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) Philippe Marcadent Social Protection Sector International Labour Office

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

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

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

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

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?

A right and a need … but an huge coverage gap… 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)

Social security coverage map

Effective coverage - pensions

Vertical coverage (pensions): OECD

Proportion of unemployed receiving unemployment benefits from statutory unemployment schemes

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: Universality Progressiveness Pluralism Outcome (not process) focus

ILO policy framework to extend social security to all: A story of two dimensions … Horizontal: Promoting the Social Protection Floor... Vertical: Promoting the ratification and application of flagship conventions 100% Full benefit Intermediate Benefit coverage Basic benefit coverage Civil servant public employees Private Informal economy Non employed Working age Children Elderly Population coverage by groups

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 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. 16

Cost of basic transfers… 17

Financing strategies: Lack of fiscal space?

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

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