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Poverty and Exclusion Enhancing Human and Social Capacity for Development The case of France. Julien Damon Associate Professor, Sciences Po, Paris 13 June 2010, Hong Kong www.julien-damon.com. Summary. Poverty and Exclusion: a World of Differences and Similarities
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Poverty and ExclusionEnhancing Human and Social Capacity for Development The case of France Julien Damon Associate Professor, Sciences Po, Paris 13 June 2010, Hong Kong www.julien-damon.com
Summary • Poverty and Exclusion: a World of Differences and Similarities • Social Protection in France and the Fight Against Poverty • Enhancing Human and Social Capacity: Demographic Performances and New Tools
I. Poverty and Exclusion: a World of Differences and Similarities
Absolute Poverty (up to $1 a day) Source : www.worldmapper.org
Slum growth (1990-2001) Source : www.worldmapper.org
Sewerage Sanitation(2002) Source : www.worldmapper.org
II. Social protection in France
Public social expenditure in percentage of GDP, in 2006 Source : Eurostat
The Post-War Scheme Extras PROVISION FOR THE FUTURE Social Security INSURANCE Social Assistance ASSISTANCE • Optional and compulsory protection • Mutual associations, insurance companies, contingency fund organizations • 1945 goal:progressive reduction of the need for contingency mechanisms • Risk coverage for “social assistance” beneficiaries • Principally financed through contributions • Mainly horizontal redistribution • Divided into different programs • 1945 goal:universality • The various social insurance programs provide four-fifths of the benefits • Needs-based risk coverage • Principally financed through taxation • Mainly vertical redistribution • 1945 goal:assistance expected to become residual
A “new” social risk: poverty By broad risk area, 2007 Old age Health Family Employment Housing Poverty • Four “social risks”... • Occupational injuries • Old age • Illness • Family • ... that grew to eleven! • Maternity • Unemployment • Work transitions • Survivors • Disability • Housing • Poverty
Bird's-eye View (1) • French social policies have met many of the goals they were designed to achieve... • providing coverage for the whole population • achieving one of the highest fertility rates in the Western world • significantly improving the overall health of the population • fulfilling a role as an effective, Keynesian-inspired, economic stabilizer • limiting inequality through a relatively high level of redistribution • reducing poverty, particularly among seniors
Bird's-eye View (2) • ... they have, however, been hindered by substantial difficulties arising from economic and social change • persistently high unemployment, resulting in lost revenue and increased social expenditures • structural deficits that create a burden for future generations • aging population • poor, insufficient, or incomplete coverage of new risks (dependency in old age, exclusion, immigrant integration, etc.) • changes to the family structure that challenge the “male breadwinner” concept • increasing individualism and consumerism of users and beneficiaries
France and poverty: Five characteristics of poverty A RETENIR • Rejuvenation • Urbanization • More working poor • « Single-parentization » • And… migrations
France and poverty: A new agenda • Quantitative target setting • MDG (UN) – 2000: Reduce by half the proportion of people living on less than a dollar a day • OMC (UE) – 2000: Eradicate poverty • France – 2007: Reduce poverty by one third in five years
III. EnhancingHuman and Social Capacity: Demographic Performances and New Tools
New Realities number of births and proportion of births outside marriage Progression des naissances hors mariage Source : INED
Public spending on family benefits, in per cent of GDP, 2005 Source : OECD
Aging, everywhere….Median age (years) Source: Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat, World Population Prospects: The 2008 Revision,n
Another important relationship: share of births outside marriage and fertility ratefertility rate, Sources: OECD, National Statistical Offices and Eurostat Demographic Statistics for EU countries.
In the end Three key words: Protection Innovation Investment Asset building. Why not? The case of CTF