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Global Social Floor: a Universal Social Pension. Silvia Stefanoni Deputy Chief Executive and Director of Programmes HelpAge International. Universal Declaration of Human Rights: Art 22: Everyone …… has a right to social security

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Global social floor a universal social pension l.jpg

Global Social Floor: a Universal Social Pension

Silvia Stefanoni

Deputy Chief Executive and Director of Programmes

HelpAge International


Social security a right and a public service l.jpg

Universal Declaration of Human Rights:

Art 22: Everyone …… has a right tosocial security

Art 25: Everyone has the right to a standard of living adequate for health and well-being of himself and his family

Art 25: …and the right to security in the event of….old age

Social security: a right and a public service



Challenging the development paradigm l.jpg

Little success in reaching MDG 1 – income poverty and hunger

In a market economy, families need cash to live

Development practitioners – and governments – promote work (eg. livelihoods programmes; micro-credit)

But, many cannot work or get enough income

Global social floor provides a means of achieving MDG 1 through provision of comprehensive social security to complement work

Challenging the development paradigm


Social security an essential public service l.jpg

Four essential public services: hunger

Health

Education

Safe water and sanitation

Social security

A system of regular and predictable cash transfers aimed at tackling poverty and promoting economic growth

Social Security – an essential public service



Coverage of social pensions l.jpg
Coverage of social hungerpensions


Impact of social pensions on poverty in south africa l.jpg

32% hunger

All

households

21%

Households

71%

including

54%

older people

Households

98%

only with

96%

older people

0%

20%

40%

60%

80%

100%

Poverty gap reduction

Destitution gap reduction

Impact of social pensionson poverty in South Africa



Investment in children l.jpg

Nutrition: hunger

Pensions associated with a 3-4cm increase in height among children in South Africa

Education:

South Africa pension led to 8% increase in enrolment among poorest 20% of children

Similar impact in Brazil among girls aged 12-14

Investment in children


Why universal social pensions l.jpg

Poverty targeting is difficult in developed countries – large inclusion and exclusion errors

Administratively more complicated and expensive

In developing countries, we do not know how to target – therefore, errors will be much greater

Benefits often captured by the better-off (eg. India and Bangladesh)

Community targeting causes discord in communities

Targeted social pensions will be denounced as corrupt

Poverty targeting will create disincentives to save and contribute to other pension schemes

Greater political acceptability for universal benefits

Amartya Sen: “A benefit for the poor is a poor benefit”

Why universal socialpensions?


World bank model of pension system l.jpg
World Bank model of large inclusion and exclusion errorspension system

Social Pensions

Poor

Rich


Model of the pension system l.jpg
Model of the pension large inclusion and exclusion errorssystem

Rich

Poor


Social pensions are part of a broader package l.jpg

We need to look at the whole life cycle and associated vulnerabilities

Social pensions need to complement child benefits, disability benefits, support for the unemployed and free access to health services

Politically, however, social pensions are likely to be the easiest to introduce

Example of southern Africa – initial political support for social pensions

Happens where governments have more meaningful accountability to citizens

Where governments are accountable to donors, there is a preference for targeted social assistance programmes (eg. Zambia, Malawi, Uganda, Kyrgyzstan) which are driven by northern consultants

Global Social Floor need to challenge this approach and advocate for universal approaches

Social pensions are part ofa broader package


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