1. Rights in Crisis: Older Persons’ Social and Economic Rights during the Global Recession
Human Rights Social Forum
United Nations, Geneva, 1 April 2014
Isabel Ortiz
Director Social Protection Department
International Labour Organization

2. Crisis Transmission Channels
Older Persons Affected by Global Crisis (I):
Crisis Transmission Channels
Income and Employment
Pension reforms
Negative returns from pension funds
Household family income affected by unemployment and wage cuts
Decreased demand for migrant workers, lower remittances
2. Prices
Basic food, agricultural inputs
Fuel
Medicines, drugs
3. Assets and Credit
Loss of savings due to bank failures
Loss of savings due to coping mechanisms
Home foreclosures
4. Government Spending on Social Sectors
Education
Health
Social security
5. Aid Levels - ODA

3. The Right to Social Security – Old Age Pensions:
A Right Unfulfilled for most
Source: ILO, World Social Security Report 2014 (forthcoming)

4. The Main Source of Older Persons’ Income is Work – But Labour Demand Falling
Employment to Population Ratios
Source: Ortiz and Cummins A Recovery for All. UNICEF.

5. now under reform because of austerity policies
Only in OECD countries the main source of income for older persons are public pensions...
now under reform because of austerity policies
Source: ILO, World Social Security Report 2014 (forthcoming)

6. Older Persons Affected by Global Crisis (II):
Higher Food Prices
Source: Ortiz and Cummins A Recovery for All. UNICEF

7. Older Persons Affected by Global Crisis (III):
Public Expenditures in Crisis Phase I ( ) –
Fiscal Expansion
Social Protection 25% Fiscal Stimulus Plans
Source: Ortiz and Cummins The Age of Austerity. IPD and the South Centre

8. Women Affected by Global Crisis (III cont.):
Countries Contracting Public Expenditures During Second Phase Crisis (2010 onwards)
Number of Countries Contracting Public Expenditures as a % GDP,
131
132
119
122
111
106 68 55 89 91 94 90 37
Source: Ortiz and Cummins The Age of Austerity. IPD and the South Centre - based on IMF’s World Economic Outlook (October 2012)

9. How are Expenditure Cuts Affecting Older Persons
How are Expenditure Cuts Affecting Older Persons? Austerity Measures in 174 Countries,
119
100 98 94 86 80 37 32
Source: Ortiz and Cummins The Age of Austerity. IPD and the South Centre – based on 314 IMF country reports

10. A Crisis of Social Support
131 countries contracting public expenditures in 2014 (91 developing countries) in areas critical to Older Persons
Removing subsidies (food, fuel and others) in 100 countries, despite record-high food prices in many regions
Wage bill cuts or caps in 98 countries, reducing the salaries of public-sector civil servants like health and social workers who provide essential services to the population
VAT increases on basic goods and services that are consumed by the poor in 94 countries
Rationalizing and narrow targeting safety nets are under consideration in 80 countries, at a time when governments should be looking to scale up benefits though social protection floors
Reforming pension and health care systems in 86 and 37 countries
Labor flexibilization reforms in 30 countries, eroding workers rights
Source: Ortiz and Cummins The Age of Austerity. IPD and the South Centre

11. Future pensioners receive lower pensions in at least 14 countries of Europe
Reduction in theoretical replacement rates for average wage workers retiring at 65 after 40 years, (percentage points of theoretical average wage)
Source: ILO, World Social Security Report : Providing coverage in times of crisis and beyond
Source: ILO, World Social Security Report 2014 (forthcoming)

12. Expansion of old-age pensions in developing countries Contraction in Europe and Former Soviet Union
Source: ILO, World Social Security Report : Providing coverage in times of crisis and beyond
Source: ILO, World Social Security Report 2014 (forthcoming)

13. Old Age Pensions: Coverage
Source: ILO, World Social Security Report, (forthcoming)
Source: ILO, World Social Security Report 2014 (forthcoming)

14. Social Protection Floors Recommendation 202 approved by world countries
June 2012: The Recommendation Concerning National Floors of Social Protection adopted at the 101st session of the ILC in Geneva, by governments, unions and employers.
July 2012: Rio+20 – “The future we want” UNGA A/RES/66/288 Para 156. “We stress the need to provide social protection to all members of society, fostering growth, resilience, social justice and cohesion, including those who are employed in the informal economy We strongly encourage providing social
protection floors for all citizens”

15. Basic Pillars of Recommendation 202 Social Protection Floors
NATIONAL SOCIAL SECURITY SYSTEM
Higher levels of protection
essential health care including maternity care
basic income security for girls and boys providing access to nutrition, education, and any other necessary goods and services
basic income security for women and men in active age unable to earn sufficient income
basic income security for women and men in old age
NATIONAL SOCIAL PROTECTION FLOOR: nationally defined basic social security guarantees

16. TARGET: All older persons receive an adequate pension
Post 2015 Agenda: A Rights-based target and indicator to change the life of older persons by 2030
TARGET: All older persons receive an adequate pension
INDICATOR: Share of persons above retirement age that benefit from an old-age pension
ILO monitored indicator, exists for 175 countries
Currently 51.5% (weighted world average, latest available year )
FYI - High income countries 90%; developing 44.3%, LDCs 16.8%
Potential for quick increases in middle income countries

17. Fiscal Space for Older Persons and Socio-Economic Recovery Exists Even in the Poorest Countries
There is national capacity to fund social protection floors in virtually all countries. There are many options, supported by UN and IFIs policy statements:
Re-allocating public expenditures
Increasing tax revenues
Increasing contributions
Fighting illicit financial flows
Lobbying for increased aid and transfers
Tapping into fiscal and foreign exchange reserves
Restructuring debt
Adopting a more accommodative macroeconomic framework (e.g. tolerance to some inflation, fiscal deficit)
Ortiz and Cummins A Recovery for All. UNICEF

18. It is not too late: Policies for an Equitable Recovery
Current crisis presents an opportunity to rethink socio-economic policies for an equitable
recovery
1929 financial crash led to a New
Deal that radically altered the
development model of the day:
Stimulated economic growth
and employment
Regulated the financial sector
Expanded social security
A comparable policy push is needed today
It is not too late

19. Thank you Contact: Isabel Ortiz,
Director Social Protection Department,
International Labour Organization.
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