International experiences to support working age groups Valerie Schmitt Celine Peyron Bista Alice Molinier, ILO Friday, 16th March, 2012

LabourNet in Bangalore Providing income security for the working age population Towards a better employment guarantee?

A combination of services… LabourNet Registrating workers and providing ID cards to them Facilitating access to social services and insurance It registers workers and provide proper identification card to Micro and Small Entrepreneurs (MSE) and workers Access to some social security schemes offered by the Government, access to health insurance, child care centers for children Ability to open formal bank account. Which gives them the means to save money and/or to take loans to develop their SME Increasing employability and productivity It provides trainings to all workers and MSEs in the center and through videos The trainings are certified through the Modular Employable Skills program set up by the Indian government. Creating linkages between I.E. workers and job opportunities

…with appropriate use of technologies… LabourNet

… that aims to reach financial sustainability LabourNet 3 main sources of revenue : Registration fee of Rs 100 from the MSE and Rs 150 from employers Transaction fee of 5% from the MSE Transaction fee of 10% from the employer

Providing Income Security for the Farmers Towards a better employment guarantee?

Why is income security essential for farmers? Farmers face a variety of risks that make their incomes unstable and unpredictable from year to year. Farmers’ Incomes Seasonality Risks linked to the individual Production risks Price fluctuations How can we ensure income security for farmers?

Thailand Overview: Three Schemes Persons Covered Description Contingencies Covered Rice Pledging Scheme Rice producers Government purchases rice from farmers at a fixed price: 15 000 THB/ ton, max 40 tons/ harvest Price fluctuations Crop Insurance Scheme National scheme to assist people affected by natural disasters Farmers and government contribute to the scheme Production risks linked to natural disasters BAAC All farmers BAAC provides loans to farmers in case of natural disasters

Income Security for Farmers: Learning from International Practices Countries Scheme Description Contingencies covered United States Crop Revenue Coverage Farmers can contribute to a national fund Compensated for falls in revenue Price fluctuations India National Agricultural Insurance Scheme National insurance scheme Compulsory for all farmers who take agricultural loans Any shortfall in yield (compared to prev. 5 years average yield) is compensated Production risks Tanzania AMSDP, The Warehouse Receipt Farmers can stock their production in a warehouse when the market price is low. In exchange they receive a receipt that they can use to get credit. When prices are high they destock and reimburse the credit Seasonality + Price fluctuations World FairTrade FairTrade companies purchase the product at a minimum price

France: Universal Services Employment Vouchers Providing social security benefits for workers in informal economy

SOCIAL SECURITY OFFICE How does it work? 7. Withdraws E+W contributions BANK SOCIAL SECURITY OFFICE 1. Registers W + bank details 2. Buys CESU (net wage) EMPLOYER 6. Sends CESU stubs 3. Provides services, work 5. Converts CESU into cash 4. Pays with CESU 8. Provides SS benefits WORKER

Multiple benefits for all parties… A way to increase workers’ protection and access to social benefits A way to personalize domestic/care services A way to simplify the procedures to declare workers A way to save money: tax-deductible for employers A way to “formalize” the informal

SOCIAL SECURITY OFFICE Possible adaptation SOCIAL SECURITY OFFICE 1. Registers W BANK 2. Buys CESU (price comprises E+W contributions) EMPLOYER 3. Provides services, work 5. Converts CESU into cash 4. Pays with CESU 6. Provides SS benefits WORKER

Chile Solidario A contract between housholds and the Government for better protection & employment guaranee

Interesting features it is an institutional structure rather than a program, that aims to coordinate programs to lift families out of poverty Operational structure highly decentralized a long-term psychosocial support, the families are followed by a social worker during 24 months based on a “Family contract” Multidimensional approach to poverty Linkages between social protection and employment : the social workers facilitated the creation of an integrated package of programs tailored to meet the needs of households Evaluation procedure to decide on continuity of the support and budget allocation

How does it work The most innovative aspect of Chile Solidario is the personalized intervention in each family A social worker accompaniment for 24 months : 21 home visits sessions with decreasing intensity after the first 6 months. Links to other social assistance programs: the social worker provides information, referral and assistance to access complementary services (social assistance, health, education, housing, family support services, drug prevention and rehabilitation, technical help for disabled people, support for violence situation,), links to employment or income-generating programs, and transfers. Development of the supply side: the social workers inform the municipalities about the demand of additional services not existing yet to ‘bridge’ the demand gap, including size, volume etc... The social worker develops an exit strategy with the families The development of family contracts : the counselor and the family develop a strategy (contract) based on a “game” methodology The objective is to meet 53 minimum conditions grouped into seven pillars: health, work, education, family dynamics, housing, identification-documentation, and income.