Download Financing and governance challenges

International
Labour
Office
Financing and governance
challenges
2nd African Decent Work Symposium
Yaoundé, Cameroon,
6–8 October 2010
The ILO Global Campaign to Extend Social Security to All
1
The financial situation – an overview
International
Labour
Office
Total public social security expenditure by region, weighted by population,
latest available year (percentage of GDP)
30
25.1
Public social security expenditure (excluding health)
25
Public health expenditure
20
18.9
16.0
15
13.6
13.5
10.2
10
9.8
8.4
5.3
5.3
Asia and
the Pacific
SubSaharan
Africa
5
Source: ILO Social Security Department database
Percentage of GDP
Total public social security expenditure
0
Western
Europe
Central
and
Eastern
Europe
North
America
North
Africa
CIS
Latin
America
and the
Caribbean
Middle
East
The ILO Global Campaign to Extend Social Security to All
Total
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The Financing challenge

We know an have shown that elements of the social
protection floor, such as basic social assistance for the
active population, or social pensions can be financed by
less than by less than 1% of GDP in some countries, the
Bolsa Familia scheme in Brazil costs less then 0.5% of
GDP..

We know from African and international experience that
some developing countries are investing successfully in a
social protection floor, or at least in elements thereof, for
their population, such as Mexico, Brazil, South Africa,
Namibia, Mauritius, Cape Verde, Nepal…

Does Africa really not have sufficient fiscal space to
reach wider coverage?

…we think it is a matter of political will rather than being
economically impossible, societies and governments chose
to spend a certain share of public revenues on social
protection as the following slide shows…
The ILO Global Campaign to Extend Social Security to All
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Labour
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…demonstrating policy & fiscal space International
Labour
Social security expenditure as percentage of
government expenditure
Size of government and proportion of government expenditure
allocated to social security, latest available year
Office
50.6
Greece
Uruguay
Liberia
Albania
40.6
Turkey
Chile
30.6
China
20.6
10.6
0.6
Germany
Denmark
Sweden
Netherlands Belgium
Austria
United Kingdom
Norway
Finland
Luxembourg
Italy
Poland
Spain
Croatia
Ukraine Portugal
Iceland Slovenia
Japan
Australia Republic of Moldova
Bulgaria
Canada
Ireland
Russian Fed.Lithuania
Slovakia
New Zealand
Uzbekistan
Estonia
Romania
Azerbaijan Argentina
Latvia
United States
Mauritius
France
Hungary
Czech Republic
Belarus
Tunisia
Brazil
Kyrgyzstan
Jordan
Sri Lanka
Mexico
Georgia
Bolivia
Iran, Islamic Republic of
Costa Rica
Malaysia
Armenia
India
South Africa
Yemen
Korea, Republic of
Panama
Trinidad and Tobago
Philippines
El Salvador
Fiji
Morocco
Senegal
St. Vincent & the Grenadines
Thailand Madagascar
Venezuela
Viet Nam
St. Kitts & Nevis
Nepal
Zambia Burkina Faso
Saint
Lucia
Ghana
Pakistan
Gambia
Togo
Laos
Dominica
Bangladesh
Syria
Tanzania
Indonesia
Sierra Leone
Côte dIvoire
EthiopiaBelize
Solomon Islands
Zimbabwe
Rwanda
Cameroon
Benin
Mauritania
Uganda
Burundi
Congo
Niger Sudan
Papua
15
20
25
30
35New Guinea 40
45
50
Kazakhstan
The ILO Global Campaign
to Extend
Social Security
to All of GDP
Government
expenditure
as percentage
Seychelles
55
60
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A possible long-term financing strategy



Develop rational social protection development
scenario
Start small…define the future steps towards a
complete floor and beyond
Create the domestic fiscal space




Increase efficiency of tax collection
Widen the tax base
Make more efficient use of existing resources
Implement good governance principles


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Labour
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Maintain effectiveness, efficiency, transparency only then
systems remain sustainable
Use foreign aid wisely… without creating further
aid dependency…ultimately national systems
have to be financed by domestic resources
The ILO Global Campaign to Extend Social Security to All
5
What can the ILO do to help?

Provide technical advice (just as it has done
through programmes like STEP, and dozens of
other TC projects of the last five decades…) in

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
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Policy development and analysis
Good governance including through
dialogue
Actuarial, financial, budgeting matters
Legal matters
Management
tripartite
Capacity building…(Master Programmes in
Maastricht, Lausanne, Mauritius, Programmes in
Turin, tailor made training…)
The ILO Global Campaign to Extend Social Security to All
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Questions

Do we need an a overall national social
protection financing policy?

What strategies can be used to increase
the fiscal space for social security?

What mechanisms do we need to put in
place to improve the governance of social
protection?

What are the instruments for starting,
ascertaining and measuring the progress
of national social protection policies ?
The ILO Global Campaign to Extend Social Security to All
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Labour
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