Social security for Social Justice and a fair globalisation

1. Social security for Social Justice and a fair globalisation ITC Turin February 2012

2. Social security coverage: Statutory and effective coverage

3. Pension coverage: effective coverage

4. The global state of social security coverage and recent policy initiatives National social security strategies, based on social dialogue Strengthening social health protection Social security coverage gap Social pension programmes Child and family benefits

5. Extending social security to all – the options Option 1: Extending classical social insurance • no cross-subsidization of non-covered part of the population; • primarily designed for the formal sector and hence will not easily reach more than a portion of the total population, but • recently showed some potential to extend health coverage to the informal sector through premium subsidization (e.g. Ghana)

6. Extending social security to all – the options • Option 2: Introducing community based social/mutual insurance schemes • springing up in Africa and Asia, covering 40 million people now • offers some possibility to increase resource base largely for health care • offers a chance to empower demand side • some possibility to tax the informal sector = is a step forward to formalisation, but • is no stand-alone solution: requires financial links to national or international sponsor agencies

7. Extending social security to all – the options Option 3: Extending tax financed schemes (conditional, unconditional, means-tested, universal often called social transfers • can reach out to entire population subgroups (presently worldwide at least 150-200 million people covered) • requires some basic logistical capacity • some level of social security can be afforded by all • probably the biggest potential

8. high Voluntary insuranceunder government regulation social security benefitsof guaranteed levels Level of protection Access to essential health care and minimum income security for all low low individual/household income high The ILO‘s two-dimensional strategy for the extension of social security coverage endorsed:The progressiveness of protection Higher levels min. c102 • Vertical dimension:progressively ensuring higher levels of protection guided by C.102 andhigher-level standards Floor level • Horizontal dimension:Guaranteeing access to essential health care and minimum income security for all

9. SPF concept and definition The SPF Initiative aims at jointglobal and local UN actionto promote access to essential services and social transfers for the poor and vulnerable. It includes: • A basic set of essential social rights and transfers, in cash and in kind, to provide minimum income and livelihood security for poor and vulnerable populations and to facilitate access to essential services, such as health care • Geographical and financial access to essential services, such as health, water and sanitation, education, social work

10. Possible contents of the SPF: Four nationally-defined guarantees TRANSFERS in cash or in kind Outcome-oriented approach taking account of national conditions, priorities and institutions Transfers in cash and in kind should guarantee geographical and financial access to essential services such as water and sanitation, health, and education

11. high Voluntary insuranceunder government regulation Level of protection Social assistance low low individual/household income high Pluralism of means –principal option I Higher levels min. c102 • Vertical dimension:progressively ensuring higher levels of protection guided by C.102 andhigher-level standards Social insurance Floor level • Horizontal dimension:Guaranteeing access to essential health care and minimum income security for all

12. high Voluntary insuranceunder government regulation Level of protection Universal benefits low low individual/household income high Pluralism of means –principal option II Higher levels min. c102 • Vertical dimension:progressively ensuring higher levels of protection guided by C.102 andhigher-level standards Social insurance Floor level Soc ass. • Horizontal dimension:Guaranteeing access to essential health care and minimum income security for all

13. Point Two: Summary of results of the ILC 2011 and follow-up Resolution and Conclusions on social protection (social security), adopted by the tripartite delegations represented at International Labour Conference (183 member States) • Endorsement of ILO two-dimensional strategy for the extension of social security coverage • Discussion on a possible Recommendation on Social Protection Floors at ILC 2012 • Reaffirmed mandate for ILO to assist member States in the extension of social security coverage and building social security systems, including • Technical assistance to support design and implementation of two-dimensional extension strategy, including Social Protection Floor • Assistance in promotion and implementation of ILO social security standards (notably C. 102) • Facilitation of exchange of experiences and good practices, including development of a good practices guide • Capacity building for designing, managing and governing of social security systems

14. Possible Recommendation on Social Protection Floors according to Conclusions (ILC 2011) • Flexible but meaningful guidance to member States in building Social Protection Floors within comprehensive social security systems • tailored to national circumstances and levels of development • promotional and gender-responsive • should be applied by all member States, using different methods and according to their own needs, resources, and their time frame for progressive implementation • The Recommendation should... • focus on extension of social security coverage to wider groups of the population • emphasise national ownership and flexibility: strategies country-led and responsive to national needs, priorities and resources • set out principles for the design and implementation of such strategies • encourage the implementation of effective monitoring mechanisms