A Social and Green Agenda for the Next Decade - Kick off Conference

"Social cohesion and inclusion as an essential pillar of sustainable development.”Sian Jones, EAPN Policy Coordinator

Outline

Introduction Presenting EAPNLisbon’s record on delivering social

cohesion – challenging the myths. Social cohesion - an essential element in

sustainable developmentBridging Social and Sustainable.

Who is EAPN?

Independent EU Network of NGOs committed to fight against poverty and social exclusion

Started in 1990 – key actor in poverty programmes and development of social OMC .

Receives financial support from the European Commission (PROGRESS)

25 National Networks and 22 European NGOs as members. (1,500 organisations)

Key Objectives

1. To put the fight against poverty and social exclusion on the political agenda of the European Union

2. To promote and enhance the effectiveness of actions against poverty and social exclusion

3. To lobby for and with people and groups facing poverty and social exclusion

EAPN and the Lisbon Strategy.

Participation with national members in Social OMC, EES, NRP since 2000.

Recent reports: Social Stocktaking, Social Inclusion Scoreboard Main Concerns:

– Loss of social dimension of Lisbon in 2005.– Sidelining of the Social OMC – restricted to feeding in and

feeding out.– Reduction of European Employment Strategy to instrument

of macro/micro- economic strategy focussed on increasingly punitive active labour market measures and conditionality.

– Negative impacts of growth and jobs strategy on poverty, social exclusion and growing inequality

– No significant progress on governance, participation of NGO’s and people experiencing poverty.

What happened to the Lisbon pledge?.

Original objectives of Lisbon strategy 2000:« create the most competitive and knowledge-

driven economy in the world, capable of sustainable economic growth, with more and better jobs and greater social cohesion »

Commitment to make a decisive impact on poverty by 2010.

Change in 2005 to focus on Growth and Jobs Trickle down theory to impact on social cohesion

– is it working? Is this the right basis for future strategies?

Challenging some Growth and Jobs Myths

Economic Growth leads to social inclusion A Job is the best way out of povertySocial protection is a cost on growthActivation - the best means to ensure

access to jobsMake Work Pay guarantees labour supply Liberalisation of Services provides better

cheaper services

Lisbon’s Success

Between 2001 and 7, average growth of 2.1% Employment Growth reached 1.8%. Employment Rate increased to 65.4% - mainly

through employment of women (58.3%) in PT work

Unemployment from 8.6% to 7.1% by 2007 Long term unemployment from 4% to 3%. But with the economic crisis – what remains?

Has this delivered social inclusion?

16% of EU population at risk of poverty – 78 million people No significant decrease since 2000 (15% in 2001, Old MS),

increases in AT, BE, NL, UK and PL. Higher poverty risk faced by women (17%), children (19%) and

older people (19%) Value of poverty threshold varies – 558 EU for single person

Rumania/ compared to 17, 087 in Luxembourg. Inequality gap rising – with SE, SL, CZ, DK, FI, AT and LU with

lowest gaps and highest gaps in PL, LA, LI, PT. In 2006, income of richest 20% nearly 5 times higher than

income of the poorest 20%. Poverty risk is highest where greatest income inequalities

Challenging the myths: 1. Better growth leads to social inclusion

“ The assumption that economic growth will raise the adequacy of standards of living of all, just as a tide lifts all boats together, is not often observed in practice” (Commission SWD: Monitoring progress towards the objectives of the European Strategy for Social Protection and Social Inclusion, 6.10.08)

In LT, EE, PL, SK, IE, MT and CY, strong economic growth did not result in big reduction in poverty rates.(2004/5)

In CZ, EL, LU, HU and SE – the poverty rate increased. “No causal link between growth and living standards for

different groups, if no mechanisms established to improve the situation of those at the bottom of the income distribution ( rise in low wages, income redistribution”(European Commission.).

2. A job is the best route out of poverty

Unemployed face higher risk of poverty 41% of unemployed live under poverty threshold In 2007, 9.4% of children lived in jobless households. But 8% of people in work at risk of poverty 20% of the those at risk of poverty are in work

12% of the poor are unemployed….. Why? – low wages, precarious jobs, enforced part-

time work. A job is not enough to guarantee an escape from

poverty. Quality work/living wages provide essential floor to sustainable economy

3. Social protection as a cost on growth

Average gross spending on social protection ranges from 15% of GDP ( Baltic States, RO) to more than 28% in BE, DE, DK, and SE. Spending has declined in most MS.

Social Spending reduces risk of poverty by nearly 40%, without it the rate would be 26% (instead of 16%)

Countries with the lowest at risk of poverty rates are those who spend more on social benefits.

Increased expenditure on social protection linked to increased prosperity as measured by GDP per capita

Countries with the highest spending on social benefits/ with the lowest rates of inequality are also generally the happiest!

Effective Social protection systems not only reduce poverty, and increase security, but provide an essential platform for participation, and social cohesion as well as supporting growth.

4. Activation is the most effective way to get people into work.

Minimum safety nets not sufficient to take people out of poverty, majority below the 60% median income -

In all countries except Latvia, Germany, UK and Ireland, couples with 2 children on MI below the poverty line.

Low take up rates (vary between 40 and 60%: OECD 2004). Increased conditionality, aggravates deprivation particularly

now on the “inactive”. More effective in getting people off benefit than into work.

“how can you reduce benefit to someone on 440 Euros a month?” EAPN France.

Supportive, needs-focused approaches, proven to be more effective at supporting vulnerable groups into sustainable work, from the base of an adequate income ( UK National Council of One Parent Families Study/Bridging the Policy Gap.)

5. Make Work Pay ensures labour supply

Current approach driven by objective to reduce benefit levels, force people into jobs, at any price.

Negative hierarchy between minimum income and wages . Supply-side focus with limited job creation focussed on “knowledge-

based innovation”/high skilled areas – what access for those furthest from labour market? What support for low-skilled?

Impact from crisis: unemployment, downward pressure on wages, flexibility, reduced employment protection and access for those already on the edges.

Ensuring adequate income and decent wages as fundamental social right also provides means to prime economy,

Job creation in areas of social need provides road to inclusion and expansion of new services (role of social economy and inclusive entrepreneurship)

6. Privatisation and Liberalisation of Services boosts growth and better services

Primary driver – expansion of the internal market/increased competition will drive down prices/increase quality?

Impact of liberalisation on SGI’s, not visibly resulted in long-term lower prices, - reduced access and affordability - evidence of price rises/Energy Poverty -.(Energy Watch Report 2008). Too often “ A choice between heating and eating”

Withdrawal of the state from direct provision/ regulation/ underfunding and investment in essential Services of General Interest.

Consumer choice – too often a privilege of the wealthy/ undermining of rights-based access to basic services.

Social Services specificity as key pillar of social protection systems undermined. Financial and Economic Crisis highlights the failure of the market to guarantee

the public good over private profit.. Reemergence of the State as defender of the Public Good - Guaranteeing

Right’s based affordable access to key services – including housing, education and health as well as energy/water, as key pillar of sustainable development..

Growth and Jobs to Social and SustainableSocial Cohesion – a key pillar in sustainability.

Original SD Strategy in Gothenburg sets broad vision, linked to Lisbon 2000 Renewed SD Strategy aims” to create a socially inclusive society by taking

into account solidarity between and within generations, and increasing quality of life of citizens as pre-condition for lasting individual well-being”.

This requires new integrated approaches to tackling key challenges related to social change, tackling inequality, increasing poverty and global inequity

SD Strategy currently subordinated to growth and jobs – but Economic Crisis/Recovery Package supporting Smart Green Growth,

Stable, more equal, socially just and cohesive societies are an essential pre-requisite for delivering long term sustainability

Restoring the balance to the social eco-system, confirming rights, reducing inequalities and reviving the role of the public good.

Environmental Growth cannot deliver a sustainable future for people and planet, in an increasingly divided world……

Social and Sustainable – the way forward?Key Elements.

New Development Model based on green and social market economy – identifying the limits to growth?

Restoring the State as guarantor of the public good over private profit New model of accountability/participative democracy, local endogeneous

development Investment in people – social protection as refuge and springboard for

inclusion. Right’s driven approach to guarantee equal access to quality services and

resources, driving up social standards Adequate minimum income and decent living wages/quality work as

sustainable economic base/global pact on decent work and social protection.

Equality and global equity as driver for social cohesion to secure sustainabilty.

Financial sustainability – through a new, fairer redistribution model – away from individual to shared risk.

For further information

For further information – contact: Sian Jones, Policy Coordinator, EAPN Square de Meeus 18, 1050 Brussels

E-mail: Sian.Jones@eapn.eu Tel: 00 32 2 226 5850