1. Some Remarks on Coordinating Employment and Social Protection Policies
Phnom Penh, Nov. 2011
Helmut Schwarzer

2. Social Protection and Employment as Part of a Development Paradigm
Social and Employment Policies (SPF included) shall be integrated into National Development Plans
Challenge of building an inclusive and employment-generating growth within the globalization
This requires competitiveness and a strong social and political consensus: growth engines, macroeconomic stability, fiscal and social pacts
This also requires strengthening the public sector: regulation, organization, analytical capabilities

3. Coordinated Management
Employment
policies
Social Prot.
Challenge of
coordinating
different institutional
cultures
- Coordination of services
and transfers (synergies)
- Data bases
- Unification of services
Coordination of
supervision/ inspection

4. Employm, Income and Formali-sation Larger Taxation Basis
Coordination with
policies that
strengthen the local
offer of consumed
goods.
Employm, Income and Formali-sation
Larger
Taxation
Basis
Financing of social and develop-ment policies
Less poverty and inequity, more purchasing power
Domestic market stronger and more dynamic
Fight against
evasion
Higher
income
Should
increase
demand for
domestic
production
Higher expenditure
efficiency, less
administrative costs,
more impacts on
the ground.
Social policies
should be
redistributive,
diminish
vulnerability.

5. Virtuous Linkages of Social Protection and Economic Development
Backward Linkages of Social Protection
Forward Linkages of Social Protection
Inspired by Albert O. Hirschman’s « Linkages Approach » from Development Economics

6. Forward Linkages of Social Protection
Schooling, Training, Employability
Individual and Collective Health
Enhances Competitiveness
Human Capital Building
Benefits usually spent on Consumption
Strengthens Domestic Markets
Iterations increase GDP
Income Generation
Generates Economic Activities which pay taxes and partially « reimburse » expenditure
Strengthening Growth Engine increases taxation basis
Fiscal Linkages
Poverty Relief/Social Mobility increase Consensus & Support for Development Model
Mitigates Impact of Crisis
Allows for taking Risks
Social Cohesion and Stability

7. Backward Linkages of Social Protection
Social and Employment Services generate jobs, usually of good level
Strong share of female employment
Employment Generation in Social Services
Enforcement and Compliance Mechanisms increase Application of Decent Work standards
Labour Standard Setting and Enforcement
Possibility of CashTransfers increases Wage Levels
Public Policies organize/regulate private Markets
Existence of Social Transfers and Services has effects on private markets

8. The Latin American Experience with SPF Programmes and Coordination

9. Latin American Experiences:
Conditional Cash Transfer Schemes
Brazil (Bolsa Família), Mexico (Oportunidades)
Non-Contributory Pensions
Social Assistance Pensions, Universal Benefit (Bolivia), Rural Pensions (Brazil)
Innovations on Health Services
Universal Health in Brazil
Regimen Subsidiado in Colombia
Integration of Benefits with Services
Brazil SUAS, Chile Protege, Mexico Vivir Mejor, Uruguay Plan Equidad
Integration of Contributory and Non-Contributory Benefits
Chilean Solidaric Pension, Argentinean Child Benefit

10. Bolsa Família Program: Goals
Supplementary programs
Monetary benefit
Conditionality
Income guarantee:
Immediate poverty alleviation
Supports the exercise of social basic rights (education, health)
Break-up with the intergenerational poverty transmission cycle
Opportunity for the development of families

11. Conditional Cash Transfer Programs
Search of integration: “Bundling/Coordinating” Transfers and Services
Evolution from the old “Social Safety Nets”
CCTs have goal of building human capital, so long term permanence of beneficiaries is seen as positive
Argentina and Uruguay have evolved and extended the Family Benefit of Contributive Social Security to Informal Sector
Cost: approx % GDP

12. An example of “Coordinating”: Mexico’s VIVIR MEJOR: PROGRAMAS SEDESOL1
Develpment of Basic Habilities
Social Protection Network
Social and Economic Development Bridges
Environmental development
Nutritional
Programs
PAIMEF
INDESOL
Regularization of
Irregular land
possession
Tu Casa
(Your House)
Vivienda Rural
(Rural Home)
Rescate de
espacios
públicos
Fonart

13. Bolivia: The Renta Dignidad Universal Old Age Benefit
Introduced 2008, replaced Bonosol which comes from Pension Reform.
Covers all Bolivians aged 60 or more living in Bolivia (Universal coverage)
Benefit per person/year: US$ 340 (if no contributory benefit is collected by the person) or US$ 250 (if person receives contributory benefit).
Funded by tax on oil and gas exploration and revenues from key Bolivian companies (% of shares owned by Bolivian State after privatization in the 1990s).
Covers persons (97% of target population).
Integrated with Bono Juancito Pinto and Juana Azurduy (CCTs for children and pregnant women).
7% reduction of poverty, 10% reduction of extreme poverty.

14. Lessons from Latin American Countries
To develop a mix of contributory and non-contributory schemes, coordinated, according to national conditions
To search potentials and linkages between different policies
To build strong targeting instruments in order to improve the cash transfer effect on poverty
To build a unified database, share information