International Labour Office 1 Expert Group Meeting Policies to advance Social Integration New York, 2-4 November 2009 Griet Cattaert – Michael Cichon Social Security Department International Labour Office Universal access to essential social transfers and services is a sine- qua-non condition for all efforts to integrate people

International Labour Office 2 1. The need for social security 2. The right to social security 3. Recent developments in the UN and ILO global mandates: Social Protection Floor 4. Emerging policy framework for adequate social security 5. Affordability, impact and international experience Agenda

International Labour Office 3 1. The need for social security Social security benefits/transfers are a powerful tool to combat poverty and insecurity Nobody is an island. Every person and every family needs protection from social risks and resulting insecurities. Risks have to be shared on a group or national basis to ensure effective protection Some groups are more vulnerable than others, e.g. the chronically poor, agricultural workers, children and the elderly, and they have special needs It is clear that guaranteeing income security and access to health would allow all people to deal with most significant risks … Social security systems are an economic necessity to unblock the full economic potential of a country Social security systems are economic stabilisers in times of crisis Basic systems are affordable nearly everywhere And yet, still 75-80% percent of the global population do not enjoy a set of social guarantees that allow them to deal with life s risks …

International Labour Office 4 2. The right to social security … Article 22 of the Universal Declaration of Human Rights states: Everyone, as a member of society, has the right to social security Even after almost 60 years that still remains a dream for 80 per cent of the global population The ILOs Declaration of Philadelphia laid out for the ILO to further among the nations of the world programmes which will achieve…. the extension of social security measures to provide a basic income to all in need of such protection and comprehensive medical care. Confirmed by the ILO Declaration on Social Justice for a Fair Globalization in 2008 ILO conventions define the range and levels of essential social security benefits

International Labour Office 5 3. Social Protection Floor In times of crisis, transfer incomes, notably social assistance and social security benefits paid to unemployed workers and other vulnerable recipients, act as social and economic stabilizers. Benefits and guaranteed access to services not only prevent people from falling further into poverty but also limit the contraction of aggregate demand thereby curtailing the potential depth of the recession. In April 2009, the UN Chief Executives Board (CEB) accepted establishing a social protection floor as one of its initiatives to cope with the global crisis

International Labour Office 6 Social Protection Floor A social protection floor could consist of two main elements: Essential services: effective access (geographical and economic access) to essential services such as – Water and sanitation – Food and adequate nutrition – Health – Education – Housing – Other social services such as life and asset saving information Essential social transfers: i.e. social transfers, in cash and in kind, delivered to – Children. – People in active age groups with insufficient income – Older persons

International Labour Office 7 Social Protection Floor A social protection floor could consist of two main elements: Essential services: effective access (geographical and economic access) to essential services such as – Water and sanitation – Food and adequate nutrition – Health – Education – Housing – Other social services such as life and asset saving information Essential social transfers: i.e. social transfers, in cash and in kind, delivered to – Children. – People in active age groups with insufficient income – Older persons

International Labour Office 8 Social Protection Floor Both activities for the supply side (essential services) and the demand side (essential transfers) must take into consideration particular characteristics of population groups in terms of gender, socio-economic status, disabilities, ethnicity etc. to ensure inclusion of the most vulnerable. The emerging policy issues to establish a social protection floor can be summarized in a set of core questions. How can a basic level of social protection for all - including first and foremost the most vulnerable - be designed and implemented at country level? How can such policies and measures be made compatible with the necessity to build a long-term sustainable architecture of national social protection systems? How can the fiscal space for social transfers be secured or increased? How can cooperation between agencies on the new Social Protection Floor initiative of the CEB be made more effective?

International Labour Office 9 4: … an emerging policy framework for adequate social security for all : A set of principles … Universality Progressiveness (building progressively higher levels of protection + coverage) Pluralism (in organization and financing) Outcome (not process) focus on Universal coverage Benefits as of right Actuarial equivalence of contributions and benefits Sound financing Responsibility of governance by state and social partners

International Labour Office 10 4: … an emerging policy framework for adequate social security for all : A paradigm for national action … The social security staircase

International Labour Office 11 4: The horizontal dimension -- The social security component of the social protection floor that could consist of four essential social security guarantees: all residents have … access to a nationally defined set of essential health care services all children have income security, at least at the level of the nationally defined poverty line level, through family/child benefits aimed at facilitating access to nutrition, education and care 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 … all residents in old age and with disabilities have income security at least at the level of the nationally defined poverty line through pensions for old age and disability

International Labour Office 12 Five: Affordability, impact and international experience A basic package of modest pensions and child benefits can reduce the poverty head count by 40 per cent in poor developing countries at a cost of 3-4 per cent of GDP In Latin America the cost of a modest package of conditional child cash transfers, universal pensions and basic health care can be kept under 5 per cent of GDP; the poverty headcount effects can reach a reduction of more than 50 percent.

International Labour Office 13 Global extension of Social Security - GESS GESS is a global knowledge sharing platform on the extension of social security. It aims to capitalize on experiences, identify knowledge gaps, create new knowledge and promote innovation