Social protection for older persons in rural areas

By Dag Ehrenpreis, PRO Global, Sweden

Presentation at the World Food Day 2015 celebration seminar in Stockholm, Wednesday October 21, 2015.

Ageing rural and farm populations

in developing countriesMain messages

• Older people’s share increasing while children’s declining, but… ;• The proportion of older farmers specifically is significant and growing;• Most working older rural folks make their living mainly from agriculture.• Important to develop a better understanding of opportunities and constraints that farmers

face across the life course;• Older farmers need equal access to productive resources and training on innovative practices

and technologies to improve their production levels, food security and cash income;• Social protection incl. social old-age pensions key to avoid destitution, but also helps to

protect and enhance agricultural assets.

Rural population ageing

Dark red = Children < 10 Orange: 65+ (SSA: 55+)

Older people’s reliance on farming

• Agriculture continues to be the most important source of livelihood for the vast majority of economically active older people, particularly older women. • In all developing regions, older people are more likely than other age

groups to be working in agriculture than in other sectors.• Agricultural census data shows that farming populations are ageing

most rapidly in South East Asia and southern Africa.

Employment by age, sector and region

Older people’s reliance on farming:Asia

• Agriculture represents the largest proportion of employment for the older population in Asia. • Data from ILO Labour Force Surveys and UNSD Demographic Statistics on economic

activity, show that 75 per cent of people over 60 reported agriculture as their main income-generating activity. • For Asia as a whole, there is evidence that farm populations and the sub-group of

agricultural holders are ageing. The average proportion of the farm population over the age of 55 is 12.1 per cent.• The most recent census data shows that 28.5 per cent of holders are over the age of

55• Variation between countries: Lao PDR has 22.1 per cent of older holders, while

Lebanon has 43.7 per cent.

Older people’s reliance on farming:

Sub-Saharan Africa ‒ a diverse picture• Recent census data: 26.8 % of agricultural holders are over 55 years• Generally, concentration of older agricultural holders in the region: For 15

out of 22 countries with data for agricultural holders, more than one-third of these are over 55. • All SSA countries have more than 20 % of older agricultural holders• The farm population over the age of 55 accounts for 7.1 % in SSA• Vast differences between countries: the proportion of older people on

farms ranges from 6.3 % in Niger to 15.9 % in the Seychelles.• Regional disparities: farm population ageing most rapid in southern

Africa, eg. Botswana and Lesotho with a rapid increases in the share of older people on farms, and vice versa for younger people .

Older people’s reliance on farming:

Central and South America ‒ old and ageing• Available data reveal a high proportion of older agricultural holders, averaging

29.8%. Of these, 15.4 % are 65 years old.• Argentina high proportion of older agricultural holders. In 2002, nearly 50 % of

above 55, significantly higher than for other countries in the region.• Other countries had a high proportion of holders over the age of 65, in particular

Nicaragua (16.1 %) and Peru (15.6%).• Average proportion of the farm population over 55 is 12.3 %.• Variations between countries:

- Uruguay relatively large older farm population, with 22.4 % over 55 and 11 % over 65. - Paraguay smaller older farm population, with 8.9 % older than 55 of whom 4.1 % are over 65.

Older people’s reliance on farming:

The Caribbean ‒ ageing not new• The region with the highest proportion of older agricultural holders –

44.7 % over 55 (from the 1990 census round, the most recent accessible data).• A large share of older agricultural holders is the norm for the region• Variation from 32.2 % in St Vincent and the Grenadines to 62.8 % in Puerto Rico.• Signs that agricultural holders are ageing• Overall decrease in the rural population during this period, suggesting

that relative rural population ageing is occurring.

Why rural populations are ageing

• UN population data show a universal trend across regions: more old people and less young people live in rural areas, proportionally. • Rural populations are ageing, and this trend is expected to continue apace.• The main reason is the age-selective nature of rural-urban migration:

younger people move to towns and cities, while older people stay behind.• Return migration of older adults from urban areas back to their rural

homes is also a reality.• Rural ageing is complex, depends on context-specific social and economic

factors, not just younger people’s migration to cities.• Other factors: changes in fertility and mortality rates, and HIV/AIDS.

Importance for older women• Agriculture important source of livelihood for economically active

women above the age of 60 years;• More so in Asia and sub-Saharan Africa than in Latin America;• In Asia, agriculture the most important livelihood source, employing

62 % of all economically active older women;• In sub-Saharan Africa, 59 % of economically active older women

above 60 years are employed in agriculture;• In Latin America, the share of economically active older women in

agriculture was under 25 %.

Hunger in old age • Hunger and malnutrition affects people of every age;• Poor households spend some 80% of their income on food, leaving

them even more vulnerable to rising costs of other commodities;• Many families forced to survive on a day to day basis without the

means to invest to raise future incomes;• They reduce food intake, and expenditure on medicine;• Older people, trapped by chronic poverty and untreated chronic

disease also suffer from hunger and malnutrition;• It is often the older women and men that bear the brunt of food

shortage, especially when caregivers of young dependents.

Social Protection• In 2012, ILO’s 185 member states adopted a recommendation on ”Social

Protection Floors”;• It states that social security is a human right and that all people should be

guaranteed at least a basic level of social protection;• Old-age pensions are a key component of any social protection system;• Pension systems do more to reduce poverty and inequality than all taxes and

other social benefits in the EU, and in many LICs/MICs;• Even a minimum of income security avoids destitution and the stigma of poverty:

loss of dignity, social exclusion and discrimination; • Social pensions benefit not just old people but whole families and can help

stimulate local market development.

The cost of social pensions• Much less than often assumed;• Research in 50 L/MICs: universal pension for all 65+ at 20 % of avg.

income would cost from 0,4 % of GDP in Burkina Faso to 1.8 % in PR China;• Despite rapidly ageing populations, most countries could keep costs

relatively stable as % of GDP, indexing pensions to cost of living;• Many L/MICs have begun to expand social pension coverage;• Poor Nepal spends 5 times India on social pensions/GDP despite its GDP

per capita only half of India’s;• Poor Bolivia spends > 10 times Peru on social pensions/GDP, despite its

GDP per capita only half of Peru’s.

The rise of social pensions• China’s Rural Social Pension (2009) added 133 million pensioners =

16 % of global 60+ population;• Since 1990, the number of countries with publicly financed social

pension schemes has more than doubled, from 50 to over 100 (30 new since 2000);• But, whereas about ½ of the world’s 65+ population get a pension, only

about ¼ of people in L/MICs do.• Sweden, Denmark, Ireland and the UK instituted social pensions over

100 years ago, when they were at least as poor as many L/LICs today.• Over 20 L/MICs have established universal pension schemes.

Graphic rise of social pensions

References:• How rural and farm populations are ageing, Global Age Watch Brief 7, HelpAge

International, December 2014, www.globalagewatch.org

• Global Age Watch Index 2014, Insight Report, HelpAge International, September 2014, www.globalagewatch.org

• The ageing of rural populations: evidence on older farmers in low and middle-income countries, HelpAge International 2014, www.helpage.org

• The Political Economy of “Targeting” of Social Security Schemes by Stephen Kidd, Development Pathways, 2015. http://www.developmentpathways.co.uk/resources/the-political-economy-of-targeting-of-social-security-schemes/