Costing amp Financing SP targets SPIACB New York 3 February 2015 Anne Drouin Social Protection Department International Labour Organization 2 fundamental questions What matters when assessing the cost of SP Targets and monitoring their progress ID: 382976
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Social Protection: Costing & Financing SP targetsSPIAC-BNew York, 3 February 2015
Anne Drouin,
Social Protection Department
International
Labour
Organization Slide2
2 fundamental questions:What matters when assessing the cost of SP Targets and monitoring their progress?1) Towards Universal Coverage – No one is left outWhat are the needs for SP ?Is everyone covered in case of loss of income and insufficient means?Does everyone have access to health care ?2) Towards Adequate Social protection Is SP sufficient to meet people’s needs ?
Taking into account need to scale up resources to pay for benefits of all kinds and to invest into developing the national and local SP delivery system -
Progressive or Immediate realization?
2Slide3
Building Social Security Systemsfor a CenturySlide4
Developing Countries Increasing Social Protection
Selected Countries, 2011
Increase in public social protection expenditure ratios (%GDP), selected middle-income countries, 2000-latest year
Source: ILO World Social Protection Report 2014-15 Slide5
.
How older poor spend pension cash transfer
Child and family benefits
Argentina, China, Mongolia, Mozambique, Nepal,
Niger
, Senegal, South
Africa
Cash
transfers
with
human
development
focusArgentina, Bangladesh, Brazil, Colombia, Ecuador, Ghana, Honduras, Indonesia, Jamaica, Kenya, Malawi, Mexico, Mongolia, Nicaragua, Philippines, TanzaniaHousehold minimum support incomeChile, China, Ghana, Mozambique, Rwanda, Uganda, ZambiaPublic employment programmesArgentina, Benin, Cameroon, Ethiopia, Ghana, India, Indonesia, Malawi, Niger, Rwanda, South Africa, TanzaniaMaternity protectionArgentina, Bangladesh, Bolivia, Ghana, India, Indonesia, Jordan, South AfricaSocial pensionsArgentina, Bangladesh, Bolivia, Botswana, Brazil, Cabo Verde, Chile, China, Costa Rica, India, Kyrgyzstan, Lesotho, Mauritius, Moldova, Namibia, Nepal, Panama, Peru, Samoa, Sierra Leone, South Africa, Tajikistan, Tanzania, Thailand, Vietnam Health coverage expandedArgentina, Brazil, Burundi, Cambodia, Chile, China, Colombia, Ghana, Lao PDR, Indonesia, Mexico, Morocco, Thailand, RwandaUnemployment protectionJordan, Saudi Arabia, South Africa, Thailand, Vietnam
Expansion of Cash Transfers
in Middle and Low Income Countries Slide6
Universal Social Protection: Mixed approachesCombining Non-contributory SP Floors and Contributory Systems F
How to better engage with other
government ministries beyond Ministry of
Labour
? Slide7
100 Countries Reducing Universal Food and Fuel Subsidies
sometimes targeted safety nets to the poor as compensation
-- insufficient, punishing “middle classes”
Fuel Subsidies in %GDP
selected countries, 2012 or
latest
- Higher food and transport costs: Less household income
- Higher energy costs – Negative impact on economic activity, employment, domestic demand Slide8
Social protection is an investment in people
Source: ILO, World Social
Protection
Report
2014-15Slide9
Is Universal Social Protection Affordable in Developing Countries?
Source: ILO 2014, Geneva
Cost of universal pension
coverage
65+, National
poverty
line
(% of GDP)Slide10
FINANCING SOCIAL PROTECTIONFiscal policy space options exist
even in the poorest countries
Increasing social insurance coverage for self-financed contributory benefits for those who can afford their social protection
Re-allocating public expenditures (
eg
subsidies)
Better taxation systems
increasing central tax revenues Increased aid and central budget transfers to support national priorities for sustainable state capacities … especially in fragile states requiring kicking off SP institutions
Fighting illicit financial flowsTapping into fiscal and foreign exchange reservesDebt restructuring to allow investment into SP bringing back economic and fiscal returns
Adopting
a more accommodative macroeconomic
frameworkSlide11
Fiscal Space Strategies for Social Protection: Country Examples
Source: ILO, World Social Protection Report 2014-15Slide12
ILO Social Protection Floor Cost Calculator12
Welcome to the
Social Protection Floor Cost Calculator!
Selection of countries
Selection
of SPF
Income
Security & In-
kind Benefits
ChildrenYouth Unemployed
- PWP’s
Women
&
Maternity
HIV/AIDS
victimsDisabled personsElderlyCoverage DefinitionUniversalTargetedBenefit Adequacy DefinitionNational Poverty LineOther ref.Slide13
13ILO Social Protection Floor Cost
Calculator
An
exampleSlide14
Thank you