Social security for social justice and a fair globalization: Introduction Recurrent discussion on the strategic objective of social protection (social security): Social security for social justice and a fair globalization 100th Session of the International Labour Conference, June 2011

1 A definitional Apropos... This defines the scope of the discussion

2 A. Consultation process

Regional and global consultation process General discussion on social security during 90 th Session of the ILC Launch of the Global Campaign on Social Security and Coverage for All Regional meeting on the future of social security in Latin America (Santiago de Chile) Regional meetings in the Arab States (Amman), and Asia and Pacific (New Delhi) 8th European Regional Meeting (Lisbon) Arab Employment Forum (Beirut) Tripartite Meeting of Experts on Strategies for the Extension of Social Security Coverage 2nd African Decent Work Symposium, Yaoundé, (Yaoundé Tripartite Declaration on the Imple- mentation of the Social Protection Floor) Recurrent Discussion on Social Protection (Social Security), 100 th Session of the ILC Social security: A new consensus Policy consultation: Social Security for All: Investing in Global and Economic Development Policy briefings: Social Health Protection, Social Security Standards, Affordability of Basic Social Security Social Protection Floor Initiative reflected in Global Jobs Pact and endorsed by UN CEB Independent evaluation of the ILO´s strategy to extend the coverage of social security World Social Security Report 2010/11

Key documents Policy papers Social Security for All; Social Health Protection, Social Security Standards, Affordability of Basic Social Security World Social Security Report first edition: 2010/11 Policy guidance and case studies Extending Social Security to All Sharing innovative experiences ILO governance Independent evaluation of the ILO’s strategy to extend the coverage of social security 4 Social security facts ILO performance

5 The report Report VI: Social security for social justice and a fair globalization Report available on ILC website in English, French, Spanish, Arabic, Chinese, German and Russian n/reports/lang--en/index.htm

6 B. Main messages of the report

7 Main messages of the report (1) Chapter 1: The right and the need for social security Social protection benefits are the most powerful, most direct tool for reduction of poverty and investments in social and economic development, and a key tool to achieving MDG targets. Chapter 2+3: The global state of social security, present challenges and policy responses The coverage challenge Only 20% enjoy comprehensive coverage, but a quiet revolution taking place in the Global South The adequacy challenge Spending 8.4 % of global GDP* and not enough to fight poverty, but... The financing challenge...there is some fiscal space... *weighted by population

Social security coverage (example: pensions) : Statutory and effective coverage 8

Social security expenditure 9

10 Main messages of the report (2) Chapter 4: Main issues for the future of social security 1)Ensuring social and economic policy coherence Social protection to be part of a coherent development paradigm 2)Ensuring affordability and fiscal sustainability Basic elements of social security affordable nearly in all developing countries; ageing manageable by appropriate intra- and extra social security policies in “older” countries 3)Designing, governing and managing efficient and effective social security systems Ensuring effective design of new emerging social assistance schemes; social stabilisation of schemes in industrialised countries

11 Main messages of the report (3) Chapter 5: Future policy orientation for the Organization 1)Strategies to extend social security coverage The two-dimensional strategy for the extension of social security coverage; development of a mechanism to promote the guarantees of the Social Protection Floor 2)Strategies to ensure sustainability ensuring economic, social and development policy coherence ensuring social adequacy ensuring financial economic and social sustainability ensuring good governance

The ILO‘s two-dimensional strategy for the extension of social security coverage 12 individual/household income Social Protection Floor * Access to essential health care and minimum income security for all Contributory social security benefits of guaranteed levels Voluntary insurance under government regulation Level of protection high low Horizontal dimension: Guaranteeing access to essential health care and minimum income security for all Vertical dimension: progressively ensuring higher levels of protection guided by C.102 and higher-level standards * in addition to access to services which is also part of the UN Social Protection Floor Initiative

Minimum income security and access to essential health care can be achieved by different delivery systems social assistance social insurance universal systems combination of these+others 13 national choice nationally guaranteed outcomes

14 C. Discussion in the Committee

...and finally suggested points for discussion (Chapter 6)... 1.What is the role of social security in promoting economic growth and social development? How can social security, in coherence with other policies, contribute to increase participation in formal decent and productive employment, ensure income security, and accelerate the achievement of the MDGs? What role are social security measures playing in the economic crisis recovery in the context of the Global Jobs Pact? 2.Which policies contribute best to the extension of adequate social security coverage at all levels of development? How can governments, workers and employers collaborate to put into effect these policies? How can the ILO’s two-dimensional strategy for the extension of social security best support their efforts? How could the gender dimension be strengthened in policies to extend the social security coverage? 3.Which policies can ensure the affordability, adequate financing arrangements (such as pay-as-you-go funded schemes, prefunded individual savings accounts or different combinations of both) and sustainable fiscal space for inclusive and effective social security systems in a context of demographic, economic and social change?

... suggested points for discussion 4.How can governments, workers and employers contribute to enhancing the design, governance, and administration of social security systems? How can institutional frameworks be improved to support these efforts? 5.What is the role of ILO standards in further promoting the extension of social security coverage for all? What further measures should be taken to enhance the ratification and application of Convention No. 102 and other up-to-date ILO social security standards? What further instruments or other mechanisms (conventions, recommendations, guidelines, codes of practice, etc.) could be developed to guide the implementation of the social protection floor in the context of the two-dimensional strategy for the extension of social security for all? 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.”

Possible outcome: ”Provide guidance on how the Organization and the Office can respond more effectively and efficiently to address constituents’ needs…” through (1) supporting national policy development by: (a) developing a new generic guiding mechanism for the extension of population coverage to all (b) developing a new strategy to ensure the adequacy and effectiveness of social security through the use of existing ILO standards (2) supporting improved governance of social security by: (a) ensuring sustainability through financial, actuarial and fiscal advisory services (b) generating and disseminating knowledge and capacity building, including strengthening social partners’ capacity 17