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Social Security for Social Justice and a Fair Globalization

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Social Security for Social Justice and a Fair Globalization ILC.100/VI International Labour Conference, 100th Session, 2011 Report VI Social security for social justice and a fair globalization Recurrent discussion on social protection (social security) under the ILO Declaration on Social Justice for a Fair Globalization, 2011 Sixth item on the agenda International Labour Office Geneva ISBN 978-92-2-123117-2 (Print) ISBN 978-92-2-123118-9 (Web pdf) ISSN 0074-6681 First edition 2011 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. 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 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 website: www.ilo.org/publns. Formatted by TTE: reference: Confrep-ILC100-VI[2011-01-0228-11]En.docx Printed by the International Labour Organization, Geneva, Switzerland Contents Page Abbreviations ................................................................................................................... vii Introduction ...................................................................................................................... 1 Background and objective ................................................................................................ 1 Background ................................................................................................................ 1 Objective of the report ................................................................................................ 3 Structure of the report ................................................................................................ 3 Preparation of the report for the recurrent discussion ................................................. 4 Chapter 1. The right to – and the need for – social security ......................................... 7 1.1. Objectives and concepts of social security ....................................................... 7 1.1.1. Principal objectives of social security and definitions ............................ 8 1.1.2. Concepts .............................................................................................. 8 1.2. The right to social security ................................................................................ 10 1.2.1. The human right to social security and the role of the ILO .................... 10 1.3. The need for social security .............................................................................. 15 1.3.1. The role of social security systems in economic development and in facilitating structural change and managing crises .................... 16 1.3.2. Social security as a pivotal tool to progress toward social justice in a globalizing world............................................................................ 22 1.4. A first conclusion .............................................................................................. 26 Chapter 2. The global state of social security and its challenges .................................. 29 2.1. The coverage challenge ................................................................................... 29 2.2. The adequacy challenge .................................................................................. 32 2.3. The financing challenge .................................................................................... 35 2.4. A second conclusion ......................................................................................... 42 Chapter 3. Present policy responses ............................................................................ 43 3.1. Enabling access to health services: Social health protection ............................ 43 Patterns of health-care financing and access ................................................... 44 Indicators of access to health-care services ..................................................... 45 ILC.100/VI iii Social security for social justice and a fair globalization Extending social health protection coverage ..................................................... 45 Addressing financial constraints ....................................................................... 48 Improving administrative efficiency and assuring the quality of health care ...... 49 3.2. Guaranteeing income security in old age, disability and survivorship ................ 50 Coverage by contributory and non-contributory pensions ................................. 51 Pension coverage has a strong gender dimension ........................................... 57 Challenges around disability benefits ............................................................... 58 Adequacy of pensions ...................................................................................... 59 Pension finances and the global crisis .............................................................. 61 3.3. Income security for the unemployed ................................................................. 63 3.4. Income security in the event of employment injury ........................................... 68 3.5. Maternity protection .......................................................................................... 70 3.6. Family benefits, minimum income support and social assistance ..................... 73 Providing social security to families with children .............................................. 73 The role of social assistance schemes in developed and middle- and low-income countries ................................................................................. 73 Extending social security coverage through social assistance programmes in low- and middle-income countries ............................................ 76 3.7. A third conclusion ............................................................................................. 78 Chapter 4. Main issues for the future of social security ................................................ 81 4.1. Ensuring social and economic policy coherence ............................................... 81 4.1.1. Social policy objectives and institutional design: Ensuring internal coherence and responsiveness ............................................... 82 4.1.2. Ensuring external coherence in a wider social policy context ............... 84 4.1.3. Ensuring external coherence of economic and social policies .............. 86 4.2. Establishing and ensuring the affordability and financial sustainability of social security systems ................................................................................. 93 4.2.1. The affordability of basic systems......................................................... 93 4.2.2. The affordability of mature social security systems ............................... 102 4.2.3. Cost versus benefit considerations: Relationship between fiscal costs and results ......................................................................... 107 4.3. Designing, governing and managing effective and efficient social security systems ............................................................................................... 108 4.3.1. Designing and implementing programmes to extend social security coverage ................................................................................. 109 4.3.2. Ensuring good governance and sound administrative performance ........................................................................................ 120 4.4. A fourth conclusion ........................................................................................... 124 Chapter 5. Future policy orientation for the Organization ............................................. 127 5.1. Strategies to extend social security coverage ................................................... 127 5.1.1. Principles for the extension of social security ....................................... 129 5.1.2. The horizontal and vertical dimensions of extending social security: The “social security staircase” policy paradigm ...................... 133 iv ILC.100/VI Contents 5.1.3. The horizontal dimension: Building a social protection floor.................. 135 5.1.4. The vertical dimension: The next steps towards a social security best protection guide............................................................................ 138 5.2. Strategies to ensure sustainability .................................................................... 138 5.2.1. Ensuring coherence with national social and economic development policies and other objectives of the Decent Work Agenda ....................................................................................... 139 5.2.2. Ensuring social adequacy .................................................................... 141 5.2.3. Ensuring financial, economic and fiscal sustainability ........................... 142 5.2.4. Strategies to ensure good governance
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