Inclusive social protection: an integral perspective, a

rights-based approach

Simone Cecchini – Rodrigo MartínezSocial Development Division

Economic Commission for Latin America and the Caribbean (ECLAC)

SEMINAR ON INTER-SECTORAL PUBLIC POLICIES: SOCIAL PROTECTION , LABOR AND EMPLOYMENT

Río de Janeiro, 30 November, 2010

The State plays a crucial role in the provision of social protection

The suppliers of welfare and social protection

State

MarketFamilies

Social and community-based

organizationsSource: Own elaboration

I. Social policy and social protectionBrief history of social protection in Latin America

1. Beginning of 2. 1929 Crisis 3. Debt Crisis 4. 21st centurythe 19th century

Development approach

Main features of

social protection

and promotion

Early liberal Importssubstitution

Systemiccompetitiveness

First examples of social security

for the urban formal sector

Assistance as charity

Health and education

policies begin

Scarce State regulation

Source: Own elaboration

Social security for the urban formal

sector

Assistance: food and fuel

consumption subsidies

Centralization and growth of the

health and education sectors

Provider state

Protection based on formal

employment

Social security based on private

pension funds system

Assistance: main focus on

the poor. Social investment

funds

Emphasis on demand,

decentralization, externalization

of social services

Subsidiary-mitigating state

Protection as emergency-

relief

Assistance: breaking the

reproduction of poverty

Subsidiary-promoting state

Protection as social assistance

and access to promotion

Social protection systems and

incremental minimums

Guarantor state

Protection as a citizenship guarantee

Discipline and fiscal

austerity

I. Social protection: an evolving concept

• Based on access to formal employment• Emergency situations (for the poor and

vulnerable)• Social assistance and access to social promotion• Based on social protection guarantees linked to

the concept of citizenship

II. Welfare gaps and social achievementsEMPLOYED PERSONS IN LOW-PRODUCTIVITY SECTORS (INFORMAL

SECTOR) AND EMPLOYED PERSONS WHO LACK OF SOCIAL SECURITY, AROUND 2008(in percentages)

Source: ECLAC, on the basis of special tabulations of data from household surveys conducted in the relevant countries. Note: a/ Urban areas. b/ Simple average.

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

Employed in low-productivity sectors Employed who lack access to social security

II. Social spending varies considerably among countries

PUBLIC SOCIAL SPENDING AND GROSS DEVELOPMENT PRODUCT PER CAPITA, 2006/2007

(in 2000 dollars)

Source: ECLAC

Venezuela, B. R.

Uruguay

Trinidad and Tobago

Dominican Rep. Peru

Panama

Nicaragua

Mexico

Jamaica

Bolivia, P. S.

El Salvador

Ecuador

Cuba

Costa Rica

Colombia

Chile

Brazil

Honduras

Argentina

0

500

1000

1500

2000

2500

0 2000 4000 6000 8000 10000 12000

GDP per capita (2007)

Soci

al s

pe

nd

ing

pe

r ca

pit

a (2

00

6-2

00

7)

Guatemala

Paraguay

II. Social protection as a right

• Progress made by the region in terms of the legal and constitutional recognition of social rights

• E.g. The Constitution of Brazil (1988) and Colombia (1991)

• A human rights discourse and a rights-based approach to social policy

• Yet, these achievements did not necessarily translate into a formal expression of social protection guarantees

III. CCT programmes and social protection

• CCT share common features, although it is not possible to speak of a unique model

• There are different referents for CCT (e.g., Brazil, Mexico and Chile). The programmes have been adapted to the reality of each country– Political actors and the local institutional environment are

relevant factors

• Emergence of alternative designs– Strong or soft conditionality, in-kind transfers,

psychosocial support, training, etc.

• Heterogeneous experiences– Different levels of investment and coverage– Diverse approaches and operational features

III. Average spending on CCT is 0.40% of regional GDP

Source: Own elaboration on the basis of ECLAC, Social Development Division, Conditional Cash Transfer Programmes Database

LATIN AMERICA AND THE CARIBBEAN (18 COUNTRIES): SPENDING IN CO-RESPONSIBILITY CASH TRANSFER (CCT) PROGRAMMES,

AROUND 2010 (Percentages of GDP)

1,17

0,52 0,510,47 0,45

0,40 0,39 0,39 0,36 0,33 0,320,24 0,22 0,20 0,19

0,14 0,110,02

0,00

0,20

0,40

0,60

0,80

1,00

1,20

Weighted average: 0,40

III. CCT reach 19% of the regional population

Source: Own elaboration on the basis of ECLAC, Social Development Division, Conditional Cash Transfer Programmes Database

LATIN AMERICA AND THE CARIBBEAN (18 COUNTRIES): COVERAGE OF CO-RESPONSIBILITY CASH TRANSFER (CCT) PROGRAMMES,

AROUND 2009(Percentages of the total population)

44,3

26,425,2 24,6

22,621,2

17,5

11,6 11,3 10,98,7 8,6 8,3 8,2 7,6 6,8

3,3 2,4

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

45,0

Weighted average: 19,3

III. Income transfer programmes with soft conditionality

Cash transfer

Works as an income

supplement

Calculated upon a food basket’s value

Conditions

Reinforce and protect human

capital

Loose monitoring and sanctions

Expected results

Poverty and inequality reduction

Income poverty and inequality indicators

1. Main focus is on the cash transfer– Soft sanctions if conditionality is unaccomplished; flat transfers or

adjusted per family size

III. Programmes that foster demand through strong conditionality

Cash transfers

Works as an incentive

Calculation of the cost of opportunity

Conditions

Unleash changes in the

behavior

Strong monitoring and sanctions

Expected results

Human development

Intermediate indicators of health

and education

2. Focus on human development– Strict control of the conditionality; transfers vary according to each

group of the population (reflect different costs of opportunity)

III. Systems or networks of articulated programmes with conditionalities

Cash transfer

Covers the costs of

accessing the network

Residual

Conditions

Negotiated conditionalities

(family commitment)

Psychosocial support

Expected results

Improvement in the targeted dimensions

Multidimensional poverty index

3. Focus is on the connection between the program and the social protection system– Transfer is very low; psychosocial support is introduced to enhance the

families’ access to the public network of social services

IV. Towards an integral social protection system

1. Protection, promotion and sectoral policies

2. Functions of an integral social protection system To guarantee an income (minimum and protect against risks); To identify the unsatisfied demand and guarantee the access to social services; To foster decent work

Policies of social

promotion

Policies of social

promotion

Social protection

system

Social protection

system

2. IDENTIFIES DEMAND AND GUARANTEES

ACCESS

Sectoral policies (health,

education, etc.)

Sectoral policies (health,

education, etc.)

REINFORCES THE CAPACITY OF

REACTION

REINFORCES AND PROMOTES

DEVELOPMENT OF ASSETS

1. PROTECS AND SECURES INCOME

3. FOSTERS DECENT WORK

Source: Own elaboration

IV. Towards an integral social protection system

3. Axes of integration of social protection

Source: Own elaboration

Social protectionSupply

(policies and programmes)

Demand

(families, individuals and communities)V

erti

cal

(ad

min

istr

ativ

e le

vel)

Horizontal

(sectors)

Transversal

(groups of the population)

Lo

ng

itu

din

al

(Lif

e c

ycle

)

IV. Towards an integral social protection system

4. Universal rights adapted to different necessities• Poverty and vulnerability; • Formal and informal labor; • Families, life cycle and demographic change; • Care provision.

5. Components and instruments of social protection

SOCIAL PROTECTION

Labor market regulation

Protection of individual and collective workers’ rights

Contributory(Social security)

•Retirement benefits• Health insurance• Unemployment insurance

Non Contributory(Social assistance)

•Cash or in-kind transfers (e.g. CCT)•Consumption subsidies•Public works

Source: Own elaboration

IV. Towards an integral social protection system

6. Institutional features and social protection: • Institutional coordination:

– Political,

– Technical

– Operational

• Information management: – Monitoring and evaluation

– National statistics

– System of national accounts

– Information systems on public finances

• Control systems and conflict resolution

V. CCT as the entrance gate to social protection

1. Integration through the demand for social protection

2. Integration through the supply of social protection

3. Availability and quality of the supply of social services

4. Matching the demand for protection and the supply of services

5. Support in the process of institutional capacity-building

6. Exit from CCT and social protection• Exit rules• Income generation and access to employment

VI. Consolidating social protection in Latin America: main challenges

1. Rights-based approach: feasibility of its implementation within the region 

2. Funding: multiple necessities and scarce resources    

3. An heterogeneous population and the enduring gaps in accessing social protection 

4. Intersectoral coordination is a must5. Information management6. Role of the CTP   

Conditional Cash Transfer Programmes Database

http://dds.cepal.org/bdptc/ • Gathers data on social spending, coverage and the amounts

of the transfers, as well as detailed information concerning the different components of the CCT within Latin America and the Caribbean