The Social Protection Floor Global Initiatives International Symposium, Social Protection in Southern Africa: New Opportunities for Social Development, Johannesburg, 25 May 2011 Christine Bockstal, ILO Social Security Department, Geneva

2 Outline The SPF Initiative High Level SPF Advisory Group The SPF is one of the priorities of the G Successful experiences and country examples Momentum – past and upcoming even ts

3 The SPF Initiative: A UN System Emergency response to the crisis In April 2009, the UN Chief Executives Board (UN CEB) agreed on nine joint initiatives to confront the crisis, accelerate recovery and pave the way for a fairer and more sustainable globalization: 1.Additional financing for the most vulnerable 2.Food Security 3.Trade 4.A Green Economy Initiative 5.A Global Jobs Pact 6.A Social Protection Floor (SPF) 7.Humanitarian, Security and Social Stability 8.Technology and Innovation 9.Monitoring and Analysis

4 The SPF Initiative: SPF Concept and definition The United Nations suggests that a Social Protection Floor could consist of two main elements that help to realize human rights: geographical and financial access to essential services such as water and sanitation, health, and education; a basic set of essential social transfers, in cash or in kind, to provide minimum income security and access to essential services, including health care.

Mandatory social insurance/social security benefits of guaranteed levels for contributors Individual/household income Level of protection THE FLOOR: Four essential guarantees 1. Access to essential health care for all 2. Income security Children 3. Assistance to unemployed, underemployed & poor Voluntary insurance 4. Income security Elderly & disabled The SPF Initiative: The Social Protection Staircase 5

6 Transfer package of 4 essential guarantees 1.All residents have access to a nationally defined set of essential health care services; 2.All children have income security, at the level of the nationally defined poverty line level, through family/child benefits aimed at facilitating access to nutrition, education and care; 3.All those in active age groups who are unable to earn sufficient income on the labour markets should enjoy a minimum income security through social assistance … 4.All residents in old age and with disabilities have income security at least at the level of the nationally defined poverty line, through minimum pensions for old age and disability

"The Social Protection Floor Initiative is a UN system-wide effort to promote common priorities and solutions, to ensure basic social guarantees for all" Ban Ki-moon, UN Secretary General Message on the World Day of Social Justice, 20 February 2010 Message on the World Day of Social Justice "The world does not lack the resources to abolish poverty, It only lacks the right priorities” Juan Somavia, ILO Director-General Lead agencies global Initiative Cooperating agencies/organisations UNICEF, FAO, IMF, UNDESA, UN-HABITAT, World Bank UNAIDS, UNDP, UNESCO, UNFPA, UNHCR, WFP UNODC, OHCHR, UN Regional Commissions, UNRWA, WMO, HelpAge Int’l, … and development partners/ donor governments Activities SPF Initiative: 1.International advocacy 2.Technical and financial support 3.Capacity building 4.Joint SPF-I manual 5.South-South and triangular cooperation 6.Tools and methodologies => High Level SPF Advisory Group

8 Objective: To enhance global advocacy activities and to further elaborate the conceptual policy aspects of the approach.  To coordinate the preparation of a flagship Global Social Protection Floor Report as an advocacy tool and as general guidance to support the implementation of national SPFs High Level SPF Advisory Group

9 Why Social Protection Floor ? –A SPF enables the realization of human rights, anchored in widely shared notions of human rights. –A SPF is an important tool to combat inequality and poverty … and accelerate the achievement of the MDGs. –Social Protection schemes are important tools to alleviate the adverse social consequences of crises and to speed up recovery. The SPF acts as an economic and political stabilizer. –Building a SPF is an essential investment component of an inclusive growth strategy that aims at unlocking the full economic potential of a country’s population.

10 –The SPF can help provide coherent and coordinated approaches to social protection and employment policies. It would help guarantee services and social transfers across the life cycle. –A SPF enables individuals and societies to cope with the structural and social transformations in modern societies including urbanization and the evolution of family structures and changing patterns of employment and globalization. –Achieving the SPF is a founding step towards establishing full participatory and equal citizenship, political and institutional stability and social cohesion. Why Social Protection Floor ?

11 –The SPF is a fundamental tool for gender empowerment. –SPFs are feasible and affordable, including in LICs, on the condition that they are implemented progressively.  The sustainability of SPF financing is crucial.  International solidarity can help to start up the process in low income countries, but the implementation has to be financially sustainable at the national level in the long run. Why Social Protection Floor ?

12 The SPF is one of the priorities of the G The SPF will be discussed at the G20 Meeting of Labour and Employment Ministers and the G20 Development Working Group The ‘Bachelet Report’ will be used as a basis. Possible themes for discussion: G20 support for the SPF concept and its implementation at country level International and national mobilization in terms of expertise and capacity building Exploring the possibility of using new technologies to facilitate the implementation of social protection programs How and in what ways international solidarity and innovative financing mechanisms could help Monitoring and evaluation mechanisms

13 The Recurrent Discussion: ‘Social security for social justice and a fair globalization’ Report on the strategic objective of social protection (social security) for the 100th Session of the International Labour Conference, June 2011 Preparations - regional and global consultation process: : Regional meetings Series of policy papers 2009: Tripartite Meeting of Experts on Strategies for the Extension of Social Security Coverage, discussed in GB in Nov 2009 First outline report discussed in ESP in March : Yaoundé Tripartite Declaration on the Implementation of the Social Protection Floor (October) Verbal update in ESP + draft report submitted for comments to constituents (regional coordinators and secretaries of employers’ and workers’ groups) in Nov Report currently available in 3 languages on ILO website

14 The Recurrent Discussion: Story line – main messages 1. The right and the need for social security 2. The global state of social security, its main challenges and present policy responses Achieving full coverage: Only 20% enjoy comprehensive coverage, but a quiet revolution taking place in the Global South Achieving economic and social adequacy: Spending 17.4 % of Global GDP and not enough to fight poverty, but... Maintaining sustainable financing:...there is some fiscal space Main issues for the future of social security 4. Future policy orientation for the Organization a)Strategies to extend social security b)Ensuring social adequacy c) Ensuring financial, economic and fiscal sustainability d) Strategies to ensure good governance

15 The Recurrent Discussion: Suggested points for discussion 1.What is the role of social security in promoting economic growth and social development? 2.Which policies contribute best to the extension of adequate social security coverage at all levels of development? 3.Which policies can ensure the affordability, adequate financing arrangements and sustainable fiscal space for inclusive and effective social security systems in a context of demographic, economic and social change? 4.How can governments, workers and employers contribute to enhancing the design, governance, and administration of social security systems? 5.What is the role of ILO standards in further promoting the extension of social security coverage for all, and what further measures should be taken or developed? In addressing the above questions, the Conference Committee may provide guidance on how the Organization and the Office can respond more effectively and efficiently to address constituents’ needs in each of these areas.”

16 Successful SPF Experiences - Publication 18 case studies on SPF policies from 15 countries of the global South; Brings together examples of good SPF practices for South-South learning, written by national and local governmental agencies, scientific institutions and practitioners; A useful tool for all stakeholders involved in decision-making or in the process of building and implementing national SPFs. Available online:

Situation in Rwanda Poor and near poor Vulnerable Groups Informal economyPrivate sectorCivil Servants Armed forces Other specific SP programs: FARG, Ubudehe, One cow per poor Family, etc. CBHI: 91% population covered SSFR RAMAMMI VUP Community Based Health Insurance Other SP programs Basic 9Y education Voluntary Private insurance

Orientations in Rwanda Poor and near poor Vulnerable Groups Informal economyPrivate sectorCivil Servants Armed forces SSFR RAMAMMI Community Based Health Insurance Basic 9Y education Voluntary Private insurance Maternity insurance, Provident Fund Other SP programs Feasibility studies: old age, disability,, child grant and employment guarantee scheme VU P

Situation in Mozambique Civil servants Armed forces Private sector employees Informal economy Poor and near poor Voluntary private insurance (only in the law) Statutory contributory social insurance (INSS) 8.3 % of households only Basic benefits Targeting elderly (PSA), PWD and chronically ill … Vertical dimension (higher levels of benefits for formal sector) Horizontal dimension (SPF & schemes for informal economy)

Plans for extension of social security in Mozambique – Discussions on going Civil servants Armed forces Private sector employees Informal economy Poor and near poor Voluntary private insurance Statutory contributory social insurance Basic benefits / social protection floor for all. Targeting elderly (PSA), PWD and chronically ill Labour Based Social Assistance Programme for working age population Vertical dimension (higher levels of benefits for formal sector) Horizontal dimension (SPF & schemes for informal economy)

Situation in Thailand 1.Challenges to extend coverage to IE workers (+/- 60 people joined) 2.Fragmentation of social security schemes 3.Inequalities have increased over past years … Capitation amount under UCS = 2,200 THB/capita whereas under CSMBS = 12,100 THB/capita Civil servants Armed forces Private sector employees Informal economy Poor and near poor UCS since 2001 (health) and 500 Bath scheme (pension) since 2009… Social assistance Extension of 5 benefits to Informal Economy* (article 40) * maternity, invalidity, death, sickness and old age benefits Workmen’s Compensation Fund (WCF) -Social Security Fund (SSF) Provident fund system -Govt P Fund -Private school teachers WF -Non contr. pension sch. -CS Medical Benefit Sch. 76% population

Situation in Cambodia Civil servants Armed forces Private sector employees Informal economy Poor and near poor Scattered social assistance programs: Health Equity funds and others Scattered CBHI schemes NSSF -Only work injury -Health insurance under study NSSF-C -Only pensions -Health insurance under study 1.CARD’s National Social Protection Strategy for the Poor and Vulnerable 2.CBHI very limited coverage (100,000 people) 3.NSSF and NSSF-C provide very limited scope of coverage 80% population

Situation in Viet Nam State owned enterprises, public and private sector Informal economy Poor and near poor Voluntary scheme for SME and IEco (35,000 people!) 1.National Social Protection Strategy for the ten coming years ( ).. Objectives: Universal health insurance by 2014; increase coverage of informal economy; social protection floor for all … Mandatory Social Insurance old-age pensions, disability, health, sickness and unemployment insurance 9.4 million workers i.e. 18 per cent of the total workforce 75% population Mandatory Health insurance 30 million people covered Voluntary subsidized HI 11 million people covered Some social assistance (1.23% population) Horizontal dimension Vertical dimension

Situation & ILO’s plan in Indonesia Civil servantsPrivate sector employees Informal economy Poor and near poor Jamkesmas (76.4 million p. covered) CCTs / UCT; Rice for the poor; Scholarships; Community Empowt prog. Jamsostek pilot project (400,000 p. covered) Jamsostek Taspen Askes 1.National social protection strategy for the ten coming years 2.Objective of universal HC coverage by 2014 (already 46% in 2009) 3.Fragmentation of Social assistance ; challenges for the economy 83% population Asabri Own hospitals Armed forces ILO plan: Support to the implementation of the national social protection strategy & Indonesian Jobs Pact through policy work, piloting, capacity building and increasing coordination (Resource gap)

25 Momentum – past and upcoming events In 2001, the ILC reiterated that social security was a basic human right, and reaffirmed that its extension to all in need was a fundamental part of the ILO’s mandate and a challenge that needed to be addressed seriously and urgently by all member States. Accordingly ILO’s Global Campaign on Social Security and Coverage for all was launched (2003). The World Commission on the Social Dimension of Globalization adopts the idea of a ‘socio economic floor’ in its report (2004) Regional Tripartite Meetings on social protection: Latin America (Santiago – 2007), Arab States (Amman – 2008), Asia (New Delhi ) The ILC adopted the ILO Declaration on Social Justice for a fair Globalization (June 2008) 2009 Adopted by UN-CEB (Chief Executives Board) as one of the 9 crisis initiative (April) OECD DAC (POVNET) endorsed a policy statement on the role of employment and social protection at its High-level Meeting. Launch of publications on Promoting Pro- Poor Growth: the role of Employment and Social Protection (Oct) SPF adopted by the ILC as part of the Global Job Pact (June) SPF Initiative Interagency Meeting => MANUAL for country operations (Oct) Tripartite meeting of experts on ‘strategies for the extension of social security coverage’ in Geneva (Sept)

26 Momentum – past and upcoming events 2010 UN Economic and Social Council Resolution 2010/12 on Promoting Social Integration (Feb) The EU, Latin America and Caribbean Countries Meeting in Madrid (May) The Joint World Conference on Social Work and Social Development in Hong Kong (June) Side Event, ILC 2010: "The Social Protection Floor Initiative" in Geneva (June) Sharing Innovative Experiences on the Social Protection Floor in Turin, Italy (July) Creation and 1 st Meeting of the high level SPF Global Advisory Group (Aug) Resolution MDG summit in NY (Sept) ASEM Workshop on the SPF and the Informal Economy in Nice & the ASEM 8 Summit in Brussels (Sept & Oct) Global Poverty Reduction and Development Forum in Beijing, China (Oct) Adoption of ‘The Yaoundé Tripartite Declaration on the Implementation of the SPF’ at the 2 nd Africa Decent Work Symposium (Oct) Global South-South Development Expo 2010 in Geneva (Nov) The 2nd Inter-Agency Technical Meeting of the UN SPF Initiative in Geneva (Nov) The 17th ILO Tripartite American Regional Meeting in Santiago (Dec) Launch of the EU’s European Report on Development 2010/2011 on ‘Social Protection for Inclusive Development’ (Dec)

Momentum – past and some upcoming events 2011 Commemoration of the World Day of Social Justice: Achieving Social Protection for All (Feb) UNESCO Forum/ the third meeting of the Ministers in charge of Social Development - South Asia, in Colombo, Sri Lanka (Feb) SPF Initiative Interagency Technical Meeting in Turin, Italy (March) Workshop (Jan) and joint ILO-IMF meeting (March) on quantitative SPF assessments/ benefits costing in 7 countries SPF High Level Advisory Group Consultative Workshop (March) ASEM forum in Hanoi (April) Inter-agency Show and Tell Meeting on Social protection, Bonn (May) G20 Consultation Meeting Argentina-Brazil-France-Mexico, Declaration of Brasilia on the SPF (May), Consultation on going in South Africa, Indonesia, China, India) Upcoming 100 th session of the ILC – Recurrent discussion on ‘Social security for social justice and a fair globalization’, report on the strategic objective of social protection (social security) (June 2011) Ministerial Meeting G20 on Work and Employment (Sept. 2011) G20 Summit, 6 th Meeting of the G20 heads of government in Cannes, France (Nov 2011) And more... 27

28 Momentum – past and upcoming events Global and regional meetings ( ), including: The World Commission on the Social Dimension of Globalization, MDG, ASEM, EU, OECD, G20, UN ECOSOC, Global South-South Development Expo 2010, UNESCO forum, Yaoundé declaration on the SPF, Declaration of Brasilia on the SPF SPF Initiative adopted in April 2009 SPF Advisory Group created in August 2010 Upcoming events 100 th session of the ILC – Recurrent discussion on ‘Social security for social justice and a fair globalization’ (June 2011) Ministerial Meeting G20 on Work and Employment (Sept. 2011) G20 Summit 2011, in France (Nov. 2011) And more...