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Module 2: Introduction to social protection

Module 2: Introduction to social protection. ILO, 2013. Key questions. What is social security? What is social protection? What are the different types of social transfers? What are ILO’s standards to realize the right to social security?

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Module 2: Introduction to social protection

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  1. Module 2: Introduction to social protection ILO, 2013

  2. Key questions • What is social security? • What is social protection? • What are the different types of social transfers? • What are ILO’s standards to realize the right to social security? • What are the two dimensions of social security extension? • What are nationally defined social protection floors? • To what extent is social protection linked with employment and economic growth? • What are the ILO’s main technical support activities on social security in East and South-East Asia and the Pacific?

  3. What is social security? • People face contingencies during their life-cycle, which have financial consequences • Social security is provided to members of a society against the economic and social distress caused by such contingencies Unemployment Work injury Medical care Maternity Sickness Invalidity Families with children Deathof thebreadwinner Old age Life-cycle

  4. What is social security? Protection provided by society To compensate for the loss of income and cover health care expenditures To facilitate access to social services and fulfill basic needs Financial support Access to services Social transfers

  5. What is social protection? • Some define social protection as measures addressing the most vulnerable • Concept of social protection is broader than social security (which mostly refers to formal workers) • Social protection can reach out to those not covered, or incapable of being covered easily by social security • According to Recommendation No. 202, social protection and social security are part of the same social policy concept (Hagemejer and McKinnon, 2013)

  6. Types of social transfers Social transfers Contributory Non-contributory Compulsory Voluntary Targeted Non-targeted • Social insurance to informal sector • Some microinsurance • Social insurance • Targeted social assistance • Universal schemes http://www.social-protection.org/gimi/gess/ShowTheme.do?tid=11&ctx=0

  7. Social security as a human right • Universal declaration of human rights, 1948: social security is a human right • Social Security (Minimum Standards) Convention, 1952 (No. 102) : flagship Convention on social security • Recommendation on nationally defined social protection floors, 2012 (No. 202): reaffirms the universal right to social security • Image by Youth for Human Rights International

  8. ILO’s standards • ILO sets standards that lay down obligations and guidelines for ILO member States • Standards are of two types: Conventions and Recommendations • They help in drafting laws and regulations, designing and implementing social security systems

  9. ILO’s standards C 183 C 130 C 168 C 130 C 121 Unemployment Work injury Medical care Maternity Sickness Convention No. 102 covers all 9 contingencies Invalidity Families with children Deathof thebreadwinner Old age Life-cycle C 183 C 128 C 128 C 128

  10. ILO’s standards Equality of Treatment (Social Security) Convention, 1962 (No. 118) Maintenance of Social Security Rights Convention, 1982 (No. 157) Medical Care and Sickness Benefits Convention, 1969 (No. 130) Employment Promotion and Protection against Unemployment Convention, 1988 (No. 168) Invalidity, Old-Age and Survivors' Benefits Convention, 1967 (No. 128) Employment Injury Benefits Convention, 1964 (No. 121) Maternity Protection Convention, 2000 (No. 183) C.102 Social Security (Minimum Standards) Convention, 1952 R67 Income Security Recommendation, 1944 R69 Medical Care Recommendation, 1944 Recommendation concerning national floors of social protection, 2012 (No. 202)

  11. International Labour Organization Principles in Convention No. 102 • PRINCIPLES STATE’S RESPONSABILITY • To provide and guarantee benefits stated by law • To ensure proper functioning of the scheme: supervise and administrate the concerned institutions and services EQUALITY OF TREATMENT • Non-national residents shall have the same rights as national residents • No unique model for social security regimes: common principles • Flexibility in the type of schemes member States establish, in order to implement the Convention • Flexibility in legal and institutional arrangements FLEXIBILITY FAIR BALANCE OF INTEREST • Participation of employers and workers in supervision and administration

  12. International Labour Organization Principles in Convention No. 102 • PRINCIPLES (CONTINUED) ADEQUACY AND PREDICTABILITY • Consistent with national socio-economic development plans • In compliance with national cultural values and history • In coherence with existing institutions (e.g. medical facilities) and the overall social security system • Benefits should adjust with cost of living and general income • Pre-determined and periodical benefits at minimum levels • Costs shall be borne collectively by workers’ and employers’ contributions, or taxes, or both, in a manner which avoids hardship to persons of small means COLLECTIVE FINANCING RIGHT TO APPEAL • Right to appeal in case of refusal of benefits, or complaints regarding quality or quantity of benefits PROGRESSIVE • To gradually extend social security coverage

  13. International Labour Organization Principles in Recommendation No. 202 • Universal coverage of residents by comprehensive SS UNIVERSALITY NON-DISCRIMINATION • Based on equal treatment (and gender equality) • Responsiveness to special needs • Social inclusion, including informal economy TRANSPARENCY • Accountable and sound financial management, admin • Financial, fiscal and economic sustainability with due regard to social justice and equity SUSTAINABILITY RIGHTS AND DIGNITY • Respect for rights and dignity of people • Full respect for collective bargaining and freedom of association for workers DELIVERY • High-quality public services that enhance delivery of SS EVALUATION • Regular monitoring and periodic evaluation

  14. Two dimensions of social security • For a long time, social security was contributory and mainly adapted to the formal sector • Assumption that informal sector would progressively shrink and come under social security coverage - this did not happen Level of protection ??? Poor Rest of informal sector Formal sector Population

  15. Two dimensions of social security • In countries of Asia, formal sector workers have access to social protection • Some programmes target the poorest, leaving the rest of the informal sector uncovered • Existing universal schemes (e.g. UCS, old-age pensions in Thailand) Level of protection ?? Poor Rest of informal sector Formal sector Population

  16. Two dimensions of social security • Discussion on social security in ILC 2001 led to a new consensus: priority to be given to the extension of coverage, exploring strategies like adapted social insurance, microinsurance, social assistance Level of protection Poor Rest of informal sector Formal sector Population

  17. Social protection floor • All residents should enjoy at least a minimum level of social security • Member states of the ILO should establish SPFs as a fundamental element of their social security systems Level of protection Nationally defined SPF Poor Rest of informal sector Formal sector Population

  18. Social protection floor • Based on this floor, extend social security to provide progressively higher levels of SP benefits to more people Level of protection Higher levels of social security to more people Nationally defined SPF Poor Rest of informal sector Formal sector Population

  19. All residents have access to essential health care, including maternity care  All childrenenjoy basic income security, providing access to nutrition, education, care, and any other necessary goods and services  All persons in active age who cannot earn sufficient income, enjoy basic income security, particularly in cases of sickness, unemployment, maternity, disability  All older persons have basic income security Social protection floor Four basic guarantees:

  20. Social protection floors • SPFs are defined nationally, depending on the context • No ‘one size fits all’ approach in designing and implementing SPFs • Each country decides on targeted vs. universal schemes, contributory vs. non-contributory schemes

  21. SPF endorsed globally • ILO’s Recommendation on Social Protection Floors, 2012 (No. 202) was endorsed by 185 member States in June 2012 with 456 ‘yes’ votes and 1 ‘not present’ • Recommendation No. 202 guides member States on establishing and maintaining nationally defined SPFs http://www.ilo.org/wcmsp5/groups/public/---ed_norm/---relconf/documents/meetingdocument/wcms_183326.pdf

  22. SPF adopted in Asia • The 15th Asia Pacific Regional Meeting, Dec 2011, prioritizes “reducing poverty and wide inequalities in income and wealth” and “building effective social protection floors in line with national circumstances” • ASEAN member States adopted the Declaration on strengthening social protection,Sep 2013

  23. SPF adopted nationally The SPF concept was adopted in the National Social Protection Strategy for the Poor and Vulnerable in Cambodia Source: NSPS-PV of Cambodia, 2011

  24. Linkages with employment • The SPF de-links entitlement to social security from formal employment • The SPF promotes employability • People become active contributors to the economy

  25. Linkages with economic growth 2. Direct effects Poverty and inequality Social protection Behavioral effects 2. Education and training 3. 1. Human capital Health 4. Household consumption Demand for goods and services Child well being Increased wages, income Livelihoods and productive investments 3. Physical capital 4. Labour productivity Labour Increased financing 5. Economic performance Source: Source: A. Mideros Mora, F. Gassmann, and P. Mohnen, 2012, Estimation of rates of return of social protection instruments in Cambodia: A case for non-contributory social transfers.

  26. The social protection floor is good for growth The social protection floor can be different across countries The social protection floor j’adore The social protection floor is a floor not a ceiling STOP ME WHEN IT IS NOT TRUE! The social protection floor should be guaranteed for all The social protection floor provides a basket of minimum social security entitlements for all The social protection floor is the first step towards higher levels of social protection The social protection floor is only for the poor The social protection floor is an investment in human capital The social protection floor should be financed by Government budget only

  27. Overview of ILO’s activities in Asia  Documentation, research, training, awareness raising, education  Situation analysis and recommendations: ABND exercises Social security staircase, R202, C102   Support to the development of strategies and laws Implementation through SWS and IT systems  Design of social security systems and SPF components

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