1. Core challenges facing social security in South Africa Parliamentary briefing Prof Marius Olivier, UJ Prof Evance Kalula, UCT 18 August 2006

2. Introduction Three areas for discussion: –Impact of constitutional framework –Coverage and exclusion –International and regional standards

3. Impact of constitutional framework Section 27(1)(c) –“Everyone“ – see Khosa case and constitutional emphasis on vulnerable people –“Access to“ – other elements ensuring dignity of people and quality of life must be in place too –Right to access to social assistance: “Unable to support ….“ “Dependants“ “Appropriate social assistance"

4. Impact of constitutional framework (continued) Section 27(2) –State obligation –Three qualifications: Reasonable measures Within available resources Progressive realisation

5. Impact of constitutional framework (continued) Implications and challenges –A comprehensive and integrated approach is required –There is a need for a policy-based programme and legislative implementation –A range for reasonable measures are at the disposal of government and the legislature –Sufficient budgetary support is required –There is a constitutional focus on vulnerable groups –Retrogressive measures are inadvisable

6. Coverage and exclusion Social insurance –Forms of social insurance in SA –Largely formal employment-based –Certain workers specifically excluded –Absence of public health and retirement schemes –Absence in some cases of a statutory compulsion to participate –Not properly aligned with social assistance –Prevention and (re)integration weak: focus is on compensation/benefits –Tax advantages and subsidies –Adequacy of benefits?

7. Coverage and exclusion (continued) Social insurance (continued) –Who are excluded? The unemployed Lower paid wage workers Informally employed workers Atypically employed workers Rural, gender and African dimensions

8. Coverage and exclusion (continued) Social assistance –Reach and impact of social assistance 11 million beneficiaries Major direct impact Important indirect/distributional impact

9. Coverage and exclusion (continued) Social assistance (continued) –Coverage and exclusion in social assistance: Categorical nature of system Means testing Citizenship requirement Thus excluded are: –Able-bodied persons who are not old, young or disabled enough to qualify for a grant (except temporary social relief) –Non-citizens

10. Coverage and exclusion (continued) Social assistance (continued) –Lack of access to social assistance: Service delivery problems Non-compliance with administrative justice requirements Dispute resolution: system of adjudication insufficient; lack of regular tribunal system

11. Coverage and exclusion (continued) What needs to/could be done? –Develop a comprehensive framework –Adopt holistic and integrated approaches –Remove unnecessary exclusions –Extend reach of existing social insurance schemes –Introduce relevant public schemes with extensive coverage –Introduce compulsion to participate –Introduce preventative and reintegrative elements and link these with compensation measures and with structure and funding of system –Remove/channel of tax advances and subsidies in order to strengthen solidarity in social security system

12. Coverage and exclusion (continued) What needs to/could be done? (continued) –Social assistance: Review of grants types Review of grants entitlement criteria and related issues Consider removal of means testing and, where this is to remain, consider standardising same

13. Coverage and exclusion (continued) What needs to/could be done? (continued) –Introduce an appropriate alternative external adjudication/dispute resolution framework –Align position of non-citizens with international law and constitutional requirements –Recognise and where relevant, align informal social security frameworks with formal social security system

14. Coverage and exclusion (continued) What needs to/could be done? (continued) –Develop special arrangements for informal economy workers: Voluntary participation in social insurance schemes? Consider comparative experiences (e.g. India and Tanzania) –Welfare funds –Develop and/or recognise existing sector-/group-based specific social insurance arrangements –Framework arrangements for unorganised (including informal economy) workers: Government co-contribution

15. International and regional standards Importance of standards International standards –What is covered? –Important international instruments: UN: e.g., International Covenant on Economic, Social and Cultural Rights (ICESCR), migrants and refugee Conventions ILO: Convention 102/1952; branch specific Conventions; migrants and refugee Conventions

16. International and regional standards (continued) International standards (continued) –Position in South Africa: Except for OHS, no post World War II ILO social security Convention ratified Non-compliance with certain ratified and non- ratified Conventions: ILO requests for clarification ICESCR not yet ratified Insufficient compliance with migrants and refugees Conventions

17. International and regional standards (continued) Regional standards –Regional instruments SADC Treaty Social Charter (Charter of Fundamental Social Rights) Draft Code on Social Security Draft Protocol on the Facilitation of the Movement of Persons –Regional structures/institutional framework

18. International and regional standards (continued) The need for proper co-ordination of social security, in particular when people migrate –Usually: bilateral and/or multilateral arrangements –What is covered: Equality of treatment Maintenance of acquired rights Aggregation of insurance periods Exportability of benefits –South Africa: only limited arrangements

19. Conclusions Need for comprehensive, co-ordinated and integrated system Need to properly extend coverage Need to align SA social security with international and regional standards Need to develop appropriate co-ordination mechanisms