Decent Work for Sustainable Poverty Reduction -from targeted poverty projects to Social Security for All, also in Global South The 33rd Global Conference of the ICSW, Tours, France Day-3 of the Conference (3 July, 2008): Social Development - from targeted policies on poverty reduction to human development SYMPOSIUM-7: ”Poverty reduction and minimum income policies: results and limits” Timo Voipio / ISSA (International Social Security Association), Geneva voipio @ilo. org – www. issa . int
Transcript
Decent Work for Sustainable Poverty Reduction -from targeted poverty projects to Social Security for All, also in Global South
The 33rd Global Conference of the ICSW, Tours, FranceDay-3 of the Conference (3 July, 2008): Social Development - from targeted policies on poverty reduction to human development SYMPOSIUM-7: ”Poverty reduction and minimum income policies: results and limits”
Timo Voipio / ISSA (International Social Security Association), [email protected] – www.issa.int
1.TV with MFA-Finland 1992-2007(Rio & Copenhagen to UN-ECOSOC, via ICSW-Kuala Lumpur and ICSW-Brasilia, and UN-CSocD, OECD-POVNET (SocProt + Empl), EU, WB, ILO + WCSDG, UNRISD, SDAN, GASPP, Network-IDEAS, Tanzania, “Helsinki-process”, “Kellokoski-meetings” )
2.ISSA / AISS (Geneva) – since 9/08 ( New site: www.issa.int )a. Policy Research Guide for SocSec Administrationsb. Developments and Trends (DT) of SocSec in Africa, Asia, the Americas,
Europe, World (Reports + Sessions) Rwanda Nov-2008, Cape Town 2010
c. Study: Examining the Existing Knowledge on Social Security Coverage Extension ( ISSA Strategy on Extension)
3.ILO Global Campaign to extend SocSec to All
4.ILO Decent Work Agenda: = Rights + Employment + SocProt + Dialogue
3.MinWage – a good starting point from which social dialogue / collective bargaining can branch out.1
4.Goal: protection of the lowest-paid, most vulnerable and most difficult-to-organise workers, e.g. domestic, agric., casual, home workers
5.Thus, MinWage can be used as a ’Social Floor’.
6.But RISK that any rise in MinWage may lead to huge, unsustainable increases in SocSec costs (tied to MinWage)
77 MinWage can be Pro-Poor, but should be planned as part of a coherent policy package for PovRed.2
Minimum Income Policies / MinWage
Brief remarks:
1Berg and Kucera (ed.2008): In Defence of Labour Market Institutions. 2ILO Minimum Wage Fixing Recommendation, 1970 (No. 135)
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SOCIALSOCIALECONOMICECONOMIC
Sustainable development (Rio-92)
= comprehensive & balanced policies
ENVIRONMENTENVIRONMENT
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Aid
www.stakes.fi/social-policies-for-development
Experts’ Mtng Experts’ Mtng UN-CSocD UN-CSocD Book & Website Book & Website
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FULL SOCIALPRO- INTEGRATION DUCTIVE = Inclusion + EMPLOY- Equity SocProtectionMENT
POVERTY ERADICATION
Back to Copenhagen - UN Social Summit-95:
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FULL SOCIALPRO- INTEGRATION DUCTIVE = Inclusion + EMPLOY- Equity SocProtectionMENT
POVERTY ERADICATION
Copenhagen +10 UN Summit:
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UN-DESA Policy Guidance Notes- Alternatives to Washington Consensus
1) Macroeconomics and Growth 2) Financial Policies3) Public Investment Management 4) Technology Policy 5) Social Policy (incl. Employment Policy)6) Trade Policy
Good ideas fly…BUT: Thanks ICSW for printing and disseminating it – in the conference briefcases !!! Good basis for ICSW-work at national, regional and global levels.
POLICYCOHERENCE !!
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ILO Global Campaign on Social Protection for All (ILC-2001) “Social Floor 2008”
Towards progressive universalism:- Building progressively higher levels of protection - Based on a basic ‘Social Floor’ consisting of:
•HEALTH: Universal guarantee of access to basic health benefits, through a set of sub-systems linked together: a public health service funded by taxes, social and private insurance and micro-insurance systems.
•BASIC PENSIONS: Guaranteed income security for people in old age, invalidity and survivors through basic pensions.
•CHILDREN: Guaranteed income security for all children through family/child benefits aimed to facilitate access to basic social services: education, health, housing.
•UNEMPLOYMENT/POVERTY: Guaranteed access to basic means tested/self targeting social assistance for the poor and unemployed in active age groups.
11The ILO Global Campaign to extend Social Security to all
ILO SocSec: The Social Floor – of a Social Security House - You build a FLOOR in order to build more…
The floor
Voluntray insurance
Mandatory social insurance benefits of guaranteed levels for contributors
THE FLOOR: Four essential guarantees Access to essential health care for all
ENTRANCEincome security assistance income securitychildren unemployed and poor elderly and disabled
…A FLOOR can support aLADDER – a safety NET cannot !
A Social FLOOR is better than a SAFETY NET...
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POVERTY POVERTY REDUCTIONREDUCTIONGROWTHGROWTH
OECD / Development Co-op. (DAC)
Poverty Network (POVNET)
ENVIRONMENTENVIRONMENT
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OECD-01: POVERTY is multi-dimensionalSOCIAL SECURITY
risk, vulnerability social
protection/ social security
soc. risk mngt (SRM)
POLITICAL
rights freedoms
voice & influence
SOCIO-CULTURAL
statusrespect, dignity
ECONOMIC
consumptionincome
assets
HUMANhealth
educationhunger, thirst
GENDER +
ENVIRON-MENT
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OECD-01: POVERTY is multi-dimensionalSOCIAL SECURITY
risk, vulnerability social
protection/ social security
soc. risk mngt (SRM)
POLITICAL
rights freedoms
voice & influence
SOCIO-CULTURAL
statusrespect, dignity
ECONOMIC
Growth
HUMANhealth
educationhunger, thirst
GENDER +
ENVIRON-MENT
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OECD-01: POVERTY is multi-dimensionalSOCIAL SECURITY
risk, vulnerability social
protection/ soc. risk mngt (SRM)
POLITICAL
rights freedoms
voice & influence
SOCIO-CULTURAL
statusrespect, dignity
ECONOMIC
Employment, assets, income consumption
HUMANhealth
educationhunger, thirst
GENDER +
ENVIRON-MENT
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SOCIALSOCIALECONOMICECONOMIC
Decent Work (ILO OECD, UN, EU, AU)
= Great Agenda: Policy Coherence for Development
ENVIRONMENTENVIRONMENT
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ILO Decent Work Agenda
EMPLOY-MENTEnabling
environment, Entrepreneurship,
Employability, Skills,
Productivity, Competivity
SOCIAL PRO-
TECTIONExtending
social security and protection
to all, incl. those in the
informal sector
SOCIAL DIALOGUE
Building social concensus on
major policy lines i.e. Gov’t with
-Workers-Employers
- Civil Society- Partners
RIGHTSFundamental
Principles and Rights at Work
e.g. ILO-Conventions
+ Gender Equality + Gender Equality cross-cutting all…DWCP DWCP to be part of national PRSs
ILO has small budgets only –> Bi-donors + One-UN !
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SECURITYSECURITYWorkersWorkers
FLEXIBILITYFLEXIBILITYEmployersEmployers
Decent Work ~ ’FLEXICURITY’
Competivity / Social Competivity / Social cohesioncohesion
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To prosper, a society must create incentives for the vast majority of the population to invest and
innovate.
How ?How ? BalanceBalance POVRED & GROWTH POVRED & GROWTH
CoherenceCoherence: SOC & ECON: SOC & ECON
World Bank, World Development Report 2006:
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Development cooperation ?
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Employment
Productivity
Formal and Informal Labour Market
Economic Growth
Business =Employers
People = Labour
Poverty Reduction
Social protection
Employability
Equality
RegulationsInstitutional context
Empowerment
No growth without people...Well-being is the engine...(POVNET)
More seriously: More seriously: OECD/POVNET: Employment and Labour MarketsOECD/POVNET: Employment and Labour Markets Major change in Dev’t Policy Agendas: EMPL Major change in Dev’t Policy Agendas: EMPL + PROD+ PROD
Economic Growth
Poverty Reduction
Social Protection:• Targeting, Universalism• Risk pooling, financing, integration, re-insurance•Skills for administering social security schemes•Social Cash Transfers•Health Insurance
Employability:• Vocational Education, skills•CSR of enterprises , PPP•Labour Intensive Growth: investment, productionPattern, trade•Functional flexibility• Mobility: infrastructure, transport• Enterprise development (micro, small), access to credit•Life-Cycle (child care, maternity benefits)•Social cash transferss•Health insurance
Regulations:• Access to productive assets• Security of investment• Access to innovation•Labour norms
Institutional Context:•Labour/Soc/Fin. Ministries •Associations/ unions/business interests• Labour Market Institutions and Public sector reforms: minimum wage, taxes, • Fragile environments
Formal and Informal Labour Market
Employment
Productivity
Empowerment:• Legal Empowerment: labour norms, property rights, voice at work• Inclusive Institutions (social dialogue)
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1) Productive and decent work is the major route out of poverty for the vast majority of poor people.
2) Employment and labour markets need to be understood and addressed as:
INFORMAL and FORMAL
/ EMPL/ EMPLOECD-POVNET:
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3) Participation of millions of poor people in the growth process as active agents is good for the poor and good for the national economy.
4) Lack of reliable risk management mechanisms is a major barrier to contributions by the poor to the growth process.
5) The poor often engage in low productivity and low profitability activities, only because they are also less risky than high productivity/profitability alternatives.
/ / SocProtSocProt
OECD-POVNET:
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6) A reduction in risks faced by poor people can help to stimulate growth by encouraging people to engage in higher risk/productivity/profitability activities.
7) Risk reduction and management also means that people do not have to fall back on coping strategies with irreversible impoverishing impacts.
/ / SocProtSocProt
OECD-POVNET:
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8) A new view of social protection programs:
Rather than as consumption expenditure (luxury)… they should be recognized as investment-type expenditure with potentially high rates of return and strong poverty impact. (Investments in People)
/ / SocProtSocProt
OECD-POVNET:
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SocProt Fastest way to reach MDGs !!! ILO: Estimated effect of a basic Social Security package on MDG-1 poverty headcount : Tanzania
Simulated reduction of poverty rates in Tanzania
9.2
27.07.9
8.8
5.1
5.0
0
5
10
15
20
25
30
35
40
45
Food poverty line Basic needs poverty line
Pov
erty
rate
(hea
d co
unt)
Remaining poverty Old age and disability pension and benefit for children and orphans Access to health care
22.2
40.8
29The ILO Global Campaign to extend Social Security to all
A basic social protection package is affordable: cost of all basic benefit package components
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
Burkin
a Fas
o
Camer
oon
Ethiopia
Guinea
Keny
a
Seneg
al
United
Rep
. Tan
zania
Bangla
desh
India
Nepal
Pakist
an
Viet N
am
in p
er c
ent o
f GD
P
2010
2020
2030
30The ILO Global Campaign to extend Social Security to all
A basic social protection package is affordable: share of total cost that can be covered by domestic resources
0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0%80.0%90.0%
100.0%
per c
ent
of
tota
l exp
end
itu
re o
n b
asic
so
cial
pro
tect
ion
2010
2020
2030
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A Human Right to a Socio-Economic Floor ?
Minimum insurance needs
Income profile B
Income profile A
’’Socio-economic floor’Socio-economic floor’ – ensured by – ensured by Gov’t/ODA?Gov’t/ODA?
PRIORITY CHALLENGES:1. Administrative and operational
efficiency2. Social security reform3. Extension of SocSec Coverage4. Impact of demographic changes.
Trust !
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1.Accessible2.Sustainable3.Performing and well
governed4.Proactive, incl. Preventive5.Innovative6.Socially inclusive and
Economically productive
DYNAMIC SOCIAL SECURITY
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10) A new view of Social Security Administrations (> 360 ISSA-Members in > 150 countries):
- In addition to managing reliably the pension etc. SocSec funds of civil servants and other formal sector ...SocSec Administrations (ISSA-members) could be important partners with governments, social partners and CSOs (ICSW-members) in EXTENSION of SocSec to those in the informal sector not covered -Rare experise in actuarial and demographic analysis -Governments could/ should make use of it...
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a.Policy Research Guide for SocSec Administrations
b.Developments and Trends (DT) of SocSec in Africa (Nov-08 Rwanda), Asia (09), Americas (09), Europe (10), World (10) Reports + Sessions
c.Study: Examining the Existing Knowledge on Social Security Coverage Extension ISSA Strategy on Extension
ISSA-Projects managed by TV:
38The ILO Global Campaign to extend Social Security to all
ILO SocSec: The Social Floor – of a Social Security House - You build a FLOOR in order to build more…
The floor
Voluntray insurance
Mandatory social insurance benefits of guaranteed levels for contributors
THE FLOOR: Four essential guarantees Access to essential health care for all
ENTRANCEincome security assistance income securitychildren unemployed and poor elderly and disabled
…A FLOOR can support aLADDER – a safety NET cannot !
A Social FLOOR is better than a SAFETY NET...
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SOCIALSOCIALECONOMICECONOMIC
Sustainable development (Rio-92)
= comprehensive & balanced policies
ENVIRONMENTENVIRONMENT
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SOCIAL POLICY: SOCIAL POLICY: -Inclusion & particip’nInclusion & particip’n- Gov’t responsivenessGov’t responsiveness
