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The Universal Child Allowance – Argentina

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The Universal Child Allowance – Argentina Argentina Area 3,761,274 km² Population i 40,518,951 Age structure • 0-14 years (%) 25.4 • 15-64 years (%) 64.1 • 65 years and over (%) 10.5 Infant mortality rate (per 1,000 live births) both sexes ii 13 Life expectancy at birth (years) female 79.2 Life expectancy at birth (years) male 71.7 Maternal mortality ratio (per 100,000 live births) iii 77 GDP per capita • Current US$ iv 8,236 • PPP (current international $) v 14,313 • Constant local currency 9,614 Consolidated social public expenditure (% of GDP) vi 24.2 Pension coverage (% of population) vii 92.8 Unemployment rate (%) viii 7 Human development index (HDI) rank ix 49 HDI poverty indicators: Human poverty index rank 13 HDI health indicators: Life expectancy at birth rank 50 HDI education indicators: Literacy rate (97.6%) and rank 31 HDI education indicators: Enrolment rate (88.6%) and rank 36 23 Argentina Extension of the Universal Family Allowance: The Universal Child Allowance 25 Extension of the Universal Family Allowance: The Universal Child Allowance 1 Emilia E. Roca Argentina Summary • Promotes economic security of children and adolescents; • Launched in November 2009; • Transfer is equivalent to the benefit that children of formal workers and of beneficiaries of unemployment insurance receive; • Coverage of 0 to 18-year-olds who are children of unemployed and informal workers as well as of beneficiaries of other programmes who were transferred to AUH; • 3.5 million new beneficiaries (85 per cent of Argentine children are covered); • Closely linked to essential services, particularly education and health care. Target Group Programme Benefit Universal Child Allowance Arg$180 (US$46.20) per month per (Asignación Universal por child provided that those of school Hijo, AUH) age attend school and in all cases Childhood and register for health-care services. adolescence Family Allowances Arg$180 (US$46.20) on average per (Asignaciones Familiares) month per child (provided that those of school age attend school) of formal salaried workers and social security old-age, invalidity or survival beneficiaries. Additional transfers for childbirth and adoption. Information on the Author Emilia E. Roca , Under-Secretary of Social Security Policy, Ministry of Labour, Employment and Social Security. 26 VOLUME 18: S UCCESSFUL SOCIAL PROTECTION FLOOR EXPERIENCES I NTRODUCTION “lack of social integration because of the type of employment offered by the eco - The discussion taking place in academia, nomic system” (Lo Vuolo, 2001). This international agencies, other organiza - type of thinking emphasizes the need to tions and in Argentina about the estab - separate income security from job security lishment of a social protection floor starts and proposes a more comprehensive from different conceptions of the econo - notion of labour. my and social policies, which lead Thus, taking as a reference the ana - to conceptually diverse proposals. lytical framework used by Groot and van Discussions on linking social protection der Veen (2002), international experi - and employment in particular are perhaps ence shows that systems of income trans - the most intense since they involve polit - fers are slipping from traditional so-called ical and social actors with very different “conditional welfare” schemes to other positions. variants. These variants include workfare In the case of Argentina, the drive to schemes as well as proposals regarding establish a universal child allowance was the concepts of “basic income” and “par - a longstanding demand, based on pro - ticipation income”. posals from various sectors, social actors, Despite the substantive changes in unions and politicians. The main objec - the labour market mentioned earlier, tive was to develop and implement a mas - since 2003 Argentina has seen a very sig - sive public policy campaign in order to nificant increase in registered jobs. This reduce poverty, especially extreme pover - showed that the creation of employment, ty, and benefit the lower-income sectors. protected employment and better work - In this sense, the configuration of a more ing conditions are obtained from the precarious and fragile labour market, reformulation of an economic policy that which had previously excluded a large had and still has as its cornerstone job segment of workers from social security creation and job quality (graph 1). The benefits and thus from this policy instru - momentum towards the generation of ment, could repair the effects of this fail - formal jobs exposed the fallacy of the ing. However, the proposal does not “end-of-work” theory that arose from mean abandoning the goal of achieving a orthodox economic models and that labour market and an employment sector appeared to be an irreversible character - that guarantee social security coverage istic. This empirical evidence was able and adequate incomes. to promote and support alternative From an alternative theoretical per - Keynesian economic policies of under - spective, there is an advancing school of pinning demand by generating more and thought that locates the source of the better jobs and by having an active State problem not in the lack of jobs but in the presence in the distribution of income. Argentina Extension of the Universal Family Allowance: The Universal Child Allowance 27 Despite these substantial changes in covering the children of registered work - the labour market, however, there still ers. Therefore, the implementation of the remained a very significant proportion of Universal Child Allowance (Asignación workers and families with no social secu - Universal por Hijo, AUH) Decree was rity coverage. It should be noted that analysed and approved within the legal Argentina had a rich and historical insti - framework of this social security system, tutional experience in social security, which granted full rights to all children including the subsystem of Family whose parents had been excluded from Allowances (Asignaciones Familiares) the formal labour market. Graph1 260 Index of 240 04/2010 = 232.5 contributors to the pension 220 system, 1974- 67% 200 2009 (base 180 1974 = 100).* 2002 =139.4 160 140 1983 =116.7 8% 14% 2002 =139.4 120 1991 =134.1 1976 =109.1 12 100.0 100 Military dictatorship Return to democracy Convertibility Post-convertibility 80 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 7 7 7 7 7 7 8 8 8 8 8 8 8 8 8 8 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 0 1 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 0 0 r- 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 p A Source: DGRP and SGI (from 1974 to 1993) and SIGyP and SIPA (from 1994 to 2009). * This graph was created based on data originating from the affidavits of the employers (firms) in the Argentine Integrated Retirement System (Sistema Integrado Previsional Argentino, SIPA), which contain the number of workers and the amount of real wages from which are established the inputs and contributions of workers and employers, respectively. The number of self-employed workers with contributions to the system is established in a similar manner. B ACKGROUND strong and growing commitment to labour and social issues. In accordance Dr. Néstor Kirchner assumed power in with these premises, the policies imple - May 2003 after the deep crisis of 2001 mented have led to a new role for the and 2002 marked by the collapse of con - State, which involves not competing with vertibility (1 peso = $1, lasting from 1991 the private sector but governing the rela - to 2001), which meant the declaration of tions between market and society default of the external and domestic debt, through the recovery of labour institu - hyperinflation, rising unemployment and tions and the social security system, and, poverty levels never seen before in the therefore, proposing a readjustment of country. Since his assumption of power, the system as a principal support of social the Government of Argentina has made a protection policies. 28 VOLUME 18: S UCCESSFUL SOCIAL PROTECTION FLOOR EXPERIENCES Indeed, progress is now reaching the role in improving the living conditions population in a significant way, with of the population, especially the most more than 17 million beneficiaries large - vulnerable. ly covered through the social protection It is significant to note that the system. In fact, the inclusion of more Government has allocated resources than 2.3 million more adults in retirement equivalent to more than 40 per cent benefit schemes as well as the extension of the national budget for the provision of coverage of family allowances, follow - of benefits of the various subsystems ing implementation of Decree 1602/2009 and policies previously mentioned (con- (Universal Family Allowance per Child tributory and non-contributory retire - for Social Protection), guarantees that ment and pensions, family allowances, more than 9 million children and adoles - unemployment insurance, employment cents now receive social security benefits. and training policies, etc.). Indeed, Decree 1602 allowed the inclu - sion of more than 3.7 million children The Ministry of Labour, Employment and adolescents under 18 years of age in and Social Security, in conjunction with the social security system, further adding other State agencies including the to the 6.5 million covered by contributory Ministries of Social Development, of systems. Education and of Health, is charged with implementing these social policies. These These policies were also accompa - policies cut across various aspects and nied by a strong inclusion of citizens multidimensional axes that require a very from highly vulnerable sectors through a strong linkage and coordination in order significant expansion of coverage of non- to achieve the proposed objectives.
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