Rethinking Social Protection in a Changing World, ILO Regional Seminar, Amman, 14 May 2014

Session 4 on international practices:

Measurement of Social Protection in OECD countries

Maxime LADAIQUE Manager of statistical resources, Social Policy Division, Organisation for Economic Co-operation and Development What is the OECD Social Expenditure (SOCX) ?

• SOCX includes reliable and internationally comparable statistics on public and private social expenditure, at the programme level

• SOCIAL = Provision of support (cash, in-kind, fiscal) by public and private institutions to households during circumstances which adversely affect their welfare. – public: financial flows controlled by General Government (central + local governments + social security funds) – Private: • mandatory: stipulated by legislation (i.e. employer provided sickness benefits) • voluntary: stipulated by collective agreement (i.e. occupational pensions funds, private health)

• 9 social policy domains: 1.Old Age 2. Survivors 3. Incapacity-related 4. Health 5. Family 6. ALMPs 7. Unemployment 8. Housing 9. Other 2 Historical trends in public social protection spending across OECD countries

Public social spending, in percentage of GDP, 1960-2013

Source: OECD Social Expenditure database (SOCX, www.oecd.org/social/expenditure.htm). Generally, most spending is on pensions and health… … and on social services in Nordic countries

Source: OECD Social Expenditure database (SOCX, www.oecd.org/social/expenditure.htm). Egypt (13.2) Jordan (12.1) Irak (11.6) Tunisia (10.4) South Africa (9.8) Algeria (8.5) Marocco (6.6) Yemen (5.9) Barhein (4.0) Oman (3.8) Saudi Arabia (3.6) Source: ILO (2014, forthcoming), World Social Security report (2nd India (2.4) edition) – provisional data via 4 Lebanon (1.1) http://www.social- protection.org/gimi/gess/ShowTheme.do?tid=3985

Countries with higher social spending tend to be those with lower levels of poverty

Social spending and poverty rates

Sources: OECD Social Expenditure database (SOCX, www.oecd.org/social/expenditure.htm) and OECD Income Distribution database (http://oe.cd.idd ) Social protection needs to be financed

Relationship between public social spending and total tax wedge (2011)

Sources: OECD Social Expenditure database (SOCX, www.oecd.org/social/expenditure.htm) and OECD Tax database (www.oecd.org/tax/tax-database.htm Attitudes towards redistribution:

How essential do you think statement A/B is a characteristic of democracy ? Average scores from 1 (not an essential characteristics of democracy) to 10 (an essential characteristics of democracy)

A. Governments tax the rich and subsidize the poor

B. The state makes people's incomes equal

Source: Calculations from World Value Survey Wave 6 (2010-2014). w w w .w orldvaluessurvey.org/WVSDocumentationWV6.jsp Attitudes towards redistribution: more redistribution in most Middle-East and North Africa countries

How essential do you think statement A/B is a characteristic of democracy ? Average scores from 1 (not an essential characteristics of democracy) to 10 (an essential characteristics of democracy)

A. Governments tax the rich and subsidize the poor 10 9 8 7 6 5 4 3 2 1

10 B. The state makes people's incomes equal 9 8 7 6 5 4 3 2 1

Source: Calculations from World Value Survey Wave 6 (2010-2014). w w w .w orldvaluessurvey.org/WVSDocumentationWV6.jsp To remember…

• More social protection > lower poverty

• But social protection needs to be financed – Is your country ready for it ?

• Need for more comparable social protection measurement in Middle-East and North African countries ? > OECD-SOCX can help!

See also ILO-SSI, EUROSTAT-Esspros, ADB-SPI, and:

ILO (2013), Mapping existing international social protection statistics and indicators that would contribute to the monitoring of social protection extension through social protection floors, ESS Working Paper no. 38

Thank you

Contact: [email protected] OECD Direct

@OECD_Social

OECD Social, Employment and Migration Working Papers, No. 124: “Is the European Welfare State Really More Expensive? Indicators on Social Spending, 1980-2012; and a Manual to the OECD Social Expenditure Database (SOCX)”. http://www.oecd.org/social/expenditure.htm OECD Health Policies and Data www.oecd.org/health/statistics.htm OECD Work on Income Distribution and Poverty www.oecd.org/social/inequality.htm OECD (2014), Society at a Glance www.oecd.org/els/societyataglance.htm OECD (2013), Pensions at a Glance www.oecd.org/pensions/pensionsataglance.htm 10