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Interamerican Committee on Social Development – OAS

Interamerican Committee on Social Development – OAS. Main conclusions of the seminar : Intersectoral Approach to Employment and Income Generation Policies for Vulnerable Populations COLOMBIA. LUZ STELLA RODRIGUEZ NOVOA Coordinator, Special Projects Group

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Interamerican Committee on Social Development – OAS

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  1. InteramericanCommitteeon Social Development– OAS Mainconclusions of theseminar: IntersectoralApproachtoEmployment and IncomeGenerationPoliciesfor Vulnerable Populations COLOMBIA LUZ STELLA RODRIGUEZ NOVOA Coordinator, Special Projects Group National Planning Department (DNP), Colombia April, 2010

  2. Intersectoral Seminar on Employment and Income Generation Policies Cartagena, October 19 – 20, 2009 Objetive To learn and discuss, from a multi-sectoral perspective, the progress and challenges of employment and income generation policies in the Hemisphere, focused on the poor and vulnerable populations, in order to contribute to the strengthening of capabilities of the ministries of social development in the implementation of programs that respond to these challenges, especially in light of the current global economic crisis . Participants Ministers, high-level authorities and national technical officers in social development and employment from 26 OAS Member States as well as representatives of the IDB and the ILO.

  3. Intersectoral Seminar on Employment and Income Generation Policies Cartagena, October 19 – 20, 2009 Agenda • Income generation in the context of the global crisis (ILO – IDB) • Towards an intersectoral approach in the institutionalisation of employment and income generation policies (Colombia, El Salvador) • Employability and income generation for population in conditions of vulnerability (Brazil, USA) • Successful experiences in income generation for persons in extreme poverty and conditions of vulnerability (Chile, Paraguay, Haiti)

  4. Intersectoral Seminar on Employment and Income Generation Policies Cartagena, October 19 – 20, 2009 Main conclusions and challenges presented at the seminar • To develop policies that are relevant and which respond to the particular features of families in poverty, so that in the long term, their incomes are improved in a sustainable manner. • In institutional terms, this requires multidimensional interventions and inter-sectoral with high levels of inter-sectoral and inter-agency coordination, linking non-traditional actors (private and third sector). • There should be an effort to strengthen social protection systems that can be activated in moments of crisis. Given that employment is the area that experiences the greatest delay in recuperating after a crisis, therefore it is fundamental that we protect the human capital of families and those at risk (microcredit, technical assistance, business development).

  5. Intersectoral Seminar on Employment and Income Generation Policies Cartagena, October 19 and 20, 2009 Main conclusions and challenges posed at the seminar • Increasing unemployment creates challenges for Social Protection Systems and therefore short and long term interventions are necessary. • Rigorous diagnostics on the labor situation of LAC and the existing institutional capacities to create active employment policies and mechanisms to cover the risks of income shocks • Develop policies tailored to the populations (relevant, timely, sufficient) • Avoid generating incentives for informality • Make sure that transitory measures do not become permanent. • Improve the policies aimed at improving competition in companies, increasing human capital, • Reform benefit systems and better coverage in pension systems. • Incentives to keep the youth in the education system. Short term Long term

  6. Intersectoral Seminar on Employment and Income Generation Policies Cartagena, October 19 – 20, 2009 Main conclusions and challenges presented at the seminar • The issue of employment and income generation is a regional priority: it is one of the requirements for ensuring graduation from the programs aimed at overcoming poverty. • Complement employment promotion programs with programs providing support to households in structural poverty • Give priority to an approach that promotes the development of capabilities to access assets/credit, within a framework of co-responsibility on the part of the families. • Strengthen the institutional framework: integrate the national governments’ supply and generate greater capacity at the local government level. • Promote fiscal and financial sustainability of the social insurance programs: Avoid falling into the “informality trap” by financing social programs with taxes increasing burdens on the labor and formal sector. • The need to start with a “productive view” with a growing importance of knowledge, human capital and the generation of added value.

  7. Intersectoral Seminar on Employment and Income Generation Policies – Cartagena, October 19 – 20, 2009. Background: Poverty and employment in the Region Income generation and employment measures adopted by the countries Income generation policy in Colombia Conpes Document 3616 “Income Generation Policy for persons in situations of extreme poverty and displacement” Challenges and Conclusions Contents

  8. PovertyangEmployment in theRegion • Background LATIN AMERICA: ANTICIPATED EFFECT OF THE ECONOMIC CRISIS ON POVERTY AND INDIGENCE (In percentages and millions of persons) Based on the current situation it is most probable that between 2008 and 2009 regional poverty would increase by 1.1 percentage points, while indigence is likely to increase by approximately 0.8 percentage points. "This means an expansion of the number of poor people to 9 million, of which, more than half is in extreme poverty" Source: ECLAC (2009) Social Panorama of LatinAmerica and theCaribbean.

  9. Poverty and Employment in theRegion • Background LATIN AMERICA (9 COUNTRIES): EMPLOYMENT AND UNEMPLOYMENT RATE, FIRST SEMESTER OF 2006 TO SECON SEMESTER OF 2009 (In percentages) In spite of the increase in unemployment, the employment rate tended to stay constant and to even increase in more than half of the cases. Although the employment rate at the regional level fell from 55.1% in the first semester of 2008 to 54.4% for the same period in 2009, all the countries do not show a negative variation of this indicator. 8.5 54.4 Employment Rate Unemployment Rate Source: ECLAC (2009) Social Panorama of LatinAmerica and theCaribbean.

  10. The population in poverty usually has lower rates of participation in the labor market, it is more affected by increases in unemployment, and depends much more on self-employment than on salaried work. Two complementary approaches are required: a) programs directed towards the population with lower possibilities of participating in the labor market; b) programs directed at supporting households in (extreme) structural poverty. • Income generation and employment measures that countries have adopted

  11. Income generation and employment measures that countries have adopted Actions of Latin American countries: some examples Argentina: Incentives for companies that regularize the status of their employees Chile: Severance fund for all workers. Guatemala: Normative reform for regularizing part-time work. Colombia: Training courses for unemployed youth Nicaragua: Training for unemployed in priority sectors Uruguay: Subsidized labor training. Labor Formalization Training Costa Rica: Scholarship program for youth Dominican Republic : Buying food for older adults. México: Program for food support in priority areas. Costa Rica: Increase of social security coverage for the unemployed. Brazil: Broadening of security the unemployed. México: More social security (health, severance) for the unemployed. Programs for the Vulnerable Population Unemployment Protection Strengthening the CCT (Conditional Cash Transfer) in: Greater public social spending: Colombia Costa Rica Brazil Colombia Conditional Subsidies Increase in Public Spending Paraguay México El Salvador El Salvador Barbados* * In the design process Perú Nicaragua Source: Comparativo de medidas adoptadas a nivel internacional para enfrentar la crisis económica, CEFP 2009

  12. Income Generation Policy in Columbia Background Poverty and Indigence Figures in Columbia Fuente:MESEP, Misión para el empalme de las series de Empleo, Pobreza y Desigualdad, Agosto 2009

  13. Income Generation Policy in Colombia Background Non-extreme poverty (%) Labor market indicators Extreme poverty (%)‏ 59.7 Overall participation rate 57.5 Unemployment rate 8.6 10.2 15.9 18.6 Youth unemployment rate (18-26) Employment rate 54.5 51.6 % Wage earners 51 39 % Self-employed 48 42 Source: Cálculos SSS-DDS-DNP con base en DANE- ECV-2008

  14. Colombia: Social Protection System It incorporates the notion of citizenship and social inclusion. It deals with guaranteeing improvements in living conditions. It guarantees economic and social rights. …socialprotection is much broader than traditional social segurity (health, pension, protection of unemployed and persons at risk professionally) It is based on an integrated approach to Social Risk Management. It includes elements of prevention, mitigation and overcoming Risk (access to physical and financial assets, building human capital).

  15. Colombia: Social Protection System 1. It is based on an approach involving the generation of skills and capabilities • Development of skills and capacity. • Accompaniment in the intervention • Relevance to the needs • Arrticulation of supply and demand 2. Universal. Includes the entire population • Access to social services : Some are contributing and others are subsidized. • Public Resources : Focussing first on those most in need • Universalisation of basic needs

  16. Colombia: Social Protection System 3. Seeks the integration of services • Ensures impacts on all the individuals in a family • Allows us to attack the needs of the most vulnerable population, in comprehensive manner • Supports the capabilities approach 4. It has mechanisms and programs which address structural problems in a multidimensional way (Network Together [Red Juntos], Income Generation Policy) 5. Places special emphasis on the factors related to the intergeneration of poverty (Education – Building Human capital, Early Childhood).

  17. Colombia: Social Protection System SOCIAL PROTECTION SYSTEM Comprehensive Social Security Access to Credit Building Human Capital Management of Covariant Risks 2 1 3 4 100% of the population F.A. SOCIAL PROMOTION SYSTEM 5 Poor and vulnerable population • Development of Social Protection and Social Promotion Systems (1151 Law of 2007). • Development of the strategy, “Network Together for overcoming extreme poverty (Conpes Social 102, 2006) Institutional location of the program

  18. Income Generation Policy in Colombia Background CONPES 3616 Identification Income and Work Education and Training Dimensions 1.5 Million families in extreme povertyand displaced Banking and Savings Health Access to Justice Nutrition Housing and Living Conditions Family Dynamics

  19. Income Generation Policy in Colombia Background • The initiative to develop this CONPES document of Policy Guidelines for Income Generation for the population in extreme poverty or who have been displaced emerges by: • Generating tools that would allow the population in extreme poverty and displacement to overcome their socioeconomic condition in a sustainable manner, with support in accessing services which the SPS has granted them, • Structuring a policy that allows for the development and consolidation of the productive potential , taking advantage of the capacities of the PPED population and creating opportunities so that this population could access and accumulate assets, whereby they can generate sufficient and sustainable incomes. *NATIONAL COUNCIL FOR SOCIAL AND ECONOMIC POLICY-CONPES- “It is the special advisory agency of the government on all aspects relating to the country’s economic and social development” (Decreto 627/1974) **CONPES 3616

  20. Intersectoral Seminar on Employment and Income Generation Policies – Cartagena, October 19 – 20, 2009. Background: Poverty and employment in the Region Income generation and employment measures adopted by the countries Income generation policy in Colombia Conpes Document 3616 “Income Generation Policy for persons in situations of extreme poverty and displacement” Challenges and Conclusions Contents

  21. Conpes 3616 “Policy for income generation for the population in extreme poverty and/or displacement” Target Population • Persons in extreme poverty • Displaced population All adults and young persons, above 18 years, that have not fulfilled income dimension of Network TOGETHER, that belong to households in the quintile under level 1 of the SISBEN or included in the Unique Registry of Displaced Population

  22. Conpes 3616 “Policy for income generation for the population in extreme poverty and/or displacement” Objective Increase the productive potential of the population in a situation of extreme poverty and displacement, developing their capacities and creating opportunities so that they may access and accumulateassets. Training Access to assets Strengthen territorial management Strengthen the institutional framework Acceso a Activos Fortalecimiento de la gestión territorial Fortalecimiento del Marco Institucional Desarrollo de Capacidades + + + Strengthened Social Protection System Documento Conpes 3616 de 2009: Lineamientos de política de generación de ingresos para PD y Pobre Extrema. MADR, MCIT, MPS, MEN, Acción Social, SENA, BANCOLDEX: Banca de las Oportunidades y DNP

  23. Conpes 3616 “Policy for income generation for the population in extreme poverty and/or displacement” Integral route for Income Generation 4 1 2 3 Characterization and identification of the labor profile Occupational orientation Education, Training and psychosocial intervention Labor intermediation and/or Support for new activities and strengthening existing activities. + + + Acción Social, MADR, MCIT, BANCOLDEX: Banca de las Oportunidades Private Sector International Cooperation Social Action SENA SENA MEN SENA MPS Budget and Technical Accompaniment: DNP, MHCP

  24. Conpes 3616 “Policy for income generation for the population in extreme poverty and/or displacement” Implementation • Stage 1: • Realization of studies aimed at targeting and flexibility of the offer. • Define the mechanisms of implementing policies: actors, competencies, resources. • Define the institutional architecture that guarantees, in the medium term, inter-institutional coordination and sustainability of the policy. • Implementation of 5 pilot programs in intermediate cities and mechanisms to promote the complementary and integral nature of the offer in Bogota, Medellin, and Soacha. • Co-responsibility, concurrence, and coordinated work between the nation and territorial entities are necessary for: • Identifying the existing offer on a territorial level. • Promoting the integral and complementary nature of the offer. • Guaranteeing the management on a territorial level to access the existing offer. • Identifying the most relevant offer to support the displaced population. • Monitoring and evaluation of the displaced population on a local level.

  25. Conpes 3616 “Policy for income generation for the population in extreme poverty and/or displacement” Implementation • Stage 2: • Adjustments to the design and operation of the existing income generation programs. • The new institutional architecture will promote the implementation of the Integral Route of Income Generation that involves the relevant actors, instances, programs and strategies (on a national and local level) and that defines the coordination mechanisms and articulation (integrality in the resources and interventions). • The offer that is most relevant to the characteristics and conditions particular to the displaced population y and the extremely poor will be implemented (focusing, improving and integrating the existing instruments from the local areal) in each one of the components. • A monitoring, evaluation, and accountability system will be created that would provide information to manage the supply of services directed towards the results. Productive development that recognizes the potential and characteristics of the displaced population and productive development at the local level.

  26. Intersectoral Seminar on Employment and Income Generation Policies – Cartagena, October 19 – 20, 2009. Background: Poverty and employment in the Region Income generation and employment measures adopted by the countries Income generation policy in Colombia Conpes Document 3616 “Income Generation Policy for persons in situations of extreme poverty and displacement” Challenges and Conclusions Contents

  27. 1. The need to complement employment promotion programs with programs that provide support to households in structural poverty. 2. Strengthening of the institutional framework: Integration of the supply and coordination of governmental programs. Strengthening the capacity for management of local governments 3. Fiscal and financial sustainability of social insurance programs. Avoid falling into the “informality trap”; to finance social programs with taxes and increasing burdens on formal work and sector 4. The need to start off with a “productive view”, where there is increased importance for knowledge, human capital and the generation of added value. programs Conclusions: coordinatio of policies and programs

  28. THANK YOU

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