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The End of Unemployment Benefits? Newsletter 2000/2

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The End of Unemployment Benefits? Newsletter 2000/2 Newsletter 2000/2 InFocus Programme on Socio-Economic Security Seeking Distributive Justice – Basic Security for All The end of Unemployment Benefits? In the 20th century, the assumptions of receiving unemployment benefits. He Dalmer Hoskins, Secretary General of the full employment and full-time well-paid concluded that work insurance (i.e., insur- International Social Security Association, jobs were the cornerstone in the design ing against fluctuations in work opportunity) chaired the session. A point made by Theo of unemployment benefit systems. and citizenship-based rights, rather than Papadopoulous was that data from Euro- However, in recent years high labour-based entitlements, were more vi- pean Union countries showed a strong in- unemployment, more flexible labour able means of ensuring income security. verse correlation between level of ben- market and more informal working have Other participants in the debate were efits and poverty and income inequality. contributed to changes in the design of un- Theo Papadopoulous, University of Bath; While most speakers thought a rapid employment benefit systems. The re- Aystein Gjelsvik, Chief Economist, demise of unemployment benefits was sponses have not only undermined exist- Norwegian Confederation of Trade Un- unlikely, it was generally concluded that ing delivery mechanisms, but have also re- ions; Alan Leather, Deputy General Sec- a major rethinking of policies for provid- sulted in the exclusion of many more from retary, Public Services International; and ing the unemployed with income security income support. Steve Marshall, former Chief Executive deserved high priority in the sphere of so- To debate the paradigms representing of the New Zealand Employers Federation cial protection. A major conference will a clash of thinking around the restructur- and member of the ILO Governing Body. be organized on this in the near future. ing of unemployment benefits, the Pro- gramme organized a public debate as part of the activities of the Geneva 2000 summit. The main speakers were Robert Holzmann, Director of World Bank's Social Protection Division, and Guy Standing, Director of the InFocus Pro- gramme on Socio-Economic Security. Robert Holzmann outlined options as- sociated with unemployment benefits. He criticized unemployment insurance as be- Combating Controls: ing ineffective with regard to poverty alle- viation, subject to abuse, lacking political The Base of Decent Work sustainability and being unsuited for struc- tural shocks. He argued that unemployment Overcoming controls exercised The Programme has developed a assistance was more viable, and concluded over people in several ways is a crucial methodology for identifying control that for a system to be successful, it should part of a strategy for providing basic mechanisms, and following a presentation satisfy the criteria of distributive effective- security and for creating “decent work” at a conference of women organizers and ness, allocative efficiency, financial conditions. Controls limit freedom. Yet researchers in Harvard University, a col- affordability and be in consonance with we have only a hazy idea of what is laborative project has been launched with cyclical and structural economic shocks. meant by control, and practically no sta- the global network of WIEGO (Women Guy Standing pointed out that the inter- tistical information on mechanisms or in Informal Employment: Globalising and national trend was towards means-tested patterns of control. It is believed these Organising) on reconceptualising work. unemployment assistance, which suffered are particularly severe impediments for The project will be linked closely with our from low take-up rates, poverty traps and women in developing countries. People’s Security Surveys. unemployment traps. This had contributed to the drift to workfare. He emphasized that the fiscal, moral and legitimation concerns In this issue: around the restructuring had resulted in nu- n Indonesian Country Review .................................. 2 merous, and often arbitrary, changes in en- titlement conditions, which had led to the n Video on Women Outworkers ............................... 3 fact that even in industrialized countries th only a minority of the unemployed were n 8 BIEN Congress ................................................. 4 Note: Views expressed in this newsletter are not necessarily those of the ILO. 1 Russian Firms Stabilising, Poverty in Russia The impoverishment of the vast ma- but Workers at Risk jority of the Russian population was a major tragedy of the 1990s. Policies and The latest round of the Russian En- ration with the Centre for Labour Market institutions for dealing with the crisis terprise Labour Flexibility and Security Research in Moscow. This round has were scarcely developed. At the invitation Survey (RLFS) conducted in June 2000 given special emphasis to the insecuri- of the Ministry of Labour and Social De- indicates that the chaotic downsizing ties of women workers. velopment and the ILO office in Moscow, shown in previous rounds has slowed, but A feature of interest for labour ana- the Programme director addressed gov- that growing numbers of workers suffer lysts is that we have collected detailed data ernment officials, representatives of from precarious employment and uncer- on labour and employment practices for other international agencies, academics tain pay and access to enterprise benefits. a sample of firms regularly throughout the and embassy officials on policy options The survey, covering hundreds of firms past decade, giving a unique panel data for overcoming the chronic economic in Moscow, Nizhny Novgorod and set that is available for use by researchers insecurity in the country. A review of the Ivanova, has been conducted in collabo- wishing to work with the Programme. state of the unemployment benefits sys- tem was launched, and agreement was reached on several other activities, notably on a review of policies and Indonesia: Improving Security institutions of care work. after the Crisis African Regional The crisis that hit Indonesia in 1998 terprise Labour Flexibility and Security left millions of people struggling to sur- Survey is being carried out to document Meeting, Dakar vive on much reduced incomes. The new developments in a sample of 1,000 democratic government has been trying to large and medium-sized firms and create institutions and policies that can 1,000 small-scale ‘informal’ firms. A strategy for promoting economic restore economic growth and reduce the This is being conducted in collabora- security in African countries was discussed extent of poverty and economic insecu- tion with the Government’s statistical at a meeting of ILO regional and country rity. In this context, the Programme is office, and should be completed early office directors in Dakar in September. conducting a comprehensive review of in 2001. At the same time, a People’s As a result, several technical projects labour and social policy trends in order Security Survey is being carried out in were launched. The meeting was a valuable to recommend reforms that would several types of rural and low-income opportunity to strengthen working strengthen social and economic security urban areas, collecting information on relationships with our African offices. in the country. The project is being con- a representative sample of 3,000 per- ducted by an international team of special- sons and households. While these sur- ists working with the Programme, and is veys are in the field, reviews of social UK Globalisation involving close working relationships with protection policies and assessments of a large team of Indonesian colleagues. macro-economic policies will be car- White Paper As a first part of the project, an En- ried out by the team. Clare Short, the UK Minister of Overseas Development, invited the Measuring Voluntary Work: Programme’s director to participate in a two-day round table on ideas for the British Government’s White Paper on A Handbook policy responses to globalisation. Participants included Government We know that many civil society or- development of a Handbook on meth- Ministers from several African ganizations exist, and that many mil- ods of measuring the contribution of countries as well as distinguished lions of people work for them. We have non-governmental organizations and economists from Africa, Asia, Latin few statistics to show that. If we believe other non-profit ventures, and on how America and Eastern Europe. that all forms of work should be recog- that could be integrated in the system The White Paper should be a major nized and be provided with protection, of national accounts. The Programme contribution to the international response we must develop the means of identi- is assisting in the drafting of a technical to the pressures and challenges of fying and measuring that work. Accord- paper on a statistical data base on globalisation. Its publication will coin- ingly, the Programme is collaborating NGOs and is providing support for the cide with a substantial enlargement in the with the Centre for Civil Society at the testing of a methodology for estimat- position of the UK’s Department for London School of Economics in the ing their contribution to national income. International Development (DFID). 2 IFP-SES Newsletter, 2000/2 Dorcelina Folador Prize Workers on Unpaid Leave The Socio-Economic Security Pro- gramme is launching an annual prize for in Ukraine the best piece of empirical research sub- mitted
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