Pensions Core Course 2013: Social Protection Floor Concept - Its Relevance to Secure Minimum Income Security Globally
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  • 1. Social Protection Floor concept:Its relevance to secure minimumincome security globallyApril 5, 2013Krzysztof HagemejerInternational Labour Office
  • 2. The ILO’s Mandate in Social Security Preamble of the ILO Constitution (1919): “An improvement […] is urgently required; as, […], by […]the «prevention of unemployment, […] the protection of theworker against sickness, disease and injury arising out ofhis employment, the protection of children, young personsand women, provision for old age and injury, protection ofthe interests of workers when employed in countries otherthan their own”. Declaration of Philadelphia (1944): To pursue “the extension of social security measures toprovide a basic income to all in need of such protection andcomprehensive medical care”.2
  • 3. The ILO’s standard-setting function In 1919: International labour standards as aresponse to the need for social justiceFrom its foundation in 1919, the ILO was chargedwith the creation of ILSStandards came as a response to the recognitionthat the global economy needed clear rules in orderto ensure that economic progress would go hand inhand with social justice, prosperity and peace for allSince then, the ILO has established a system ofinternational labour standards covering all matterswithin the ILO’s competence (eg. rights at work,social protection) 3
  • 4. The ILO’s standard-setting function Today: still the “rules of the game” in anincreasingly globalised world and in crisesThe standards have grown into a comprehensivesystem of instruments on work, social protectionand social policy, backed by a supervisory systemdesigned to address all sorts of problems in theirapplication at the national level.They are the main tools at the ILO’s disposal for thepursuit of its mandate and the main basis for theprovisions of policy advice and technical assistance4
  • 5. What are InternationalLabour Standards? ILS are legal instruments drawn up by the ILO’s constituents(governments, employers and workers) setting out principlesand rights at work and beyond for protecting workers andtheir families, governing globalization, promoting sustainabledevelopment, eradicating poverty, and ensuring that peoplecan work and live in dignity, decency, health and safety; They are either Conventions: legally binding international treaties that may be ratifiedby member states, that create obligations for ratifying States(application and reporting) Recommendations: serve as non-binding guidelines; autonomous oraccompanying a Convention; may also subject to reporting5
  • 6. How are ILS adopted?6
  • 7. Consultation processleading to ILO social security strategy andSocial Protection Floors Recommendation2001-2010 New consensus2001 Regionalconferences andexpert meeting 2008-10 Global Jobs Pact2009InternationalLabour Conference2011 Adoption oftwo-dimensionalstrategy (Resolutionand Conclusions) Agreement onelements of possibleRecommendationConsultations2011-12 Replies toquestionnairefrom governments,employers’and workers’organizationsInternational LabourConference 2012 Adoption ofSocial ProtectionFloorsRecommendation221 responsesfrom 118 countriesGlobal tripartiteconsensus:453 votes in favourand 1 abstentionfrom 142 countriesSocial Protection Floor InitiativeInternational and regional endorsements (G20 and others)
  • 8. The (UN) Social ProtectionFloor Initiative• Created in April 2009 by the UN CEBas one of nine joint crisis response initiatives• Global coalition of various agencies anddevelopment partners• Objective: Promote universal access to– essential services (health, education, housing, etc.)– social transfers in cash or in kind, to ensure incomesecurity, food security, adequate nutrition, andaccess to essential services.• High-level advisory group chaired by MichelleBachelet• Report: Social protection floors for a fair andinclusive globalization, 2011Global lead agencies: ILO, WHO.Coalition Members: UNESCAP,UNCEPAL, UN Habitat, UNAIDS,UNDESA, UNDP, UNESCO,UNFPA, UNHCR, UNICEF,UNODC, UNRWA, UNWOMEN,WFP, WMO, FAO, OHCHR,UNFPA, IMF, World Bank, AsianDevelopment Bank, EuropeanCommission, OECD, SIDA(Sweden), the Netherlands,Luxembourg, France, Finland,GIZ (Germany), GIP SPSI,Education and SolidarityNetwork, HelpAge International,International Council of SocialWelfare, NGO Committee forSocial Development, Save theChildren, Concern...
  • 9. Recommendation concerning nationalfloors of social protection at a glancePreambleSocial securityas human rightand social andeconomicnecessityReference tovariousinternationalinstrumentsI.Objectives,scope andprinciplesObjectiveand scopeDefinition ofnational socialprotection floorsPrinciplesII.National socialprotectionfloorsDefinition ofbasic socialsecurityguaranteesLegalfoundationsEstablishmentand reviewProvisionFinancingIII.Nationalstrategies forthe extensionof socialsecurityPrioritizeimplementationof national SPFsProgression tohigher levels ofprotectionBuilding andmaintainingsocial securitysystemsPolicy coherenceILO socialsecuritystandardsIV.MonitoringNationalmonitoringreviews andconsultationsStatistics to beproducedInternationalsupport
  • 10. I. Objective: no just the floor10Par 1:(a) Establish and maintain, as applicable, social protection floorsas a fundamental element of their national social security systems(b) Implement social protection floors within strategies for the extensionof social security that progressively ensure higher levels of social securityto as many people as possible, guided by ILO social security standardsPar 13:(1)...National strategies should(a) Prioritize implementation of social protection floors as a starting point forcountries that do not have a minimum level of social security guarantees,and as a fundamental element of their national social security systems; and(b) Seek to provide higher levels of protection to as many people as possible –reflecting economic and fiscal capacity – and as soon as possible(2) For this purpose, Members should progressively build and maintaincomprehensive and adequate social security systems coherent with nationalpolicy objectives and seek to coordinate social security policies with other socialpolicies
  • 11. 2. What constitutes floors of protection?11Par. 4: The guarantees should ensure at minimum that, over the life cycle,all in need have access to essential health care and to basic income securitywhich together secure effective access to goods and services defined asnecessary at the national levelPar. 2: Nationally defined sets of basic social security guaranteeswhich secure protection aimed at preventing or alleviating poverty, vulnerabilityand social exclusion
  • 12. Questions? Basic social security guarantees for all= benefits for all?? SPF = social assistance?? SPF = social safety net?? Are social insurance schemes part ofthe SPF?12
  • 13. National social protection floors:At least four nationally-defined guaranteesaccess to a set ofgoods and servicesconstitutingessential healthcare includingmaternity carebasic incomesecurity forchildrenbasic incomesecurity forpersons in activeage unable to earnsufficient incomebasic incomesecurity forpersons in oldageThe social protection floors should comprise at least the followingbasic social security guarantees: (para. 5)national definition of minimum levelsGuarantees should be provided to at least all residents and children, as defined innational laws and regulations, subject to Members’ existing internationalobligations. (para. 6)
  • 14. Questions? What is meant by “essential health care”?? What is meant by basic income securityfor children?? How to guarantee basic income securityfor the working-age population? Areminimum wages part of the SPF?? How to guarantee income security forelderly?14
  • 15. 3. Minimum levels of protection: Nationaldefinitions of minimum levels of protectionshould meet following requirements158(b): Basic income security should allow life in dignity. Possible reference points:national poverty lines, income thresholds for social assistance etc.8(a): Persons in need of health care should not face hardship and an increased riskof poverty due to the financial consequences of accessing essential health care.Free prenatal and postnatal medical care for the most vulnerable should also beconsidered;.8 (c) and (d): Levels of basic social security guarantees should be regularlyreviewed through a transparent procedure that is established by national laws,regulations or practice,with ensured tripartite participation with representative organizations of employersand workers, as well as consultation with other relevant and representativeorganizations of persons concerned
  • 16. Questions? How to define and measure effectiveaccess to essential health care inpractice?? How to define and measure incomesecurity?16
  • 17. 4. Who should be covered by theguarantees?17Par. 3: Principles• Universality of protection, based on solidarity• Social inclusion including persons in the informal economy• Non-discrimination, gender equality and responsiveness to special needsPar. 6: Guarantees should be provided to at least all residents and children,as defined in national laws and regulations,subject to Members’ existing international obligations.
  • 18. Questions? What is meant by• “all ... children”? National definition?• “at least all residents” – national definition?• “existing international obligations”?? How to realize basic social securityguarantees for all?• Migrant workers and their families• Irregular migrants18
  • 19. 5. How to realize basic social securityguarantees? Rights-based approach19Par. 7: Basic social security guarantees should be established by law.- National laws and regulations should specify the range, qualifying conditionsand levels of the benefits giving effect to these guarantees.- Impartial, transparent, effective, simple, rapid, accessible and inexpensivecomplaint and appeal procedures should also be specified.- Access to complaint and appeal procedures should be free of charge to theapplicant.- Systems should be in place that enhance compliance with national legalframeworks.Par. 3: Principles• Overall and primary responsibility of the State• Adequacy and predictability of benefits• Non-discrimination, gender equality and responsiveness to special needs• Entitlements to benefits prescibed by national law• Efficiency and accessibility of complaint and appeal procedures• Respect for the rights and dignity of people covered• Respect for collective bargaining and freedom of association
  • 20. Questions? Why should basic social securityguarantees be set out in the law? Doesthis limit national flexibility?? How to realize a rights-based approach inresource-constraint contexts?• Limited fiscal space and budget constraints• Weak governments, limited institutionalcapacities? How to transform social safety nets into asocial protection floor?? Can proxy targeting be done in a way whichrespects for rights and dignity of beneficiaries?? Can conditional cash transfers?? Can pilot schemes?20
  • 21. 6. Implementation21Par. 3:• Progessive realization, including by setting targets and timeframes• Coherence with social, economic and employment policies• Regular monitoring of implementation and periodic evaluation• Tripartite participation and consultation with representatives of persons concernedPar 13:(1)...National strategies should(a) Prioritize implementation of social protection floors as a starting point forcountries that do not have a minimum level of social security guarantees,and as a fundamental element of their national social security systems; and(b) Seek to provide higher levels of protection to as many people as possible –reflecting economic and fiscal capacity – and as soon as possible(2) For this purpose, Members should progressively build and maintaincomprehensive and adequate social security systems coherent with nationalpolicy objectives and seek to coordinate social security policies with other socialpolicies
  • 22. Questions? Will States use the notion of“progressive realization” as an excusefor non-action?? How to achieve coherence with social,economic and employment policies?? How to promote economic activity andformal employment?22
  • 23. 7. Financing and delivery23Par. 3:• Consideration of diversity of methods and approaches• Solidarity in financing and fair balance of interests• Transparent, accountable and sound financial management and administration• Financial, fiscal and economic sustainability with due regard to social justice andequity• High-quality public services that enhance delivery of social security systems• Coherence across institutions responsible for the delivery of social protectionParas 11 and 12:• Members should consider using a variety of different methods to mobilize thenecessary resources to ensure financial, fiscal and economic sustainability ofnational social protection floors...• National social protection floors should be financed by national resources.Members whose economic and fiscal capacities are insufficient to implement theguarantees may seek international cooperation and support that complement theirown efforts.
  • 24. 24FISCALRESOURCEENVELOPESPF costTaxationLevel and efficiencySpendingefficiencyGrants and otherinternationaltransfersBorrowingSocialprotectionpolicyspaceSPFfiscalspacePolicy and fiscal space within resourceenvelopeCost of othercomplementarypublic programmes
  • 25. Over time investments in social protection – togetherwith other policies -may enhance fiscal envelope andfiscal space allowing further extension of socialsecurityInvestment insocialprotectionHealthier andbettereducatedpopulationHigherproductivityMoreemploymentLess poverty,more fiscalspace25HigheraggregatedemandHigherincomes,more fiscalrevenue
  • 26. Questions? National financing as an excuse for theabsence of sufficient internationalsupport?? What about a Global Fund for SocialProtection? What is the risk of moralhazard?? How to achieve effective linkages withpublic services, and how to ensure theirquality? Why public?26
  • 27. 8. What is the link to other ILO socialsecurity standards?27R202 complements existing ILO social security standards, and it does not lowerthese standardsPar 17: Members should aim to achieve the range and levels of benefits set out inthe Social Security (Minimum Standards) Convention, 1952 (No. 102), or in other ILOsocial security Conventions and Recommendations setting out more advancedstandards.Par. 18: Members should consider ratifying, as early as national circumstancesallow,the Social Security (Minimum Standards) Convention, 1952 (No. 102). Furthermore,Members should consider ratifying, or giving effect to, as applicable, other ILO socialsecurity Conventions and Recommendations setting out more advanced standards.
  • 28. Questions? Are the standards set by R. No. 202necessarily lower than the standardsset out in C.102 and other (“moreadvanced”) social security standards?? Does R. No. 202 substitute orcomplement C. No. 102?28
  • 29. 9. MonitoringNationally-defined monitoring mechanisms and national consultationsMembers shouldregularly convenenational consultations toassess progress anddiscuss policies for thefurther horizontal andvertical extension ofsocial security.Collection, compilationand publication ofadequatelydisaggregated socialsecurity data, statisticsand indicatorsLegal framework toprotect private individualinformationTaking into considerationguidance provided byResolution of ICLS andother statistical standardsExchange of information,experience and expertiseamong members andwith ILOTechnical assistancefrom ILO and others29
  • 30. Questions? How to make effective nationalmonitoring a regular practice?? Protection of individual privateinformation? Why? How?? What about international monitoring?30