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Social Protection: a mechanism for inclusive development. EU-Africa Economic and Social Stakeholders’ Network Brussels, 5 March 2014 Griet Cattaert, ILO. Overview. The need for social protection Pervasive poverty and income inequality. Pervasive Poverty.

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social protection a mechanism for inclusive development

Social Protection: a mechanism for inclusive development

EU-Africa Economic and Social Stakeholders’ NetworkBrussels, 5 March 2014

Griet Cattaert, ILO

the need for social protection pervasive poverty and income inequality
The need for social protectionPervasive poverty and income inequality

Pervasive Poverty

  • 1.4 billion people are still living on less than US$1.25 a day (World Bank).
  • 1.75 billion people experience multidimensional poverty with deprivations in heath, economic opportunities, education and living standards (UNDP).
  • 925 million suffer from chronicle hunger (FAO).
  • 2.6 billion people do not have access to improved sanitation and 884 million people do not have access to improved sources of drinking water (WHO/UNICEF).
  • 796 million adults are illiterate (UNESCO).
  • 8.8 million children under the age of five die every year from largely preventable health problems (WHO).
  • About 75 per cent of the population is not covered by adequate social security.
  • 1 out of every 4 person (ILO).
the need for social protection pervasive poverty and income inequality1
The need for social protectionPervasive poverty and income inequality

Income Inequality

  • The richest 20 per cent of the world population received more than 80 per cent of the world’s income in 2007, while the poorest 20 per cent received about one per cent.
the need for social protection pervasive poverty and income inequality3
The need for social protectionPervasive poverty and income inequality

More demographic challenges to come

  • Ageing: the share of the population at age 65 and over is estimated to increase from 8 per cent in 2013 to 16 per cent by 2050 (UNDESA, Population division, 2013).
  • Migration:at least 232 million international migrants today, a particularly vulnerable group (IOM, 2014)
  • Rural-urban shift: urban populations are forecast to exceed rural ones (this may threaten the traditional mechanisms of solidarity).
the need for social protection social and economic necessity of social protection systems
The need for social protectionSocial and economic necessity of social protection systems
  • We know from more than one century of history of the modern welfare state that social transfers and services are powerful policy instruments to combat poverty, insecurity and inequality and ...achieve the MDGs
  • Social services and transfers are an economic necessity to unblock the full economic potential of a country, Only people that are well nourished, well educated and as healthy as possible, and have been brought up in socially secure families will in the long run be productive contributors to national and the global economies and constructive, participating and responsible members of societies who can forcefully make their voices heard
  • There is now widespread acceptance that social protection/security serve as social and economic stabilisersin times of crisis - Countries with existing systems are in a better position to cope with the social and economic fall-out than those who have to introduce new ad-hoc measures.
  • Social protection is one of the foundations for inclusive, equitable and sustainable development

A floor of social protection is thus a prerequisite investment in the development process and in people.

the need for social protection coverage gap
The need for social protectionCoverage Gap

80% of the world population do not have access to comprehensive coverage

50% of the children are living in poverty, many lack access to health and education

30% of the population do not have access to essential health care

Social protection coverage gap

60% of the elderly do not receive a pension

Only 15% of the population has access to unemployment benefits

the spf concept the virtuous cycle effect

Quality education for all, strong social protection, prudent macroeconomic policies, active labour market, policies, and effective bargaining

Virtuous cycle

Stable and resilient GDP growth, high employment and social peace

Rapid productivity growth with income gains shared broadly, a strong middle class

Sustained and broad-based growth in domestic effective demand, low levels of indebtness

Source: SPF-AG discussion notes, by Kemal Dervis.

The SPF ConceptThe virtuous cycle effect

The underlying development policy paradigm: “Growing with equity”

social protection floors r202 global legal roots
Social Protection Floors R202Global legal roots
          • Adoption of R202 on National Floors of Social Protection (ILC 2012)
  • “Social protection floors are nationally defined sets of basic social security guarantees which secure protection aimed at preventing or alleviating poverty, vulnerability and social exclusion”

Legal roots

Recalling that the Declaration of Philadelphia

Considering the Universal Declaration of Human Rights, in particular Articles 22 and 25, and the International Covenant on Economic, Social and Cultural Rights, in particular Articles 9, 11 and 12

Considering also ILO social security standards

social protection floors r202 objective
Social Protection Floors R202Objective

Provides guidance to Members to

(a) establish and maintain, as applicable, social protection floors as a

fundamental element of their national social security systems; and

(b) implement social protection floors within strategies for the extension of

social security that progressively ensure higher levels of social security

to as many people as possible, guided by ILO social security standards.

social protection floors r202
Social Protection Floors R202


The guarantees should ensure at a minimum that, over the life cycle, all in need have access to essential health care and to basic income security which together secure effective access to goods and services defined as necessary at the national level.

They should comprise at least the following basic social security guarantees:

national definition of minimum levels


Guarantees should be provided to at least all residents and children, as defined in national laws and regulations, subject to Members’ existing international obligations. (para. 6)

social protection floors r2021


Social Protection Floors R202

When formulating and implementing social security extension strategies, Members should (para. 14):

national experiences spf in practice
National experiencesSPF in practice

2. What as been done so far?

  • One: Advocacy at global, regional, national levels => e.g. UNCSocD Resolution 2010, UN Millennium Summit, G8, G20, Yaounde Triparite Declaration, South South Dialogue, input to G20, Signature campaign
  • Two: Country operations in Cambodia, Burkina Faso, Mozambique, Nepal, Togo, Benin, Vietnam... with other agencies and IMF on basis of joint UN manual
  • Three: High-level Social Protection Floor Advisory Group established under chairpersonship of Ms. Michelle Bachelet ; report issued in October 2011 “Social protection floor for a fair and inclusive globalization”
  • The 100th ILC and the emergence of a new policy paradigm

HEALTH: China (urban & rural), India (RSBY), Thailand (UCS),Mexico (Seguro popular), Colombia (regimen subsidiado), Uruguay, Chile (plan AUGE), Burkina Faso, Rwanda …

Comprehensive SPF: Brazil, Mexico, Chile,


CCTs: Brazil (Bolsa Familia), Mexico (Oportunidades)

Social pensions: Brazil, South Africa, Bolivia (pension dignidad),

Chile (pension basica solidaria), Thailand (500 Bath scheme), China (rural old age pension)…

Employment guarantee schemes: India (NREGA),

Uruguay (Política de empleo promovido),

Argentina (Plan jefes y jefas de familias)

national experiences fiscal space for social protection exists even in the poorest countries
National experiencesFiscal space for Social Protection exists even in the poorest countries
  • There is national capacity to fund social protection floors in virtually all countries
  • Spending on SP is an investment, as it can result in positive, immediate and long-term economic and social return
  • Affordability and financing are not only technical questions but also political choices
  • There are many options, supported by UN and IFI policy statements:
  • Re-allocating public expenditures
  • Increasing tax revenues
  • 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)
ilo follow up and strategy for implementation support for countries in

Promoting the implementation of R.202 – Awareness raising

ILO Follow-up and strategy for implementation: support for countries in…

Building and strengthening partnerships

Building the capacities of national constituents – Technical advisory and capacity building

Making social protection floors a national reality worldwide

Supporting national dialogue processes

Supporting constituents through knowledge sharing, technical cooperation and advice

Policy, knowledge and tools development

ilo s right based approach to social protection
ILO’s right based approach to social protection
  • Supporting national scale-up
  • Providing technical support and critical policy advise in the design, legal framework, costing, implementation and/or monitoring and evaluation of social protection programmes and capacity development promoting social inclusion worldwide.
  • Encouraging national social dialogue to ensure that development decisions are socially-responsive and have national ownership.
  • Building linkages to eliminate the worst forms of exploitation, like child labour, and to ensure that people in rural areas, the informal economy, domestic workers, migrant workers, people with disabilities and others are included in development.
  • Being a global leader and advocate of social protection floors. ILO has nearly 100 years of experience in advocating for policies and approaches that protect workers and vulnerable people.

“The world does not lack the resources to eradicate poverty, it lacks the right priorities.”

Juan Somavia, Director General of the ILO