DOCSLIB.ORG

Fiscal Space and the Extension of Social Protection: Lessons Learnt from Developing Countries

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Fiscal Space and the Extension of Social Protection: Lessons Learnt from Developing Countries ESS Extension of Social Security Fiscal space and the extension of social protection: Lessons learnt from developing countries Bolivia, Botswana, Brazil, Costa Rica, Lesotho, Namibia, Thailand and South Africa Fabio Durán-Valverde José Francisco Pacheco ESS Paper N°33 Global Campaign on Social Security and Coverage for All International Labour Office Social Security Department Geneva Copyright © International Labour Organization 2012 First published 2012 Publications of the International Labour Office enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condition that the source is indicated. For rights of reproduction or translation, application should be made to ILO Publications (Rights and Permissions), International Labour Office, CH-1211 Geneva 22, Switzerland, or by email: [email protected]. The International Labour Office welcomes such applications. Libraries, institutions and other users registered with reproduction rights organizations may make copies in accordance with the licences issued to them for this purpose. Visit www.ifrro.org to find the reproduction rights organization in your country. ILO Cataloguing in Publication Data Durán-Valverde, Fabio; Pacheco, José Francisco Fiscal space and the extension of social protection: lessons learnt from developing countries: Bolivia, Botswana, Brazil, Costa Rica, Lesotho, Namibia, Thailand and South Africa. Durán-Valverde; Pacheco; International Labour Office, Social Security Department. - Geneva: ILO, 2012 xv. 178 p. (ESS paper, No. 33) ISSN: 1020-9581; 1020-959X (online) International Labour Office; Social Security Dept social protection / social security / social security financing / fiscal policy / Bolivia / Botswana / Brazil / Costa Rica / Lesotho / Namibia / Thailand / South Africa 02.03.1 The designations employed in ILO publications, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the International Labour Office concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the International Labour Office of the opinions expressed in them. Reference to names of firms and commercial products and processes does not imply their endorsement by the International Labour Office, and any failure to mention a particular firm, commercial product or process is not a sign of disapproval. ILO publications and electronic products can be obtained through major booksellers or ILO local offices in many countries, or direct from ILO Publications, International Labour Office, CH-1211 Geneva 22, Switzerland. Catalogues or lists of new publications are available free of charge from the above address, or by email: [email protected] Visit our web site: www.ilo.org/publns Printed in Switzerland Contents Page List of acronyms ................................................................................................................................ ix Foreword ........................................................................................................................................... xiii Acknowledgements ........................................................................................................................... xv 1. Introduction ............................................................................................................................. 1 2. Fiscal space and social protection: Summary of lessons learnt.............................................. 5 2.1. Information sources ...................................................................................................... 5 2.2. Brief overview of the countries..................................................................................... 6 2.3. General economic and fiscal conditions and their relation to fiscal space for social protection ...................................................................................................... 10 2.4. Trends and lessons learnt .............................................................................................. 13 2.4.1. Main characteristics of social protection programmes..................................... 13 2.4.2. Mechanisms for creating fiscal space: Practical evidence ............................... 14 2.4.3. Fourteen lessons learnt ..................................................................................... 17 3. Bolivia: Financing the extension of social protection through taxes on hydrocarbons .......... 23 3.1. Country profile .............................................................................................................. 23 3.2. Bolivia's social protection system ................................................................................. 24 3.2.1. Contributory benefits ....................................................................................... 24 3.2.2. Non-contributory benefits ............................................................................... 24 3.3. Renta dignidad: Universalizing old-age pensions ........................................................ 25 3.4. Coverage indicators ...................................................................................................... 26 3.5. How fiscal space was created to finance the extension of non-contributory coverage? 28 3.6. Fiscal space and the sustainability of investment for development .............................. 31 3.7. Impact of new social investment in Bolivia .................................................................. 32 3.8. Lessons learnt ............................................................................................................... 33 4. Botswana: Creating the basis for improved social protection ................................................. 35 4.1. Country profile .............................................................................................................. 35 4.2. Social protection policy ................................................................................................ 43 4.2.1. Organization and coverage .............................................................................. 43 4.2.2. Social protection financing and expenditure .................................................... 47 4.2.3. Pensions ........................................................................................................... 50 4.3. Considerations regarding the creation of fiscal space ................................................... 51 4.4. Policy considerations and lessons learnt ....................................................................... 53 4.4.1. Policy considerations ....................................................................................... 53 4.4.2. Lessons learnt................................................................................................... 54 ESS-33 iii 5. Brazil: Increasing fiscal space through social contributions ................................................... 57 5.1. Country profile .............................................................................................................. 57 5.2. Social investment .......................................................................................................... 58 5.3. Overview of the Brazilian social protection system ..................................................... 59 5.3.1. Social insurance programmes .......................................................................... 59 5.3.2. Universal health system ................................................................................... 60 5.3.3. Social assistance............................................................................................... 61 5.4. Fiscal space for social protection .................................................................................. 64 5.4.1. The 1988 Constitution and fiscal space ........................................................... 64 5.4.2. Gross tax burden: The role of social contributions .......................................... 65 5.4.3. Rural pensions .................................................................................................. 66 5.5. Temporary tax on financial transactions ....................................................................... 67 5.6. Fiscal space, economic growth and development ......................................................... 68 5.7. What about creating fiscal space for development?...................................................... 70 5.8. Lessons learnt ............................................................................................................... 72 6. Costa Rica: Prioritizing fiscal space for social protection ...................................................... 75 6.1. Country profile .............................................................................................................. 75 6.2. Social protection programmes and social spending ...................................................... 80 6.3. Contributory social security programmes: The Costa Rican Social Insurance Fund (CCSS) ...............................................................................................
Load more

Recommended publications
  • World Bank Document
    WPS7948 Policy Research Working Paper 7948 Public Disclosure Authorized How Is the Slowdown Affecting Households in Latin America and the Caribbean? Public Disclosure Authorized Oscar Calvo-González R. Andrés Castañeda Maria Gabriela Farfán Germán Reyes Liliana D. Sousa Public Disclosure Authorized Public Disclosure Authorized Poverty and Equity Global Practice Group January 2017 Policy Research Working Paper 7948 Abstract This paper shows evidence that suggests the economic poverty reduction and stagnant inequality. However, this slowdown in Latin America and the Caribbean has already apparent convergence in poverty reduction is driven by translated into slowing social gains, including decelerating diverging labor market patterns. In a reversal of the trends poverty reduction, stagnating growth of the middle class, seen during the commodity boom, real wages have been and lower income growth. The countries of South America falling in South America and rising in Mexico, Central outperformed Mexico, Central America, and the Caribbean America, and the Caribbean. As lower economic growth is in poverty reduction during the decade up to 2012. But likely, the new normal will pose challenges for policy makers, since then, a new story has emerged. In recent years, poverty in protecting the gains achieved and for societies as they face reduction has been disappointing across the entire region, a mismatch between expectations and actual social mobility. which seems to be converging toward low growth with slow This paper is a product of the Poverty and Equity Global Practice Group. It is part of a larger effort by the World Bank to provide open access to its research and make a contribution to development policy discussions around the world.
    [Show full text]
  • Regional Integration and Poverty
    REGIONAL INTEGRATION AND POVERTY: HOW DO SOUTHERN REGIONALISMS EMBED NORMS AND PRACTICES OF SOCIAL DEVELOPMENT THROUGH HEALTH GOVERNANCE AND DIPLOMACY?1 Pía Riggirozzi Working Paper 15-9 1 This paper was first presented at the conference Southern regionalisms, Global agendas: Innovating inclusive access to health and medicines in a context of social inequity, 4th December 2015, The Open University, Milton Keynes (http://www.open.ac.uk/socialsciences/prari/conference/). It draws on documentary analysis, interview data, and research carried out in the context of the PRARI research project in on-going discussion with the PRARI project team. It was carried out with the support of the Economic and Social Research Council (ESRC), grant ref. ES/L005336/1. The arguments presented in this paper do not necessarily reflect the opinions of the ESRC. I particularly thank Nicola Yeates for her substantial comments and feedback in developing earlier versions of this paper. 1 ABSTRACT Regional organisations are moving away from traditional market-based goals to embrace issues of welfare and social development, yet little is known what role, if any, regional organisations can play in policy formation that is conducive to embed alternative approaches to development into national and international strategies and normative frameworks. This paper explores how Southern regional organisations and regionalisms as advanced by the Union of South American Nations (UNASUR) and the Southern African Development Community (SADC) are framing and advancing pro-poor norms and goals. While not coherent citizenship-centred projects of regionalism, SADC and UNASUR have manifested new ambitions regarding poverty reduction and the promotion of welfare and are developing modalities conducive to embed these goals in national and global policy-making.
    [Show full text]
  • Overcoming Poverty and Social Inequality in Third World Countries (Latin America, Africa)
    IJCSNS International Journal of Computer Science and Network Security, VOL.21 No.3, March 2021 295 Overcoming Poverty and Social Inequality in Third World Countries (Latin America, Africa) Yana Drobotya1, Maryna Baldzhy2, Alla Pecheniuk3, Iryna Savelchuk4, Dmytro Hryhorenko5, Tetiana Kulinich6 1Poltava State Agrarian Academy, Poltava, Ukraine, 2Odessa National University of Economics, Odessa, Ukraine, 3State Agrarian and Engineering University in Podilya, Kamianets-Podilskyi, Ukraine, 4National Pedagogical Dragomanov University, Kyiv, Ukraine, 5Yaroslav Mudryi National Law University, Kharkiv, Ukraine 6Lviv Polytechnic National University, Lviv, Ukraine Summary In today’s world, even in relatively developed countries, The relevance of the research is due to the fact that the issue of poverty is quite common, as well as in backward countries, poverty is one of the most acute social problems of the beginning such as Latin America, where almost 55% of the total of the third millennium. The phenomenon of poverty is widespread number of people, living in its territory, are poor. The in third world countries as well as it is observed in relatively threatening dynamics of poverty in developing countries developed countries. Poverty rates in Latin America are raises problems not only of economic but also of social and threatening. Consequently, the issue of social and economic inequality in these countries has become extremely acute. The political nature. purpose of the research: to identify the causes of poverty and social Social inequality is one of the most pressing problems of inequality and substantiate the main directions of poverty our time. The works of numerous modern social scientists reduction in third world countries. The research methods: are devoted to the study of this issue; it occupies an comparative analysis; index method; systematization; grouping; important place in the programs of many political parties generalization.
    [Show full text]
  • Japanese Overseas School) in Belgium: Implications for Developing Multilingual Speakers in Japan
    Language Ideologies on the Language Curriculum and Language Teaching in a Nihonjingakkō (Japanese overseas school) in Belgium: Implications for Developing Multilingual Speakers in Japan Yuta Mogi Thesis submitted in fulfilment of the requirements for the degree of Doctor of Philosophy UCL-Institute of Education 2020 1 Statement of originality I, Yuta Mogi confirm that the work presented in this thesis is my own. Where confirmation has been derived from other sources, I confirm that this has been indicated in the thesis. Yuta Mogi August, 2020 Signature: ……………………………………………….. Word count (exclusive of list of references, appendices, and Japanese text): 74,982 2 Acknowledgements First and foremost, I would like to express my sincere gratitude to my supervisor, Dr. Siân Preece. Her insights, constant support, encouragement, and unwavering kindness made it possible for me to complete this thesis, which I never believed I could. With her many years of guidance, she has been very influential in my growth as a researcher. Words are inadequate to express my gratitude to participants who generously shared their stories and thoughts with me. I am also indebted to former teachers of the Japanese overseas school, who undertook the roles of mediators between me and the research site. Without their support in the crucial initial stages of my research, completion of this thesis would not have been possible. In addition, I am grateful to friends and colleagues who were willing readers and whose critical, constructive comments helped me at various stages of the research and writing process. Although it is impossible to mention them all, I would like to take this opportunity to offer my special thanks to the following people: Tomomi Ohba, Keiko Yuyama, Takako Yoshida, Will Simpson, Kio Iwai, and Chuanning Huang.
    [Show full text]
  • Conflict-Induced Poverty: Evidence from Colombia1
    Conflict-induced Poverty: Evidence from Colombia1 Natalia Lemus Valencia June 23, 2013 Thesis advisor: Juan Fernando Vargas Abstract The study of the relationship between conflict and poverty is very relevant in a country like Colombia, suffering one of the longest internal conflicts still present in the world today and being the second country in South America with the highest percentage of people below the poverty line. This study uses government deterrence measures as instruments of several conflict-specific variables to estimate the impact of conflict on poverty in Colombia. Using census-level data at the municipality level for 2005, I assess the effect on both the urban and rural incidence of the newly developed Multidimensional Poverty Index. The findings show that the incidence of conflict significantly increases rural poverty. This is consistent with the fact that most of the conflict in Colombia takes place in rural areas. I also explore the lagged effect of conflict on poverty to conclude that it lasts for at least three years, but decreases over time. Finally, I show that the results are robust to a battery of additional specifications, including the use of alternative conflict data and a modified version of the dependent variable. 1 Master thesis, Department of Economics, Universidad del Rosario. I am especially grateful to Juan Fernando Vargas for his excellent supervision. I thank Adriana Camacho, Manuel Ramirez, Roberto Angulo and Renata Pardo for their comments and suggestions that helped improved this thesis significantly. I also thank Catherine Rodríguez for sharing the database of government deterrence measures. 1 1. Introduction Poverty and conflict are closely related.
    [Show full text]
  • Social Policy: Safety Net Or Springboard?
    DOCUMENT RESUME ED 471 169 SO 034 206 AUTHOR Gitta, Cosmas, Ed. TITLE Social Policy: Safety Net or Springboard? INSTITUTION United Nations Development Programme, New York, NY. ISSN ISSN-0259-3882 PUB DATE 2001-00-00 NOTE 164p.; Published by the Special Unit for Technical Cooperation among Developing Countries (TCDC). Theme issue. Published biannually. For issue number 2 of 2000, see SO 034 206. AVAILABLE FROM United Nations Development Programme, Special Unit for TCDC, One United Nations Plaza, FF-121, New York, NY 10017. Tel: 212-906-5737; Fax: 212-906-6352; Web site: http://www.undp.org/ . PUB TYPE Collected Works Serials (022) Reports Descriptive (141) JOURNAL CIT Cooperation South; n2 2001 EDRS PRICE EDRS Price MF01/PC07 Plus Postage. DESCRIPTORS Case Studies; Development Communication; *Geographic Regions; International Communication; *Regional Cooperation; *Social Problems; Social Science Research; *Sustainable Development IDENTIFIERS Development Education; *Global Issues; *Social Policy ABSTRACT This issue of "Cooperation South" looks at recent experiences in protecting and advancing human welfare in the south as well as the north. It presents a shared learning exercise about an array of social policy options; which decision makers in the south can consider in their efforts to shape a caring society, alleviate poverty, promote human development and generate solid economic growth. The "Social Policy: Safety Net or Springboard?" section contains five articles:(1) "Latin America" (Enrique Vasquez; Enrique Mendizabal); (2) "Arab Region" (Salim Nasr); (3) "Southern Africa" (Viviene Taylor); (4) "Northern Input for South-South Dialogue on Social Policy?" (Bob Deacon); and (5)"Eradicating Poverty by Building a Welfare Society: Finland as a Case Study" (Hilkka Pietila).
    [Show full text]
  • Liberal Cosmopolitanism and Economic Justice
    LIBERAL COSMOPOLITANISM AND ECONOMIC JUSTICE Katherine Erbeznik A Dissertation Submitted to the Graduate College of Bowling Green State University in partial fulfillment of the requirements for the degree of DOCTOR OF PHILOSOPHY December 2008 Committee: Steven Wall, Advisor Rachel A. Vannatta Graduate Faculty Representative Fred D. Miller, Jr. Ellen Frankel Paul Jeffrey Moriarty ii ABSTRACT Steven Wall, Advisor The goal of this dissertation is to answer two questions: Is global poverty unjust, such that coercive remedies may be imposed to alleviate it? And if so, does it justify global redistribution as a remedy? This dissertation takes up the same task initiated by Thomas Pogge in his 2002 book, World Poverty and Human Rights, in that the theory of justice from which these questions are answered assigns priority to negative duties of non-interference, rather than positive duties of assistance. More specifically, the theory of cosmopolitan justice underlying this evaluation is that of natural rights liberalism in the tradition of John Locke and Robert Nozick. According to this theory, global poverty could be unjust only if it was the result of violating individual rights. The first half of the dissertation explores the ways in which Pogge claims poverty is the result of rights violations – that such poverty is the result of a tainted global history and that the current distribution of global resources violates the right to fair shares, – ultimately denying that these ground the injustice of poverty. Instead, I argue that global poverty is unjust because a distribution of resources that contains severe poverty violates the minimal access proviso, a constraint on property rights that takes the deprivation of others to limit the property rights of some.
    [Show full text]
  • The Remedial Japanese Language Classroom As an Ethnic Project 日本の補習言語教育と市民権 民 族的課題としての第二言語教室
    Volume 11 | Issue 32 | Number 3 | Article ID 3980 | Aug 08, 2013 The Asia-Pacific Journal | Japan Focus Separate and Unequal: The Remedial Japanese Language Classroom as an Ethnic Project 日本の補習言語教育と市民権 民 族的課題としての第二言語教室 Robert Moorehead education until they enter high school, at which time students are sorted into academic and The economic downturn of the Great Recession vocational schools with differing curricular has largely brought an end to the wave of emphases and degrees of prestige (LeTendre, ethnic return migration of Japanese South Hofer, and Shimizu 2003; Shimizu 1992, 2001; Americans to Japan, a wave that began in the Shimizu et al. 1999; Tsuneyoshi 1996, 2001). late 1980s. By 2012, the number of South However, the presence of immigrant children is American residents in Japan had dropped by challenging this Japanese educational model of more than a third, contributing to the shrinking equality and inclusion. of the foreign resident population in Japan to the lowest level since 2005 (Ministry of Justice To meet the needs of immigrant children, 2013). This emigration wave from Japan has Japanese public schools have created separate been encouraged by growth in the Brazilian JSL classrooms for students who require economy and by financial incentives from the remedial language training. These classrooms Japanese government for Japanese South break with Japanese educational practices by Americans and their family members to leave pulling students out of their homeroom classes the country. However, despite these changes, for remedial lessons, instead of having all the number of non-Japanese children in students complete the same lessons together. Japanese public schools who require remedial Teachers contend that the JSL classrooms help in Japanese remains high.
    [Show full text]
  • Indicators of Poverty in Khartoum State
    بسم هللا الرحمن الرحيم Al Neelain University Graduate College INDICATORS OF POVERTY IN KHARTOUM STATE A complementary dissertation submitted for the partial fulfillment of the requirement for M. Sc. degree in Environmental Sciences By: Alaaeldin Abdelkarim Sabir Ali B. Sc. Hon. In Environmental Sciences;Al Neelian University Supervisor: Prof. Dr. Idris Mohamed Nur June 2018 بسن هللا الرحوي الرحين جبهعة الٌيليي كلية الذراسبت العليب بحث تكويلى لٌيل درجة الوبجستير في العلوم البيئية بعٌواى: هؤشرات الفقر في وﻻية الخرطوم إعذاد : عﻻء الذيي عبذالكرين صببر علي بكبلوريوس العلوم – درجة الشرف في العلوم البيئية – جبهعة الٌيليي إشراف: أ. د. ادريس هحوذ الٌور يوًيو 1028 DEDICATION To my parents, brothers and sisters i Acknowledgment I would like to express my gratitude and appreciation to my supervisor Prof. Idris Mohamed Nur for suggesting this study and for the unlimited help he offered during all stages of the present work. Thanks are extended to Khartoum Zakat offices in the different localities for facilitating the data collection for the present work. The information about poverty provided by The National Bureau of Statistics in Khartoum is appreciated. Thanks are also extended to Dr. Elshibli for the statistical analysis of the data. Thanks are also extended to Prof. Abdelkarim Sabir Ali for his continuous support, encouragement and the fruitful suggestions throughout the preparation of this work. ii List of figures Title Page Number Figure (1) Map of Khartoum State 11 Figure (2) Water collection 19 Figure (3) Households in Khartoum State 20 iii
    [Show full text]
  • South America in Perspective
    Major trends affecting families: South America in perspective Elizabeth Jelin Ana Rita Díaz-Muñoz Report prepared for United Nations Department of Economic and Social Affairs Division for Social Policy and Development Programme on the Family April 2003 Introduction The family is a universal social institution, whose members share a social space based on kinship relations, conjugality and parental ties1. Family relations are the basic criterion for the formation of households and the performance of tasks linked to biological and social reproduction in everyday life. In modern times, ties within the family are expected to be based on affection and mutual care, yet they involve instrumental, strategic and interest-based considerations, both in the short (everyday) life and in longer intergenerational perspectives. The family is never an isolated institution, but rather part and parcel of wider societal processes, including productive and reproductive dimensions of societies, cultural patterns and political systems. Households and family organizations are linked to the labor market and the organization of social networks; socio-demographic trends such as fertility rates, divorce rates, and processes of ageing are part of wider social and cultural processes; and as a basic societal institution, the family is enmeshed in issues of basic cultural values and in political processes. An overview of recent trends of change within families in South America involves considering the changes in family and household organization. Rather than assuming the prevalence of one specific form of the family –the patriarchal nuclear one - one has to ask about the diversity of forms of family organization, patterns of family formation and of reproduction.
    [Show full text]
  • Inequality in Health Services in Rural South America
    Moriah Lutz-Tveite, Student Participate Des Moines Christian School Urbandale, IA Inequality in Health Services in Rural South America Public health initiatives are an important issue in dealing with rural poverty and sustainability in the South American Tropical region. Yet, health care problems in rural regions often take a back seat to the more visible regional concerns of saving the rain forest and alleviating the problems of urban slums. When South American politicians formulate awareness campaigns and health care programs, they often forget the strife of their geographically and culturally distant citizens. Part of the problem can be linked to the economic and geographic diversity of the region. Geographically, both individual countries and the region contain mountains, rain forest, and plains. This makes it more difficult for both national governments and international aid organizations to develop plans that are beneficial to the variety of lifestyles involved. The economies of the region also vary greatly with gross domestic product per capita of the region ranging from $8,300 in French Guinea to $2,500 in Bolivia (worldfacts). These differences provide unique challenges for farmers throughout the region; however, many of these farmers face similar problems. These include poor soil conditions, lack of technology and education, and poor healthcare in rural areas. These issues are certainly not helped by the rampant corruption of South American governments. The powers that be in these countries spend little money on health-related issues. Even when the governments do initiate health programs these are not always particularly beneficial to the rural community or their struggle to keep their crops and their families healthy.
    [Show full text]
  • When Migrants Became Denizens: Understanding Japan As a Reactive Immigration Country
    DE GRUYTER DOI 10.1515/cj-2014-0010 Contemporary Japan 2014; 26(2): 197–222 Open Access Ayako Komine When migrants became denizens: understanding Japan as a reactive immigration country Abstract: On the surface, Japan continues to be a non-immigration country. Economic migrants are never admitted as permanent residents at the point of initial entry and rarely viewed as immigrants any time afterward. At the same time, however, Japanese immigration policy has become markedly settlement oriented since the mid-2000s. The government has managed to cobble together a series of initiatives the total of which now has the appearance of an integra- tion policy mostly targeting co-ethnic migrants, so-called nikkeijin. The country has also introduced a new points-based system which confers immigration priv- ileges, such as family sponsorship and expedited access to permanent resi- dence, on highly skilled migrants. By pointing at these policy examples, I dem- onstrate that Japan has become a de facto immigration country where some migrants are denizens or expected to become so. The present aim, then, is to explain why and how this shift has occurred despite the stasis which character- izes the policy façade. I argue that these changes are best understood as react- ive and incremental adjustments to unexpected outcomes of earlier policy deci- sions on the admission of both unskilled and highly skilled workers as temporary migrants. Keywords: immigration management, nikkeijin, migrants, highly skilled mi- grants, denizenship Ayako Komine: Freie Universität Berlin, e-mail: [email protected] 1 Introduction “How would you feel if some strange foreigner [wake no wakaranai gaikokujin] lived next to you?”1 According to Asahi Shinbun (2002), a center-left newspaper 1 All direct quotes from Japanese sources have been translated by the present author unless stated otherwise.
    [Show full text]