Social protection floors Interministerial social protection training Lou

Social protection floors Inter-ministerial social protection training Lou Tessier, ILO 18 December 2014

Outline Social protection floors 1 • Rationale, history and endorsement 2 • Definition of the concept 3 • Country examples 4 • Building social protection floors

Social protection floors Rationale, history and endorsement

Social security is a human right • Universal declaration of human rights, 1948: social security is a human right • The Convention on the Rights of the Child (1989) expressly guarantees a right to social security for children (article 26) • ILO Social Security (Minimum Standards) Convention, 1952 (No. 102) : flagship Convention on social security • ILO Recommendation on nationally defined social protection floors, 2012 (No. 202): reaffirms the universal right to social security • UN General Assembly resolution on Universal Health Coverage, 2012. Video by Youth for Human Rights International

Rationale • In spite of the enormous amount of wealth generated over the past decades thanks to globalization, world poverty rates remain very high, inequalities have increased and informality, underemployment and lack of social protection have persisted. • This situation contains increasing risks: • Greater social and political antagonism, which can lead to insecurity and social instability. • Lack of social cohesion. • Undermined human capital / economic potential. • Evidence shows that social protection can help achieve a fair and inclusive globalization. • Social protection and income distribution act as core automatic stabilizers (Stiglitz, 2009). • Countries with fairer income distribution are more likely to increase growth resilience and the duration of growth spells (Berg and Ostry, 2011). • Social protection is a win-win investment.

Rationale Social protection floors are necessary, feasible and effective. • Necessary Evolution of health protection coverage as a percentage of total population, selected countries • 1. 4 billion people live below the poverty line (21% of the world population). • 5. 1 billion people do not have adequate social protection. • Squandered human and economic potential. • Feasible • Many countries, including LICs, already have some or many elements of the floor. • Several countries were able to get almost universal coverage in a very short period. • Social protection should be seen as an investment that could pay for itself in the long run. • Effective Sources: OECD Health Data 2010 and national country sources • Significant reduction of poverty and inequality (Gini coefficient). • Human empowerment and improvement of the status of the excluded groups. • Unlocking of the productive potential of individuals.

SPFs are necessary Pervasive Poverty • 1. 4 billion people are still living on less than US$1. 25 a day (World Bank). • 1. 75 billion people experience multidimensional poverty with deprivations in heath, economic opportunities, education and living standards (UNDP). • 925 million suffer from chronicle hunger (FAO). • 2. 6 billion people do not have access to improved sanitation and 884 million people do not have access to improved sources of drinking water (WHO/UNICEF). Income Inequality • The richest 20 per cent of the world population received more than 80 per cent of the world’s income in 2007, while the poorest 20 per cent received about one per cent. At this pace of change, it would take about three centuries for the bottom million to have 10% of the global income. • The UNDP Inequality-adjusted Human Development Index (IHDI) – which captures the losses in human development due to inequality in health, education and income – indicates that the average loss in the HDI due to inequality is 22%. • 796 million adults are illiterate (UNESCO). • 8. 8 million children under the age of five die every year from largely preventable health problems (WHO). About 75 per cent of the population is not covered by adequate social protection – 1 out of every 4 person (ILO).

SPFs are necessary • Among the mechanisms to reduce poverty and contain inequality, social security systems have proven to be effective. • Yet, several challenges need to be overcome: • The existing schemes have still not achieved substantial coverage in most countries. For example, worldwide, just over 15 per cent of total unemployed receive unemployment benefits; • In some countries the value of the benefits is far from adequate; • The schemes are usually based on contributions and available only to people in formal employment. Old age pension beneficiaries as a percentage of the population above retirement age, latest available year

SPFs are necessary Ageing • Demographic ageing represents a considerable challenge for both developing and developed countries. The share of the population at age 65 and over is estimated to increase from 8 per cent in 2010 to 16 per cent by 2050 (UNPOP, 2010). • Over 60 per cent of the elderly now live in countries classified by the United Nations as “less developed”. In 2050 the elderly in these countries is estimated to constitute nearly 80 per cent of the world’s elderly population. • The acceleration of the ageing process and the much greater longevity may substantially affect poverty levels in countries without adequate and sustainable pension and health schemes. Migration • The current number of international migrants worldwide totals at least 214 million (UNPOP, 2008). The access of migrant workers to formal social protection, and hence their ability to adequately manage their risks, is very limited (Avato, Koettl ans Sabates-Wheeler, 2009). • The situation for undocumented migrants is more complicated and special efforts are needed to reach theses groups who are particularly vulnerable. Rural-urban shift • Urban populations are forecast to exceed rural ones if they are not already exceeding them. • This phenomenon may threaten the traditional mechanisms of solidarity, not only family based, but will also underpin the social insurance model of social security.

SPFs are necessary • In many countries, inadequate progress towards achieving the MDGs is associated with lack of political and social stability related to conflicts and natural disasters. • This group of countries accounts for : • A sixth of the world’s population; • Half of the world’s infant deaths; • A third of all people surviving on under US$1 a day. • In contexts where it is desperately needed, the international community has to find numerous points of entry for working with governments on pro-poor service delivery policies and social protection strategies. § Even though the context is particularly difficult, successful examples exists: • Nepal developed a social pension (Kyloh, 2008). • Ethiopia launched the Productive Safety Net Programme. • Haïti and Liberia developed programmes combining short-term relief measures and long-term social protection floor policies.

SPFs are feasible • A number of countries are already implementing a social protection floor, achieving substantial results in terms of poverty and inequality reduction. France Latin America Europe • Revenu de Solidarité Active links minimum income and active labour market policies • Universal child benefit. Argentina • Universal child allowance (Asignación Universal por Hijo) • Pension plan (Plan de Inclusión Previsional) Asia China • Increased basic health coverage • Rural pension scheme India Brazil • Mahatma Gandhi National Rural Employment Guarantee Scheme • Social insurance scheme RSBY • Rural pension scheme • Bolsa Família conditional cash transfer • Universal Unified Health System (SUS) Africa Cape Verde • Non contributory social pension scheme • Social insurance extension to informal economy workforce South Africa • Child Support Grant • Old Persons Grant

SPFs are effective • A framework for coordinated public support aimed at households. • Based on a multidimensional definition of poverty, combination of : • A traditional life-cycle approach, • New developments in poverty and vulnerability analysis. • The Social Protection Floor calls for policy coherence and coordination. § Implementation process : • progressive and gradual according to national priorities and capacities, • building on existing social protection schemes (filling coverage gaps), • based on sustainable funding sources. § A first step towards higher levels of protection in line with C 102 and others.

SPFs are effective • The floor can stimulate the emergence of a virtuous cycle A virtuous circle of development that provides an exit route from poverty and inequality, and towards longterm economic resilience and inclusive growth. Quality education for all, strong social protection, prudent macroeconomic policies, active labour market, policies, and effective bargaining Stable and resilient GDP growth, high employment and social peace Virtuous cycle Rapid productivity growth with income gains shared broadly, a strong middle class Sustained and broad-based growth in domestic effective demand, low levels of indebtness Source: SPF-AG discussion notes, by Kemal Dervis.

SPFs are effective Accelerating progress towards achieving the MDGs and beyond Explicit linkages and ways in which social protection accelerates MDG 1: Eradicate extreme poverty and hunger MDG 2: Achieve universal primary education Reducing poverty and inequality. Stimulating people to participate more actively in the economy. Supporting the full utilization of productive entrepreneurial capacity and increasing labour market participation. Improving food consumption and nutritional level of beneficiaries’ households, including children. Improving educational attainment, higher school enrolment rates, fewer school drop-outs by removing demand-side barriers to education. Reduces the intensity of child labour. Supporting inclusive education by introducing changes in the supply side to address the specific needs of children who are marginalized or excluded (such as girls) to ensure they can access and benefit from education. MDG 3: Promote gender Addressing barriers to gender equality and empowerment of women. equality and empower women Encouraging increased participation of women in the economy and greater labour market participation. (see point 8). Enhancing through social transfers women’s position in the household and intra-household resource allocation and reducing their domestic burden. MDG 4: Reduce child mortality Removing financial barriers that prevent people from accessing health services and prevents deeper impoverishment caused by medical expenses. MDG 5: Improve maternal Improving access to quality preventive and curative care for child and maternal health Reducing risk factors for diseases among disadvantaged populations. MDG 6: Combat HIV/AIDS, malaria and other diseases MDG 7: improved access to safe water, sanitation Social transfers can directly mitigate the impacts of illness, specifically AIDS, and have helped mothers and children affected by HIV and AIDS. Such cash transfers might prevent new infections, as they reduce the need for female and child household heads to resort to transactional sex to survive. Social pensions enable grandparents in ‘missing-middle generation’ families to care more adequately for orphaned and vulnerable children under their guardianship. There is evidence that social pensions also contribute to preventive health care for children. Improving access to safe water sources and basic sanitation facilities

SPFs are effective Ensuring adequate opportunities for decent work • Linking SPF with Employment measures should ensure graduation: WORKERS IN THE INFORMAL ECONOMY, THE WORKING POOR: • Progressive inclusion in the labor market • Higher social protection Higher Levels of Social Protection Higher levels of income Access to Sustainable employment (Micro-Enterprise or Formal jobs) Increase employability: human capital (health, education) + work experience & training Employment Services + Basic social protection • Skills assessment & training … • Access to PWPs ; Job placement • Business Development Services • Access to health, education, food security • Income security

Social protection floors International endorsement April’ 09 SPF-Initiative launched by the CEB June’ 09 ILC 2009 ● Global Jobs Pact 2010 Feb’ 10 Sept’ 10 Creation of the SPF Advisory group UN ECOSOC resolution on promoting social integration UN General Assembly resolution on the MDG Summit OSLO conference (ILO&IMF) Oct’ 10 8 th ASEM meeting in Brussels Oct’ 10 Yaoundé Tripartite Declaration on SPF Nov’ 11 Full support from the G 20 June’ 12 Social Protection Floor Recommendation no. 202 Jul’ 12 Social Protection Inter-agency Cooperation Board 2014 SPF in the new Sustainable Development Goals

Social protection floors International consensus ILO’s new strategy. . . a nd R. 202 WFP new SP strategy UNICEF’s new SP strategy The new Social Protection consensus World Bank SP and Labour Strategy EC Communicati on and Council decision

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

SPF adopted in Asia • The 15 th Asia Pacific Regional Meeting, Dec 2011, prioritizes “reducing poverty and wide inequalities in income and wealth” and “building effective social protection floors in line with national circumstances” • ASEAN member States adopted the Declaration on strengthening social protection, Sep 2013

Social protection floors Definition and principles

Social transfers Protection provided by society To compensate for the loss of income and cover health care expenditures To facilitate access to social services and fulfill basic needs such as essential health care Financial support Access to services

Types of social transfers • Transfers in cash, in kind, or service. • Ex. If one gets sick, he can receive: Meals to ensure proper nutrition during sickness. Cash compensation for inability to work. Access to medical care

Social protection floors • 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

Social protection floors • In Asia, 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

Social protection floors • 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 floors • 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 floors 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

The Social Protection Floors Recommendation R. 202 at a glance Preamble Social security as human right and social and economic necessity Reference to various international instruments I. Objectives, scope and principles II. National social protection floors Objective and scope Definition of basic social security guarantees Definition of national social protection floors Legal foundations III. National strategies for the extension of social security Prioritize implementation of national SPFs Progression to higher levels of protection IV. Monitoring National monitoring Establishment and review Building and maintaining social security systems National consultations Provision Policy coherence Financing ILO social security standards International exchange of information, experiences and expertise Principles

Principles in Recommendation No. 202 International Labour Organization UNIVERSALITY • Universal coverage of residents by comprehensive social security NONDISCRIMINATION • Implementation based on equal treatment (and gender equality) • Responsiveness to special needs • Social inclusion, including of persons in the informal economy TRANSPARENCY • Accountable and sound financial management, administration SUSTAINABILITY • Financial, fiscal and economic sustainability with due regard to social justice and equity RIGHTS AND DIGNITY • Respect for rights and dignity of people • Full respect for collective bargaining and freedom of association for workers DELIVERY • High-quality public services that enhance the delivery of social security systems EVALUATION • Regular monitoring of implementation, and periodic evaluation

Social protection floors • A life-cycle approach • Because social protection is a life-long necessity

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, a combination of those

National social protection floors: Pluralism of approaches national choice social assistance social insurance universal schemes nationally guaranteed outcomes Outcomes can be guaranteed through different means – including benefits in cash and in kind, transfers and services – there is no one-size-fits-all others

Social protection instruments Universal schemes Categorical schemes Provide benefits to all. Ex: universal free immunization programme. Provide benefits to a specific category of the population. Ex: social pension for all elderly above 60 years old Means-tested schemes Provide benefits to people whose means fall under a threshold. Ex: persons with disabilities who live below the poverty line are entitled to a monthly pension. Conditional cash transfers (CCTs) Provide benefits under the completion of specific requirements. Ex: monthly cash transfers are provided to families with children meeting the following conditions: 1. children attend school; 2. children are immunized and have regular medical checks. Employment guarantee schemes Ensure access to a number of workdays a year. Ex: all adults living in rural areas are entitled to 30 working days a year.

Social protection instruments Universal schemes Categorical schemes Means-tested schemes Conditional cash transfers (CCTs) Employment guarantee schemes No need to put in place targeting mechanisms Suppose enough fiscal space is available More complex to design and implement (need for targeting systems, with consequences on admin costs) Exclusion and inclusion errors Sometimes more acceptable politically Can be categorical or means tested. Have higher administrative costs than other schemes. Suppose the existence of some infrastructure.

How to choose instruments? • The choice depends on the financing model, the structure of the labour force, historical heritage, etc. • Usually, countries use a combination of social protection instruments to build their social protection floor for all across guarantees.

Social protection floors Country examples

Thailand ÞUniversal Health Coverage • Combination of three schemes: • Civil Servant Medical Benefit Scheme (CSMBS)=> 16% of the population. • Compulsory Social Security Scheme (SSS) => 7% of the population. • Universal Coverage Scheme (UCS) => 75% of the population. • The UCS scheme was created in 2001 for the informal economy population and completed the social protection floor in health for Thailand. • Thai people disburse 13. 7% of total health care expenditure from their own pocket. • 99. 4% of births are attended by skilled health staff.

Brazil ÞBolsa Familia • A conditional cash transfer provided to low-income families with children. Beneficiary families receive up to 140 USD a month depending on family size with the condition that their children must attend school and get regular health checks. • The programme has over 13 million beneficiary families (almost 30% of the population). • Improvement in the income of poor families (about 25% more) and on nutrition outcomes. • Drop in inequality in the country due to the programme (i. e. 20%). • Improvement of school attendance and reduction of child labour (employment among 5 -17 years old in beneficiary families was reduced by almost 2% and the number of hours of weekly domestic work was reduced by 4 H 30).

India ÞNGREGA employment guarantee scheme • People in rural areas are guaranteed 100 days of unskilled labour every year paid to the minimum wage. • Wage equality is ensure between men and women. Women participation is encouraged, including through the provision of day care services. • It secures the income of rural households often subject to seasonal income. An estimated 12 million people benefitted from the scheme. • Impact studies show that NGREGA beneficiaries have greater income since they have been participating in the programme and suffer less from seasonal unemployment. Less household are in debt. • Studies also show that children belonging to those families with a member enrolled in the NGREGA programme were significantly less likely to be in paid work than the ones in non-beneficiary families.

South Africa ÞOlder persons grant • Non-contributory pension for vulnerable elderly people over 60 years old (women) and 65 years old (men). Monthly pension of maximum 125 USD per month (more than half of the average minimum wage). • It covers 65% of the elderly population. A contributory pension scheme covers 27% of the population. With this combination, 92% of the elderly receive a pension in South Africa. • Impact studies show that the introduction of the Older persons grant reduced poverty among beneficiaries. • Because in developing countries most children live in multigenerational households, the pension has an impact on the poverty of entire families and reduced the resort to child labour. It significantly impacted the time spent working by children, especially in rural areas.

Social protection floors How to build a national social protection floor?

National social protection extension strategies Formulation and implementation • set objectives reflecting national priorities • identify gaps in, and barriers to, protection • seek to close gaps in protection through appropriate and effectively coordinated schemes • complement social security with active labour market policies • specify financial requirements and resources, time frame and sequencing for the progressive achievement of the objectives • Raise awareness about social protection floors and their extension strategies support disadvantaged groups and people with special needs support growth of formal employment and the reduction of informality consistent with and conducive to the implementation of national social and economic development plans

How do we achieve the SPF and make it a reality for the whole population of a country? The United Nations developed a methodology, the social protection assessment based national dialogue, which: • Identifies the existing situation and gaps in the social protection system • Develops recommendations for achieving the SPF It was conducted in a number of ASEAN countries, including in Myanmar in 2014, which is meant to feed the elaboration of a national social protection strategy.

Steps of the ABND 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 ABND FACTSHEET

A participatory process Line ministries (Labour, Health, Social Welfare, Planning, Interior, Education, Finance, Rural Development, Women’s Affairs, etc. ), social security institutions Local governments National Statistics Office, academicians UN agencies involved in SPF (ILO, UNICEF, WHO, UNESCAP, UNFPA, UNAIDS, UNESCO, UNWOMEN, UNDP, WFP), World Bank, ADB, other development partners Workers’ and employers’ organizations Civil society

ABND in Asia Mongolia Completed Started Myanmar Lao PDR Vietnam Philippines Thailand Solomon Indonesia Vanuatu

Steps of the ABND in Myanmar Step 3 9. Endorsement by the government and inclusion of some recommendations in the national strategy (Oct. 2014 -Feb. 2015) 8. Finalization of Costing, Fiscal space, Writing ABND report (Sept. – Oct. 2014) 1. Inventory of schemes (November 2013) Step 1 2. Draft Assessment Matrix The process in Myanmar 7. Dialogue # 3 on costing (August September 2014) 6. Data collection for the RAP protocol and costing Step 3 of the scenarios (June. August 2014) 3. Dialogue # 1 on assessment matrix (March 2014) 4. Translation of policy recommendations into practical scenarios 5. Dialogue # 2 on proposed scenarios (May-June 2014)

Two dimensions of social protection in Myanmar Civil servants have access to a pension scheme. Some formal private sector workers have access to the Social Security Schemes (medical care, sickness, maternity, work injury). Some emergency relief programmes run by development Some programmes target some partners target vulnerable the poor. categories of the Some community population. solidarity. Level of protection Free basic public health and education programmes for all. Poor Rest of the Population Formal sector

Social protection floors 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

Proposals to build a social protection floor in Myanmar • Social health protection for all • Scale-up the HIV/AIDS treatment and counselling programme • Introduce a maternity and new-born nutrition-sensitive social protection scheme • Ensure that families with children are provided with support, including through the reinforcement of existing mechanisms (i. e. school stipends) • Pay special attention to children with disabilities • Develop social protection mechanisms against seasonal under-employment • Extend maternity protection • Create a social protection scheme for adults with permanent disabilities • Create a social pension • Address the special needs of elderly dependent persons

Inputs to the NSPS 2014 2015 NSPS Inputs Jan World Bank: Inventory Mar World Bank: in-depth assessments on social assistance and delivery mechanisms ABND matrix: SP gaps/issues, policy options Vision Objectives ABND costing & fiscal space ABND finalization & endorsement Flagship Costing programmes NSPS

More resources • www. social-protection. org • Social protection assessment-based national dialogue in Myanmar • http: //www. socialprotection. org/gimi/gess/Show. Project. action? id=2487 • World Report on Child Labour: Economic vulnerability, social protection and the fight against child labour • http: //www. ilo. org/washington/WCMS_178184/lang-en/index. htm

Thank you for your attention Lou Tessier, ILO tessier@ilo. org