Social security for Social Justice and a fair globalisation ITC Turin February 2012

Social security coverage: Statutory and effective coverage

Pension coverage: 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

Extending social security to all – the options Option 1: Extending classical social insurance no cross-subsidization of non-covered part of the population; primarily designed for the formal sector and hence will not easily reach more than a portion of the total population, but recently showed some potential to extend health coverage to the informal sector through premium subsidization (e.g. Ghana)

Extending social security to all – the options Option 2: Introducing community based social/mutual insurance schemes springing up in Africa and Asia, covering 40 million people now offers some possibility to increase resource base largely for health care offers a chance to empower demand side some possibility to tax the informal sector = is a step forward to formalisation, but is no stand-alone solution: requires financial links to national or international sponsor agencies

Extending social security to all – the options Option 3: Extending tax financed schemes (conditional, unconditional, means-tested, universal often called social transfers can reach out to entire population subgroups (presently worldwide at least 150-200 million people covered) requires some basic logistical capacity some level of social security can be afforded by all probably the biggest potential

individual/household income The ILO‘s two-dimensional strategy for the extension of social security coverage endorsed: The progressiveness of protection 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

SPF concept and definition 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

Possible contents of the SPF: Four nationally-defined guarantees TRANSFERS in cash or in kind have access to a nationally defined set of essential health care services all residents should enjoy minimum income security through transfers in cash or kind aiming at facilitating access to essential goods and services, such as nutrition, education and care all children should enjoy minimum income security through social assistance transfers aiming to achieve access to essential goods and services active age groups unable to earn sufficient income in the labour market should enjoy minimum income security through pensions/transfers in kind that guarantee access to essential goods and services all residents in old age and with disabilities  Outcome-oriented approach taking account of national conditions, priorities and institutions Transfers in cash and in kind should guarantee geographical and financial access to essential services such as water and sanitation, health, and education

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 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. Horizontal dimension: Guaranteeing access to essential health care and minimum income security for all

Point Two: Summary of results of the ILC 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) Endorsement of ILO two-dimensional strategy for the extension of social security coverage Discussion on a possible Recommendation on Social Protection Floors at ILC 2012 Reaffirmed mandate for ILO to assist member States in the extension of social security coverage and building social security systems, including Technical assistance to support design and implementation of two-dimensional extension strategy, including Social Protection Floor Assistance in promotion and implementation of ILO social security standards (notably C. 102) Facilitation of exchange of experiences and good practices, including development of a good practices guide Capacity building for designing, managing and governing of social security systems

Possible Recommendation on Social Protection Floors according to Conclusions (ILC 2011) Flexible but meaningful guidance to member States in building Social Protection Floors within comprehensive social security systems 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 The Recommendation should... focus on extension of social security coverage to wider groups of the population emphasise national ownership and flexibility: strategies 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