Social Protection Floors Assessmentbased National Dialogue ABND Outline

Social Protection Floors & Assessment-based National Dialogue (ABND)

Outline 1. STANDARDS in the Field of social protection 2. Assessment-based National Dialogue (ABND) in Liberia (Joint recommendations for an SPF) 2

STANDARDS IN THE FIELD OF SOCIAL PROTECTION

Social security as a human right • Universal declaration of human rights, 1948: social security is a human right • Social Security (Minimum Standards) Convention, 1952 (No. 102) : flagship Convention on social security • Recommendation on nationally defined social protection floors, 2012 (No. 202): reaffirms the universal right to social security Image by Youth for Human Rights International

ILO’s standards • ILO sets standards that lay down obligations and guidelines for ILO member States • Standards are of two types: Conventions and Recommendations • They help in drafting laws and regulations, designing and implementing social security systems

ILO’s standards C 183 Maternity C 130 C 168 Sickness Unemployment C 121 Work injury C 130 Medical care Convention No. 102 covers all 9 contingencies Families with children Invalidity Death of the breadwinner C 183 C 128 Old age C 128 Lifecycle

SPF endorsed globally • ILO’s Recommendation on Social Protection Floors, 2012 (No. 202) was endorsed by 185 member States in June 2012 with 456 ‘yes’ votes and 1 ‘not present’ • Recommendation No. 202 guides member States on establishing and maintaining nationally defined SPFs http: //www. ilo. org/wcmsp 5/groups/public/--ed_norm/--relconf/documents/meetingdocument/wcms_183 326. pdf

Process leading to adoption of R 202 Jun 2011. Recurrent discussion on social protection (social security). Adoption of the two-dimensional extension strategy. Decision on standardsetting item at ILC in June 2011 Aug 2011. Summary of law and practice report. Questionnaire on possible Recommendation on SPFs (deadline 1 st Nov 2011). Quest ionnai please submi t befor 1 Nov e 2011 re March 2012. Report with summary of members’ responses to the questionnaire and Office draft of possible Recommendation. Jun 2012. Standard setting item at the ILC. Discussion and amendments. Adoption of R 202.

Guidance provided by R 202 on strategy, design and operations Policy design • • • Universality of protection Entitlements prescribed by Law Adequacy and predictability Social inclusion, non-discrimination Respect for rights and dignity Financing • Solidarity in financing • Diversity of financing mechanisms • Transparent, accountable and sound financial management • Financial, fiscal and economic sustainability SPF part of a comprehensive system • • Progressive realization Solidarity in financing Diversity of methods and approaches Coherence with other policies Good governance • Coherence across institutions • Transparent, accountable and sound administration • High-quality public services • Complaints and appeals • Monitoring, evaluation • Participation (social partners, CSOs)

Principles in Recommendation No. 202 International Labour Organization UNIVERSALITY • Universal coverage of residents by comprehensive SS NONDISCRIMINATIO N • Based on equal treatment (and gender equality) • Responsiveness to special needs • Social inclusion, including informal economy TRANSPAREN CY SUSTAINABILIT Y • Accountable and sound financial management, admin RIGHTS AND DIGNITY DELIVERY EVALUATION • Financial, fiscal and economic sustainability with due regard to social justice and equity • Respect for rights and dignity of people • Full respect for collective bargaining and freedom of association for workers • High-quality public services that enhance delivery of SS • Regular monitoring and periodic evaluation

Two dimensions of social security • For a long time, social security was contributory and mainly adapted to the formal sector • Assumption that informal sector would progressively shrink and come under social security coverage - this did not happen Level of protection ? ? ? Poor Rest of informal sector Population Formal sector

Two dimensions of social security • Formal sector workers have access to social protection • Some programmes target the poorest, leaving the rest of the informal sector uncovered • Existing universal schemes (e. g. UCS, old-age pensions in Thailand) Level of protection ? ? Poor Rest of informal sector Population Formal sector

Two dimensions of social security • Discussion on social security in ILC 2001 led to a new consensus: priority to be given to the extension of coverage, exploring strategies like adapted social insurance, microinsurance, social assistance Poor Rest of informal sector Population Level of protection Formal sector

Social protection floor • All residents should enjoy at least a minimum level of social security • Member states of the ILO should establish SPFs as a fundamental element of their social security systems Level of protection Nationally defined SPF Poor Rest of informal sector Population Formal sector

Social protection floor • Based on this floor, extend social security to provide progressively higher levels of SP benefits to more people Level of protection Higher levels of social security to more people Nationally defined SPF Poor Rest of informal sector Population Formal sector

Social protection floor Four basic guarantees: All residents have access to essential health care, including maternity care All children enjoy basic income security, providing access to nutrition, education, care, and any other necessary goods and services All persons in active age who cannot earn sufficient income, enjoy basic income security, particularly in cases of sickness, unemployment, maternity, disability All older persons have basic income security

Social protection floors • SPFs are defined nationally, depending on the context • No ‘one size fits all’ approach in designing and implementing SPFs • Each country decides on targeted vs. universal schemes, contributory vs. non-contributory schemes

Horizontal Gaps

Vertical Gaps

Average Benefit level Income Security for all?

ASSESSMENT-BASED NATIONAL DIALOGUE (ABND) IN LIBERIA JOINT RECOMMENDATIONS FOR AN SPF

Objectives of ABND • To initiate national dialogue with all stakeholders on Social Protection Floors • To identify joint recommendations for implementation • To provide evidence on the affordability and financial sustainability of recommendations

STEP 1. What is the existing situation? Steps of ABND What are the challenges? What should be done to complete the SPF? STEP 2. How much would it cost today and in the future? STEP 3. Does the country have the fiscal resources? How to ensure that the recommendations are endorsed?

Step 1: Assessment matrix Govt. strategy Existing and planned schemes Policy gaps Implementation issues Recommendations Health Children Working age Elderly Identifying existing situation in the country Identifying policy gaps Agreeing on policy and implementation recommendations issues, addressing through national which would complete dialogue the SPF

From Step 1 to Step 2 There are 2 types of recommendations Recommendations to introduce non-contributory benefits, increase benefit amounts, extend coverage Recommendations to introduce social insurance, improve quality of services, improve coordination Use RAP model Conduct further studies

Step 2: Rapid Assessment Protocol 1. Data collection Labour market (EAP) General government operations (GGO) Macroeconomic data (ECO) 2. Cost of recommendations in currency value, as % of GDP and as % of government expenditure Demographic data (POP) Costing of benefits Summary and results 3. Cost of combined packages of recommendations

Step 2: Rapid Assessment Protocol Output: Cost of recommendations as % of GDP

Step 3: Advocacy and endorsement Presenting the recommendations to policy-makers with a champion for political endorsement Government may endorse or ‘test’ some recommendations or conduct further studies: • actuarial • legal • infrastructure requirement

Involving all stakeholders Ministries, other government institutions Local governments Trade unions Social security institutions UN, World Bank, other development partners Employer organizations Civil society A participatory approach to develop a shared vision and build a consensus on establishing an SPF

ABNDs across the world Completed. Ongoing. Starting/Planned. *Selected states.

Limitations of ABND • The assessment provides an overview of the social protection system in a country and does not go into detail on legal, operational, institutional aspects • Constant advocacy, especially to policy makers, is required to ensure that the recommendations are actually taken up by the government for implementation • The RAP provides estimates of the cost of an SPF • Additional actuarial and design studies are needed before the proposed schemes or recommendations can be designed or implemented