Decent Work for Sustainable Poverty Reduction -from targeted poverty projects to Social Security for All, also in Global South The 33rd Global Conference of the ICSW, Tours, France Day-3 of the Conference (3 July, 2008): Social Development - from targeted policies on poverty reduction to human development SYMPOSIUM-7: ”Poverty reduction and minimum income policies: results and limits” Timo Voipio / ISSA (International Social Security Association), Geneva –

2  TV with MFA-Finland (Rio & Copenhagen to UN-ECOSOC, via ICSW-Kuala Lumpur and ICSW-Brasilia, and UN-CSocD, OECD-POVNET (SocProt + Empl), EU, WB, ILO + WCSDG, UNRISD, SDAN, GASPP, Network-IDEAS, Tanzania, “Helsinki-process”, “Kellokoski-meetings” )  ISSA / AISS (Geneva) – since 9/08 ( New site: )  Policy Research Guide for SocSec Administrations  Developments and Trends (DT) of SocSec in Africa, Asia, the Americas, Europe, World (Reports + Sessions)  Rwanda Nov-2008, Cape Town 2010  Study: Examining the Existing Knowledge on Social Security Coverage Extension (  ISSA Strategy on Extension)  ILO Global Campaign to extend SocSec to All  ILO Decent Work Agenda: = Rights + Employment + SocProt + Dialogue TV: Sources of ideas and inspiration:

3  MinWage on the Agenda in ILO and Europe for long - MinWage: ILO / SocSec/Minimum Standards: ILO  My focus is on... - ”The Global South” – ”developing countries” - ”Social Security” // ”Social Protection” - ”Social Floor” as ILO calls it. Poverty Reduction ? Minimum Income Policies ? Minimum Social Security ? 1 Minimum Wage-Fixing Machinery Convention, 1928 (No.26) 2 Minimum Wage Fixing Convention, 1970 (No.131) 3 Social Security (Minimum Standards) Convention, 1952, (No.102)

4  MinWage – a good starting point from which social dialogue / collective bargaining can branch out. 1  Goal: protection of the lowest-paid, most vulnerable and most difficult-to-organise workers, e.g. domestic, agric., casual, home workers  Thus, MinWage can be used as a ’Social Floor’.  But RISK that any rise in MinWage may lead to huge, unsustainable increases in SocSec costs (tied to MinWage)   MinWage can be Pro-Poor, but should be planned as part of a coherent policy package for PovRed. 2 Minimum Income Policies / MinWage  Brief remarks: 1 Berg and Kucera (ed.2008): In Defence of Labour Market Institutions. 2 ILO Minimum Wage Fixing Recommendation, 1970 (No. 135)

2 April, 2004January SOCIALECONOMIC Sustainable development (Rio-92  ) = comprehensive & balanced policiesENVIRONMENT

2 April, 2004January Aid Experts’ Mtng  UN-CSocD  Book & Website

7 FULL SOCIAL PRO- INTEGRATION DUCTIVE = Inclusion + EMPLOY- Equity SocProtection MENT POVERTY ERADICATION Back to Copenhagen - UN Social Summit-95:

8 FULL SOCIAL PRO- INTEGRATION DUCTIVE = Inclusion + EMPLOY- Equity SocProtection MENT POVERTY ERADICATION Copenhagen +10  UN Summit:

2 April, 2004January UN-DESA Policy Guidance Notes - Alternatives to Washington Consensus 1) Macroeconomics and Growth 2) Financial Policies 3) Public Investment Management 4) Technology Policy 5) Social Policy (incl. Employment Policy) 6) Trade Policy  Good ideas fly…BUT: Thanks ICSW for printing and disseminating it – in the conference briefcases !!!  Good basis for ICSW-work at national, regional and global levels. POLICY COHERENCE !!

10 ILO Global Campaign on Social Protection for All (ILC-2001)  “Social Floor 2008” Towards progressive universalism: - Building progressively higher levels of protection - Based on a basic ‘Social Floor’ consisting of: HEALTH: Universal guarantee of access to basic health benefits, through a set of sub-systems linked together: a public health service funded by taxes, social and private insurance and micro-insurance systems. BASIC PENSIONS: Guaranteed income security for people in old age, invalidity and survivors through basic pensions. CHILDREN: Guaranteed income security for all children through family/child benefits aimed to facilitate access to basic social services: education, health, housing. UNEMPLOYMENT/POVERTY: Guaranteed access to basic means tested/self targeting social assistance for the poor and unemployed in active age groups.

11 The ILO Global Campaign to extend Social Security to all ILO SocSec: The Social Floor – of a Social Security House - You build a FLOOR in order to build more… The floor …A FLOOR can support a LADDER – a safety NET cannot ! A Social FLOOR is better than a SAFETY NET...

2 April, 2004January POVERTYREDUCTIONGROWTH OECD / Development Co-op. (DAC) Poverty Network (POVNET)ENVIRONMENT

13 OECD-01: POVERTY is multi-dimensional SOCIAL SECURITY risk, vulnerability social protection/ social security soc. risk mngt (SRM) POLITICAL rights freedoms voice & influence SOCIO- CULTURAL status respect, dignity ECONOMIC consumption income assets HUMAN health education hunger, thirst GENDER + ENVIRON- MENT

14 OECD-01: POVERTY is multi-dimensional SOCIAL SECURITY risk, vulnerability social protection/ social security soc. risk mngt (SRM) POLITICAL rights freedoms voice & influence SOCIO- CULTURAL status respect, dignity ECONOMIC Growth HUMAN health education hunger, thirst GENDER + ENVIRON- MENT

15 OECD-01: POVERTY is multi-dimensional SOCIAL SECURITY risk, vulnerability social protection/ soc. risk mngt (SRM) POLITICAL rights freedoms voice & influence SOCIO- CULTURAL status respect, dignity ECONOMIC  Employment, assets, income consumption HUMAN health education hunger, thirst GENDER + ENVIRON- MENT

2 April, 2004January SOCIALECONOMIC Decent Work (ILO  OECD, UN, EU, AU) = Great Agenda: Policy Coherence for DevelopmentENVIRONMENT

17 ILO Decent Work Agenda EMPLOY- MENT Enabling environment, Entrepreneurship, Employability, Skills, Productivity, Competivity SOCIAL PRO- TECTION Extending social security and protection to all, incl. those in the informal sector SOCIAL DIALOGUE Building social concensus on major policy lines i.e. Gov’t with - Workers - Employers - Civil Society - Partners RIGHTS Fundamental Principles and Rights at Work e.g. ILO- Conventions + Gender Equality + Gender Equality cross-cutting all…  DWCP  DWCP to be part of national PRSs  ILO has small budgets only –> Bi-donors + One-UN !

2 April, 2004January SECURITYWorkersFLEXIBILITYEmployers Decent Work ~ ’FLEXICURITY’ Competivity / Social cohesion

19 To prosper, a society must create incentives for the vast majority of the population to invest and innovate. How ?  Balance POVRED & GROWTH  Coherence: SOC & ECON World Bank, World Development Report 2006:

2 April, 2004January Development cooperation ?

21 Employment Productivity Formal and Informal Labour Market Economic Growth Business = Employers People = Labour Poverty Reduction Social protection Employability Equality Regulations Institutional context Empowerment No growth without people...Well-being is the engine...(POVNET)

22 Dynamic, forward-moving balance… Employment Productivity Formal and Informal Labour Market Economic Growth BusinessLabour Force Poverty Reduction Social protection Employability Equality Regulations Institutional context Empowerment

23 Equal opportunities & inclusion: Migrant workers (remittances, brain drain, diaspora) Youth, gender, ethnic groups Hiv/Aids Disabled people Informal workers: precarious workers, self- employed, multiple jobs More seriously: OECD/POVNET: Employment and Labour Markets  Major change in Dev’t Policy Agendas: EMPL + PROD Economic Growth Poverty Reduction Social Protection: Targeting, Universalism Risk pooling, financing, integration, re- insurance Skills for administering social security schemes Social Cash Transfers Health Insurance Employability: Vocational Education, skills CSR of enterprises, PPP Labour Intensive Growth: investment, production Pattern, trade Functional flexibility Mobility: infrastructure, transport Enterprise development (micro, small), access to credit Life-Cycle (child care, maternity benefits) Social cash transferss Health insurance Regulations: Access to productive assets Security of investment Access to innovation Labour norms Institutional Context: Labour/Soc/Fin. Ministries Associations/ unions/business interests Labour Market Institutions and Public sector reforms: minimum wage, taxes, Fragile environments Formal and Informal Labour Market Employment Productivity Empowerment: Legal Empowerment: labour norms, property rights, voice at work Inclusive Institutions (social dialogue)

24 1) Productive and decent work is the major route out of poverty for the vast majority of poor people. 2) Employment and labour markets need to be understood and addressed as: INFORMAL and FORMAL / EMPL OECD-POVNET:

25 3) Participation of millions of poor people in the growth process as active agents is good for the poor and good for the national economy. 4) Lack of reliable risk management mechanisms is a major barrier to contributions by the poor to the growth process. 5) The poor often engage in low productivity and low profitability activities, only because they are also less risky than high productivity/profitability alternatives. / SocProt OECD-POVNET:

26 6) A reduction in risks faced by poor people can help to stimulate growth by encouraging people to engage in higher risk/productivity/profitability activities. 7) Risk reduction and management also means that people do not have to fall back on coping strategies with irreversible impoverishing impacts. / SocProt OECD-POVNET:

27 8) A new view of social protection programs: Rather than as consumption expenditure (luxury)… they should be recognized as investment-type expenditure with potentially high rates of return and strong poverty impact. (Investments in People) / SocProt OECD-POVNET:

28 SocProt  Fastest way to reach MDGs !!! ILO: Estimated effect of a basic Social Security package on MDG-1 poverty headcount : Tanzania

29 The ILO Global Campaign to extend Social Security to all A basic social protection package is affordable: cost of all basic benefit package components

30 The ILO Global Campaign to extend Social Security to all A basic social protection package is affordable: share of total cost that can be covered by domestic resources

31 A Human Right to a Socio-Economic Floor ? Minimum insurance needs Income profile B Income profile A ’Socio-economic floor’ – ensured by Gov’t/ODA? Higher levels - privately-provided?

32 9) Social Security in Global South - How? By whom? - Poverty projects (Gov / Donor / Multi / NGO) ? - Social Security Administrations for formal sector workers (= ISSA-members) - Tax-funded Social Transfers, by Ministries - NGO projects / CSO action (ICSW? HelpAge? Etc.)  Combinations of – and cooperation among - all these will be needed !!!  Social workers will be needed in any case !!

33 International Social Security Association Association Internationale de la Sécurité Sociale New website:

34  Regional Social Security Forums  Sustainable  Proactive, incl. Preventive  Innovative  Socially inclusive  Economically productive PRIORITY CHALLENGES: 1.Administrative and operational efficiency 2.Social security reform 3.Extension of SocSec Coverage 4.Impact of demographic changes.  Trust !

35  Accessible  Sustainable  Performing and well governed  Proactive, incl. Preventive  Innovative  Socially inclusive and Economically productive DYNAMIC SOCIAL SECURITY

36 10) A new view of Social Security Administrations (> 360 ISSA-Members in > 150 countries): - In addition to managing reliably the pension etc. SocSec funds of civil servants and other formal sector...SocSec Administrations (ISSA-members) could be important partners with governments, social partners and CSOs (ICSW-members) in EXTENSION of SocSec to those in the informal sector not covered -Rare experise in actuarial and demographic analysis -Governments could/ should make use of it...

37  Policy Research Guide for SocSec Administrations  Developments and Trends (DT) of SocSec in Africa (Nov-08 Rwanda), Asia (09), Americas (09), Europe (10), World (10)  Reports + Sessions  Study: Examining the Existing Knowledge on Social Security Coverage Extension  ISSA Strategy on Extension ISSA-Projects managed by TV:

38 The ILO Global Campaign to extend Social Security to all ILO SocSec: The Social Floor – of a Social Security House - You build a FLOOR in order to build more… The floor …A FLOOR can support a LADDER – a safety NET cannot ! A Social FLOOR is better than a SAFETY NET...

2 April, 2004January SOCIALECONOMIC Sustainable development (Rio-92  ) = comprehensive & balanced policiesENVIRONMENT

2 April, 2004January SOCIAL POLICY: -Inclusion & particip’n - Gov’t responsiveness Cohesion & safety - Cohesion & safety ECONOMIC POLICY: - formal employment - reliable social security - Income equality (Gini) Key: Putting PEOPLE to the centre of measuring policy progress: Commitment, consensus and solidarity