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Social protection and social security

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socialprotection.org presents:

Panellists Guillaume Filhon, Senior Social Security Technical Specialist, Project Manager, International Social Security Association (ISSA) Laura Alfers, Director, Social Protection Programme, Women in Informal Employment: Globalizing and Organizing (WIEGO) Natalia Winder Rossi, Social Protection Team Leader - Senior Adviser, Food and Agriculture Organization of the United Nations (FAO) Moderator Luca Pellerano, Senior Social Protection Specialist for the Arab States, International Labour Organization (ILO)

Ass ssessin ing the perf rform rmance of so socia ial l protectio ion systems: Exp xperie iences usin sing th the Co Core Dia iagnostic ic In Instrument (C (CODI) I) in in Le Lebanon, th the Phil ilip ippin ines, , and Guatemala la

Social protection and social security

Panellist

Guillaume Filhon

ISSA

Guillaume Filhon is a French civil servant, graduated from the French National Administration School for Social Security. Mr Filhon used to be a deputy executive (as chief of staff) of the French Pension Scheme for the private sector, and then the acting Director of a local agency for family

• benefit. After that, he became the French Delegate to the European Union for French Social

Security schemes, and then was recruited to the ILO to become a Senior technical specialist (P4) in charge of the ISSA Guidelines, Pensions issues, Contribution collection Issues, and Social Security Fraud issues. He has four Masters 2: one on Political Sciences (Sciences Po Bordeaux), one on Social Security Engineering (University Paris-Saint Quentin), one on European Social Security Law (Catholic University of Louvain, Beligum), and one on Public Affairs Management (Sciences Po Paris). He also has obtained certificates from French management schools for civil service issues: One from the National Administration School for Social Security (EN3S) and one from the National Administration School for general affairs (ENA).

USP2030 Webinar #3: Social protection and social security

Panellist

Laura Alfers

WIEGO

Laura Alfers is the Director of the Social Protection Programme of the global research-action- advocacy network, Women in Informal Employment: Globalizing and Organizing (WIEGO). In her work for WIEGO, she has worked with organizations of informal workers in Latin America, Sub-Saharan Africa and Asia to better understand the risks faced by these workers and the possibilities for developing holistic solutions which cross the domains of social protection, public services and urban infrastructure. Laura completed her PhD at the University of KwaZulu-Natal in South Africa, and currently holds a position as Research Associate in the Department of Sociology at Rhodes University also in South Africa. She is the co-editor with Jim Midgley and Rebecca Surender of the forthcoming Handbook of Social Policy and Development (Edward Elgar).

USP2030 Webinar #3: Social protection and social security

Panellist

Natalia Winder Rossi

FAO

Natalia Winder Rossi is a Senior Social Protection Specialist with policy and programmatic experience in Latin America and Eastern and Southern Africa. Currently, she leads the Global Social Protection team in FAO, Rome, while acting as senior advisor for the Rural Poverty and Resilience Strategic Programmes. She is leading FAO’s work in strengthening policy and programmatic linkages between social protection, productive inclusion, nutrition and

• resilience. Moreover, Ms Winder has supported governments in the design of risk-informed

and shock responsive systems, as well as representing FAO in inter-agency technical discussions on the role of social protection in protracted crises, fragile and humanitarian

• contexts. Prior to joining FAO, she was the Senior Social Protection Specialist (Social

Protection) at UNICEF’s Regional Office for Eastern and Southern Africa, and Social Protection Officer in UNICEF-Headquarters in New York, where she led UNICEF’s support across twenty-

• ne countries, led the work on HIV-Sensitive Social protection, and supported the

development of a regional framework on social protection and resilience.

USP2030 Webinar #3: Social protection and social security

Moderator

Luca Pellerano

ILO

• Dr. Luca Pellerano is a development economist with comprehensive experience in social

protection systems reform. He is currently a senior social protection specialist for the International Labour Organization (ILO) in the Arab States region. Until recently Luca has worked as advisor on social security for ILO in Zambia, Malawi and Mozambique. He has provided technical assistance on the design, implementation and evaluation of contributory and non- contributory social protection systems and programmes in Eastern Europe, Central Asia and Sub- Saharan Africa, including on issues of institutional coordination, social protection financing, social health protection, pension reform and the extension of social security to the informal economy. He has been coordinating the TRANSFORM Capacity Development initiative in Africa and has made a number of academic contributions in the field of social protection. Prior to joining the ILO Luca was leading the Poverty and Social Protection team at Oxford Policy Management (OPM) and a Research Economist at the Centre for Evaluation of Development Policies (EDePo) at the Institute of Fiscal Studies (IFS) in London. Luca holds a Ph.D. in Economics and Applied Quantitative Methods from the University of Genoa and a MSc in Economics from the University College London.

USP2030 Webinar #3: Social protection and social security

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Social protection and social security

Promoting excellence in social security

www.issa.int

The ISSA Centre for Excellence

in Social Security Administration How to tackle Social Security Identified challenges

Guillaume Filhon

Senior Technical Specialist / Guidelines Coordinator

Promoting excellence in social security

www.issa.int

Social security administration matters

◼ Social security protects individuals and contributes to societal and economic development… ◼ …but only when it is administered effectively and efficiently ◼ Excellence in administration is a constant process of improvement in a challenging environment

Social security administrations are facing diverse challenges worldwide

Promoting excellence in social security

www.issa.int

Promoting excellence in social security

www.issa.int

The increased number of disability claims concerns me – how to improve? We have to introduce reforms while cutting costs and improving service delivery? Is there a right way to do this? Our stakeholders are looking for better service delivery. Where and how do we start? Advisors give me conflicting advice

• n investment. Which advice is best?

How do I balance cost, quality, ease-of-use and future-proofing in my ICT strategy? We could do a lot better helping people get back to

• work. How we can improve?

Improving contribution collection - where do I start?

“ “ ” ” “ “ ” ” ” ” ” “ “ “

Introducing the ISSA Centre for Excellence

Promoting excellence in social security

www.issa.int

The Centre for Excellence – an historic innovation

◼ Built on best practice from social security organizations around the world ◼ Offers high-value services – regardless of where your

• rganization is in terms of its administrative development

◼ Based on an unparalleled understanding of most of the world’s social security institutions

The ISSA Centre for Excellence: A roadmap to tackle these challenges in social security administration

Promoting excellence in social security

www.issa.int

The ISSA Centre for Excellence

◼ New set of ISSA services to encourage, facilitate and support member institutions’ work towards administrative improvements. ◼ Offers a package of services to provide institutions with practical support to overcome the four typical challenges: −To obtain the necessary knowledge to set the right objectives; −To assess gaps and needs, and define a prioritized action plan; −To implement improvement initiatives; −To evaluate progress and receive recognition for achievements. ◼ The services of the Centre for Excellence are based on the ISSA Guidelines for Social Security Administration. ◼ Find out more: www.issa.int/excellence

Obtain knowledge

Promoting excellence in social security

www.issa.int

Obtain knowledge: The ISSA Guidelines

Guidelines for 8 core areas since 2014:

▪ Good Governance ▪ Service Quality ▪ Information and Communication Technology ▪ Contribution Collection and Compliance ▪ Investment of Social Security Funds ▪ Return to Work and Reintegration ▪ Workplace Health Promotion ▪ Prevention of Occupational Risks New Guidelines, presented in WSSF 2016 ▪ Actuarial Work for Social Security ▪ Communication by Social Security Administrations ▪ Administrative Solutions for Extending Coverage to Difficult-to-Cover Groups ▪ Sustainable Employment. ▪ Additional chapters to ICT and Prevention. EEF Guidelines, to be presented in WSSF 2019

The guideline: standard or principle What: Structure How: Mechanism

Selected good practices

Example of Challenge : Platform workers

Promoting excellence in social security

www.issa.int

Platform workers, Posted workers

◼ Radical Counter-evolution

▪ Commodification of work

◼ Facilitation by technologies

▪ Mobility of workers ▪ Mobility of payments for the work done

◼ Three ways to react

▪ Forbid theses practices (Uber in morocco) ▪ Use the jurisprudence and case-law to re-qualify the relationship between the worker and its real employer (Suschlig for posted workers in Belgium, Deliveroo in France, on going cases on Uber in Several countries such as the USA, France, Spain) ▪ Develop an intermediary professional status to cover platform workers (Belgium, Uruguay)

Example of challenge : Financial sustainability

Promoting excellence in social security

www.issa.int

Financial Sustainability

Various reasons to be concerned ◼ Demographic ageing

▪ Pensions ▪ Healthcare ▪ New Social Security Risk ?

◼ Employment Policy

▪ Exemptions ▪ Decrease of the compulsory contributive coverage

◼ Fraud and Evasion

▪ Technology ▪ Increased mobility of capital ▪ Increased mobility of workers

Promoting excellence in social security

www.issa.int

But also… Increasing private institutional debt ▪ Extensive use of pensions funds for investment ▪ Leverage Effect

Promoting excellence in social security

www.issa.int

Promoting excellence in social security

www.issa.int

Promoting excellence in social security

www.issa.int

Promoting excellence in social security

www.issa.int

Promoting excellence in social security

www.issa.int

Example of Challenge : Extension

Promoting excellence in social security

www.issa.int

Extension

◼ ISSA’s Handbook on Difficult to cover groups ◼ Guidelines on administrative solutions for Extension of Social Security Coverage ◼ Good practices from China, South Africa, Southern America (Urugay and Argentina) ◼ Key points :

▪ Communication is of the essence (Sweden) ▪ Partnerships with education (Uruguay, Madagascar) ▪ Funding has to be shared between covered people and solidarity (lump sum as contribution, benefit on demand) ▪ Alignment of interests (BF in Brazil)

www.issa.int/excellence

Presentation by Laura Alfers, WIEGO Social Protection Programme

Market vendor Vida Ofori from Makola Market in downtown Accra, poses for Jonathan Torgovnik/Getty Images.

Social Security, the Informal Sector & Gender Equality

A Note on Terminology

Informal workers can be found:

 Within the formal sector  Within the informal sector (in unregistered enterprises)  Within households (e.g. domestic workers)

Informal workers in the informal sector can be:

 Employers  Own-account workers  Employees  Contributing family workers

Data Highlights

 In LIC’s:

 78% of male employment and 85% of women’s total employment is in the

informal sector.

 In MIC’s:

 59% of male employment and 52% of women’s total employment is in the

informal sector.

 Employers make up 3% of informal employment.  Own-account and contributing family workers together make up 61% of

informal employment.

 82 % of all women in developing countries are employed as own-account

• r contributing family workers.
• Bonnet et al., 2019

Major Challenges in Extending SP to Informal Workers

 The “missing middle”:

 Not directly covered by social assistance aimed at those outside of the labour

market

 De facto or de jure exclusions from work-related social security schemes

 For women workers, social service such as health & child care are critical to

income security, but:

 Often not adapted to the needs of the working poor vs “poor citizens”  Not enough emphasis on the importance of the linkage with services in social

protection policy discourse

 Lack of voice in policy making  Lack of overall policy coherence towards establishing income security for

informal workers

Contributory Schemes

 A dominant mode of “extending social protection to informal workers”:

 Low and irregular incomes  Regressive financing arrangements  Bureaucratic obstacles  Reliance on voluntarism because of high self-employment  Lack of trust in the protective arm of the state, after a lifetime of negative

experiences under the punitive arm?

General ideas about solutions

 Mixture of non-contributory and contributory schemes to cater to different income groups within the

informal economy;

 Voluntary insurance schemes are not a good way to cover informal workers.

 Mandatory?  Incentivized? Co-contributions? From the state, from those who benefit from the work of informal

workers?

 Integrated benefit packages?

 Different solutions for different groups of informal workers situated within different types of informal

economies.

 Take seriously and learn from the grassroots innovations of informal workers themselves.  Include informal workers in decision making and management of schemes

Innovations

 State-based innovations:

 Uruguay’s monotributo  Indonesia’s JKN health insurance scheme  Thailand’s Universal Coverage Scheme

 Hybrid innovations:

 MUCTAM moto-taxi co-operative, inserting social security payments into credit re-

payments (Togo)

 KENASVIT collaboration with NHIF (Kenya)  KKPKP drawing on local government as proxy employer (India)

Innovations

 Drawing on alternative economic relationships

 Sectoral Workers Welfare Boards (India)

◼ Headload porters in Maharashtra: social security payment integrated into the

payment made for hiring of a headload porter.

◼ Fishermen in Kerala: social security payment integrated into price paid by

wholesalers for fish

◼ Bidi rollers: additional cess (tax) is added to tobacco taxes on bidis and transferred

to welfare fund

 Building Bridges to Better Lives:

SEWA Shakti Kendras

 http://www.wiego.org/sites/de

fault/files/publications/files/ WL7_Devenish_Alfers%20final %20for%20web.pdf

INCLUDE ORGANIZATIONS OF INFORMAL WORKERS LISTEN TO WHAT THEY SAY (INCL. MOST VULNERABLE) LEARN FROM THE SOLUTIONS THEY HAVE DEVELOPED Thank You! www.wiego.org

Extending social security to the rural poor

Natalia Winder Rossi, Social Protection Team Leader, Senior Adviser, UN-FAO

Extending social protection to the rural poor

Understanding the needs of the rural poor, the barriers they face in accessing social protection and identifying innovative opportunities to address them

Access to social protection

Social Protection: From Protection to Production

• Countries committed to ensure coverage of social protection to all (SDG 1.3)
• Coverage across all components of social protection: social assistance, social security and

labor market policies

• Progress in terms of expansion of social protection programmes over the last two decades,

But… Only 45 45 per cent of the global population is effectively covered by at least one social benefit, while the remaining 55 per cent– 4 billion people – are left unprotected. (ILO 2018)

• Social assistance transfers have the broadest coverage in rural areas. Social insurance is

limited.

• Around 56% of the rural population remains without legal health coverage, as compared

to 22% in urban areas.

• In South Asia and Sub-Saharan Africa, the share of poorest quintile receives social

assistance in 20-30% (70% in LAC)

• In India, 90% of the agricultural sector is informal; in Lebanon, agricultural is seasonal

and not formalized within labor legislation

Barriers to access to social security

Rural populations are often excluded by design or implementation from existing social protection schemes:

• Legal barriers:
• in 2013, only 1/3 of countries had SP schemes that were established

by law and covered all SP contingencies (ILO)

• Some schemes are not inscribed in legislation – hence harder to

claim rights

• Some categories are specifically excluded –particularly farmers and

non-formal workers under social insurance schemes

• Additional factors may disadvantage informal workers&produce legal

exclusion or ineligibility e.g. lower levels of benefits

• Non-contributory schemes are mostly not directly anchored in any

legislation

• Financial barriers:
• Low contributory capacity
• Irregular and unpredictable incomes
• Cost of affiliation and demonstrating compliance

Social Protection: From Protection to Production

Barriers to access to social security

Rural populations are often excluded by design or implementation from existing social protection schemes:

• Institutional and administrative barriers
• Low administrative capacity
• High transaction cost to expand to rural areas and limited accessibility of services in rural settings
• Heavy administrative procedures and processes
• Limited awareness or knowledge of social protection programmes

There is often reluctance to expand schemes:

• Concerns regarding ‘dependency’; focus on ag policies and not discussing social and risk management strategies

Social Protection: From Protection to Production

Some options to explore….

• Visibility
• Nature and scope of coverage gap (how many? How?

What are the specific barriers?)

• Who are the rural poor? What are their

characteristics and needs?

• Farmer registries, with socio-economic variables

Social Protection: From Protection to Production

• Sm

Small ll-scale le fi fishers:

• Self-employed, fish for own consumption/ sale in local markets, vessel-based fishers; cleaners; pre-

and post-harvest workers; informal; provide employment in rural costal areas

• Face natural/ environmental, economic, health, social and political risks
• Cha

Chall llenges for

• r extendin

ing SP SP to

• sma

mall ll-scale le fi fishers

• Poor fit between conventional modalities of social security systems and the realities of SSF sector-

need for regular prior contributions and worker registration

• Concerns about affordability of extending coverage to SSF
• Lack of up-to-date information about the size and socio-economic characteristics of the sector
• FAO’s work on social protection in fisheries
• Strengthen the economic case to expand and scale up social protection systems – mapping of SP

coverage for SSF and building case for expansion and TA to governments (Lebanon with FR)

• Promoting coherence between social protection and fisheries policies and programmes for
• Improving the management of natural resource of SSF
• Supporting SSF’s livelihoods: fishery value chain and/ or transition to alternative source of

income

• Strengthening risk management and response to shocks impacting SSF. E.g. Myanmar, Senegal

and Brazil

55

Social Protection: From Protection to Production

Zooming in in: Social protection and fi fisheries

• About 1.6 billion people worldwide depend on forests for their livelihoods and 300

million people live in forests (WWF, 2018)

• Around 90% of the 1.2 billion extremely poor depend on forests for their

livelihoods (WB, 2004)

• For
• rest

t de dependent com

• mmunit

ities face ace spe specific soc socia ial l an and ec economic ri risks an and vu vuln lnerabilit ities whic hich req equire foc

• cus on
• n coverage an

and ade adequacy of

• f socia

social l pr protection instr truments

• Dependent on forests for their livelihoods; often indigenous peoples/ethnic

minority​

• In terms of coverage, forest dependent communities are not systematically

included in social assistance programmes and/or not eligible to access insurance mechanisms given limited formalization

• In terms of adequacy, programmes are not designed responding to the

specific vulnerabilities and needs of forest dependent communities​

• Ex

Expandin ing SP SP coverage for

• r FDCs

FDCs

• Building on existing or providing new public sp programmes
• Learning from and utilizing Forest Producer Organizations
• Developing hybrid schemes that simultaneously provide sp for FDCs and

promote forest conservation

56

Social Protection: From Protection to Production

Zooming in in: Social protection and forestry ry

Others options to explore….

• Adapting existing schemes to the needs of rural population
• Defining and adopting inclusive legal frameworks
• Alternative protection modalities, which are flexible and take into account the diversity of the

informal sector and their specific characteristics, eg (mutual funds, farmer funds, etc)

• more flexible contribution payments to take into account income fluctuations or seasonal revenues
• introducing specific mechanisms to determine contribution levels for employees and self-employed workers

where real incomes are difficult to assess (capitation or lump-sum payment based on size of economic activity, on area cultivated, etc.);

• Introducing subsidized pillars or contributions
• Reforming administrative procedures towards simplification and digitalization
• Introducing components into existing schemes to make them more relevant for rural populations
• Establishing special schemes that respond to the needs of different segments of the rural population
• Social insurance schemes- e.g. China’s social insurance for the elderly and health insurance schemes
• Social assistance schemes – e.g. India’s National Rural Employment Guarantee Scheme

Social Protection: From Protection to Production

Social protection coverage: Rural Youth

• In terms of coverage- looking at child grants (only), continues to be limited and many of these do not cover adolescents/youth
• Only 35 per cent of children worldwide enjoy effective access to social protection, albeit with significant regional disparities. Almost two-thirds
• f children globally – 1.3 billion children – are not covered, most of them living in Africa and Asia. (ILO 2018)
• Very few programs that are specifically targeted to youth, focused on specific needs as they enter labor market- with the exception
• f some contributory programmes
• As only 21.8 per cent of unemployed workers are covered by unemployment benefits, 152 million unemployed workers remain

without coverage. Unemployment benefits for first-time job seekers- limited (ILO 2018)

• Evidence (*UNICEF) on the impact of national cash transfers in adolescent well being and risk; access to secondary education, but

limited analysis on access to jobs/markets Many outstanding questions:

• What happens to children (18+) that graduate from social assistance programmes? Links to job intermediation, skill training and

specific support?

• How many and what type of jobs (farm & off-farm) need to be created in rural areas to ab

absorb ne new lab abour mar market en entrants?

• Tools and Investment: what nee

needs to

• be

be do done ne to ensure decent jobs in rural areas, quality education and training, and better matching of labour supply and demand?

• Policy Coherence: What are the most effectiv

ive po polic icie ies to harness the development potential of decent employment in order to create sustainable livelihood options in rural areas?

Social Protection: From Protection to Production

Eld lderly

Ru Rural ag agein ing pop

• pulation (D

(Data: IL ILO 20 2018 18 report)

• “Worldwide, 68 per cent of people above retirement age receive an old-age pension, which is

associated with the expansion of both non-contributory and contributory pensions in many middle- and low-income countries”. But..

• Poli
• licy co

concerns/perce ceptions per persist: : Pensio ions do do not not rea each po poorest in n rur rural l ar areas; too

• o ma

many ba barrie iers s to

• ac

acce cess

• In most low-income countries, less than 20 per cent of older persons over statutory retirement age

receive a pension.

• Health coverage: in rural areas where 56 per cent of the population lack health coverage as

compared to 22 per cent in urban areas.

• Implications of limited to pensions not only in terms of well being of ageing households but also in

terms of access to land for youth Social Protection: From Protection to Production

Uni niversal socia

• cial pen

pensio ions for

• r olde
• lder per

person

• ns ar

are fea easib ible le an and can be be fi fina nanced by y governments of

• f low- and

and mi middle le-in income cou

• untrie

ies (s (sou

• urce: ILO

O 2018)

• Chi

China

• Before 2009, two institutional mechanisms for income security in old age : 1) for urban workers based on social insurance principles, 2) for civil

servants and others of similar status based on the employer liability approach. Together they covered in 2008 under 250 million people (including pensioners), or about 23 per cent of the population aged 15 and above.

• Following a series of reforms, an old-age pension scheme was established for the rural and urban populations not participating in the social

insurance scheme. In 2015, 850 million people were covered under the pension system; by 20 2017 17, , uni universa sal coverage had had be been achi achieved.

• Br

Brazil l

• The old-age pension system integrates contributory, semi-contributory and non-contributory schemes which cover both public and private

sector workers as well as sm smal allholder far armers s and and rural work

• rkers.

s.

• The non-contributory social assistance grants are means-tested benefits for people aged 65 or over and persons with disabilities.
• The system has nearly universal coverage, as 80.2 per cent of those aged 65 and over received a pension in 2014. Benefit levels are equal to

the minimum wage for smallholder farmers and rural workers and those receiving the social assistance pension.

• Les

Lesotho

• Lesotho has a larger share of older people than many countries in sub-Saharan Africa- over 4 per cent of its population above the age of 70.
• All citizens over 70 years of age are entitled to a monthly old-age pension of about US$40- the largest regular cash transfer in Lesotho,

covering about 83,000 persons.

• It is estimated that many more benefit indirectly. The OAP costs about 1.7 per cent of GDP and is financed by general taxation.
• Complementary services and transfers provided as part of the national social protection system such as subsidized or free primary health care

at government health centres and government hospitals, and a cash grant administered by local governments for those deemed “needy”.

60

Social Protection: From Protection to Production

National experiences

Summary

Ru Rural ag agein ing pop

• pulation (D

(Data: IL ILO 20 2018 18 report)

• Accelerating progress towards SDG 1.3 requires an explicit focus and effort on ensuring adequate

access in rural areas

• Identifying life-cycle vulnerabilities are key, and thus the definition of a System that addresses these.

BUT also, consideration livelihood vulnerabilities in the design of components of the systems to ensure real impact of social protection in rural areas

• Expansion but also adequacy (applicable to both social assistance and security)
• Data continues to be limited as well as some of the monitoring tools used: focusing on social

programmes, and not always including agricultural/rural development policies that are also serving SP function (Inputs subsidies, unemployment insurance for fishers, etc.)

• And ultimately, seeking greater coherence between SP and broader rur

rural devel elopmen ent t polic

• licies

Social Protection: From Protection to Production

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