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Decent Work for Sustainable Poverty Reduction from targeted poverty projects to Social Security for All, al

Decent Work for Sustainable Poverty Reduction from targeted poverty projects to Social Security for All, also in Global South. The 33rd Global Conference of the ICSW, Tours, France Day-3 of the Conference (3 July, 2008):

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Decent Work for Sustainable Poverty Reduction from targeted poverty projects to Social Security for All, al

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  1. Decent Work • for Sustainable Poverty Reduction • from targetedpoverty projects to • Social Security for All, also in Global South The 33rd Global Conference of the ICSW, Tours, France Day-3 of the Conference (3 July, 2008): Social Development - from targeted policies on poverty reduction to human development SYMPOSIUM-7: ”Poverty reduction and minimum income policies: results and limits” Timo Voipio / ISSA (International Social Security Association), Geneva voipio@ilo.org – www.issa.int

  2. TV: Sources of ideas and inspiration: • TV with MFA-Finland 1992-2007 (Rio & Copenhagen to UN-ECOSOC, via ICSW-Kuala Lumpur and ICSW-Brasilia, and UN-CSocD, OECD-POVNET (SocProt + Empl), EU, WB, ILO + WCSDG, UNRISD, SDAN, GASPP, Network-IDEAS, Tanzania, “Helsinki-process”, “Kellokoski-meetings” ) • ISSA / AISS (Geneva) – since 9/08 ( New site: www.issa.int ) • Policy Research Guide for SocSec Administrations • Developments and Trends (DT) of SocSec in Africa, Asia, the Americas, Europe, World (Reports + Sessions)  Rwanda Nov-2008, Cape Town 2010 • Study: Examining the Existing Knowledge on Social Security Coverage Extension ( ISSA Strategy on Extension) • ILO Global Campaign to extend SocSec to All • ILO Decent Work Agenda: = Rights + Employment + SocProt + Dialogue

  3. Poverty Reduction ? Minimum Income Policies ? Minimum Social Security ? • MinWage on the Agenda in ILO and Europe for long - MinWage: ILO 19281/19702 - SocSec/Minimum Standards: ILO 19523 • My focus is on... - ”The Global South” – ”developing countries” - ”Social Security” // ”Social Protection” - ”Social Floor” as ILO calls it. 1Minimum Wage-Fixing Machinery Convention, 1928 (No.26) 2Minimum Wage Fixing Convention, 1970 (No.131) 3Social Security (Minimum Standards) Convention, 1952, (No.102)

  4. Minimum Income Policies / MinWage  Brief remarks: MinWage – a good starting point from which social dialogue / collective bargaining can branch out.1 Goal: protection of the lowest-paid, most vulnerable and most difficult-to-organise workers, e.g. domestic, agric., casual, home workers Thus, MinWage can be used as a ’Social Floor’. But RISK that any rise in MinWage may lead to huge, unsustainable increases in SocSec costs (tied to MinWage)  MinWage can be Pro-Poor, but should be planned as part of a coherent policy package for PovRed.2 1Berg and Kucera (ed.2008): In Defence of Labour Market Institutions. 2ILO Minimum Wage Fixing Recommendation, 1970 (No. 135)

  5. Sustainable development (Rio-92)=comprehensive & balanced policies ECONOMIC SOCIAL ENVIRONMENT

  6. Aid Experts’ Mtng  UN-CSocD  Book & Website www.stakes.fi/social-policies-for-development

  7. Back to Copenhagen - UN Social Summit-95: • FULL SOCIAL • PRO- INTEGRATION • DUCTIVE = Inclusion + • EMPLOY- Equity SocProtection • MENT • POVERTY • ERADICATION

  8. Copenhagen +10  UN Summit: • FULL SOCIAL • PRO- INTEGRATION • DUCTIVE = Inclusion + • EMPLOY- Equity SocProtection • MENT • POVERTY • ERADICATION

  9. UN-DESA Policy Guidance Notes- Alternatives to Washington Consensus POLICY COHERENCE !! 1) Macroeconomics and Growth 2) Financial Policies 3) Public Investment Management 4) Technology Policy 5) Social Policy (incl. Employment Policy) 6) Trade Policy  Good ideas fly…BUT: Thanks ICSW for printing and disseminating it – in the conference briefcases !!!  Good basis for ICSW-work at national, regional and global levels.

  10. ILO Global Campaign on Social Protection for All (ILC-2001) “Social Floor 2008” • Towards progressive universalism: • - Building progressively higher levels of protection • - Based on a basic ‘Social Floor’ consisting of: • HEALTH: Universal guarantee of access tobasic healthbenefits, through a set of sub-systems linked together: a public health service funded by taxes, social and private insurance and micro-insurance systems. • BASIC PENSIONS: Guaranteed income securityfor people in old age, invalidity and survivors through basic pensions. • CHILDREN: Guaranteed income security for all children throughfamily/child benefits aimed to facilitate access to basic social services: education, health, housing. • UNEMPLOYMENT/POVERTY: Guaranteed access to basic means tested/self targetingsocial assistance for the poor and unemployed in active age groups.

  11. ILO SocSec: The Social Floor – of a Social Security House- You build a FLOOR in order to build more… A Social FLOOR is better than a SAFETY NET... …A FLOOR can support a LADDER – a safety NET cannot ! Thefloor The ILO Global Campaign to extend Social Security to all

  12. OECD / Development Co-op. (DAC) Poverty Network (POVNET) GROWTH POVERTY REDUCTION ENVIRONMENT

  13. OECD-01: POVERTY is multi-dimensional SOCIAL SECURITYrisk, vulnerability social protection/ social security soc. risk mngt (SRM) ECONOMICconsumptionincome assets POLITICALrights freedoms voice & influence GENDER + ENVIRON-MENT HUMAN healtheducationhunger, thirst SOCIO-CULTURALstatusrespect, dignity

  14. OECD-01: POVERTY is multi-dimensional SOCIAL SECURITYrisk, vulnerability social protection/ social security soc. risk mngt (SRM) ECONOMICGrowth POLITICALrights freedoms voice & influence GENDER + ENVIRON-MENT HUMAN healtheducationhunger, thirst SOCIO-CULTURALstatusrespect, dignity

  15. OECD-01: POVERTY is multi-dimensional SOCIAL SECURITYrisk, vulnerability social protection/ soc. risk mngt (SRM) ECONOMIC Employment,assets, income consumption POLITICALrights freedoms voice & influence GENDER + ENVIRON-MENT HUMAN healtheducationhunger, thirst SOCIO-CULTURALstatusrespect, dignity

  16. Decent Work(ILO  OECD, UN, EU, AU)= Great Agenda: Policy Coherence for Development ECONOMIC SOCIAL ENVIRONMENT

  17. ILO Decent Work Agenda RIGHTS Fundamental Principles and Rights at Work e.g. ILO-Conventions EMPLOY-MENT Enabling environment, Entrepreneurship, Employability, Skills, Productivity, Competivity SOCIAL PRO-TECTION Extending social security and protection to all, incl. those in the informal sector • SOCIAL DIALOGUE • Building social concensus on major policy lines i.e. Gov’t with • Workers • Employers • Civil Society • Partners • + Gender Equality cross-cutting all… • DWCP to be part of national PRSs • ILO has small budgets only –> Bi-donors + One-UN !

  18. Decent Work ~ ’FLEXICURITY’ FLEXIBILITY Employers SECURITY Workers Competivity / Social cohesion

  19. World Bank, World Development Report 2006: • To prosper, a society must create incentives for the vast majority of the population to invest and innovate. • How ? • Balance POVRED & GROWTH • Coherence: SOC & ECON

  20. Development cooperation ?

  21. No growth without people...Well-being is the engine...(POVNET) Poverty Reduction Employability Social protection Equality Employment Formal and Informal Labour Market People = Labour Business = Employers Productivity Institutional context Regulations Empowerment Economic Growth

  22. Poverty Reduction Employability Social protection Equality Employment Formal and Informal Labour Market Labour Force Business Productivity Institutional context Regulations Empowerment Economic Growth Dynamic, forward-moving balance… 

  23. More seriously: OECD/POVNET: Employment and Labour Markets Major change in Dev’t Policy Agendas: EMPL + PROD • Social Protection: • Targeting, Universalism • Risk pooling, financing, integration, re-insurance • Skills for administering social security schemes • Social Cash Transfers • Health Insurance • Equal opportunities & inclusion: • Migrant workers (remittances, brain drain, diaspora) • Youth, gender, ethnic groups • Hiv/Aids • Disabled people • Informal workers: precarious workers, self-employed, multiple jobs • Employability: • Vocational Education, skills • CSR of enterprises , PPP • Labour Intensive Growth: investment, production Pattern, trade • Functional flexibility • Mobility: infrastructure, transport • Enterprise development (micro, small), access to credit • Life-Cycle (child care, maternity benefits) • Social cash transferss • Health insurance Employment Poverty Reduction Formal and Informal Labour Market Economic Growth Productivity • Institutional Context: • Labour/Soc/Fin. Ministries • Associations/ unions/business interests • Labour Market Institutions and Public sector reforms: minimum wage, taxes, • Fragile environments • Regulations: • Access to productive assets • Security of investment • Access to innovation • Labour norms • Empowerment: • Legal Empowerment: labour norms, property rights, voice at work • Inclusive Institutions (social dialogue)

  24. OECD-POVNET: / EMPL 1) Productive and decent work is the major route out of poverty for the vast majority of poor people. 2) Employment and labour markets need to be understood and addressed as:INFORMAL and FORMAL

  25. OECD-POVNET: / SocProt 3) Participation of millions of poor people in the growth process as active agents is good for the poor and good for the national economy. 4) Lack of reliable risk management mechanisms is a major barrier to contributions by the poor to the growth process. 5) The poor often engage in low productivity and low profitability activities, only because they are also less risky than high productivity/profitability alternatives.

  26. OECD-POVNET: / SocProt 6) A reduction in risks faced by poor people can help to stimulate growth by encouraging people to engage in higher risk/productivity/profitability activities. 7) Risk reduction and management also means that people do not have to fall back on coping strategies with irreversible impoverishing impacts.

  27. OECD-POVNET: / SocProt • 8) A new view of social protection programs: • Rather than as consumption expenditure (luxury)… • they should be recognized as investment-type expenditure with potentially high rates of return and strong poverty impact.(Investments in People)

  28. SocProt Fastest way to reach MDGs !!!ILO: Estimated effect of a basic Social Security package on MDG-1 poverty headcount: Tanzania

  29. A basic social protection package is affordable: cost of all basic benefit package components The ILO Global Campaign to extend Social Security to all

  30. A basic social protection package is affordable: share of total cost that can be covered by domestic resources The ILO Global Campaign to extend Social Security to all

  31. A Human Right to a Socio-Economic Floor ? Income profile B Higher levels - privately-provided? ’Socio-economic floor’ – ensured by Gov’t/ODA? Income profile A Minimum insurance needs

  32. 9) Social Security in Global South - How? By whom? • - Poverty projects (Gov / Donor / Multi / NGO) ? • - Social Security Administrations for formal sector • workers (= ISSA-members) • - Tax-funded Social Transfers, by Ministries • NGO projects / CSO action (ICSW? HelpAge? Etc.) • Combinations of – and cooperation among - all these will be needed !!! • Social workers will be needed in any case !!

  33. International Social Security Association Association Internationale de la Sécurité Sociale New website: www.issa.int

  34. Regional Social Security Forums Sustainable Proactive, incl. Preventive Innovative Socially inclusive Economically productive • PRIORITY CHALLENGES: • Administrative and operational efficiency • Social security reform • Extension of SocSec Coverage • Impact of demographic changes.  Trust !

  35. DYNAMIC SOCIAL SECURITY Accessible Sustainable Performing and well governed Proactive, incl. Preventive Innovative Socially inclusive and Economically productive

  36. 10) A new view of Social Security Administrations • (> 360 ISSA-Members in > 150 countries): • - In addition to managing reliably the pension etc. SocSec funds of civil servants and other formal sector • ...SocSec Administrations (ISSA-members) could be important partners with governments, social partners and CSOs (ICSW-members) in EXTENSION of SocSec to those in the informal sector not covered • Rare experise in actuarial and demographic analysis • -Governments could/ should make use of it...

  37. ISSA-Projects managed by TV: • Policy Research Guide for SocSec Administrations • Developments and Trends (DT) of SocSec in Africa (Nov-08 Rwanda), Asia (09), Americas (09), Europe (10), World (10)  Reports + Sessions • Study: Examining the Existing Knowledge on Social Security Coverage Extension  ISSA Strategy on Extension

  38. ILO SocSec: The Social Floor – of a Social Security House- You build a FLOOR in order to build more… A Social FLOOR is better than a SAFETY NET... …A FLOOR can support a LADDER – a safety NET cannot ! Thefloor The ILO Global Campaign to extend Social Security to all

  39. Sustainable development (Rio-92)=comprehensive & balanced policies ECONOMIC SOCIAL ENVIRONMENT

  40. Key: Putting PEOPLE to the centre of measuring policy progress: ECONOMIC POLICY: - formal employment - reliable social security - Income equality (Gini) • SOCIAL POLICY: • Inclusion & particip’n • Gov’t responsiveness • Cohesion & safety Commitment, consensus and solidarity

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