Social Protection Is a Necessity, Not a Privilege

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Social Protection Is a Necessity,Not a Privilege

From The Just Jobs Report Series

Sabina Dewan December 2010

Introduction to the series by John Podesta and Sabina Dewan


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Contents 1 Introduction to the series

5 Social Protection Is a Necessity, Not a Privilege

5 Introduction and summary

10 The economic case for social protection systems

14 The case against deregulation

16 From rhetoric to action

19 Endnotes

20 About the authors and acknowledgements
http://art%20team%20%28swap%29/REPORTS/ECONOMY/2010/Just%20Jobs%20report/justjobs-coherence.pdfhttp://art%20team%20%28swap%29/REPORTS/ECONOMY/2010/Just%20Jobs%20report/justjobs-coherence.pdf


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iv Cnr r Amrican Prgrss | Js Jbs


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| www.amricanprgrss.

Social Protection Is a Necessity,Not a PrivilegeFrom The Just Jobs Report Series

Sabina Dewan December 2010

Introduction to the series by John Podesta and Sabina Dewan


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vi Cnr r Amrican Prgrss | Js Jbs


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Scial Prcin Is a Ncssiy, N a Privilg | www.amricanprgrss.

Introduction to the series

The case for just jobs

Te global economy oday is inexorably inerwined someimes or beter and

someimes or worse. Tis ac was driven home anew o workers worldwide by

he recen global nancial crisis, he ensuing global economic slump, and he

subsequen eors by governmens o recharge heir economies. Bu acing polii-

cal pressures o do somehing abou he widespread job losses, governmens are

ending o inward-looking policies ha impede economic inegraion and rade.Tis is cause or deep concern because economic globalizaion has come wih

benes, as unevenly spread among workers as hey are.

Jus Jobs, a new program a he Cener or American Progress, seeks o exend he

benes o economic inegraion and rade o all o he workers who power he

global economy. Te moral reasons or providing workers wih jus jobs, includ-

ing labor righs, appropriae compensaion, social proecions such as healh care

and pensions, and opporuniies or economic mobiliy, are well undersood. Less

undersood is how promoing hese policies in developing counries alongside

developed ones benes boh in a world ha is closely conneced hrough echnol-

ogy, ows o people, goods, services, and capial.

Jus jobs policies would:

Allow he gains rom global economic inegraion and rade o be spread more

widely among workers worldwide by raising living sandards and hereore

generaing new, sorely needed sources o aggregae economic demand. Level he playing eld in labor markes worldwide, hereby prevening any one

counry rom leveraging poor labor pracices or economic gain. Enhance global economic and naional securiy by building a basis or greaer

condence wihin a more inegraed global economy.


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2 Cnr r Amrican Prgrss | Js Jbs

In essence, jus jobs policies are criical or doing economic inegraion and

rade righ.

Increasing economic inegraion and ree and unresriced rade in goods and

services conribues o worldwide economic growh, bu i is also blaanly clear

ha igher economic inegraion and increased rade leads o a resrucuring oeconomic aciviy ha leaves some workers beter o and ohers worse o. oday

he world knows all oo well ha when workers are ou o work hey ighen heir

bels, consuming less so businesses earn less, leading o more layoscreaing a

vicious downward spiral. Tese shocks ransmi across he globe hrough changes

in rade and invesmen ows, capial ows, and migraory rends.

o have a well-uncioning economy, people need jobs ha are jus. Tey need o

be able o work in accepable working condiions, wih appropriae proecions

and compensaion, and wih he righ o organize and bargain collecively. In he

even ha people do lose heir jobs, as in imes o economic crisis, here is a needor governmen insiuions, policies, and programs ha help people adjus o

changes in he labor marke. Tese social proecions include access o unemploy-

men insurance and pensions o ensure workers are able o mainain a cerain level

o consumpion i hey lose heir income. And hey include access o healh care

so workers can mainain a basic level o wellbeing o coninue o be conribuing

members o he economy.

All o hese aces ogeher help raise living sandards. Beter sandards o living

mean ha workers in oher counries can aord o buy more goods and services,

creaing global demand and invigoraing he global economy. Bu o be eecive,

policies have o be implemened. I is no enough or counries o jus have hese

policies and laws on heir books. Ensuring he enorcemen o labor sandards

and social proecion helps creae a more even playing eld so ha counries wih

lower levels o developmen han oher counries canno leverage poor labor san-

dards as a compeiive sraegy.

Simply pu, higher sandards o living in developed and developing economies

alike canno be achieved wihou an appropriae sraegy or creaing and imple-

mening jus jobs around he globe.

Jus jobs would in urn help alleviae problems ha lead o economic insecuriy

and global insabiliy. Povery and economic underdevelopmen provide erile

ground or polluion, unsae working condiions, and or disease, lawlessness, and

People need jobs

that are just. They

need to be able to

work in acceptable

working conditions,

with appropriate

protections and

compensation,

and with the right

to organize and

bargain collectively.


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violen conic o spreado he bene o inernaional crime and global error-

iss. By helping o raise living sandards, jus jobs serve as insrumens or promo-

ing global sabiliy and securiy.

Te Cener or American Progresss Jus Jobs program seeks o demonsrae

ha supporing an increase in jus jobs in developing counries is a win-win ordeveloped counries as well. Sandards o living converge on an upward rajec-

ory. Rules and regulaions ensure his happens across he globe. And he resuling

economic and poliical sabiliy rebounds o bene developed and developing

counries alike. Our Jus Jobs program will help policymakers develop pragmaic

and specic seps o power orward a viruous circle or workers worldwide.


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Real peoples livelihoods and amilies are a he receiving end o he chain o shocks

ha have rocked he globe during he recen economic crisis. Many are now quesion-

ing he eeciveness o unetered ree markes o deliver susained and broad-based

economic opporuniy and prosperiyno leas because hey have experienced

economic crises beore. Te deb crisis in Lain America in he 1980s and he Asian

nancial crisis in he lae 1990s raised imporan quesions abou he ecacy o mar-

ke mechanisms lef o heir own devices. And ye here he world is again.

Te Grea Recession, like pas

crises, highlighs deciencies

in he social proecion sys-

ems ha are, or should be, in

place o promoe broad-based

economic growh and o help

ciizens cope wih economic

hardship. Srenghening or

someimes seting up hese

social proecion sysems (see

box) is now more imporan

han ever.

Public spending serves an

imporan uncion in pursu-

ing economic growh objec-

ives while ensuring ha he

gains are widely disribued

o promoe broad-basedincreases in living sandards.

Eecive governmen social

proecion sysems have a

criical role o play in ensuring

he well-being o is ciizens.

The denitions and terminology used in discussions o protection are as wide as th

concept itsel. Broadly dened, social protection systems are government policies,

programs, and regulations that enable societies to advance the well-being and

security o their citizens by protecting them rom vulnerability and deprivation so

that they can pursue a decent lie.1

A joint publication by the International Labor Oce and the International Social

Security Association uses a more specic denition describing social protection as

consisting o

all income transers (or benets) in kind and in cash that a society afords to its

individual members in order to:

Avoid or alleviate poverty

Assist them in coping with a series o lie contingencies or risks such as unemplo

ment or illness which, i they occurred, might otherwise lead to a loss o income

Reduce or correct inequalities created through the primary (pre-transer) income

distribution2

Unemployment insurance as well as nancial support or education, health care,

disability, and retirement pensions are all examples o social protection.

What constitutes a safety net?

Introduction and summary


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For hese reasons, seting up social proecion sysems was saed as one o he

op prioriies o he heads o governmen who make up he Group o 20 leading

developed and developing naions, as well as he oher key inernaional groups

such as he Group o 8 indusrialized democracies and he G8+5 (see box). Te

G8+5 leaders were perhaps he mos explici a heir mos recen summi in 2009

in LAquila, Ialy, where hey saed:

Concerned by he high social coss o he crisis in erms o unemploymen and

povery, we are commited o ackle he social dimension o he crisis, puting

peoples concerns rs. We are modernising, reinorcing and increasing he

eciency o social proecion policies, including saey nes, healh and educaion.

Srenghened and susainable social proecion, supporing employmen and

enhancing skills, will also help o susain and rebalance global demand.3

Bu he G20 is now he primary insiuion or global governance, and i mus make

social proecion a prioriy in is acions, no jus in words, especially a a ime whenseveral counries ace pressures or scal consolidaion. Te G20 evolved rom a

meeing o nance minisers and cenral bank governors o a meeing o he heads

o sae rom G20 counries in he all o 2008 o joinly deal wih he shock waves

emanaing rom he U.S. subprime morgage crisis and he ensuing global nancial

crisis. A he G20 summi in Pitsburgh in he all o 2009, he leaders declared ha

heir governmens would coninue o provide income, social proecion, and rain-

ing suppor or he unemployed and hose mos a risk o unemploymen.

Group of 20: The G20 consists o the heads o state, nance ministers, and central

bank governors rom 20 leading economies that together comprise about 90 percent

o global gross national product and two thirds o the world population. The mem-

bers are the United States, the European Union, Japan, Canada, China, Russia, India,

Mexico, Argentina, Brazil, South Korea, Saudi Arabia, Indonesia, Turkey, and Australia.

Group of 8: The G8 consists o the eight heads o governments rom Canada, France,

Germany, Italy, Japan, Russia, the United Kingdom, and the United States.

Group of 8+5: The G8+5 consists o the heads o state rom the G8 nations plus the

heads o state o the ve leading emerging economiesBrazil, China, India, Mexico,

and South Arica.

The global groups


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While G20 leaders a he summi in Seoul in November his year agreed in heir

communiqu o pu jobs a he hear o he recovery, o provide social proec-

ion, decen work and ensure acceleraed growh in low income counries, he

communiqu is hin on laying ou a plan o acion beyond his saemen. Tere

has been litle progress on hese goals since he early G20 leaders summis, and as

he world economy has slowly sared o recover, counries are casing coordina-ion aside o solidiy heir own recovery and rebuild heir own economies a he

expense o joinly osering global demand by ocusing on jus job creaion.

Susained, broad-based economic growh coninues o elude several developed

and developing economies alike, even as he global recession is slowly receding.

New policies or scal consolidaion hreaen exising social sysems, le alone

suppor new ones. Bu i is imperaive ha he worlds leaders move beyond rheo-

ric o acion. Te G20 leadership mus ensure ha:

All naional governmens make social proecion sysems a prioriy. All donors should provide echnical and nancial assisance o help he develop-

ing world esablish hese social proecion insiuions. All mulilaeral developmen insiuions such as he Inernaional Labor

Organizaion, he World Bank, and regional mulilaeral developmen banks

coordinae heir eors o achieve maximum and lasing impac in he esablish-

men o hese social proecion sysems.

Social proecion sysems are undamenal o sabilizing and rebalancing naional

economies as well as he global economy in he wake o he economic crises.

Tese sysems aciliae economic and social adjusmens o smooh ou he ups

and downs o business cycles and provide a means o ensuring ha he ben-

es o growh are widely disribued o achieve rising living sandards. Widely

enaced social proecion sysems can raise living sandards in counries around

he world, conribue o simulaing economic growh during downurns, and

expand he global middle class o uel and rebalance global consumpion. Social

proecion sysems help o reduce povery, inequaliy, and exclusion, and hus

srenghen he social conrac beween naional governmens and sociey, rein-

orcing social cohesion and global sabiliy.

Te absence o adequae social proecions boh prolongs he pain o economic

crises and makes economic recovery more dicul. Te Grea Recession, or

example, resuled in global unemploymen o nearly 212 million in 2009.4 Such

a sunningly high unemploymen rae poses a serious problem in developed

It is imperative t

the worlds lead

move beyond

rhetoric to actio


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counries. In he Unied Saes or example, workers signicanly ighened heir

bels as hey los heir jobs, heir incomes, and heir employmen-based healh

care, which sen shock waves hrough a global economy ha had become highly

dependen on American consumpion o uel world economic demand.

Tis conracion in he Unied Saes as well as in oher developed naions high-lighs he imporance o rebalancing he global economy in a way ha reinorces

domesic consumpion insead o relying on expor-led growh, paricularly in

key emerging markes such as China and India. A recen analysis by he Cener

or American Progress encapsulaes he imporance o his rebalancing o resore

global economic prosperiy:

Expanding he social saey ne will direcly ackle he primary cause o high sav-

ings rae in China and spur domesic consumpion, which would ofse expor

declines in he shor erm and generae susainable, balanced growh in he long

erm. For China, he massive 850 million yuan healhcare plan, alongside beterlabor pracices and pension plans, and more available public goods ogeher con-

siue a signican sep oward esablishing he necessary services ha Chinese

ciizens would need o sop sowing away coningency savings a such high raes.5

Bu consumpion is dicul o boos in China, where mos economiss esimae

ha he savings rae is a roughly 50 percen o gross domesic produc.6 Such high

savings raes sem primarily rom he ac ha Chinese ciizens need o plan or

healh-relaed coningencies in he absence o an adequae social proecion sysem.

Whas more, he Grea Recession adversely aeced he expor-oriened sec-

ors o developing counries economies, adding o unemploymen and inormal

employmen as ormal employmen waned, mosly in manuacuring.7 Esimaes

sugges ha he mos recen global economic crisis will raise he number o

people living below $1.25 a day by 50 million.8

Naional leaders atenion o he meris o social proecion sysems in rebalanc-

ing he global economy has diminished as he painul eecs o an economic crisis

sar o abae or some, and as news coverage shifs o dieren subjecs such as

scal consolidaion. Susainable reorms are unorunaely requenly he loserwhen he long-erm benes o esablishing social proecion sysems mee he

shor-erm poliical needs o ribbons o cu and elecions o win. Te excepion

ha proves he rule is he eor and srie o enac comprehensive healh care

reorm in he Unied Saes.


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Tis policy brie highlighs he benes and indeed he necessiy o social pro-

ecion. I is a call o he inernaional communiy and naional governmens o

keep he ocus on esablishing adequae, eecive, and ecien social proecion

sysems or counries around he world. I makes he economic case or enac-

ing worldwide social proecion sysems and hen presens some specic policy

recommendaions o achieve his criical goal.


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Te Inernaional Labor Organizaion, or ILO, in a paper presened o is

November 2005 Governing Body, lays ou several conduis hrough which

ecien and reliable social proecion sysems promoe economic growh. Te

ILO repors key nding is he view ha here is an ineviable rade-o beween

he levels o social proecion and economic growh is mos likely wrong, as he

worlds mos producive economies end o have srong social proecion sys-

ems.9 Te ILO subsequenly examined his key link beween social proecion

sysems and economic growh (see Figure 1).

Social proecion sysems underpin socieys producive capabiliies by invesing

in people in a way ha allows hem conribue o he economy and propel eco-

nomic growh. Tey are a mechanism or ensuring ha he gains rom growh are

widely disribued among he populaion hrough governmen programs. Tese

programs hen help raise produciviy, urher conribuing o economic growh.10

Te provision o healh care and occupaional saey sandards, or example,

aciliae greaer eciency and producion. Healh insurance can help remove

seriously ill and hus unproducive workers rom he labor orce and a he same

ime ensure ha hey are able o coninue o consume, while creaing employmen

opporuniies or more producive workers. Healh care also prevens individuals

rom becoming sick or unproducive. And worker saey sandards ensure produc-

ive workers are no driven rom heir jobs due o workplace accidens, and i hey

are, ha here is disabiliy insurance or assisance available.

Long-erm invesmen in human capialhrough educaion and worker rain-

ing or examplealso plays an imporan role in maximizing worker produc-

iviy and income growh. Educaion is a ool ha allows one o paricipae inhigher value-added aciviies. raining allows workers o mee he demands o

he labor marke and reraining allows one o say curren and adjus o changing

labor marke needs.

The economic case for social

protection systems


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Te lack o social proecion sysems conversely leads o deerioraing human

capial, paricularly in an economic crisis. Wihou hese sysems, he healh o

workorces declines markedly, children are pulled ou o school o make up or

los amily income, and ree communiy resources ha are available are quickly

overwhelmed while ax receips decline due o a shrinking economy.11 All hese

consequences conribue o rising povery and can uel social unres and insabiliy.

Choosing he righ mix o invesmens in social proecion sysems ha are pro-

duciviy raising and pro broad-based growh helps ouweigh he coss o imple-

mening hese sysems. Bu i is clearly possible, and essenial, o design social

saey ne sysems so ha he coss and benes are in balance and susainable.

Consumption smoothing

Te key o susainable governmen spending on social proecion sysems ress

on he concep o consumpion smoohing. Consumpion smoohing reers o

he balance o public and privae savings and spending ha individuals in sociey

Figure 1

Better safety nets, better economic growth

Public social security expenditure by region, 2000 and latest available year, percentage o GDP

Source: Global Extension o Social Security, World Social Security Report 2010/2011.

30.0%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%Western

Europe

Central and

Eastern Europe

18.0

25.1

7.1

14.1

18.9

4.8

9.0

16.0

7.0

11.0

13.6

2.5

9.9

13.5

3.6

7.1

10.2

3.1

7.6

9.8

2.23.6

5.3

1.72.8 2.5

North

America

North

Africa

Commonwealth

of Independent

States

Middle

East

Latin America

and the

Caribbean

Asian and

the Pacific

Sub-Saha

Africa

Public social security expenditure excluding health expenditure

Public health expenditure

Total public social security expenditure


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need in order o achieve he highes possible sandard o living and coninue o

mainain ha sandard o living hrough economic downurns. Te provision o

cash or in-kind benes hrough social proecion sysems helps equalize con-

sumpion and provides income securiy in he even o a shock. Tese sysems can

help preven individuals rom slipping ino deprivaion. Social proecion sysems

can also consrain he widening dispariy beween he wealhy and he poor insociey, which can be so damaging o he social and poliical abric o a counry.

Social proecion sysems also boas posiive muliplier eecs by providing

urher posiive gains or sociey and he economy, such as reducing he incidence

o child labor. Te 2000/01 World Bank World Developmen Repor noes ha

child labor is an undesirable coping mechanism or amilies acing economic

dislocaion or sudden economic shocks. Families ofen use child labor in such

insances as a mechanism o cope wih household income ucuaions. Families

would perhaps rely less on heir children i hey had oher social proecion

opions o help smooh ou heir income.

Social proecion sysems have hree clear meris ha are criical o aciliaing

recovery rom an economic crisis, enhancing he resilience o ciizens in he ace

o an economic downurn, and promoing long-erm, broad-based economic

growh and sabiliy:

Tey promoe invesmens in people ha preven individuals rom becoming

unproducive, such as healh care. Tey inves in long-erm human capial ormaion hrough educaion and

worker raining, which reinorces produciviy and long-erm innovaion and

economic growh. Tey essenially remove unproducive workers and he elderly rom he work-

orce while sill allowing hem o consume wih appropriae public assisance.

Social proecion sysems use hese hree conduis o boos living sandards,

which helps sabilize and rebalance naional and global economies.

And social proecion sysems do his wihou hindering marke exibiliy. Noed

economiss Rebecca Blank and Richard Freeman noe ha here are severalmargins along which an economic agen can be exible, bu he mos common

undersanding o exibiliy reers o he speed wih which price and quaniy

adjus o changes in he economic environmen.12 Flexibiliy viewed hrough an

economiss lens is only desirable in so ar as i conribues o produciviy and

We need to

acilitate recovery

rom an economic

crisis, enhance

the resilience o

citizens in the ace

o an economic

downturn, and

promote long-

term, broad-based

economic growth

and stability.


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Tere is a large body o lieraure ha argues ha labor marke policies such as

unemploymen insurance or job proecion, in paricular, hinder an economys

exibiliy. For insance, hose opposing an exension o unemploymen benes in

he Unied Saes coninually evoke his argumen. Te debae over labor marke

policies pis hose who push or deregulaion o labor marke policies, and greaer

employmen and wage exibiliy agains hose who do no buy ino he claim ha

deregulaion is a soluion o employmen problems.

Economiss have ailed o reach a consensus on he eec o labor marke poli-

cies on aggregae economic perormance and on he poenial or deregulaion o

improve oucomes, despie decades o empirical analysis.14 Freeman, or example,

presens several reasons or he lack o consensus on he relaionship beween

labor marke policies and exibiliy.

He argues ha here is no sound way o quaniying he social impacs and muli-

plier eecs o labor marke policies. I is hard, he says, o quaniaively capure he

posiive eecs o ood samps ha ensure ha a worker is more producive because

she or he has had enough o ea. He similarly poins o he muliple posiive reurns

o an unemploymen bene given o a laid-o worker who hen spends his money

o buy books or his childs upcoming school year. Te ac ha he childs educaion

was no inerruped means he child will be a posiive conribuor o he economy

laer on, bu hese benes are dicul o accoun or in empirical erms.

Freeman also argues ha hose in avor o deregulaion o labor marke policies,

and increased employmen and wage exibiliy, operae under he noion ha

markes work nearly perecly in he absence o labor marke policies. Tese pre-

conceived noionspriors as Freeman calls heminuence he way scholarsanalyze daa and inerpre empirical resuls.

Whaever he sae o debae over labor marke exibiliy, he curren economic cri-

sis has all bu conrmed ha unetered ree markes do no work perecly and ha

The case against deregulation


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here is a real need or social proecion sysems o compensae or he deciencies

o an imperec marke. Te mos recen global economic crisis underscores he

ac ha social proecion sysems do no hamper dynamic economic growh. I

highlighs ha he cos o no having adequae proecions in place can be more

derimenal han he coss associaed wih puting hem in place and susaining

well-planned sysems, and ha more regulaion o he labor marke does no hinderproduciviy. Social proecion sysems are clearly a necessary invesmen in people

ha enhances equiable economic growh. Social proecions enhance economic

growh and oser produciviy i designed and governed appropriaely. 15


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I is imperaive as he global economy sars is shaky ascend ou o he Grea

Recession ha naional governmens, donor counries, and mulilaeral insiu-

ions shif ocus o build and reinorce long-erm social proecion sysems and

policies. Tis will help proec workers, creae he condiions or susainable

economic growh, saeguard agains a uure economic crisis, and rebalance he

global economy by culivaing aggregae demand and nudging, especially emerg-

ing markes, away rom an expor-led model o growh oward one based on

domesic consumpion.

A number o counries ha could aord i enaced a series o economic simu-

lus packages ha were largely successul in consraining an even bigger global

recession. Te ime is now ripe or an inernaional reorm agenda ha ensures

ha shor-erm soluions seamlessly lead ino susainable long-erm policies o

promoe susainable and equiable economic growh worldwide.

o his end, all naional governmens mus make esablishing social proecion

sysems a prioriy, and all wealhy counries should provide echnical and nancial

assisance hrough bilaeral and mulilaeral channels o emerging and developing

counries ha require help in esablishing hese social proecion insiuions.

rade liberalizaion and echnological advancemens have allowed or he evolu-

ion o global producion sysems and new inernaional divisions o labor. Tey

have inroduced new sources o compeiion and led o churning and shifs in

employmen and skill requiremens by allowing new enrans ino he global

economy. Losses and gains occur in varying secors, rms, and regions wihin a

counry or beween counries.

Globalizaion also plays is role in alering amily srucures as people move

rom rural o urban areas, or o dieren counries in search o beter employ-

men opporuniies. I is imporan o noe ha, in ligh o his increasingly

From rhetoric to action


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inerconneced world, one counry s social proecion policies also bear on

hose in oher counries. Tis makes i imperaive ha donor counries make

ransers o und social proecion sysems in counries ha canno aord o do

so adequaely on heir own.

Mulilaeral insiuions such as he Inernaional Labor Organizaion, he WorldBank, and regional developmen banks mus coordinae heir eors o achieve

maximum and lasing broad-based economic growh, which is no possible wih-

ou adequae and appropriae social proecion mechanisms.Te ILO ses social

proecion sysems as one o he sraegic pillars o is ongoing Decen Work cam-

paignalong wih righs a work, employmen, and social dialogueall o which

is designed o promoe opporuniies or work ha are jus and producive.16 Ye

he ILOs approach o social proecion is ocused more on he supply side (labor),

and is somewha limied in is handling o oher uncions o social proecion

sysems such as healh insurance, reiremen, and disabiliy pensions.17 Te Asian

Developmen Bank, however, oulines ve caegories o social proecion:

Labor marke inervenions, including acive policies such as inrasrucure

projecs, and passive policies such as unemploymen insurance Social insurance such as reiremen pensions and disabiliy pensions Social assisance such as ood samps Micro- and area-based programs Child proecion laws and regulaions18

Te World Bank ses he imporance o social proecion in he conex o a social

risk assessmen and managemen ramework, making he sandard disincion

beween social insurance and social assisance programs. Te World Bank also

now acknowledges ha growh and sound macroeconomic policies, while neces-

sary, are insucien or susained povery reducion.19

Te World Banks approach diers rom ha o he ILO and he Asian

Developmen Bank in ha i is ocused on argeed proecion or vulnerable

groups such as he very poor, migrans, women, and children as opposed o a uni-

versal approach ha applies o everybody. Te ILO ocuses on workers, and he

ADB on socieies as a whole. Tese dieren approaches mean ha eors arenalways easy o coordinae. Bu coherence when implemening social proecion

sysems across hese inernaional organizaions would signicanly enhance heir

respecive eors and is hereore necessary.

It is imperative t

donor countries

make transers

to und social

protection syste

in countries tha

cannot aford to

so adequately o

their own.


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One promising approach is a proposed Social Insurance Sysem Caalyic

Revolving Fund o help developing counries nance he creaion or expansion o

basic social insurance sysems.

Te ILO and World Bank should work in cooperaion o creae a well-capialized

und.20

Bu i is up o world leaderswheher in he G8, he G8+5, or especiallyhe G20o back heir rheoric up wih acion.

Te G20 mus make good on nancial suppor o build social proecion sysems

in developing counries. I mus mandae ha inernaional organizaions coordi-

nae heir social proecion eors in a specic group o pilo counries and pres-

en he resuls a he nex leaders summi o be held in France in February 2011.


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1 A Bnilla Garcia and J.V. Gra, Scial Prcin: A Li Cycl Cn-inm Invsmn r Scial Jsic, Pvry Rdcin and Ssain-abl Dvlpmn (Gnva: Inrnainal Labr o c, 2003).

2 M.W. Cicn and rs, Financing Social Protection, (Gnva:ILo, 1999).

3 G8 2009 Smmi, Prming Glbal Agnda (LAila: 2009),availabl a p://ww w.g8ialia2009.i/saic/G8_Allga/G8_G5_Jin_Dclarain.pd

4 Inrnainal Labr organizain, Glbal emplymn trnds, Jan-ary 2010 (2010).

5 Winny Cn, t or Big Simls (Wasingn: Cnr r Amr-

ican Prgrss, 2009), availabl a p://www.amricanprgrss.rg/isss/2009/04/cina_simls.ml;Sabina Dwan, InsiinsMar: explring Dirncs in Labr and Wlar Insiinsr Dcn Wrk in Dvlpd and Dvlping Cnris, (Was-ingn: Cnr r Amrican Prgrss, 2009), availabl a p://www.amricanprgrss.rg/isss/2009/06/gnva_prviw.ml.

6 Sc Lilly, qi Diplmacy Is Nd n Cins Crrncy: A Dclara-in rm Scrary Ginr n Cins Crrncy Wld B a Misak(Wasingn: Cnr r Amrican Prgrss 2010), availabl ap://www.amricanprgrss.rg/isss/2010/04/cina_crrncy.ml .

7 oeCD Dvlpmn Cnr, Is Inrmal Nrmal?: twards Mr andBr Jbs in Dvlping Cnris (2009).

8 Marin Ravallin, t Crisis and t Wrlds Prs. In Develop-ment Outreach: Growing Out o Crisis . (Wasingn: t Wrld BankInsi, 2009).

9 Ibid.

10 hlya Dagdvirn, Rlp van dr hvn, and Jn Wks, Rdis-ribin Mars: Grw r Pvry Rdcin (Gnva: Inr-nainal Labr organizain and Scl orinal and AricanSdis, 2000).

11 Jnaan Mrdc and Manar Sarma,Srngning PblicSay Ns rm Bm up, Development Policy Review20 (5)(2002): 569588.

12 Rbcca M Blank and Ricard.Frman, evalaing Cnncinbwn Scial Prcin and ecnmic Flxibiliy. In RbccaM. Blank, d., Social Protection versus Economic Flexibility: Is There aTrade of? (Cambridg: Nainal Bra ecnmic Rsarc, 1994).

13 Inrnainal Labr organizain, Scial Prcin as a PrdcivFacr (2005).

14 Ricard B. Frman, Labr Mark Insiins Wi Blindrs: tDba ovr Flxibiliy and Labr Mark Prrmanc. WrkingPapr 11286 (Nainal Bra ecnmic Rsarc, 2005).

15 Labr organizain, Scial Prcin as a Prdciv Facr (2005).

16 Fr mr inrmain, s Inrnainal Labr oc,.Scial Scriy:A Nw Cnsnss (2001).

17 hal is sn as wiin prviw Wrld hal organiza-in and Cnvnin 102 is nly raifd by 46 sas as April2010, s I nrnainal Labr organizain. Cnvnin N. C102(2010), availabl a p://www.il.rg/illx/cgi-lx/raic.pl?C102.

18 Asian Dvlpmn Bank, Scial Prcin Sragy: 2003 PrgrssRpr Bard Dircrs(2004).

19 t Wrld Bank, Scial Prcin Scr Sragy: Frm Say N Springbard (Wasingn: t Wrld Bank Insi, 2001).

20 Fr a discssin rrms sablis IMFs indpndnc cndc cnry and mlilaral srvillanc as a basis r

imprving macrcnmic cprain and ncining xcang ra sysm, s Ricard Samans, transiining aNw u.S. Inrnainal ecnmic Plicy: tward a Glbal Dal Rviv and Bradn Bnfs Grw (Wasingn: Cnrr Amrican Prgrss, 2008), p. 27-28.

Endnotes
http://www.americanprogress.org/issues/2009/04/china_stimulus.htmlhttp://www.americanprogress.org/issues/2009/04/china_stimulus.htmlhttp://www.americanprogress.org/issues/2010/04/china_currency.htmlhttp://www.americanprogress.org/issues/2010/04/china_currency.htmlhttp://www.americanprogress.org/issues/2010/04/china_currency.htmlhttp://www.ilo.org/ilolex/cgi-lex/ratifce.pl?C102http://www.ilo.org/ilolex/cgi-lex/ratifce.pl?C102http://www.americanprogress.org/issues/2010/04/china_currency.htmlhttp://www.americanprogress.org/issues/2010/04/china_currency.htmlhttp://www.americanprogress.org/issues/2009/04/china_stimulus.htmlhttp://www.americanprogress.org/issues/2009/04/china_stimulus.html


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About the authors

John Podesta is he Presiden and CEO o he Cener or American Progress. Under his

leadership, he Cener has become a noable leader in he developmen o and advocacy

or progressive policy.

Prior o ounding he Cener in 2003, Podesa served as Whie House Chie o Sa o

Presiden William J. Clinon. He served in he presidens cabine and as a principal on

he Naional Securiy Council. While in he Whie House, he also served as boh an

assisan o he presiden and depuy chie o sa, as well as sa secreary and a senior

policy advisor on governmen inormaion, privacy, elecommunicaions securiy, and

regulaory policy.

Mos recenly, Podesa served as co-chair o Presiden Obamas ransiion, where

he coordinaed he prioriies o he incoming adminisraions agenda, oversaw he

developmen o is policies, and spearheaded is appoinmens o major cabinesecrearies and poliical appoinees.

Addiionally, Podesa has held numerous posiions on Capiol Hill, including coun-

selor o Democraic Leader Senaor Tomas A. Daschle (1995-1996); chie counsel

or he Senae Agriculure Commitee (1987-1988); and chie minoriy counsel or he

Senae Judiciary Subcommitees on Paens, Copyrighs, and rademarks; Securiy and

errorism; and Regulaory Reorm (1981-1987).

A Chicago naive, Podesa is a graduae o Knox College and he Georgeown Universiy

Law Cener, where he is currenly a visiing proessor o law. He also auhored Te Power

o Progress: How Americas Progressives Can (Once Again) Save Our Economy, Our Climae

and Our Counry.

Sabina Dewan is he Associae Direcor o Inernaional Economic Policy a American

Progress. She leads he Jus Jobs Program ha ocuses on nding ways o exend he

benes o economic inegraion and rade o all workers who power he global economy.

Sabina works on economic issues ranging rom he role o globalizaion o ha o rade,

labor marke and social proecion policies in raising living sandards around he globe.She also sudies he nexus beween developmen and securiy, and he uncion o oreign

assisance, capaciy building and jus jobs in promoing broad-based, balanced and sus-

ainable economic growh and developmen around he world.


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Js Jbs | www.amricanprgrss.

Prior o joining American Progress, Sabina was a research analys a he Inernaional

Labour Organizaion (ILO) in Geneva, Swizerland where she worked on various

projecs promoing he ILOs decen work agenda wihin he conex o globalizaion

and inernaional developmen. She hen worked as an independen consulan based

in Brussels, Belgium underaking a variey o projecs or insiuions including he

ILO Regional Oce in Tailand, he Unied Naions Girls Educaion Iniiaive andhe Direcorae-general on Employmen, Social Aairs and Equal Opporuniies o he

European Commission. Sabina has an advanced masers degree in quaniaive sudies

rom he Caholic Universiy o Brussels, and a second masers degree in public policy

rom he Universiy o Caliornia, Los Angeles. She received her bachelors degree in

poliical science rom he Universiy o Caliornia, Irvine. Sabina has raveled widely liv-

ing in counries including Aghanisan, India and Sierra Leone.

Isha Vij is a Special Assisan or he Economic Policy eam and he Jus Jobs Program a

American Progress. Her work ocuses primarily on inernaional economic policy, labormarke issues and economic developmen. Isha earned her bachelors degree in develop-

men sudies rom he Universiy o Caliornia, Berkeley, where she was a Cal Alumni

Associaion Leadership Award Scholar.

Isha has also sudied inernaional business a he School o Knowledge Economy and

Managemen in Sophia Anipolis, France. While compleing her degree, she worked on

inernaional developmen and povery alleviaion eors aimed a increasing global ood

securiy. Isha insruced a semeser-long seminar on he principles o eng shui. Prior

o joining he Cener or American Progress, Isha spen her summers inerning abroad,

working a Universal Music Group in Mumbai, India, and a he 61s Annual Cannes Film

Fesival in France. She is a naive o Chandigarh, India.

Acknowledgements

We are graeul o he Norwegian Minisry o Foreign Aairs, specically Lajla Brand

Jakhelln, Terese Evensen and Marin Hauge orbergsen or heir suppor. Many hanks o

Jessica Arons, Heaher Grady and Reema Nanavay or heir eedback on Beyond Moral

JusicaionEmpowering Women o Charge he Global Economic Recovery and oSeven Kapsos and Sara Elder or poining us o inormaion. We appreciae he suppor o

Sarah Rosen Warell and he Cener or American Progress ediorial and ar eams, especially

Ed Paisley. And nally, we would like o acknowledge Michael Etlinger or his consisen

encouragemen and guidance hroughou his process and or he Jus Jobs Program.


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The Center or American Progress is a nonpartisan research and educational institute

dedicated to promoting a strong, just and ree America that ensures opportunity

or all. We believe that Americans are bound together by a common commitment to

these values and we aspire to ensure that our national policies relect these values.

We work to ind progressive and pragmatic solutions to signiicant domestic and

international problems and develop policy proposals that oster a government that

is o the people, by the people, and or the people.

Documents

Social Protection Is a Necessity, Not a Privilege