The social protection floor and the based national ... · assessment based national dialogue of...
Transcript of The social protection floor and the based national ... · assessment based national dialogue of...
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The social protection floor and the assessment based national dialogue of social protection
V. Schmitt, ILO
23 November 2012
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Structure of the presentation
• What is social security?
• How to extend social security?
• The Social Protection Floor recommendation
• The assessment based national dialogue: objectives, process, examples of results
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What is social security?
• People face contingencies during their lives
Life cycle
Old age
Work injuryMaternity Unemployment
Death of thebreadwinner
InvalidityFamilies with children
• These have financial consequences
Sickness / ill health
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What is social security?
• Social security is a human right(Article 22 Universal declaration of human rights)
• Flagship Convention 102, 1952
• Recommendation 202, 2012 reaffirms universal right to social security
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5
C.102 Social Security (Minimum Standards) Convention, 1952
C 121 Employment
Injury Benefits Convention,
1964
C 130 Medical Care and Sickness
Benefits Convention,
1969
C 128 Invalidity,
Old-Age and Survivors' Benefits
Convention, 1967
C 183 Maternity Protection
Convention, 2000
C 118 Equality of Treatment (Social Security) Convention, 1962
C 157 Maintenance of Social Security Rights Convention, 1982
R67 Income Security Recommendation, 1944
R69 Medical Care Recommendation, 1944
C 168 Employment
Promotion and Protection
against Unemployment
Convention, 1988
ILO’s norms for implementing the right to SS
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Principles in ILO’s Convention No.102UniversalityNon‐discrimination
Adequacy and sustainibility
Progressiveness
Fair balance of interest
Collective financing
• Universal coverage of all residents by comprehensive social security guarantees
• Implementation based on equality of treatment
• Adequacy of benefit packages with levels of economic resources and institutional capacity
• Consistent with national economic and social development plan
State‘s responsibility
• Benefit provision stated by law• As ultimate guarantor of the fund
• Risks pooling between men & women, poor & rich, ST & LT contracts, generations
• Collective financing of benefits through contributions, taxation
• Involvement of social patners in design and implementation• Tripartite administration
• Progessive extension of social security following the stair‐case approach
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What is social security?
To compensate for the loss of income & covers health care expenditures
To facilitate access to social services and fulfill basic needs
FINANCIAL SUPPORT ACCESS TO SERVICES
THE PROTECTION PROVIDED BY SOCIETY
SOCIAL TRANSFERS
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Typology of social transfers
Social transfers
Contributory Non contributory
Compulsory Voluntary Targeted Non‐Targeted
Social InsuranceExtension of
social insurance to informal sectorMicro‐Insurance
Targeted social assistance
Universal schemes
http://www.social‐protection.org/gimi/gess/ShowTheme.do?tid=11&ctx=0
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Structure of the presentation
• What is social security?
• How to extend social security?
• The Social Protection Floor recommendation
• The assessment based national dialogue: objectives, process, examples of results
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Social security extension
Population
Level of protection
Poor Rest of informal sector Formal sector
• For a long time, SS was contributory and mainly adapted to the formal sector
•• This did not happenThis did not happen……..
• Assumption that these schemes would progressively extend their coverage with the shrinking of the informal sector
??????
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Social security extension
Population
Level of protection
Poor Rest of informal sector Formal sector
• Discussion on SS in 2001 ‐> new new consensusconsensus: priority to the extension of coverage, exploring several strategies: adapted SI, micro‐insurance, social assistance…
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Social security extension
Population
Level of protection
Poor Rest of informal sector Formal sector
Situation today:•SP programs are scattered, sometimes overlapping, inclusion/exclusion errors•Coverage through micro‐insurance limited; often not sustainable•Some programs target only the poorest, leaving the rest of informal sector workers uncovered•In a few countries (e.g. Thailand) universal schemes (UCS, old age allowance)
??
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Social security extension: the social protection floor
Population
Level of protection
Poor Rest of informal sector Formal sector
All residents should enjoy at least a minimum level of social security
Member states of the ILO should establish social protection floors as a fundamental element of their social security systems
Nationally defined social protection floor
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Social security extension: the social protection floor
Population
Level of protection
Poor Rest of informal sector Formal sector
Based on this floor, extend social security to provide progressively higher levels of SP benefits to more people
Nationally defined social protection floor
Higher levels of social security to more people
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Structure of the presentation
• What is social security?
• How to extend social security?
• The Social Protection Floor recommendation
• The assessment based national dialogue: objectives, process, examples of results
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The UN SPF initiative
• SPF initiative launched by UNCEB in April 2009 & Manual for country operations
• Creation of the SPF Advisory group in 2010
www.ilo.org/public/english/protection/spfag/
SPF adopted at ILC 2009 as part of the global jobs pact
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The SPF initiative
• G20 Summit, Labour & Development group (Paris, Sept 2011) & heads of States (Nov 2011) in Cannes Three recommendations:1‐ Develop nationally defined social protection floors2‐ Encourage international organisations to coordinate their actions more effectively to help countries develop nationally determined social protection floors3‐ Ensure effective financing for the implementation of nationally determined social protection floors
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The SPF was adopted in national social protection strategies
Source: NSPS‐PV of Cambodia, 2011
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And endorsed by the 185 member states of the ILO in June 2012 with the adoption of the SPF Recommendation (No 202)
101st ILC14 June 2012456 yes votes1 absention
The recommendation 202 is a useful guidance for member states who wish to establish/maintain SPFs as part of their national social security systems http://www.ilo.org/wcmsp5/groups/public/‐‐‐ed_norm/‐‐‐relconf/documents/meetingdocument/wcms_183326.pdf
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In a country with a Social protection floor, four guarantees:
All residents have access to essential health care
All children enjoy income security through transfers in cash or kind access to nutrition, education and care
All those in active age groups who cannot earn sufficient income enjoy a basic income security (particularly in case of sickness, unemployment, maternity, disability)
All residents in old age and with disabilities have income security through pensions or transfers in kind
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Nationally definedSocial Protection Floorss
• Not a one size fits all approach : each country defines the levels of benefits that it can/is willing to provide
• Each country also decides how to do it – through universal schemes, targeted social assistance, social insurance, a combination…
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The linkage with employment
• The SPF de‐links entitlement to social security from formal employment
• The SPF promotes employability• People become active contributors to the economy
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The SPF is an investmentSocial
protection
Household consumption
Poverty and inequality
Education & training
Health
Child well being
Livelihoods and productive investments
Labour
Human capital
Physical capital
Labour productivity
Economic performance
Demand for goods and services
Increased Wages, income
Increased financing
1.
2.
2.
3.
3.
4.
4.
Source: Maastricht School of Governance
5.
Direct effects
Behavioral effects
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Structure of the presentation
• What is social security?
• How to extend social security?
• The Social Protection Floor recommendation
• The assessment based national dialogue: objectives, process, examples of results
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What do we want to know?“Is the social protection floor a reality?”
Full achievement of the SPF !!
Still some gaps recommendations to the government to reach the full accomplishment of the SPF
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“Is the social protection floor a reality?”
DO all residents have access to essential health care?
DO all children enjoy income security through transfers in cash or kind access to nutrition, education and care?
DO all those in active age groups who cannot earn sufficient income enjoy a basic income security? (particularly in case of sickness, unemployment, maternity, disability)
DO all residents in old age have income security through pensions or transfers in kind?
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Some countries may have the Some countries may have the Floor for HealthFloor for Health
“Is the social protection floor a reality?”
Population
Level of protection
Poor Rest of informal sector Formal sector
But many gaps for children or But many gaps for children or the working age or the elderlythe working age or the elderly
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“Is the social protection floor a reality?”
1. What is the Social Security Situation?
2. How far are we from the achievement of the SPF? ‐> gaps, issues
3. What should be done to complete
the floor?
4. How much would it cost today and in the
future?
5. Can the Government afford it? Do we need to increase
the fiscal space?
6. How to ensure that the recommendations are endorsed and listen to?
7. How to advocate for the SPF as a whole or specific recommendations? (ROR…)
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ASSESSMENT FACTSHEET:
Step 1 – Building the assessment matrix including the identification of priority recommendations
Step 2 – Rapid Assessment Protocol to estimate the cost of implementing the social protection provisions
Step 3 – Finalisation of the assessment report for endorsement and further action by the higher levels of government
“Is the social protection floor a reality?”
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1. Inventory of schemes (June 2011)
2. Draft Assessment Matrix (July 2011)
3. Dialogue # 1 on ABND matrix (August 2011)
4. Translation of policy recommendations into “costable” scenarios
5. Dialogue # 2 on proposed scenarios (November 2011, February 2012)
6. Data collection for the RAP protocol and costing of the scenarios (Nov 2011 ‐March 2012)
7. Dialogue # 3 on results of costing (March 2012); Training on costing (May 2012)
9. Endorsement by UN/RTG joint team and presentation to the government (Oct‐Nov 2012)
8. Finalization of Costing, Fiscal space, Writing ABND report (May‐August 2012)
ABND ProcessThailand
ABND ProcessThailand
Step 1
Step 2
Step 3
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Stakeholders
Worker and employer
organisations
Civil society
Local governments
National Statistics Office,
academia
UN agencies involved in SPF (ILO, UNICEF, WHO,
UNESCAP, UNFPA, UNAIDS, UNESCO, UNWOMEN,
UNDP, WFP), World Bank, ADB, other development
partners
Line ministries (Labour, Health, Social Welfare, Planning, Education,
Finance, Rural Development)
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STEP 1: Building assessment matrix
SPF objectives
Existing SP
provisions
Planned SP provisions (strategy)
Policy gaps
Implement‐ation issues
Recomm‐endations
Health
Children
Working age
Elderly
Four SPF guarantees
Identifying existing situation in the country
Identifying policy gaps and
implementation issues, addressing
which would complete the SPF
Priority policy options, to be
decided through national dialogue
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STEP 1: Building assessment matrix
• Policy gaps = Missing legislation or policy leading to the exclusion of a share of the population from some parts of the floor
Only formal sector workers and the very poor are entitled to social health protection
There is no Unemployment protection scheme in case of loss of employment (for all workers)
Only formal sector workers are entitled to a child allowance for their pre‐school children
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STEP 1: Building assessment matrix
• Implementation issue = Despite existing policy or legislation, the effective access has not yet happen
There is a lack of enforcement of the Social Security Act due to low compliance among employers to register their staff and lack of resource to reach out informal sector workers
Despite universal access to social health protection people from rural areas have only limited protection due to poor health care infrastructures
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From Step 1 to Step 22 Types of
recommendations!
Type 2: Structural reforms of the social security system, improve operations
Introduce a social insurance scheme, conduct a tax reform, improve the quality of health or education, improve management of existing schemes, review targeting & registration
mechanisms, …
We need to conduct complementary studies
LABOUR MARKET MODEL
MACROECONOMIC MODELGENERAL
GOVERNMENT OPERATIONS
MODEL
BENEFITS COSTING EXERCISE
SUMMARY AND RESULTS
DEMOGRAPHIC FRAMEWORK
We can use the RAP Protocol
Type 1 ‐ Adapted or additional provisions to complete the SPF
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Type 1 ‐ Adapted or additional provisions to complete the SPF
Type 2: Structural reforms of the social security system
Health N/A Unified and sustainable health insurance system
Children Child allowance Child care service, quality of the education system
Working age
Maternity benefit, Sickness benefit, Skills development and apprenticeship for informal economy workers
Improve the vocational training system, introduce linkages between SP and employment measures ( employability)
Disabled Adjust level of benefits of the non‐contributory disability allowance
Long term care system
Elderly Adjust level of benefits of the non‐contributory old age allowance
Long term care systemCoherent and sustainable old age pension system
Costing (RAP)
More comprehensive studies
From Step 1 to Step 2 (Thailand)
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STEP 2: Rapid Assessment ProtocolWhat is it? What is it for?
RAP is a simplified Excel tool developed by ILO to estimate the cost of providing SPF
benefits (for health, children, working age and the elderly)
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STEP 2: Rapid Assessment ProtocolA set of excel sheets
Labour market model (EAP)
Demographic framework (POP)
Macroeconomic model (ECO)
General govt operations model
(GGO)
Costing of benefits
Summary and results
1‐ Data collection
2‐ Cost calculation & projection Expression as % of GDP & Govt expenditure
3‐ Projected cost of combined
benefit packages
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STEP 2: Rapid Assessment ProtocolHow to use the RAP?
Cost of implementing the scenarios is calculated using RAP work sheets
Recommendations are translated into scenarios (specific social
protection provisions) that need to be introduced or further expanded
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STEP 2: Rapid Assessment ProtocolHow to use the RAP?
The estimated cost can be linked to available fiscal space (government budget, GDP) to check the financial feasibility of recommendations
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STEP 2: Rapid Assessment ProtocolThe additional cost of SPF packages expressed
in % GDP and Government expenditure
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STEP 2: Rapid Assessment ProtocolFiscal space analysis
We project the fiscal space, which provides an indication of whether the government can complete the SPF with current budget structure. In Thailand reallocations of public spending or increase in taxes would be needed.
Fiscal space < 0 until 2018 in the case of the high scenario
Fiscal space < 0 until 2015 in the case of the low scenario
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STEP 3: Finalization for endorsementPresenting the final report
to higher levels of
Government for endorsement and further
action
Government may conduct a pilot for testing the recommendations
Or Government may conduct further feasibility studies:•financial or actuarial studies•legal framework review & revision•personnel and capacity review
Finalising the assessment report with stakeholders
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STEP 3: Finalization for endorsement
WINDOW OF OPPORTUNITY of ILC 2012
• 12 to 18 months after adoption of Recommendation 202 at ILC in June 2012 member states have obligation to submit a plan to competent authorities for the implementation of the SPF
EVIDENCE FROM OTHER COUNTRIES
• Share experience, south‐south exchange, evidence from the literature of SPF impact
IMPACT ASSESSMENT MODELS
• Develop models to assess expected impact on poverty reduction, reduction of inequalities, employability and productivity, growth, return on investment
SOCIAL MARKETING
• Social marketing and communication to advocate for the recommendations among the general public, civil society, workers & employers, the parliament and the Government
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STEP 3: Finalization for endorsement
• Option 1 (easiest): we launch the ABND report as a technical document from the UN Team
• Option 2 (more difficult): the ABND report becomes a policy document ; it needs for that to be endorsed by the government (ex: Bappenas in Indonesia; in Thailand presented the report to the MOL, MSDHS and maybe it will have to be presented at a higher level)
• Of course option 2 is preferable!