Key Challenges in extending social security

1. Key Challenges in extending social security

2. Social Security: key Challenges • Social Security as a human right? Or is it individual responsibility? PayGo Systems v/s individually funded systems: demographic risk versus financial risk - Role of State? • Coverage – inadequate, aging population - how to extend it to all • The Financing Challenge… Tax v/s Contributions? • Measures for compliance (for funding) - the State as the ultimate financial guarantor (of benefits).

3. Social Security: key Challenges • Adequacy & Quality of benefits & services – especially for low income workers • Investment policies & performance – for protection of funds assets and to finance future benefits – role of state • Governance and management – operational performance, transparency, communications with stake holders – tripartite management? • Role and Capacities of workers representatives?

4. Social Security: key Challenges • Education Challenge:Low Awareness/Understanding of rights, entitlements, social insurance, etc, especially among the excluded groups – need to develop a broad education efforts customised to the various contexts and target groups – funding? Who will fund this? • Public V/s Private – what role? The partnership Challenge: Role of Government v/s Public & Private Insurance Companies for providing social protection (pensions, health care, etc) – operate in competitive environment, profit motive, no experience of working with poor, low income groups, no tripartite regulation

5. THE ADMN CHALLENGE • EXTEND THE COVERAGE OF EXISTING FORMAL SYSTEMS? • BETTER BE PREPARED FOR A VERY BIG LEAP (MILLIONS OF PEOPLE TO BE ADDED)… • ESTABLISH BRAND NEW SOCIAL SECURITY SYSTEMS? • HOW LONG WILL IT TAKE TO GET THERE?… • TRIPARTITE BOARDS? • SEE THE WELFARE FUNDS EXPERIENCE (INDIA AND NEPAL)… • A SEPARATE ENTITY TO RUN EACH NEW EXTENDED SCHEME? • THIS WILL COME AT A HIGH COST… • RELY ON INSURANCE COMPANIES? • WHAT ABOUT THE PROFIT SEEKING APPROACH?... • PARTNER WITH COMMUNITY-BASED ORGANIZATIONS? • SHARING THE SAME SOCIAL GOALS?...

6. THE EQUITY CHALLENGE: NEED TO SHARE THE BURDEN… INFORMAL ECONOMY WORKERS FORMAL ECONOMY WORKERS • Large Contribution Resources: Contributions from W, E & G • Administrative costs borne by Govt – full allocation of resources to benefits payments – benefits higher • Limited Contribution Resources: Workers left alone to pay for their social protection • Administrative Costs borne by the Schemes – reduction of resources allocated to benefits payments – benefits lower

7. « THERE IS NO ADVOCACY WITHOUT EVIDENCE » FROM KNOWLEDGE DEVELOPMENT TO ADVOCACY… NEED TO INCREASE THE ACTIVE SUPPORT OF POLICY MAKERS UNDER THE NATIONAL SOLIDARITY PRINCIPLE ADVOCACY NEED TO ENHANCE THE TECHNICAL CAPACITIES OF THE VARIOUS ACTORS INVOLVED IN THE MANAGEMENT OF SOCIAL PROTECTION SCHEMES CAPACITY BUILDING NEED TO DEVELOP STRONGER EVIDENCE ON SOCIAL PROTECTION BEST PRACTICES AT THE GRASSROOTS LEVEL… KNOWLEDGE DEVELOPMENT

8. What Else? Participants views?

9. Union vision for universal social security in the 21st century?