and displacement to overcome their socioeconomic condition in a sustainable manner, with support in accessing services which the SPS has granted them, Structuring a policy that allows for the development and consolidation of the productive potential, taking advantage of the capacities of the PPED population and creating opportunities so that this population could access and accumulate assets, whereby they can generate sufficient and sustainable incomes. *NATIONAL COUNCIL FOR SOCIAL AND ECONOMIC POLICY-CONPES- It is the special advisory agency of the government on all aspects relating to the countrys economic and social development (Decreto 627/1974) **CONPES 3616 Income Generation Policy in Colombia

26 Intersectoral Seminar on Employment and Income Generation Policies – Cartagena, October 19 – 20, 2009. 1.Background: –Poverty and employment in the Region –Income generation and employment measures adopted by the countries –Income generation policy in Colombia 2.Conpes Document 3616 Income Generation Policy for persons in situations of extreme poverty and displacement 3.Challenges and Conclusions Contents

27 Conpes 3616 Policy for income generation for the population in extreme poverty and/or displacement All adults and young persons, above 18 years, that have not fulfilled income dimension of Network TOGETHER, that belong to households in the quintile under level 1 of the SISBEN or included in the Unique Registry of Displaced Population Persons in extreme poverty Displaced population Target Population

28 Conpes 3616 Policy for income generation for the population in extreme poverty and/or displacement Increase the productive potential of the population in a situation of extreme poverty and displacement, developing their capacities and creating opportunities so that they may access and accumulate assets. Objective Documento Conpes 3616 de 2009: Lineamientos de política de generación de ingresos para PD y Pobre Extrema. MADR, MCIT, MPS, MEN, Acción Social, SENA, BANCOLDEX: Banca de las Oportunidades y DNP + ++ Strengthened Social Protection System Training Access to assets Strengthen territorial management Strengthen the institutional framework

29 Conpes 3616 Policy for income generation for the population in extreme poverty and/or displacement Characterization and identification of the labor profile Education, Training and psychosocial intervention Labor intermediation and/or Support for new activities and strengthening existing activities. Integral route for Income Generation Occupational orientation + + + 1 23 4 Acción Social, MADR, MCIT, BANCOLDEX: Banca de las Oportunidades Private Sector International Cooperation Social Action SENA MEN SENA MPS Budget and Technical Accompaniment: DNP, MHCP

30 Conpes 3616 Policy for income generation for the population in extreme poverty and/or displacement

31 Stage 1: Realization of studies aimed at targeting and flexibility of the offer. Define the mechanisms of implementing policies: actors, competencies, resources. Define the institutional architecture that guarantees, in the medium term, inter- institutional coordination and sustainability of the policy. Implementation of 5 pilot programs in intermediate cities and mechanisms to promote the complementary and integral nature of the offer in Bogota, Medellin, and Soacha. Co-responsibility, concurrence, and coordinated work between the nation and territorial entities are necessary for: 1.Identifying the existing offer on a territorial level. 2.Promoting the integral and complementary nature of the offer. 3.Guaranteeing the management on a territorial level to access the existing offer. 4.Identifying the most relevant offer to support the displaced population. 5.Monitoring and evaluation of the displaced population on a local level. Implementation

32 Conpes 3616 Policy for income generation for the population in extreme poverty and/or displacement Stage 2: Adjustments to the design and operation of the existing income generation programs. The new institutional architecture will promote the implementation of the Integral Route of Income Generation that involves the relevant actors, instances, programs and strategies (on a national and local level) and that defines the coordination mechanisms and articulation (integrality in the resources and interventions). The offer that is most relevant to the characteristics and conditions particular to the displaced population y and the extremely poor will be implemented (focusing, improving and integrating the existing instruments from the local areal) in each one of the components. A monitoring, evaluation, and accountability system will be created that would provide information to manage the supply of services directed towards the results. Implementation Productive development that recognizes the potential and characteristics of the displaced population and productive development at the local level.

33 Intersectoral Seminar on Employment and Income Generation Policies – Cartagena, October 19 – 20, 2009. 1.Background: –Poverty and employment in the Region –Income generation and employment measures adopted by the countries –Income generation policy in Colombia 2.Conpes Document 3616 Income Generation Policy for persons in situations of extreme poverty and displacement 3.Challenges and Conclusions Contents

34 1. The need to complement employment promotion programs with programs that provide support to households in structural poverty. 2. Strengthening of the institutional framework: Integration of the supply and coordination of governmental programs. Strengthening the capacity for management of local governments 3. Fiscal and financial sustainability of social insurance programs. Avoid falling into the informality trap; to finance social programs with taxes and increasing burdens on formal work and sector 4. The need to start off with a productive view, where there is increased importance for knowledge, human capital and the generation of added value. 2.programs Conclusions: coordinatio of policies and programs

35 THANK YOU


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