Poverty and Exclusion Enhancing Human and Social Capacity

Poverty and Exclusion Enhancing Human and Social Capacity for Development The case of France Julien Damon Associate Professor, Sciences Po, Paris 13 June 2010, Hong Kong www. julien-damon. com

Summary I. Poverty and Exclusion: a World of Differences and Similarities II. Social Protection in France and the Fight Against Poverty I. Enhancing Human and Social Capacity: Demographic Performances and New Tools

I. Poverty and Exclusion: a World of Differences and Similarities

Absolute Poverty (up to $1 a day) Source : www. worldmapper. org

Slum growth (1990 -2001) Source : www. worldmapper. org

Sewerage Sanitation(2002) Source : www. worldmapper. org

II. Social protection in France

Public social expenditure in percentage of GDP, in 2006 8 Source : Eurostat

The Post-War Scheme · Risk coverage for “social assistance” beneficiaries · Principally financed through contributions · Mainly horizontal redistribution · Divided into different programs · 1945 goal: universality · The various social insurance programs provide four-fifths of the benefits Extras PROVISION FOR THE FUTURE Social Security INSURANCE Social Assistance ASSISTANCE · Optional and compulsory protection · Mutual associations, insurance companies, contingency fund organizations · 1945 goal: progressive reduction of the need for contingency mechanisms · Needs-based risk coverage · Principally financed through taxation · Mainly vertical redistribution · 1945 goal: assistance expected to become residual

A “new” social risk: poverty By broad risk area, 2007 Four “social risks”. . . • • Occupational injuries Old age Illness Family . . . that grew to eleven! • • Maternity Unemployment Work transitions Survivors Disability Housing Poverty Old age Health Family Employment Housing Poverty

Bird's-eye View (1) French social policies have met many of the goals they were designed to achieve. . . • • • providing coverage for the whole population achieving one of the highest fertility rates in the Western world significantly improving the overall health of the population fulfilling a role as an effective, Keynesian-inspired, economic stabilizer limiting inequality through a relatively high level of redistribution reducing poverty, particularly among seniors

Bird's-eye View (2). . . they have, however, been hindered by substantial difficulties arising from economic and social change • • • persistently high unemployment, resulting in lost revenue and increased social expenditures structural deficits that create a burden for future generations aging population poor, insufficient, or incomplete coverage of new risks (dependency in old age, exclusion, immigrant integration, etc. ) changes to the family structure that challenge the “male breadwinner” concept increasing individualism and consumerism of users and beneficiaries

France and poverty: A RETENIR Five characteristics of poverty • • • Rejuvenation Urbanization More working poor « Single-parentization » And… migrations

France and poverty: A new agenda Quantitative target setting • MDG (UN) – 2000: Reduce by half the proportion of people living on less than a dollar a day • OMC (UE) – 2000: Eradicate poverty • France – 2007: Reduce poverty by one third in five years

III. Enhancing Human and Social Capacity: Demographic Performances and New Tools

New Realities number of births and proportion of births outside marriage Progression des naissances hors mariage Source : INED

Public spending on family benefits, in per cent of GDP, 2005 Source : OECD

Aging, everywhere…. Median age (years) 55 50 45 40 35 30 25 France Republic of Korea Hong Kong Source: Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat, World Population Prospects: The 2008 Revision, n 2050 2045 2040 2035 2030 2025 2020 2015 2010 2005 2000 1995 1990 1985 1980 1975 1970 1965 1960 1955 15 1950 20

Another important relationship: share of births outside marriage and fertility rate, Sources: OECD, National Statistical Offices and Eurostat Demographic Statistics for EU countries.

In the end Three key words: Protection Innovation Investment Asset building. Why not? The case of CTF

Thank you for your attention Merci ��