The Social Protection Floor- Initiative: from concept to practical implementation Celine Felix ILO Decent Work Team, Bangkok Brunei, 21 November 2010 Decent Work for All ASIAN DECENT WORK DECADE

Table of contents 1.Make sure we are talking the same language: Social protection, social security 2.What is the issue? The level of social protection coverage remains low, despite many arguments to justify the extension 3.The Social Protection Floor-Initiative and concept 4.Relevance of the SPF & Staircase: from concept to practical implementation 5.The way forward: key messages

Table of contents 1.Make sure we are talking the same language: Social protection, social security 2.What is the issue? The level of social protection coverage remains low, despite many arguments to justify the extension 3.The Social Protection Floor-Initiative and concept 4.Relevance of the SPF & Staircase: from concept to practical implementation 5.The way forward: key messages

Source: from presentation by Stephen Devereux, IDS, training course on Design and implementation of social transfers, Chiang Mai, 2010

Provision Prevention Promotion Transfor- mation Rights-based, systemic system against poverty for all residents Different mechanisms to make it a reality Social protection/ social security

Table of contents 1.Make sure we are talking the same language: Social protection, social security 2.What is the issue? The level of social protection coverage remains low, despite many arguments to justify the extension 3.The Social Protection Floor-Initiative and concept 4.The way forward: key messages

The issue of coverage gap… Only about 20 per cent of the world’s working-age population (and their families) have effective access to comprehensive social protection In many countries the number of social security branches to which the population has access is limited.. For those schemes which are available only a limited percentage of the population is legally covered (e.g. formal sector).. These few legally covered are not all effectively covered The levels of benefits are often limited, providing therefore a coverage which is not adequate.. Countries in Asia don’t invest enough in social security (choice of society more than a question of affordability) … Scope Extent Level

The issue of coverage gap… Health protection Proportion of the population covered by law, latest available year (percentages) Indonesia, efforts towards Universal coverage with Jamsostek + Jamkesmas… Thailand UI scheme since 2001

Over the past ten years, the benefits of growth in Asia have not been equitably shared, levels of poverty remain very high and inequalities are increasing in most countries … The issue of low coverage… Countries don’t invest sufficiently in Social Protection

The benefits of growth have not been equitably shared Source: ADB, Key Indicators for ASIA and the Pacific 2010

Latest available year1995 % population below 2$ PPP per day Source: ADB, Key Indicators for ASIA and the Pacific 2010 Levels of poverty remain very high

Inequalities are increasing in many countries Latest available year1995 Gini coefficient (value of 0 = total equality and value of 1 = maximal inequality) Source: ADB, Key Indicators for ASIA and the Pacific 2010

Social security is a basic human right : - Universal Declaration of Human Rights (1948), Article 22: Everyone, as a member of society, has the right to social security -International Covenant on Economic, Social and Cultural Rights (1966), Article 9: « recognize the right of everyone to social security, including social insurance » As a Consequence : -States and international community have the obligation to take appropriate measures to guarantee this right (legal, administrative, budgetary …) - Each individual is entitled to a minimum level of social protection, without exception or discrimination  It is a rights-based entitlement rather than welfare safety nets  It is about social protection (equity) rather than social assistance;  It is about social justice rather than livelihoods; - A RIGHT FOR ALL … Despite many arguments in favor of the extension… (1/3)

… Despite many arguments in favor of the extension… (2/3) Through a redistribution function, –SP contributes to protect people from economic and social shocks –SP contributes to reduce poverty and inequalities :Income transfers through social security have a short term and a longer term effect on income inequality & moving out of poverty Contributes to boost consumption of households & contributes to the development of domestic markets, and a more balanced economy –Boost economic growth by raising domestic demand / internal markets Enhance human capital and productive employment - a better educated, healthy and well nourished workforce Reduce poverty FASTER => Progress towards MDGs Reduction of economic inequalities and political instability AN ECONOMIC AND SOCIAL NECESSITY

Social protection can be effective to prevent conflict and create politically stable societies Poverty and gross inequities tend to generate intense social tensions and violent conflict It is important to expand social protection… Social benefits ensure the political/ electoral support of citizens

In times of crisis, social protection systems act as social and economic stabilizers –They mitigate the economic and financial impact of Unemployment and Under-Employment on workers and their families  social stability Most of the fiscal stimulus packages adopted by the governments included social protection components –They support aggregate domestic demand  facilitate recovery. … Coverage remains low I. Despite many arguments in favor of the extension… (3/3) AN ANTI CRISIS/RECOVERY TOOL

Social protection measures in the stimulus packages in Asia Increased support to low- income households (CCTs and social assistance) Bangladesh (destitute women and others), Nepal (children, elderly, deprived castes), Viet Nam, India (widows, disabled), China (returning migrants), Philippines (CCT, very poor) Increased targeting of employment programmes at the poor Cambodia (small projects in rural areas), Viet Nam (infrastructure in poorest districts), Philippines, Pakistan, India Increasing coverage or level of old age pensions and support to the elderly Bangladesh, Nepal, ChinaIncreasing coverage of unemployment benefits Viet Nam, China Measures to protect migrant workers Bangladesh, Nepal, Viet Nam India (Kerala), Philippines, Pakistan

“If the crisis can leave behind a broad-based consensus that people in the global economy and the global society have a right to a basic level of social protection and that this is feasible… the crisis has not been wasted.” Michael Cichon, ILO Social Security Department Director NEED FOR ACTION

Table of contents 1.Make sure we are talking the same language: Social protection, social security 2.What is the issue? The level of social protection coverage remains low, despite many arguments to justify the extension 3.The Social Protection Floor-Initiative and concept 4.Relevance of the SPF & Staircase: from concept to practical implementation 5.The way forward: key messages

The Social protection floor initiative & concept A federative concept It is not A NEW intervention but aims to coordinated fragmented existing ones and fill the gap The SPF is a set of guarantees Allows flexibility as to the delivery mode and combinations of different systems (universal, targeted, social insurance etc. ) to be shaped within a framework of nationally specific institutional structures, economic constraints, political dynamics and social inspirations  It Provides an outcome focus It is not a safety net It is a floor, not a ceiling It is recognized as a powerful approach to address low social protection coverage in Asia

The Social Protection Floor Initiative (SPF-I) The concept emerged in the midst of the crisis and initiatives were developed to confront it: On April 2009, the UN Chief Executives Board (CEB) have agreed on nine joint initiatives to confront the crisis, accelerate recovery and pave the way for a fairer and more sustainable globalization  A window opportunity open: a consensus was reached that people in the global economy and society have a right to basic level of social protection and that it is a feasible option. Response the global financial crisis  developmental instrument

The Social Protection Floor Initiative (SPF-I) A story of supply and demand A set of basic social rights, services and facilities that each member of society should be guaranteed A SPF should consist of: Notion of availability and accessibility – both work hand in hand, are articulated Availability of essential services: -Housing, -Education/skills, -Health care supply, -Food/Nutrition, … Accessibility of these services through basic transfers in cash or in kind: -Subsidized health insurance / health cards, -Scholarships & school buses, -Minimum income support to families (family/child benefits), the working poor (cash transfers and PWPs) and the elderly (minimum pensions) …

The SPF is NOT a safety net

CriteriaSafety NetsSocial Protection Floor Overall ObjectivePoverty reductionGiving effect to the Human Right to Social Security Type of interventions Targeted set of non- contributory transfers, depending on government priorities Universal entitlement to protection through a defined basic package for all in need Benefit levelsMinimumNational poverty lines RoleSNs as transitory response measures/ short term (crisis, reforms) Rights-based, systemic “insurance” against poverty for all residents

Civil servants Armed forces Private sector employees Informal economy Poor and near poor Partially contributory & linked schemes Basic benefits / social protection floor for all. Non contributory for the poor; other groups may contribute … Horizontal dimension (SPF & schemes for informal economy) Voluntary private insurance Statutory contributory social insurance Vertical dimension (higher levels of benefits for those who can contribute) 100% full coverage Basic coverage Intermediate coverage It is a floor, not a ceiling: the SPF & SS staircase

At country level: –Government institutions: Ministry of Labour, Health, Finance, Agriculture, social security institutions… –Non Governmental Actors: social partners, NGOs, cooperatives, mutuals, associations, civil society … –UN Country teams At global level: –17 Agencies: ILO and WHO (co-leaders), FAO, OHCHR, UN regional commissions, UNAIDS, UNDP, UNDESA, UNESCO, UNICEF, UNFPA, UNHABITAT, UNHCR, UNODC, UNRWA, WFP, WMO –The World Bank and IMF, Regional development banks, bilateral donors, global funds, EU, –International NGOs and networks (ICSW, Helpage Int., ISSA, AIM) and private sector The SPF transcends the mandate of any individual UN agency: Need for a coherent, system-wide approach Who is supporting the SPF Initiative? Incl. ICSW

A coalition in place (17 UN agencies) A manual & strategic framework Tools development (ex: rapid assessment) SPF success stories (South-South exchange initiative) Knowledge sharing through the GESS platform Joint training program (Turin) Joint briefings of UN resident coordinators Joint advocacy program SPF teams or working groups in the countries (ex: Thailand) A SPF Advisory Group headed by Mrs Bachelet to enhance global advocacy activities and to elaborate further the conceptual and global policy aspects of the social protection floor. –A flagship Global SPF Report under preparation –Mission to Viet Nam last week SPF-I: what has been done so far?

SPF = A powerful approach to address low social protection coverage in Asia Conclusions of the 8th ASEM meeting, 4 & 5 October 2010 –Heads of States and of Governments of 46 Asian and European countries noted with interest the concept of SPF –Leaders called for further sharing of experiences and for technical assistance in implementing social welfare policies Mrs Michelle Bachelet’s visit to Viet Nam in Oct 2010 –The SPF is relevant for Viet Nam and should be used as a framework for the implementation of the National SP Strategy –It will make this strategy more efficient by increasing coherence between the three core pillars of the strategy (ALMPs, Social assistance and social insurance), and –by providing a unique opportunity to develop linkages between social protection and labour market policies targeting those working in the informal economy and SMEs.

Table of contents 1.Make sure we are talking the same language: Social protection, social security and social transfers 2.What is the issue? The level of social protection coverage remains low, despite many arguments to justify the extension 3.The Social Protection Floor Initiative (SPF-I) 4.Relevance of the SPF & Staircase: From concept to practical implementation 5. key messages

Social Protection Floor: from conceptual to practical implementation AWARENESS RAISING NATIONAL SPF TASKFORCE, UN SPF TEAM SET UP SP STOCKTACKING & MAPPING PRELIMINARY ANALYSIS PRIORITY AREAS FOR INTERVENTION IDENTIFICATION OF POLICY OPTIONS DESIGN & COSTING FISCAL SPACE ANALYSIS – LT FINANCIAL SUSTAINABILITY RECONSIDER DESIGN IN LIGHT OF FISCAL SPACE LEGISLATION IMPLEMENTATION MONITORING, EVALUATION, COST-BENEFIT ANALYSIS, IMPACT ASSESSMENT to be carried out in Thailand, Indonesia, Cambodia, Vietnam TIME

Have we talked about the Social Protection Floor Initiative in your country?

Situation in Thailand 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. Challenges to extend coverage to IE workers (+/- 60 people joined) Fragmentation of social security schemes Inequalities have increased over past years … Capitation amount under UCS = 2,200 THB/capita whereas under CSMBS = 12,100 THB/capita 76% 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!) National Social Protection Strategy aims to reach universal health care coverage by 2014, to strengthen existing schemes and continue extension of coverage to informal and formal sector workers. 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 Subsidized Health Insurance +11 million people covered Some social assistance (1.23% population) Horizontal dimension Vertical dimension

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 CARD’s National Social Protection Strategy for the Poor and Vulnerable (clear reference to the social protection floor) Community Based Health Insurance : limited coverage (100,000 people) NSSF and NSSF-C provide very limited scope of coverage 80% population

Table of contents 1.Make sure we are talking the same language: Social protection, social security and social transfers 2.What is the issue? The level of social protection coverage remains low, despite many arguments to justify the extension 3.The Social Protection Floor Initiative (SPF-I) 4.Relevance of the SPF & Staircase 5. key messages

Evidence emerges that a minimum package of social security benefits is affordable in even the poorest countries (recent work by the ILO on the cost of a minimum package in sub-Saharan Africa, Asia and Latin America). A SPF is possible from a financial and macro-economic point of view in every country (3 to 5 % of GDP). SP is rather a cost-effective investment in human capital. Message 1: Extending Social Protection is feasible and affordable At country level the ILO conducts SPER and social budget + fiscal space analysis + cost / benefit analysis of implementing basic social security benefits …

It is a set of guarantees Allows flexibility as to the delivery mode and combinations of different systems (universal, targeted, social insurance etc. ) to be shaped within a framework of nationally specific institutional structures, economic constraints, political dynamics and social inspirations It Provides an outcome focus The social transfer of the SPF part is a set of minimum outcome indicators rather than a prescriptive list of benefits Message 2: the SPF is a flexible and adaptable concept

HEALTH: China (urban & rural), India (RSBY), Thailand (UCS), Mexico (Seguro popular), Colombia (regimen subsidiado), Uruguay, Chile (plan AUGE), Burkina Faso, Rwanda … CCTs: Brazil (Bolsa Familia), Mexico (Oportunidades) Employment guarantee schemes: India (NREGA), Uruguay (Política de empleo promovido), Argentina (Plan jefes y jefas de familias) Social pensions: Brazil, South Africa, Bolivia (pension dignidad), Chile (pension basica solidaria), Thailand (500 Bath scheme), China (rural old age pension)… Elements of the SPF already exist in many developing countries (85) Comprehensive SPF: Brazil, Mexico, Chile, Uruguay Message 3: We do not start from scratch Examples from your countries?

Message 4: Access to a SPF has a positive impact on employability Easier to find a decent job Vocational training & other measures to increase employability more effective More employable & productive Availability & Access to essential services: -Housing, -Education/skills, -Health care supply, -Food/Nutrition, … Being fit & educated

Message 5: Access to a SPF should facilitate beneficiaries in WA’s return to employment The SPF is based on solidarity principles since basic levels of benefits and services are to be provided by society as a whole to those who, most in need, will use them. The SPF programs are meant to be at all times available but they should be designed in such a way that their beneficiaries in working age progressively graduate (access to higher levels of benefits and sustainable employment) Therefore, it is not a “hand-out”. By linking SPF with active labour market policies targeting vulnerable groups, informal economy workers and the self- employed, it facilitates return to employment.

Assess the present situation Gaps; performance of current schemes Prioritize; reach a national consensus… design and implement, to garantee sustainability Peer learning What next? Translating a federating concept into practice – Which role for CSOs?

Thank you!