The Importance of Universal Social Protection for Smallholder Farmers

United Nations Conference on Trade and Development

MULTI-YEAR EXPERT MEETING ON COMMODITIES AND DEVELOPMENT

21-22 April 2016, Geneva

The importance of universal social protection for smallholder farmers and rural populations, as well as its broader role in contributing to food security and nutrition

Ms. Christina Behrendt, Social Protection Department, International Labour Organization

The views expressed are those of the author and do not necessarily reflect the views of UNCTAD.

The importance of universal social protection for smallholder farmers

UNCTAD 8th Multi-year Expert Meeting on Commodities and Development Geneva, 22 April 2016

Christina Behrendt International Labour Office, Social Protection Department Social risks can negatively impact economic opportunities for smallholder farmers and rural populations

Maternity Sickness Access to Work injury Disability medical care

Loss/lack of Support for employment/ Loss of Old age children livelihood/ breadwinner income Lack of social protection often affects rural populations in particular

Proportion of the global population not covered by a health protection mechanism: 39% total population 56% rural population

Note: Share of the population covered by national health service or affiliated to a public or private health insurance.. Sources: Scheil-Adlung, X. (2015): Global evidence on inequities in rural health protection, ILO; ILO World Social Protection Report 2014/15, ILO, Figure 5.2. 3 Universal social protection: Social protection floors as part of wider system

NATIONAL SOCIAL PROTECTION SYSTEM Higher levels of protection

NATIONAL SOCIAL PROTECTION FLOOR:

nationally defined basic social security guarantees

basic income access to essential security for children basic income basic income security for persons security for persons health care including providing access to nutrition, education, care in active age unable in old age maternity care and any other necessary to earn sufficient goods and services income

Universal social protection – how? Country examples

Adapted health insurance mechanisms combined with tax financing facilitate effective access to health care Colombia, Ghana, Rwanda, Thailand

Cash transfers for children and families reduce vulnerability and facilitate access to nutrition, health and education Argentina, Brazil, Mexico, Mongolia, South Africa

Cash transfers for poor households with limited work capacity channel resources into poor rural communities (est. multiplier effect: 1.5-2.5) Ghana, Kenya, Lesotho, Malawi

Adapted contributory pensions or tax-financed pensions provide income security in old age for farmers and rural populations Brazil, Lesotho, Nepal, Viet Nam Extending social protection to smallholder farmers and rural populations: positive impacts

Income security Risk management

.Direct income support . Addressing social risks for farmers and .Poverty reduction and prevention rural populations .Positive impacts on food security . Potentially increasing productivity

Stimulation of the local economy Investing in people

.Channelling cash into local economy, .Development of human capital multiplier effects .Health, education, skills .Positive effects on agricultural production, .Breaking intergenerational transmission of rural employment and poverty reduction poverty .Facilitating access to formal structures

6 Social protection floors contribute to food security

. Cash transfers, including public works payments, . Farmers often invest cash transfers in can finance food purchases food production . Regular cash transfers allow recipients to take . Spending of cash transfers on food calculated risks, and/or invest in more profitable can stimulate domestic food livelihood activities production . In-kind transfers of food increase . Access to essential social access to food directly services (e.g. health, . Access to essential social education) can raise the services (e.g. education) can productivity of farmers so Availability promote livelihoods and increase they produce more food Access income for buying food

. Cash transfers can respond to fluctuations in food prices if they . Access to essential social Utilisation Stability are indexed to food prices services, especially health . Regular cash transfers stabilise care, should improve the income and allow savings and biological utilisation of food by asset accumulation that buffer individuals against price shocks and income . Supplementary feeding provides variability nutritious food to vulnerable individuals . In-kind transfers (food) ensure stable access to food even if market supplies and prices are unstable 7 Source: Based on Devereux. 2015. Realising the Right to Social Security and the Right to Food (Geneva, ILO). The way ahead: Time for action

2030 Agenda for Sustainable Development

Social protection is reflected in several SDGs

ILO Global Flagship Programme on Building Social Protection Floors for All

Working As One within UN and with other partners Useful resources

● Recommendation concerning national floors of social ● ILO. 2015. Extending social protection to the rural protection (Social Protection Floors Recommendation), economy. (Geneva, International Labour Office). 2012 (No. 202). ● Devereux, Stephen. 2015. Realising the Right to ● Recommendation concerning the transition from the Social Security and the Right to Food: The informal to the formal economy (Transition from the contribution of national social protection floors Informal to the Formal Economy Recommendation), 2015 towards food security and the realisation of the (No. 204). right to adequate food for all. (Geneva, International Labour Office). ● Social protection for all: Building social protection floors and social security systems: The strategy of the International Labour Organization, Geneva: ILO, 2012. ● Global Flagship Programme, including ● Brochures and strategy ● World Social Protection Report 2014/15: Building ● Country and thematic opportunities economic recovery, inclusive development and social documents justice (Geneva: ILO, 2014). ● Delivering as one UN briefs ● Extending social security to all. A guide through

challenges and options (Geneva: ILO, 2010). ● Web platform on social protection and the SDGs – ● Social Protection Floor Advisory Group: Social protection floor for a fair and inclusive globalization (Geneva: ILO, time for action 2011). ● Social Protection Platform: ● Sharing Innovative Experiences: Successful Social www.social-protection.org/ Protection Floor Experiences (New York and Geneva: ● Social Protection and Human Rights web platform: UNDP, Special Unit for South-South Cooperation and www.socialprotection-humanrights.org/ ILO, 2011).

contact: [email protected]

National social protection floors contribute to food security (1): Availability

AVAILABILITY . Farmers often invest cash . Agricultural input . Food production can be Domestic transfers in food subsidies stimulate promoted by all policies production production foodcrop production and that enhance farmers’ Import capacity . Spending of cash household food security, access to agricultural Food stocks transfers on food can especially if they are inputs: arable land; Food aid stimulate domestic food targeted to food insecure irrigation; fertiliser; production farmers seeds; tools; and . Access to essential social . Public works projects financial services services (e.g. health, that support farmers (e.g. . Food availability can education) can raise the soil and water also be influenced by productivity of farmers so conservation, hillside favourable national and they produce more food terracing) can raise international trade agricultural production policies

10 National social protection floors contribute to food security (2): Access

ACCESS . Cash transfers, including . School feeding . Asset transfers and Poverty public works payments, increases access to food livelihoods support (e.g. Purchasing can finance food purchases for poor children; “home training for power . Regular cash transfers grown school feeding diversification) can Income allow recipients to take raises local farmers” graduate people out of Transport calculated risks, and/or incomes food insecurity Market invest in more profitable . Public works projects infrastructure livelihood activities that build feeder roads . In-kind transfers of food can link people to markets increase access to food and lower food prices directly . Food price subsidies . Access to essential social can raise access to food services (e.g. education) by lowering the cost of can promote livelihoods food in local markets or and increase income for retail stores buying food

11 National social protection floors contribute to food security (3): Stability

STABILITY . Cash transfers can . Weather-indexed . Grain reserves or buffer Weather respond to fluctuations in insurance schemes stocks can be variability food prices if they are compensate farmers for strategically managed to Price indexed to food prices harvest failure or livestock stabilise food supplies fluctuations . Regular cash transfers losses and prices throughout Political factors stabilise income and allow . Seasonal public works the year Economic savings and asset or employment guarantee factors accumulation that buffer schemes stabilise against price shocks and household incomes income variability (cash-for-work) or access . In-kind transfers (food) to food (food-for-work) ensure stable access to . Price controls, tariff food even if market reductions, export taxes supplies and prices are or bans, all protect unstable consumers

12 National social protection floors contribute food security (4): Utilization

Components How can national SPFs Which food security What complementary of food address food insecurity? instruments could be policies are needed to security integrated in, or linked to, ensure food security? national SPFs? UTILISATION . Access to essential social . Linking the delivery of . Child nutrition status can determined by: services, especially health social transfers to health be enhanced by Health status care, should improve the and nutrition education providing vitamins and biological utilisation of food or awareness raising minerals, promoting by individuals sessions (e.g. conditional breast-feeding, and . Supplementary feeding cash transfer treating acute provides nutritious food to programmes) should malnutrition vulnerable individuals improve the utilisation of food

Source: Devereux, Stephen. 2015. Realising the Right to Social Security and the Right to Food: The contribution of national social protection floors towards food security and the realisation of the right to adequate food for all. (Geneva, ILO). Available at: http://www.social-protection.org/gimi/gess/RessourcePDF.action?ressource.ressourceId=53195. 13 Social protection in the 2030 Agenda

Target 1.3 - Implement nationally Target 5.4 - Recognize and value unpaid care appropriate social protection systems and domestic work through the provision of and measures for all, including floors, public services, infrastructure and social and by 2030 achieve substantial protection policies and the promotion of coverage of the poor and the shared responsibility within the household vulnerable and the family as nationally appropriate.

Target 2.1 - By 2030, end hunger Target 8.5 - By 2030, achieve full and and ensure access by all people, in productive employment and decent work for particular the poor and people in all women and men, including for young vulnerable situations, including people and persons with disabilities, and infants, to safe, nutritious and equal pay for work of equal value sufficient food all year round

Target 3.8 - Achieve universal health Target 10.4 - Adopt policies, especially fiscal, coverage, including financial risk wage and social protection policies, and protection, access to quality essential progressively achieve greater equality health-care services and access to safe, effective, quality and affordable essential medicines and vaccines for all