Extending Social security to all: The ILO, the 100th ILC and the UN Social Protection Floor Initiative Show and Tell seminar Bonn, 5 May 2011 ILO Social Security Department, Geneva

Show and Tell 2011· slide 2 Outline A.Towards an ILO policy position: Regional and global consultation process ( ) B.Strategic and policy context C.Excursion: The UN SPF Initiative D.Back to the ILO: The Points for discussion at the 100th Labour Conference and the ideal outcome

Show and Tell 2011· slide 3 A. Regional and global consultation process on the ILO strategy for the extension of social security General Discussion at 90 th Session of International Labour Conference (2001), Social Security: A New Consensus (2001) Global Campaign on Social Security and Coverage for All (2003) Tripartite Meeting of Experts on Strategies for the Extension of Social Security Coverage, September 2009 Policy briefings: Social Security for All: Investing in Global and Economic Development (2006/2009), Social Health Protection (2008), Setting Social Security Standards in a Global Society (2008) Global consultations and policy documents Reunión regional tripartita sobre el futuro de la protección social en América Latina, Santiago de Chile, Chile (December 2007) Interregional Tripartite Meeting on the Future of Social Security in Arab States, Amman, Jordan (May 2008) Asia-Pacific Regional High-level Meeting on Socially-Inclusive Strategies to Extend Social Security Coverage, New Delhi, India (May 2008) 8th European Regional Meeting, Lisbon, Portugal (February 2009) Second African Decent Work Symposium, Yaoundé, Cameroon (October 2010) > Yaoundé Tripartite Declaration on the Implementation of the Social Protection Floor Regional consultations

Show and Tell 2011· slide 4 Regional and global consultation process on the ILO strategy for the extension of social security General discussion on social security during 90 th Session of the ILC Launch of the Global Campaign on Social Security and Coverage for All Reunión regional tripartita sobre el futuro de la protección social en América Latina (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 in a Global Society, 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/

Show and Tell 2011· slide 5 The 100 th International Labour Conference (June 2011): Report Story 1.…restates 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. 2.…requests support for the two-dimensional strategy for the extension of social security coverage and 3.= > possibly a mandate for a new instrument on the Social Protection Floor

B. Policy Context: The underlying development policy paradigm: “Growing with equity” …that could look as follows…: The virtuous cycle of development SPF Investments Schooling/Training Health Employable Employed in formal sector and paying taxes Higher levels of Social Protection

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, under- employed & poor Voluntary insurance 4. Income security Elderly & disabled *Focus on financial protection, not service components of the floor Context: The Social Protection Floor* in the ILO concept of overall national Social Protection Architecture

Translating the SPF definition into four guarantees and life cycle language 1.all residents have access to a nationally defined set of essential health care services; 2.all children have income security, at least at the level of the nationally defined poverty line level, through transfers in cash or kind aiming at facilitating access to essential goods and services, such as nutrition, education and care; 3.all those in active age groups who are unable to earn sufficient income on the labour markets should enjoy minimum income security through social assistance transfers aiming to achieve access to essential goods and services; 4.all residents in old age and with disabilities have income security at least at the level of the nationally defined poverty line through pensions/transfers in kind that guarantee access to essential goods and services.

The four guarantees mean Social assistance benefits Universal benefit Systems...can all ensure the same guarantees Social insurance+ Social assistance Residual targeted systems Universal Income systems

Show and Tell 2011· slide 10 C. Excursion: The UN Social protection Floor The SPF Initiative aims at joint global and local UN action to promote access to essential services and social transfers for the poor and vulnerable. It includes: –A basic set of essential social rights and transfers, in cash and in kind, to provide minimum income and livelihood security for poor and vulnerable populations and to facilitate access to essential services, such as health care –Geographical and financial access to essential services, such as health, water and sanitation, education, social work

1.With an investment of about 4% of GDP for basic social transfers, we can reduce the “food poverty” rate in low income countries by about 40%, a major contribution to achieve the MDG targets... 2.With an investment in essential health care for all, we can probably reduce “food poverty rates” by another 20%... 3.If and ONLY if national governments, national stakeholders, social partners, the UN, major donors, and NGOs act together, this potential can be exploited... The Rationale of the UN Social Protection Floor Initiative

Show and Tell 2011· slide 12 The roots … 1.Article 22 of the Universal Declaration of Human Rights states: “Everyone, as a member of society, has the right to social security” further explained by article 25 and echoed by the International Covenant on Economic and Social Rights (1966,1976) 2.As commented by the Committee on Economic, Social and Cultural Rights in 2008 which stated the need for –Progressive implementation of the right to social security while maintaining –a core obligation to select a core group of social risks and contingencies for immediate implementation 3.The ILO constitution charges the ILO with “...promoting programmes that will achieve...the extension of social security measures to provide a basic income to all in need of such protection and comprehensive medical care “ 4.The SPF for the first time defines the concrete core content of the Human Right to social security and to the ILO mandate

What else has been done so far? 3 Things… 1.One: Advocacy at global, regional, national levels => e.g. UNCSocD Resolution 2010, UN Millennium Summit, G8, G20, Yaounde Triparite Declaration, South South Dialogue, input to G20 2.Two:Country operations in Cambodia, Burkina Faso, Mozambique, Nepal, Togo, Benin, Vietnam... with other agencies and IMF on basis of joint UN manual 3.Three: High-level Social Protection Floor Advisory Group established under chairpersonship of Ms. Michelle Bachelet

Raising awareness National SPF Task force Social protection stocktaking Elaboration of measures AnalysisImplemen- tation Monitoring Burkina Faso Benin Togo Example Senegal Rwanda Cameroon Mozambique Ghana Zambia Haiti Thailand Cambodia Viet Nam Indonesia Lao PDR Argentina Developments at country level by SPF activity

Vietnam: Analysis of cost to close the SPF Gap

Show and Tell 2011· slide 16 Assessing potential poverty impacts (poverty gap in % of GDP)

Show and Tell 2011· slide 17 D. Back to the ILC: Points for discussion... 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?

Show and Tell 2011· slide 18 Further points for discussion and… 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? 6.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? 7.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.”

Show and Tell 2011· slide 19...ideal outcome Mandate in the conclusions for -A new recommendation of social protection /security for all (focussing on the two dimensional strategy...including the social floor); -Best practice guide for higher levels of protection -Expand activities re -knowledge generation and sharing, -technical advisory services, -capacity building and promotion of existing instruments notably C. 102