195_Mathew Cherien - Social Protection and Governance

8/8/2019 195_Mathew Cherien - Social Protection and Governance

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Social Protection and Governance

Mathew Cherian

and Susmita Ghose

06.09.08


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Social Protection: Background

Elements of social protection design and their coverage of poorhouseholds.

New forms of social assistance reaches poor households around150 million in developing countries and benefits half a billion people.

National Rural Employment Guarantee Scheme (India) expected toreach 26 million households during 2008 which changed the

composition of poverty reduction strategy.

Elements of National Development Strategy: Economic Growth,Human Capital Development & Social Protection and a threepronged approach that increases national levels of welfare, raiseseconomic productivity and strengthens social cohesion.


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With urbanization, globalization and privatization have

brought in sound economic changes resulting in breakdown of the family structure that have traditionally takencare of the elderly in the family.

With migration of the younger generation, the old are left

alone which becomes more vulnerable (8-10% of thepoor in India are old).

Thus Social Protection covers poverty reduction

strategies which would include measures that would actas safety nets for the most vulnerable, dependent olderpersons.


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ILO definition: says its arising from human rights. It is defined byentitlement to benefits that society provides to individuals andhouseholds through public and collective measures to protect

against low or declining living standards arising out of a number ofbasic risks and needs.

The UN defines social protection as a set of public and privatepolicies and programmes undertaken by societies in response tovarious contingencies to offset the absence or substantial reduction

of income from work; to provide assistance to families with childrenas well as provide people with basic health care and housing Inessence, this approach envisages social protection as ensuring thesatisfaction of basic human needs, as a precondition for human andeconomic development.

The international community acknowledged that social protection isa basic human right in the Universal Declaration of Human Rights in1948: everyone has the right to a standard of living adequate for thehealth and well-being of himself and of his family.


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The Millennium Development Goals (MDGs) have focused attentionon poverty and vulnerability reduction.

Since 2004 India has taken a regional leadership role through itsNational Rural Employment Guarantee Scheme (NREGS) whichensures basic income security for vulnerable households in ruralareas and it extends on a national scale, with the tabling of theUnorganised Sector Workers Social Security Bill (USWSS) 2007.

The ILO has taken the lead in advocating and supporting socialprotection in developing countries. The World Bank developedsocial protection strategy in the mid 1990s as a response to theimpact of structural adjustment on developing countries and thefailure of its social dimensions initiatives.

Others who have adopted social protection policies, includingUNDP, UNICEF, WHO and WFP (United Nations, 2000) with variedmandate.


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Social Protection: Background Bilaterals like DFID, GTZ, and USAID are increasingly developing

and supporting social protection policies. Adoption of social

protection among international NGOs has been slower, but

receptiveness to the social protection agenda has been greateramong international NGOs committed to poverty reduction and

advocating policies.

It is among the NGOs involved in delivering emergency and

humanitarian assistance that receptiveness to social protection, as alonger term response to conflict and emergency is strongest.

The National Governments role should be formulating policies and

coordinating the extension of social protection; and also need to

ensure that social protection is integrated into national developmentstrategies.


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Social Protection: Hindrances The hindrances to integrate the social protection into national

development strategies are:

a. Financing and delivery capacity

Finance is rightly perceived as one of the main constraints on theexpansion of social protection, especially in low income countries. It

is useful to distinguish between two separate issues:

(i) Determining the level of financing required to ensure a

minimum level of social protection; and

(ii) finding out how developing countries could finance this.

b. Politics

Extending social protection in developing countries also requires a

propitious political environment in which demand for social

protection can translate into effective government responses. It is

useful to make a distinction between the political conditions needed

for the introduction of social protection initiatives, and those required

for the sustainability of programmes.


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Social Exclusion and Social Cohesion

Its not new that Mutual insurance that protect against risk and

eventualities are fundamental s to mutual solidarity.

Reciprocity and mutual obligation are fundamental to the values of

solidarity and identity which underpin the cohesion of societies

according to the anthropological text by Mauss 'The Gift' (1954).

The expression in the concept of social exclusion advocated as ananalytical framework for analysing deprivation, and the social and

political processes. In its original form (in French public discourse) it

refers primarily to a rupture of the social and moral bonds between

an individual or group and society.


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Social Exclusion and Social Cohesion

Implications of the linkages between social protection policy and

the rich theoretical tradition on social exclusion are:

- standing outside of collective, mutual forms of solidarity and

support whether citizenship or membership of country/community

- entitlement to public support in times of hardship and need.

- Highly targeted one-way transfers, means-testing or other selection

mechanisms

- social assistance is based on assumptions of dependency orstereotypes which do not recognise the active contributions

Notions of social exclusion are the arguments concerning

globalisation especially the trends towards increasing levels of

inequality, substantial decline in global flows of development

assistance, suggests there is much still to do.


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Political dimensions, rights and accountability

Linkages between national governance and effective poverty

reduction:

- Accountability of public services deliver to be reinforced for revenue

collection

- Lacking capacity to implement the social welfare programmes

- Lack of entitlement to benefits from state social protection systems

- Lack of the capacity - or strength of voice -to influence key elements

of public policy and services which affect the poor people key elements on the interactions between politics, governance and

poverty for a perspective on social protection are:

- Active civic pressure for effective state action to deliver social

protection

- Forms of structural inequality/formal mechanisms

- Negotiated understandings of entitlements for effective public action


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Development Agency Perspectives

Approaches taken by International development organisations.

They bring with them some concerns, say reasonably general and

some are variable. Some key elements are:

- The overall policy framework and understandings of objectives and

key concepts (such as the nature of poverty).

- Issues of structural overlap with other programmes and professional

groups.

Most donor agencies see their role as supporting long-term

reductions in poverty, which offers an eventual reduction in the need

for aid, rather than providing protection of livelihoods with the

characteristics of a recurrent service.


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19.08.08

Development Agency Perspectives

The mission ofAsian Development Bankis "to help its developing

members achieve accelerated and irreversible reductions in

poverty". This contribution to poverty reduction is presented in terms

of social protection "making growth more efficient and equitable.

BMZ/GTZ: Germany is one of the few bilateral with a strong claim to

expertise in the field of social protection. Provide assistance to

promote mutual insurance, health and accident insurance schemes.

German NGOs are involved in social protection through church-or

community-based schemes in partner countries. The party-affiliated

parastatal "political foundations" - a distinctive feature of the German

aid system - are very active in assistance for social security, while

the German Development Institute research centre has published

several studies on social security issues in the developing world.


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Development Agency Perspectives The International Labour Office: The ILO approach to social

security is in a period of transition. Its been observed that only avery small proportion of the population of the developing worldenjoys any protection from conventional statutory social security

instruments.

The ILO focuses its approach on employment issues, insurancemechanisms. The key strength to the approach is its bottom-upparticipatory with livelihood strategies, resources and needs of thepoor rather than (as in traditional top-down approaches) starting withthe state.

The World Bank: The World Bank is becoming increasinglyinfluential in the development of social protection approaches. TheBank's lending in social protection activities has grown "explosively"over the 1990s. Developed a sophisticated strategy paper based upon the principle of social risk management with some specific socialassistance instruments for the poor.


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Social Insurance Coverage

This could be provided through the promotion of VoluntaryInsurance Associations.

Crop insurance: can provide the same risk-mitigation function for

self-employed farmers that social insurance pays for wagelabourers. A payment of a regular contribution protects againstharvest losses due to flood, drought, fire or pests. The existence ofcrop insurance can also be a factor in persuading lenders to extendcredit to farmers lacking conventional collateral.

Health insurance: The costs of medical services constitute one ofthe most serious threats to the economic security of poor (and notso poor) individuals and households. Medical crises are aparticularly common component of auto correlated risk: if they strikean economically active member of the household, the unexpected

rise in expenditure on treatment coincides with a drop in income.


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Social Protection Strategic Priorities

List of the strategic policy priorities of social protection policy:

1. the development should start from the needs, realities and prioritiesof the groups intended to benefit from social protection. Especially

on the issues of governance, transparency and information. Corepriorities for government are:

- establishing an information base, qualitative approacheswhich illustrate poor people's realities and perspectives,disseminating the results of this to inform public debate;

- negotiation with different institutions and groups of citizensto strengthen consensus about the rights and entitlements

2. the development needs to take account of the variety of institutionsengaged in social protection outside the public sector, with informal,traditional and private systems so that public policy makes best use

of their potential.


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Social Protection Strategic Priorities

Priorities for governments include:

- ensuring adequate understanding for policy of the variousnon-state forms of social protection operating for insurance and

assistance to poor people;

- support through appropriate regulation and programmes,development of local level groups which enhance the securityof livelihoods of poor people

3. Public policy for social protection needs to include a balancebetween measures designed to prevent shocks which will have anegative impact on the poor and help those affected to cope.

4. Measures to strengthen the capacity of public policy to help thepoorest. it requires sophisticated institutional capacity to deal with

both identification of groups needing special assistance, and thedevelopment of complex and differentiated policy responses.


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Risk Management StrategiesThree ways to manage Risks:

Risk reduction: actions, taken in advance, which reduce theprobability that the risk event will occur. In terms of governmentpolicy, this would include (for example) sound economic policy tominimise the risk of inflation or currency crisis.

Risk mitigation: actions taken in advance which reduces themagnitude of a potential risk. Examples from the household levelinclude diversification of livelihood strategies (so that if the return toone activity declines dramatically subsistence or income can still beobtained from other sources): taking out insurance (formal or

informal); and cultivating social capital.

Risk coping: actions taken once the risk has occurred whichreduce - or distribute - the effects. Examples include selling assets.Reducing consumption, or undertaking more physically risky orsocially unapproved activities to earn a livelihood. The balance

between these strategic considerations can guide actors towardsdifferent livelihood decisions.


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Globalisation of Social Policy

Development committee of the World Bank have initiated somesocial policy principles, which was focused on guidelines of goodpractice in various fields. They have defined the following ways tomeet the challenges of the level of insecurity:

- Policy on trade and debt

- Mobilise pressure for sustainable poverty reduction; Pressurefor ethical standards in global trade

- Establish global and regional mechanism: long terminvestments in the human and social capabilities are notcompromised

- develop global consensus on the needs and standards ofsocial protection policy

- analyse risks and take action to reduce the harmful effects

- Strengthen mechanisms of global governance


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HelpAge Indias Intervention in Social ProtectionDirect Intervention Programmes:

Economic Security: Income GenerationMicro Credit

Sponsor a Grandparent

Self Help Groups

Health Security: Mobile Medicare unitsCataract Surgeries

Health Camps

Emotional Security: Old Age HomesDay Care Centres

Social security: Advocacy At Grass root Level in poorestdistricts

Emergency services: Tsunami, Earthquake and other natural

disaster victims, especially older persons andfamilies


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The Alternate Pension Model

HelpAge India has been advocating for the rights and entitlementsof the aged in various forums.

Developing Integrated Projects and Model Areas which would beimplemented through out the country supported by CORDAID,Netherlands

Envisages to build a movement Elders for Elders so that rights canbe obtained.

This alternate pension system can provide a buffer against financialshocks and ill health affecting older persons in poorer countries.Though this will help fewer numbers, ultimately it is only socialprotection policies and governance improvements which will changethe lives of older persons.

Documents

195_Mathew Cherien - Social Protection and Governance