Comprehensive Social Policies for a Globalizing World

ISA-RC19, Florence8 Sep, 2007

Timo Voipio, International Social Security Association (ISSA)[email protected] 1

Comprehensive Social Policies for a Globalizing World

Timo Voipio, ISSA & OECD-POVNET

ISSA: Themes the ISSA ‘Policy Analysis Unit’ wishes to cooperate with you on:

1) Regular monitoring of major trends in social security worldwide

2) Identifying and analyzing forthcoming social security challenges

3) Establishing a ‘Task Force’ on the extension of social security coverage to those not covered…

4) Raising the profile of social security at the international level

ISSA • AISS • IVSS



Disclaimer:

‘BRAINSTORMING’, not official policies of my employers:- MFA-Finland, Helsinki Aug-07

- ISSA = International Social Security Association, Geneva Sep-07

Ideas from several interlinked processesUN

– DW in ECOSOC & CSocD +

Soc.dim. NEPAD- DESA Guides +

UNDP/ILO + ’OneUN’

National DevPlans/

PRSs

WB - SocDevt/Arusha - SocProt + LabMkt

- TFESSD + WBI -

WB/ILO

AU/SADC – Social &

Empl. Policy Frameworks

EU: Decent Work Comm&Concl.& Conf & EurParlament

DG-DEV: Empl&Dev + SocProt&Dev

OECD-POVNET/PPG(SocProt & Empow +

Empl & LabMkts)Kellokoski/UNRISDHelsinki-processRealizing Rights

ICSW / ISSAGASPP / UNU-CRIS

WIDER / SDAN



OECD-DAC POVNET Task Team on Social Protection

and Empowerment (TT-SP) will also need RC19



EU (EC + MS): Decent Work 1) Employment & DevtCoop 06-07

2) SocProt & DevtCoop 07-08 25-26 Oct Brussels

Good topics of research for RC19

International Actors’ International Actors’ approaches to GlobSocPol:approaches to GlobSocPol:

www.stakes.fi/social-policies-for-www.stakes.fi/social-policies-for-developmentdevelopment

(2007)(2007)

KELLOKOSKI + STOCKHOLM, NOV-06 & UN-CSocD, Feb-07:

• NORDICS + TZ + RSA• DFID + GTZ + EC + AU• UN-DESA & UNRISD• ILO & ISSA• UNDP & UNICEF• WB/SOC.DEV• GASPP/CODESRIA/

RHODES/IDEAs• ICSW & HELPAGE

’Back to Copenhagen (& Rio)’www.stakes.fi/social-policies-for-www.stakes.fi/social-policies-for-

developmentdevelopment



Aid

+ ANNEX: + ANNEX: Johannesburg Ministerial Declaration Johannesburg Ministerial Declaration

and Draft Strategy:and Draft Strategy:TOWARDS AFRICAN REGIONAL SOCIAL TOWARDS AFRICAN REGIONAL SOCIAL

POLICIESPOLICIES



Copenhagen Social Summit-95: Comprehensive Soc.Policies

FULL SOCIALPRO- INTEGRATION /DUCTIVE Equity (= Incl+Prot) EMPLOY- ’People-centred d.’ MENT ’Society for all’

POVERTY REDUCTION



Focus of global ODA-efforts since Copenhagen: PovRed

FULL SOCIALPRO- INTEGRATION /DUCTIVE Equity (= Incl+Prot) EMPLOY- MENT

POVERTY REDUCTION ~ USD1/day



UN Summit-05 + ECOSOC-06 + CSocD-07 + OECD-POVNET + WB + EU + AU

Decent Work for All EMPLOY- SOCIAL MENT

PROTECTION / Equity INCLUSION Pro-Poor… People-centredPOVERTY REDUCTION

UN/ILO/EU: Decent Work Country Programmes (DWCP)

EMPLOY-MENTEnabling

environment, Entrepreneurship,

Employability, Skills,

Productivity, Competivity

SOCIAL PRO-

TECTIONExtending

social security and protection

to all, incl. those in the

informal sector

SOCIAL DIALOGUE

Building social concensus on

major policy lines e.g. through

tripartite negotiations.

RIGHTSFundamental

Principles and Rights at Work

e.g. ILO-Conventions

+ Gender Equality cross-cutting + Gender Equality cross-cutting all…all…

DWCP to be part of national DWCP to be part of national PRSsPRSs



SOCIALSOCIAL-rightsrights

- protectionprotection- dialoguedialogue

& gender equality& gender equality

Employment Employment generation generation

& entre-& entre-preneurshippreneurship

DECENT WORK FOR ALL = DECENT WORK FOR ALL = Good, coherence-enhancing concept, Good, coherence-enhancing concept,

bridging the ECON/SOC dividebridging the ECON/SOC divide



SOCIALSOCIALECONOMICECONOMIC

We are all committed to: Rio-1992 Sustainable dev’t = balanced dev’t

ENVIRONMENTENVIRONMENT



SOCIALSOCIAL-security & protectionsecurity & protection-inclusion & dialogueinclusion & dialogue- rights & equality, rights & equality, incl. gender equalityincl. gender equality

Employment,Employment,entrepreneur-entrepreneur-ship, skills, ship, skills,

finance, mktsfinance, mkts

So, IDEAL: So, IDEAL:

Comprehensive Social Comprehensive Social PolicyPolicy



SOCIALSOCIALECONOMICECONOMIC

BUT: In reality, in country level work, the economic perspective (growth & efficiency)

dominates. Why?



UNUNWBWB

(& IMF)(& IMF)

Part of the reason is the imbalance between the WB(& IMF) vs. UN at country level



UN + WB:UN + WB:SOCIALSOCIAL

WB & UN: WB & UN: ECONOMICECONOMIC

In principle, both WB & UN should promote a balanced sustainable dev’t agenda on

RIGHTS/SOCIAL JUSTICE

ENVIRONMENTENVIRONMENT



WBWBnon-non-

economistseconomistsWBWBeconomistseconomists

Within WB the ECON dominates over the SOC: The WB has 10.000 economists &

only few hundred non-economists



Min.of Social Min.of Social & Labour, & Labour, unions, unions,

consumersconsumers

Min. of Finance, Min. of Finance, Central Bank, Central Bank,

Business & Empl. Business & Empl. associationsassociations

Equally, at the national level there should be a balance between the ’ECONOMIC’ and ’SOCIAL’ ministries

& civil society representatives

Min.of Env / Agric. / Natural Min.of Env / Agric. / Natural resourcesresources



Min.of Social Min.of Social & Labour, & Labour, unions, unions,

consumersconsumers

Min. of Finance, Min. of Finance, Central Bank, Central Bank,

Business & Empl. Business & Empl. associationsassociations

But: Often the ECON perspective gets a priority in national policy making



’’Fragmented’Fragmented’non-economic non-economic

social scientists’social scientists’(e.g. RC19 & co)(e.g. RC19 & co)(Well-disciplined) (Well-disciplined)

EconomistsEconomists

Economists dominate in development policy over sociologists and other ’non-economic

social scientists’



LabourLaboureconomists economists & industrial& industrialpolicy, etc.policy, etc.

Orthodox Orthodox ’’neo-liberal’neo-liberal’

macromacroeconomistseconomists

And: Among the WB-economists one school of thinking dominates over alternatives



UN:UN:grants outside grants outside the BS-framethe BS-frame

WB-loans WB-loans + Bilaterals’ grants:+ Bilaterals’ grants:

PRSP PRSP + Budget support+ Budget support

A key additional factor: Bilaterals strongly aligning to the WB-dominated dev’t agenda



IMF & IMF & World Bank World Bank & Bilaterals& Bilaterals

economic policyeconomic policy

An additional factor: Fragmented UN

UNDPUNDP

WHOWHO UN-AidsUN-Aids

ILOILO

UnicefUnicef

WFPWFP

HabitatHabitat

UnifemUnifem

UN: Fragmented UN: Fragmented social policysocial policy



WB + WB + Min.of Finance &Min.of Finance &

IMF + IMF + Central BankCentral Bank

Fragmented UN leads to fragmented national social policies

UNDP +UNDP +PMOPMO

WHO + WHO + Min.of Min.of HealthHealth

UN-Aids +UN-Aids +National Aids National Aids

CouncilCouncil

ILO + ILO + Min.ofMin.ofLabourLabour

Unicef +Unicef +Min.of Min.of

Children Children & Women& Women

WFP +WFP +Min.of Agric.Min.of Agric.

Habitat + Habitat + Min.of Min.of

HousingHousingUnifem + Unifem + Women’s Women’s

OfficeOffice

UN: Fragmented UN: Fragmented social policysocial policy

ILOILO-TC-budgetsTC-budgets

- country presencecountry presenceDecent WorkDecent Workfor Allfor All

E.g. the ILO has a great Agenda, but very little Money for TC, and only

thin country presence



’’One UN’One UN’+ WB + WB

+ bilaterals+ bilateralsWB + IMFWB + IMF

+ bilaterals+ bilaterals

Efforts to improve the ECON/SOC balance: UN-Reform

(at global and national levels)



IMF & IMF & World BankWorld Bank

- economic policyeconomic policy

Efforts to improve the ECON/SOC balance (e.g. Nordic TF-ESSD in WB)

UNDPUNDP

WB/WB/SD+SPSD+SP UN-AidsUN-Aids

ILOILO

UnicefUnicef

WFPWFP

HabitatHabitat

UnifemUnifem

Networked UN + Networked UN + WB into social WB into social

policypolicy

WHOWHO

WB/SDWB/SD

WB/SPWB/SP



WB/SD: Arusha Declaration Dec-05: New Frontiers of SocPol -1

Transformation of subjects and beneficiaries into citizens

universal rights & responsibilities Middle-class by-in: Build alliances

between the poor and the not-so-poor Role of State: effective & accountable

Recognizing power relations & institutions Capacity of states revenue mobilization



WB/SD: Arusha Declaration Dec-05: New Frontiers of SocPol -2

Social dimension/Equity in infra, utilities, social services: educ/health/SP

Market access for the poor Fiscal policies Migration (internal/external) Citizens organizations/social partners Understanding history, culture, etc. Social Policy at all levels: local, national, global Multi-disciplinarity



WB/SD: Arusha BUT:1) DISSATISFACTION: Why only US-/UK-experts?

For a conference in Africa? Why were African, European, Nordic, UN voices not listened to? GSP-Journal + Kellokoski event

2) LITTLE PROGRESS WITHIN THE WORLD BANK Arusha ”fading away”??

SOCIAL DEVELOPMENT MERGED INTO INFRASTRUCTURE DEPARTMENT

”SOCIAL DEV’T” ”SOC.PROTECTION”



Aid

KellokoskiKellokoski UN CSocDUN CSocD



Kellokoski + UN + ILO + AU + EU: Comprehensive Social Policies ?1) Employment, (incl. entrepreneurship & employability)2) Education 3) Health( = the basic social services)4) Social Protection5) Disadvantaged groups: youth, old, PWD, etc.6) Equity-orientation, social inclusion, dialogue,

SRM, accountability in all policies and all governance, including taxation.

7) PSIA of all policies and governance, incl taxation 8) Multi-disciplinarity

United Nations (DESA) Policy Guidance Notes

For ”More ambitious Nat’l Dev’t Strategies”

1) Macroeconomics and Growth2) Financial Policies3) Public Investment Management 4) Technology Policy 5) Social Policy ( including ‘Employment’)6) Trade Policy Constructive alternative to WB’s PRS Sourcebook Regional & national tailoring, translation, dissemination, training Multi-donor trust fund? (~ or: Good ideas fly ??)



2) AU



POVNET Task Team on Social Protection and Empowerment

(TT-SPE). History and challenges ahead



SocProt professionals need to realize: Donor governments

not yet convinced about SocProt

(except DFID, GTZ, Portugal ?) Evidence & arguments needed !

Data alone will not do the convincing Demand from South is key!

Capacity bldg for champions of SP Ministries/research/SocPartners/PMS



OECD-DAC

Poverty Reduction Network POVNET

Phase-1 1998-2001: DAC Poverty Reduction Guidelines

POVERTY is multi-dimensional (DAC-01)SECURITY

risk, vulnerability social protection/

social risk management (SRM) POLITICAL

rights freedoms

voice & influence

SOCIO-CULTURAL

statusrespect, dignity

ECONOMICconsumptionincome

assets

HUMANhealth

educationhunger, thirst

GENDER +

ENVIRON-MENT

Social Security/Protection one key dimension

PROTECTIVErisk, vulnerability

social protection/ social risk

management (SRM) POLITICALrights

freedoms voice & influence

SOCIO-CULTURAL



assets

HUMANhealth


GENDER +

ENVIRON-MENT



~ ’Growth First’ vs. ’People First’ ??SECURITY

risk, vulnerability social protection/

social risk management (SRM) POLITICAL

rights freedoms

voice & influence

SOCIO-CULTURAL



assets

HUMANhealth


GENDER +

ENVIRON-MENT



SocialSocialdev’tdev’t

Neo-Neo-liberalsliberals

Hot debates & consensus-building



PATTERNPATTERNof Growth?of Growth?

PACE PACE of Growth?of Growth?

Hot debates

Compromise…Compromise…





PrivatPrivate e

SectorSector

Infra- Infra- structurstructur

ee

Agri-Agri-cultureculture



Consensus-1: Risk & Vulnerabilitylimit the participation and contribution of the poor

people to growth,e.g. in agriculture and PSD



Consensus-2: Lack of reliable

Social Protection is a major barrier to

contributions by the poor to the growth proces.



Consensus-3: Reliable social protection

can stimulate growth by encouraging people to engage

in activitities with higher risk,

productivity & profit.



Consensus-4: SocProt people can help

people avoid coping strategies with irreversible impoverishing impacts (selling assets, taking

children out from school…)



Consensus-5: Rather than as luxury…

Social Protection should be recognized as

investment with high rates of return and

strong poverty impact.



Consensus-6: The analysis of risk and

vulnerability in public policy is possible and desirable

It is now time for more experimenting:

trying out SocProt schemes in LICs.



Consensus-7: Donors need to build capacity and

partner with the SocProt –ministries &

institutions (e.g. twinning)



POVNET TT-SPE – Participants 04-08:

DFID, Finland, France, GTZ, Ireland, Japan, Netherlands, Norway, Sweden, Switzerland, USAID…

+ Multilaterals: WFP, UNDP, ILO, ISSA, Unicef, World Bank, WBI, AfDB

+ Research: IDS, EPRI, Oxford, ODI, Stakes, OECD-Dev’tCentre

+ CSOs: HelpAge International+ Dialogue with AU & African Governments

(Tunis, Livingstone 1 & 2 March-08 )



Safety nets: focus on stopping people falling, post-risk event, often risk prevention and livelihood promotion can be built in

Social Risk Management (WB): public and private actions to minimize, mitigate and cope with risk

Macro Policies etc. policies not de-signed to manage risks, but may do so, e.g. SME,productivity, industrial, environ-mental.

Basic social security: Food, health, housing, education, skill dev’t, labour mkt security for non- critically vulner-able

AB C

DE

Social Protection = B+C+D (~ Contingent SS?) Basic Social Security=A ; Extended SS =A+B+C+D; Social assistance = B+C ; Social Insurance =D ; Safety Nets = C Social Risk Management (WB) = B+C+D+E; ‘Nordic SRM’ A+B+C+D+E (springboard);

Diverse concepts used by various donors:

Social insurance: Policies to help house-holds insure against risk

Promotion: Policies to support the particularly vulnerable (disabled, elderly, working children, PLWA)



POVNET Work Programme 2007-08 ?…TT-SPE argued

Risk, Vulnerability and Social Protection (RV/SP) =

1) Growth Issues: Key factors in Pro-Poor Growth (PPG)

2) Human Rights Issues: Responsibility to Care

Important for many OECD-governments!!



Justifications used by donors for focusing on risk and vulnerability

Pro-poor growth• helps avoid shocks that can derail growth• promotes innovation, risk taking and entrepreneurship• broadens participation in economic growth• focuses on asset accumulation• counteracts irreversible asset depletion

Rights-based• MDGs, basic needs• human development / human security (Sen/JICA) • global socio-economic ‘floor’ (minimum standards) & global compact (MDG8)• democratic participation and social dialogue• sustainable development, lifecycle and inter-generational thinking



Planned POVNET outputs 07-08 on Social Protection + Empowerment

• Policy and Advocacy Statement Ministers• Good Practice Notes Practitioners

• Social Cash Transfers• Social Health Protection• Agriculture, Climate Change & SocProt• SocProt in the Informal Economy• SocProt in Fragile States• SocProt and HIV/AIDS• Targeting and Universalism in SocProt• Gender and SocProt• Capacity Building for SocProt, incl. ’twinning’

• 1) Consultation drafts 2) South 3) Final drafts

International Social Security Association (ISSA)?

• A non-profit international organization 1927-2007

• Main forum of > 400 social security institutions and administrative bodies from > 150 countries

• Main goal: Dynamic social security

• Headquarters in Geneva, at the ILO-HQ

For more information: WWW.ISSA.INT


ISSA: ‘Dynamic Social Security’ ?

(a) Greater administrative efficiency

(b) Support for Social Security reform

(c) Addressing demographic transition

(d) Extension of social protection coverage

(e) Global partnership & visibility for holistic social security & protection & policy


Main themes at WorldSocSecForum, Moscow10-15 Sep, 2007 (1/2)

(a) ICT as an instrument of transformation(b) Family allowances & child poverty(c) Managing or leading change(d) Occup.diseases & work injury schemes(e) Demographic & economic assumptions in

actuarial valuations of SocSec and pension schemes

(f) Case Management in unemployment reduction(g) Challenges in the investment of SocSec Funds


Main themes at WorldSocSecForum, Moscow10-15 Sep, 2007 (2/2)

(h) ILO strategies to extend SocSec coverage(i) Extension of social health protection to the

informal sector(j) Towards pro-active investment in health(k) Impact of taxation and labour market policies

on the retirement decision(l) New strategies to provide old-age security in

low-income countries


ISSA: Extension of social protection coverage !

ISSA needs partners: RC19 !!!

Member-to-Member –’twinning’ !!

Research, documentation, analysis

Contact: [email protected] [email protected]


mailto:[email protected]

mailto:[email protected]

Comprehensive Social Policies for a Globalizing World

Documents

social protection

rc19timo voipio

usd1daytimo voipio

profile of social security

mfaffinland decent work

rc19 timo voipio

comprehensive social

national prsstimo voipio