Ursula Kulke
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Transcript of Ursula Kulke
““Extending social protection: the way Extending social protection: the way towards social justice - towards social justice - ILO policy in the ILO policy in the
MENA countries”MENA countries”
Organised by the Middle East Social Policy Network Organised by the Middle East Social Policy Network (MENA) at the University of Bath Institute for Policy (MENA) at the University of Bath Institute for Policy
ResearchResearchTuesday 3 December 2013Tuesday 3 December 2013
Ursula KulkeUrsula KulkeSenior Regional Social Security Specialist, ILO Regional Office for Arab Senior Regional Social Security Specialist, ILO Regional Office for Arab States, BeirutStates, Beirut
Beyond International Security: Beyond International Security: Social Security and Social Welfare Social Security and Social Welfare in the Middle East and North Africa in the Middle East and North Africa - What are the research and policy - What are the research and policy
choices? choices?
Social protection: An Social protection: An instrument for poverty instrument for poverty
reduction and social reduction and social cohesioncohesion
Social protection is a human right ( Articles 22, 25,26,27 of the Universal Declaration of Human Rights)
1. We know that from more than one century of history of the modern welfare state that social transfers and services are powerful policy instruments to combat poverty, insecurity and inequality and ...to achieve the MDGs
2. Social protection is an indispensable component of the policy mix to create growth, and which includes education, employability enhancing policies, macro policies creating jobs etc.
3. Social protection is an economic necessity to unblock the full economic potential of a country, only people that are healthy, well educated and well nourished can be productive
4. There is now widespread acceptance that social protection/security serve as social and economic stabilisers in times of crisis
5. Social protection makes growth equitable, builds social cohesion and makes growth more sustainable
Social social protection:Social social protection:Regional overviewRegional overview
Few Arab states have developed coherent national social security policies.
Most of the Arab countries have social insurance systems which only provide long-term benefits (old age, disability and survivors’ pensions and employment injury benefits).
Only few Arab countries offer short-term benefits: Bahrain and Jordan are the only countries which have unemployment benefits in place and Jordan is the only one which has a maternity insurance scheme in place.
Most countries of the region lack protection against catastrophic health expenditure, a critical factor contributing to vulnerability and poverty.
None of the countries in the region has a rights-based social assistance scheme.
Social security programmes: Social security programmes: Regional overviewRegional overview
Bahrain
Iraq
Jordan
Kuwait
Lebanon oPt Oman
Qatar
Saudi Arabia
Syria
UAE
Yemen
Old age SI SI SI SI OI … SI SI SI SI SISurvivors SI SI SI SI … ... SI SI SI SI SIInvalidity/disabiliy
SI SI SI SI OI … SI SI SI SI SI
Employment injury
SI … SI SI … … SI SI SI SI …
Sickness … … … … SI … … … … … … …Medical care … … … … SI … … … … … … …Maternity … … SI … … … … … … … … …Unemployment
SI … (SI) … … … … … … … … …
Family … … … … SI … … … … … … …Social assistance
SN SN SN SN SN SN SN SN SN SN SN SN
SI = Social Insurance; OI = Other Ins. Arrangement (Prov. Fund, etc.); SSA = statutory social assistance (rights- based) ;SN = Safety Net Programme (not rights-based)Source: ISSA Observatory Country profiles
Social security programmes: Social security programmes: Regional overviewRegional overview
Algeria Egypt Libya Morocco Sudan Tunisia
Old age SI SI SI SI SI SISurvivors SI SI SI SI SI SIInvalidity/disabiliy
SI SI SI SI Si SI
Employment injury SI SI SI No info Si SI
Sickness SI SI SI SI … SI
Medical care SI SI Si SI … SIMaternity SI SI No info SI … SIUnemployment SI SI No info … … SNFamily TF … … SI … SISocial assistance
SN SN SN SN … SN
SI = Social Insurance; OI = Other Ins. Arrangement (Prov. Fund, etc.); SSA = statutory social assistance (rights- based) ;SN = Safety Net Programme (not rights-based), TF = Tax financedSource: ISSA Observatory Country profiles
Social security deficits: Social security deficits: Coverage of contributory Coverage of contributory
schemesschemes
There are also considerable coverage deficits in the region.
While in most countries, existing schemes cover workers in the public sector and workers in the private sector on regular contracts, other workers, such as temporary, agricultural, domestic, informal and migrant workers, and to a large extent self-employed workers are excluded from legal coverage.
Due to low levels of formal employment participation of women, their social insurance coverage is even lower.
Social security deficits: Social security deficits: Coverage of pension Coverage of pension
schemesschemes
Social security deficits:Social security deficits:Universal subsidies at the expense of more effective Universal subsidies at the expense of more effective
programsprograms
Source: World Bank 2012, Inclusion and ResilienceSource: World Bank 2012, Inclusion and Resilience
The average MENA country spends 5.7 percent of GDP on food and fuel subsidies, as opposed to 1.3 percent of GDP on transfers in the average benchmark country
Source: World Bank 2012, Inclusion and ResilienceSource: World Bank 2012, Inclusion and Resilience
Social security deficits: Universal Social security deficits: Universal subsidies are inefficient and pro-richsubsidies are inefficient and pro-rich
Source: World Bank 2012, Inclusion and ResilienceSource: World Bank 2012, Inclusion and Resilience
Universal subsidies and in particular, fuel subsidies have staggering leakages to the non-poor
The Social Protection Floor The Social Protection Floor (SPF)–Initiative(SPF)–Initiative
In April 2009, the UN Chief Executives Board (UN CEB) agreed on nine joint initiatives to confront the crisis, among them the Social Protection Floor Initiative
The SPF Initiative aims at joint global and local UN action lead by ILO+WHO to promote social transfers and access to essential services for the poor and vulnerable
The SPF is a global and coherent social policy concept that promotes nationally defined strategies for the provision of a minimum level of income security and access to essential services for all
For such purposes, the SPF promotes a holistic and coherent vision of national social protection systems, rights-based, as a key component of national development strategies
Transfers in cash and in kind should guarantee geographical and financial access to essential services such as water and sanitation, education, etc.
Transfers in cash or in kind:
The Social Protection Floor: The Social Protection Floor: four nationally-defined four nationally-defined
guaranteesguarantees
ILO’s new social security ILO’s new social security paradigm:paradigm:
The two dimensional strategyThe two dimensional strategy
• Family Benefit • Sickness Cash Benefit• Medical Care Benefit• Unemployment Benefit• Maternity Benefit • Survivors’ Benefit • Invalidity Benefit• Old-age Benefit • Employment Injury Benefit
Public Sector Employees
Private Sector Employees and
voluntarily insured
Self-employed , not covered by
Social insurance
Informal Economy
Non-employed Working
Age
• Universal Health Care• Child benefit• Assistance for Unemployed and Poor• Universal Old-Age and Disability Pension
Horizontal dimension:
Guaranteeing access to essential
health care and minimum
income security (Social
Protection Floors
Recommendation No.
202)
Vertical dimension: progressively
ensuring higher levels of
protection guided by ILO Convention No.102 and higher-level standards
13
Principles for the Principles for the implementation of the two-implementation of the two-
dimensional strategydimensional strategy
The Social Protection Floor can The Social Protection Floor can be achieved through different be achieved through different
systemssystems
national choicenational choice
Nationally guaranteed Nationally guaranteed outcomesoutcomes
The Social Protection Floor is The Social Protection Floor is affordable: Cost of basic affordable: Cost of basic
transferstransfers
In percent of GDP
Financing Financing strategiesstrategies
1. Domestic resource mobilisation – Enhance the efficiency and effectivenes of tax collection– Reallocate expenditure – reallocate existing public spending– Broaden tax baseI and increase overall tax rates– Reduce tax evasion – Introduce self-financing social insurance systems
2. International resources (transitional financing) – Project financing to build national delivery capacity– International financing of health care goods and services – People-to-People Partnerships: Global Social Trust
Successful SPF Successful SPF ExperiencesExperiences
ArgentinaArgentina Asignación Universal por Hijo (AUH) (Universal Child Allowance)
Coverage: 85% of Argentinian girls and boys Impact: Reduced poverty (-22%) and extreme poverty (-42%)
IndiaIndia Mahatma Gandhi National Rural Employment Guarantee Scheme (Wage employment programme)
Coverage: 52.5 million households (50% of women participants) Impact: Increase in minimum wages for agricultural workers, decreased out-
migration from villages, women’s empowerment Costs: 1.5%of GDP (2008/09)
ThailandThailand Universal Coverage Scheme (Universal health care)
Coverage: 80% of the population Impact: 88,000 households (2008) were prevented from falling below poverty line
BrazilBrazilBolsa Familia (Conditional cash transfer)
Coverage: 26% of the population Impact: Reduced the poverty gap by 12% between 2001 and 2005 Costs: 0.3 % of GDP (2008/09)
The Rural Social Insurance Programme (Non-contributory pension for the rural poor) Coverage: 80% of agricultural workers – 66% of rural population Impact: Reduction of 4 million poor people Costs: 1.5% of GDP (2008/09)
South AfricaSouth Africa Child Support Grant (Means-tested non-contributory cash transfer)
Coverage: 10 million children Impact: Reduced the poverty gap by 28.3% Costs: 0.7 % of GDP (2008/09)
Successful SPF Successful SPF ExperiencesExperiences
ILO’s Recommendations – ILO’s Recommendations – development of coherent social development of coherent social
security systemssecurity systems
Coherent and comprehensive social security systems, embedded in wider economic and social policies, with the double objective of:
Developing sustainable and comprehensive contributory social security systems for workers in the formal economy (vertical dimension)
Establishing national social protection floors for those who are not covered by the formal social security system, providing minimum income security and access to essential medical care (horizontal dimension)
And applying the following principles: Universal and progressive extension of social security coverage Solidarity between rich and poor and generations Benefits as an legal entitlement and right Collective and actuarial fairness of contributions and benefits levels Sound financing of social security schemes Responsibility for governance and tripartite administration
ILO’s Recommendations – ILO’s Recommendations – development of coherent social development of coherent social
security systemssecurity systems
What to do:
Creating the necessary fiscal space (SPF financed by domestic resources)
Political will
Cost-control mechanism
Effective institutions Maximize administrative capacity to deliver benefits efficiently and to minimize waste
and misuse of resources
Sound implementation structure and good governance: Process for efficient delivery, monitoring and evaluation and proper financial
management
Progressive formalization of the economy
High levels of productive employment
Comprehensive social security systems represent important social tools that can temper exclusion and latent or simmering unrest.
Thereby they can contribute to creating more cohesive and inclusive societies.
National social protection floors go beyond providing basic social relief: They also fosters forms of democratization that build
citizenship, and Break down barriers that impede fuller participation by
the poor in political processes that affect their lives.
Comprehensive social security with Comprehensive social security with a social protection floor - political a social protection floor - political
and institutional stability, and and institutional stability, and social cohesionsocial cohesion
THANK YOUTHANK YOU