International Training Centre of the ILO Turin, 17 October 2012 Moving ahead with the extension of social security: The ILO Social Protection Floors Recommendation, 2012 International Training Centre of the ILO Turin, 17 October 2012

Structure of the presentation Why do we need social protection and where do we stand as regards social protection coverage The ILO Strategy to extend Social Protection to all: the process leading towards the adoption of the Recommendation, 2012 The Social Protection Floors Recommendation, 2012: Structure and content Significance of the new instrument

Point one Why do we need social protection and where do we stand as regards social protection coverage

Extending social protection to all Social security is a human right Article 22 of the Universal Declaration of Human Rights states: “Everyone, as a member of society, has the right to social security” Article 25: Everyone has the right to a standard of living adequate for health and well being for himself and of his family Social security is a social necessity Economic growth does not automatically reduce poverty Social security transfers are a powerful tool to reduce poverty and inequality reduce poverty by at least 50% in almost all OECD countries, All socially and economically stable societies have extensive social security systems Social security is an economic necessity Access to social health protection and education improves productivity levels an has a positive impact on growth The famous trade-off between efficiency and equity is a myth. Cash transfers in developing countries have multiplier effects on local markets Social security benefits are widely recognised as social and economic stabilisers in times of crises

ILO Global campaign on Social Protection “Social protection has proven to be a powerful anti-crisis measure. It protects and empowers people, and contributes to boosting economic demand and accelerating recovery. It is also a foundation for sustainable and inclusive economic growth,” ILO Director-General Juan Somavia

Social security coverage: Statutory and effective coverage

The global state of social security coverage and recent policy initiatives 80 % of the world population do not have access to comprehensive coverage 30% of the population do not have access to essential health care 60% of the elderly do not receive a pension 50% of children are living in poverty, many lack access to health and education National social security strategies, based on social dialogue Strengthening social health protection Social security coverage gap Social pension programmes Child and family benefits

Point two The ILO Strategy to extend Social Protection to all

Where did we come from.... Milestones Yaoundé Triparite declaration 2001 ILC General discussion: New Consensus on Social Security 2003- Global Campaign for Social Security and Coverage for All 2005-2008 Policy papers and policy consultations 2007-2010 Regional consultations and tripartite expert meeting 2011 ILC Recurrent discussion: Resolution and Conclusions on social protection (social security) 2012 ILC Standard-setting discussion on a new Recommendation on Social Protection Floors Milestones Yaoundé Triparite declaration October 2010

Summary of results of the International Labour Conference 2011 and follow-up Resolution and Conclusions on social protection (social security) adopted by the tripartite delegations represented at International Labour Conference (183 member States) Deepening the ‘new consensus on social security’ (2001) and putting it into broader context of the Decent Work Agenda Endorsement of the ILO’s two-dimesnional strategy for the extension of social security coverage Underlining importance of Convention 102 and other ILO social security standards Agreement on the need to discuss a possible Recommendation on Social Protection Floors at ILC 2012 Reaffirmed mandate for the Office to assist member States in the extension of social security coverage and building comprehensive social security schemes

individual/household income Effective national social security extension strategies: Building comprehensive social security systems individual/household income Access to essential health care and minimum income security for all social security benefits of guaranteed levels Voluntary insurance under government regulation Level of protection high low Higher levels min. c102 Vertical dimension: progressively ensuring higher levels of protection guided by C.102 and higher-level standards Floor level Horizontal dimension: Guaranteeing access to essential health care and minimum income security for all

Pluralism of means –principal option I individual/household income Social assistance Voluntary insurance under government regulation Level of protection high low Higher levels min. c102 Vertical dimension: progressively ensuring higher levels of protection guided by C.102 and higher-level standards Social insurance Floor level Outcomes can be guaranteed through different means – there is no one-size-fits-all Horizontal dimension: Guaranteeing access to essential health care and minimum income security for all

Pluralism of means –principal option II individual/household income Universal benefits Voluntary insurance under government regulation Level of protection high low Higher levels min. c102 Vertical dimension: progressively ensuring higher levels of protection guided by C.102 and higher-level standards Social insurance Floor level Soc ass. Outcomes can be guaranteed through different means – there is no one-size-fits-all Horizontal dimension: Guaranteeing access to essential health care and minimum income security for all

Guidance on possible Recommendation on Social Protection Floors according to Conclusions (ILC 2011) (1) Flexible but meaningful guidance to member States in building social protection floors within comprehensive social security schemes Tailored to national circumstances and levels of development Promotional and gender-responsive Should be applied by all member States, using different methods and according to their own needs, resources, and their time frame for progressive implementation

Guidance on possible Recommendation on Social Protection Floors according to Conclusions (ILC 2011) (2) The Recommendation should… encourage member States to design, through an effective national social dialogue process, a social security strategy seeking to progressively close coverage gaps and built a comprehensive social security system emphasize national ownership and flexibility: strategies should be country-led and responsive to national needs, priorities and resources set out principles for the design and implementation of such strategies encourage the implementation of effective monitoring mechanisms encourage ratification and effective implementation of C.102 and other ILO social security standards

Elaboration of the proposed Recommendation for the ILC 2012: Consultation process June 2011 ILC Recurrent Discussion on social protection (social security) Resolution and conclusions concerning the recurrent discussion on social protection Decision on standard-setting item (single discussion) at ILC 2012 (GB) August 2011 Law and practice report (white report) Summary of law and practice in member States Questionnaire on possible Recommendation on social protection floors (deadline: 1 November 2011) March 2012 Final report (blue report) Summary of Member responses to questionnaire (2A) Office commentary (2A) Office draft of proposed Recommendation (2B) June 2012 ILC standard-setting discussion (single discussion) Discussion of amendments Adoption of Social Protection Floors Recommendation Replies from 118 member States Vote: 453 votes in favour, 1 abstention Resolution and conclusions ILC 2011 Questionnaire please submit before 1 Nov 2011 Social Protection Floors Recommendation

Point three The Social Protection Floors Recommendation 2012: Structure and Content

Social Protection Floor Recommendation at a glance Preambule Social Security as human right and social and economic necessity Reference to various international instruments I. Objectives, scope and principles Objective and scope Definition of national social protection floors Principles II. National social protection floors Definition of basic social security guarantees Legal Foundations Establishment and review Provision Financing III. National Strategies for the extension of social security Prioritize implementation of national SPFs Progression to higher levels of protection Building and maintaining social security systems Policy coherence ILO social security standards IV. Monitoring National monitoring National consultations International exchange of information, experiences and expertise

Objective: National social protection floors Provides guidance to members to (b) Implement social protection floors within strategies for the extension of social security that progressively ensure higher levels of social security to as many people as possible, guided by ILO social security standards nationally defined sets of basic social security guarantees which secure protection aimed at preventing or alleviating poverty, vulnerability and social exclusion (a) Establish and maintain, as applicable, social protection floors as a fundamental element of their national social security systems

National definition of minimum levels National social protection floors: At least four nationally-defined guarantees The social protection floors should comprise at least the following basic social security guarantees: access to a set of goods and services constituting essentail health care basic income security for children basic income security for persons in active age unable to earn sufficient income basic income security for persons in old age National definition of minimum levels Guarantees should be provided to at least all resident and children, as defined in national laws and regulations, subject to Members’s existing international obligations

Principles overall and primary responsibility of the State universality of protection, based on social solidarity Transparent, accountable and sound financial management and administration regular monitoring of implemen- tation and periodic evaluation entitlement to benefits prescribed by national law solidarity in financing and fair balance of interests Involvement of social partners and consultations with other stakeholders respect for the rights and dignity of persons covered by guarantees Full respect for collective bargaining and freedom of association high-quality public services coherence with social, economic and employment policies adequacy and predictability of benefits diversity of methods and approaches progressive realization, including by setting targets and timeframes financial, fiscal and economic sustainability Efficiency and accessibility of complaint and appeal procedures social inclusion including of persons in the informal economy0 non-discrimination, gender equality and responsiveness to special needs Coherence across institutions responsible for the delivery

National Social Protection floors: Pluralism of approaches national choice social assistance social insurance universal systems combination of these and others Most effective and efficient combination of benefits and schemes in national context (para.9(1)) Note on terminology: The Social Protection Floor = global concept A/The (national) Social Protection Floor = a set of national Social Protection Floor guarantees = national realisation of the global concept in a given country (National) social protection floors = collective reference to several national sets of national Social Protection Floor guarantees in several countries Therefore: possible Recommendation on Social Protection Floors nationally guaranteed outcomes Benefits may include child and family benefits, sickness and health-care benefits, maternity benefits, disability benefits, old-age benefits, survivors’ benefits, unemployment benefits and employment gaurantees, and employment injury benefits as well as any other social benefits in cash or in kind (para.9(2))

National social security extension strategies: Formulation and implementation set objectives reflecting national priorities identify gaps in, and barriers to, protection seek to close gaps in protection through appropriate and effectively coordinated schemes complement social security with active labour market policies specify financial requirements and resources, time frame and sequencing for the progressive achievement of the objectives Raise awareness about social protection floors and their extension strategies support disadvantaged groups and people with special needs support growth of formal employment and the reduction of informality consistent with and conductive to the implementation of national social and economic development plans

National social security strategies: Normative orientations Members should… aim to achieve the range of benefits level of benefits specified in these instruments in building national social security systems consider, as early as national circumstances allow, ratification giving effet to these instruments Other ILO social security Conventions and Recommendations setting out more advanced standards Social Security (Minimum Standards) Convention, 1952 (nº 102)

Monitoring Nationally-defined monitoring mechanisms and national consultations Collection, compilation and publication of social security data, statistics and indicators Legal framework to protect private individual information Taking into consideration relevant guidance provided by ILO and other international organisations Exchange of information, experience and expertise among members and with ILO Technical assistance from ILO and others involving social partners and, as appropriate, other stakeholders

Point four Significance of a Social Protection Floor Recommendation

Significance of a Social Protection Floors Recommendation at the national and global level National level Contributes to… Reducing poverty and promoting social cohesion and investments in people Giving effect to the human rigth to social security by establishing legal entitlements Faciltating access to essential goods and services Promoting productive economic activity and reduction of informality and precariousness Providing framework for national social protection policies in close coordination with economic, employment and other social policies Strengthening national dialogue, institutional frameworks and state-building Global level Contributes to… Accelerating progress towards achieving the MDGs Promoting rights-based development policies Building sustainable institutional structures in poor countries Fostering policy coherence and coordination, and deepening multilateral collaboration

SPF as development strategy Investments in the social protection floor Higher levels of social protection The virtuous circle of the social protection floor and development Employees paying contributions or taxes Education/training Health, food Human capital  ”Employability”

Reference documents ILO two-dimensional strategy and adoption of Social Protection Floors Recommendation ILO Recommendation concerning national floors of social protection (Social Protection Floors Recommendation), 2012 (No. 202), www.ilo.org/ilc/ILCSessions/101stSession/ reports/provisional-records/WCMS_183326/lang--en/index.htm Social protection floors for social justice and a fair globalization, Report IV(2A and 2B), 101th Session of the International Labour Conference 2012, www.ilo.org/ilc/ILCSessions/101stSession/on-the-agenda/social-protection-floor/lang--en/index.htm Social protection floors for social justice and a fair globalization, Report IV(1), 101th Session of the International Labour Conference 2012, www.ilo.org/wcmsp5/groups/public/@ed_norm/@relconf/documents/meetingdocument/wcms_160210.pdf Report of the Committee for the Recurrent Discussion on Social Protection (including Resolution and Conclusions), 100th Session of the International Labour Conference, Provisional Records No. 24), www.ilo.org/ilc/ILCSessions/100thSession/reports/provisional-records/WCMS_157820/lang--en/index.htm Social security for social justice and a fair globalization , 100th Session of the International Labour Conference, Report VI, www.ilo.org/ilc/ILCSessions/100thSession/reports/reports-submitted/WCMS_152819/lang--en/index.htm More general ILO, 2010: World Social Security Report 2010/11: Providing coverage in the time of crisis and beyond (Geneva: International Labour Office), www.socialsecurityextension.org/gimi/gess/RessFileDownload.do?ressourceId=15263 ILO, 2010: Extending social security to all. A guide through challenges and options (Geneva: International Labour Office), www.socialsecurityextension.org/gimi/gess/RessFileDownload.do?ressourceId=16152 Social Protection Floor Advisory Group, 2011: Social protection floor for a fair and inclusive globalization (Geneva: International Labour Office), www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/---publ/documents/publication/wcms_165750.pdf UNDP, Special Unit for South-South Cooperation, and ILO, 2011: Sharing Innovative Experiences: Successful Social Protection Floor Experiences (New York and Geneva: UNDP, Special Unit for South-South Cooperation and ILO), www.socialsecurityextension.org/gimi/gess/RessFileDownload.do?ressourceId=20840 See also GESS web portal: www.social-protection.org/

Thank you for your attention

Group discussion: ... You are in a developing country with a small formal sector ...and a tax to GDP ratio of say 15% The Minister of Welfare Planning Group: Give a number of good reasons why your country should invest in social security The Minister of Finance Planning Group: Give a number of good reasons why you cannot invest in social security Advisors to the Prime Minister List the information in addition to the arguments from the two Groups that would be necessary to make a rational decision 31 31