|
|
The Global Coalition for Social Protection Floors (GCSPF), comprising more than 100 NGOs and labour organisations, acknowledges recent initiatives taken by the ILO, World Bank, and other development cooperation partners to direct greater international financing towards supporting social protection programs in the context of the ILO Global Accelerator on Jobs and Social Protection.
Such efforts could be a first step towards the creation of an international financing mechanism on social protection, or Global Social Protection Fund, long-promoted by the GCSPF as necessary in order to mobilise and coordinate international financial assistance in order to truly support the development of universal social protection systems, particularly in the global south.
The GCSPF wishes to underline some key specific criteria that need to be met by any kind of international financing mechanism that would be developed: in particular the need for such a mechanism to provide direct support to states with limited financial capacity to extend social protection systems on their own in the short term, in addition to technical support. The GCSPF equally reiterates the need for an inclusive and democratic governance structure for such a fund, enabling the participation of recipient countries and not just donor countries in funding decisions, as well as the meaningful participation of civil society and social partners who represent those that would benefit from social protection extensions.
The Global Coalition for Social Protection Floors (GCSPF) recognises social protection floors as key instruments to realise the UN Sustainable Development agenda, as they are crucial for preventing and reducing poverty, ensuring inclusive economic growth and reducing inequalities amongst all members of society. They are also the tools to ensure States’ compliance with their obligations regarding the right to social security included, among others, in the Universal Declaration of Human Rights (Art. 22) and the International Covenant on Economic, Social and Cultural Rights (Art. 9). Nevertheless, major financing gaps persist today that impede countries to improve the adequacy and coverage of their social protection systems. Annually, 1.2 trillion USD is needed to fill the financing gap for low- and middle-income countries, and of that amount, around 78 billion USD is needed to finance social protection in the world’s poorest countries.[1] While this latter amount represents only 0.25% of global GDP, this represents 15.9% of the collective GDP of low-income countries and 45% of their collective tax revenue[2] – an insurmountable burden for them to finance alone without international financial assistance.
At the same time, international financial support to social protection is extremely limited; before the pandemic, only a dismally low average of 1.2% of existing Official Development Assistance (ODA) had been dedicated to social protection globally.[3] While ODA has increased somewhat in this area due COVID response measures, the majority of this support went only to temporary emergency measures rather than strengthening social protection systems. Moreover, worryingly, a number of countries have also cut public spending in social protection in recent years as part of austerity measures. Governments and donors must see social spending as a crucial investment which can yield almost twice its value in economic returns.[4]
The GCSPF welcomes efforts to put together a financing mechanism for social protection in the context of implementing the Global Accelerator on Jobs and Social Protection; strengthened international financial assistance is critically needed in order to deliver on the Accelerator’s stated objectives of closing financing gaps and extending coverage to the 4 billion people currently without any social protection.
However, the GCSPF recalls that international support for the expansion of social protection systems should be mainly directed towards supporting national governments, as the key actors for the development of long-term sustainable, inclusive, and universal social protection systems.[5] Any financial mechanism should be developed to ensure the complete ownership of recipient countries over their social protection systems, involving national governments in decisions around how funding is allocated and how social protection systems should be extended, as well as ensuring broad-based and meaningful societal dialogue on reform priorities, bringing together social partners and civil society. Support should moreover be coherent with internationally-agreed social security standards, including General Comment 19 on the right to social security of the Committee on Economic, Social and Cultural Rights, ILO Convention 102 and Recommendation 202.
The GCSPF therefore considers that any financing instrument to be developed must put in place inclusive governance mechanisms that ensure a fair and balanced decision-making process, particularly regarding the allocation of funds. This process should involve representatives from both donors and recipient countries, which are utilising the resources to enhance their social protection systems. Equal voting rights shall also be a requirement for fair and accountable governance. [6]
At a point where various possibilities for setting up such a financing instrument are being discussed at international level, the main choices currently identified are:
The Global Coalition for Social Protection Floors would strongly advise against the use of a World Bank Trust Fund for social protection as it would fail to meet certain essential criteria for a partnership-based financing instrument that is acceptable to the Global South – as indeed equal decision-making power, with more than only limited ‘consultative’ space for civil society’s participation. The GCSPF would also be concerned with situating such a financing instrument directly within the World Bank, given that technical advice from the World Bank on social protection has often run in contradiction to international labour and social security standards.[7]
The development of a special window of the UN Joint SDG Fund or making use of the UN Multi-Partner Trust Fund, while being a more inclusive option in terms of governance, also has some limitations. This is mainly because such UN funds assign the main responsibility for implementing the fund to the respective participating UN organisations.[8] This would therefore likely restrict the scope of funding to only UN technical support to states, which would not be sufficient on its own to allow states meet the scale of the challenge in terms of financing social protection.
The creation of a new Financial Intermediary Fund would have substantial added value in directing financial support towards states themselves, so that they can extend social protection systems and develop long-term sustainable strategies. If well designed, it could also give the possibility of providing equal representation to Global South countries in their governing bodies, and incorporate civil society into the decision-making process[9]. The creation of such a fund would entail in the short term greater administrative burdens in terms of setting it up as compared to the other three options, as well as a minimum commitment of 200 million USD from development partners. That being said, there are recent examples of successfully setting up such Financial Intermediary Funds, including the Global Fund to Fight AIDS, Tuberculosis and Malaria as well as the Pandemic Fund - which have been able to benefit from financial support from the World Bank as well as from development partner organisations.
In short, while the Global Coalition could be supportive of strengthened finance for UN technical support for social protection through the establishment of such a special window of the Joint SDG Fund or UN Multi-Partner Trust fund, we believe that additional funding through a Financial Intermediary Fund would have substantial added value. The Global Coalition would therefore support a new international financing instrument for social protection through the establishment of a Financial Intermediary Fund.
May 2023
Notes:
[1] ILO (2021) Secretary General’s Policy Brief “Investing in Jobs and Social Protection for Poverty Eradication and a Sustainable Recovery”.
[2] ILO (2020) Financing Gaps in Social Protection.
[3] Marcus Manuel (2022) Assessment of potential increase in domestic and external financing for social
protection in low-income countries.
[4] ITUC (2021) Investments in social protection and their impacts on economic growth.
[5] The overall and primary responsibility of the State in expanding social protection is among the agreed USP2030 “Principles for Financing Universal Social Protection”.
[6] For an extended discussion of the criteria to be met by the international financing instrument to support social protection in the global south, see: Markus Kaltenborn (2023) Expanding Global Social Protection – Options for the Design of an International Financing Mechanism. FES.
[7] See for instance, Global Coalition for Social Protection Floors (2022) Response to the World Bank’s Social Protection and Jobs Compass.
[8] Markus Kaltenborn (2023) Expanding global social protection – options for the design of an international
[9] Ibid.
The video of the session “IMF's strategy on social spending facing austerity: new direction or bandaid?” is now online. The session was held on Wednesday, April 12th, 2023.
Civil society welcomed the IMF's new policy on social spending in 2019. However, we are concerned that spending on social protection, health and education is still not given sufficient priority in government budgets. Indeed, we fear conditionality in IMF country programs will continue to negatively impact essential social spending. How should IMF and other international agencies, labor movements and CSOs each work to enhance and protect national social spending programs? And, how might international cooperation be strengthened to assure more adequate, efficient, universal and sustainably financed social protection and social services in all countries.
Moderator: Alex Cambpell, International Trade Union Confederation (ITUC)
Panelists:
The event took place at the Civil Society Policy Forum (CSPF) during the 2023 International Monetary Fund - World Bank Group Spring Meetings that was held from April 11 to April 14, 2023 in Washington DC. The video and further information are available here.
The event was co-organized by the Global Coalition for Social Protection Floors (GCSPF), Bretton Woods Project, Human Rights Watch, International Trade Union Confederation (ITUC), Kvinna till Kvinna Foundation, NGO Committee on Financing for Development, Oxfam International, Social Justice in Global Development, Social Policy Initiative (South Africa).
This event was dedicated to the memory of Prof. Michael Cichon. Michael was the inspiration behind and driver of Recommendation 202, founder of the Global Coalition for Social Protection Floors (GCSPF) and he has been an inspiring example to so many people around the world.
|
The hybrid session “IMF's strategy on social spending facing austerity: new direction or bandaid?” will be held on Wednesday, April 12th, 2023, from 2:30 pm to 4:00 pm EDT in the IMF HQ2-03B-768B meeting room.
Simultaneous interpretation will be available to Spanish, French, and Arabic for those participating online. Registration is not needed for those that will be joining sessions on zoom. Here is the link for the session:
https://imf.zoom.us/j/98300942112?pwd=NlZQLzVvdU5pbGVjeGdyZThvWFZxZz09
To check your local time zone, please click here.
The session will be broadcast on the IMF website: www.imf.org/cso.
This event will be dedicated to the memory of Prof. Michael Cichon. Michael was the inspiration behind and driver of Recommendation 202, founder of the Global Coalition for Social Protection Floors (GCSPF) and he has been an inspiring example to so many people around the world.
Civil society welcomed the IMF's new policy on social spending in 2019. However, we are concerned that spending on social protection, health and education is still not given sufficient priority in government budgets. Indeed, we fear conditionality in IMF country programs will continue to negatively impact essential social spending. How should IMF and other international agencies, labor movements and CSOs each work to enhance and protect national social spending programs? And, how might international cooperation be strengthened to assure more adequate, efficient, universal and sustainably financed social protection and social services in all countries.
The event will take place during the 2023 Spring Meetings of the World Bank Group and the IMF and the Civil Society Policy Forum that will be held from April 10 to April 16, 2023 in Washington DC.
The event is co-organized by the Global Coalition for Social Protection Floors (GCSPF), Bretton Woods Project, Human Rights Watch, International Trade Union Confederation, Kvinna till Kvinna Foundation, NGO Committee on Financing for Development, Oxfam International, Social Justice in Global Development, Social Policy Initiative (South Africa).
Moderator: Alex Cambpell, International Trade Union Confederation (ITUC)
Panelists
Rodrigo Cerda, Division Chief, Expenditure Policy Division, Fiscal Affairs Department, International Monetary Fund (IMF)
Shahra Razavi, Director, Social Protection Department, International Labour Organization (ILO)
Alexander Kentikelenis, Oxfam International
Ahilan Kadirgamar, Senior Lecturer, Department of Sociology, University of Jaffna, Sri Lanka
|
The webinar “Be an expert universal social security advocate” was moderated by Lena Simet, Senior Researcher and Advocate, Human Rights Watch.
Stephen Kidd, CEO, Development Pathways (download his presentation), and Holly Seglah, Social Protection Officer, Development Pathways (download her presentation) were the speakers.
Richard Obiga (Programme Officer, Social Protection Secretariat, Kenya) and David Tumwesigye (Global Advocacy Manager, Save the Children International) shared their comments and there was a rich discussion with the audience.
Background
The importance of social security (or protection) is widely and increasingly recognised. However, the question on whether the systems should be built on means-tested and poverty-targeted benefits or on a universal approach is widely debated.
The language we use shapes our thinking, while also shaping the thinking of those with whom we communicate. There is strong evidence for why universal benefits are the best strategy to Leave No One Behind. But “poverty-targeted” support is easily perceived as “pro-poor”, so those who advocate for universal social security need to have very clear arguments.
In this webinar, Development Pathways and Act Church of Sweden presented the report, or rather a guide for advocators: Advocating for universal social security: how to win hearts and minds (pdf format).
The document builds on evidence presented in earlier research, and suggests how advocacy for universal social security can be carried out in the most effective way: the words and arguments to use and who to approach.
For further information please contact Gunnel Axelsson Nycander.
The invitation is available here and their bios are here.
This webinar was organised by Development Pathways and Act Church of Sweden and co-organised by the Global Coalition for Social Protection Floors (GCSPF).
Barry Herman made an intervention on behalf of the Congregation of Our Lady of Charity of the Good Shepherd, a member of the GCSPF and also on behalf of the GCSPF at the UN's Development Cooperation Forum. His intervention (see here) was part of the interactive discussion that followed the panel presentation.
The UN's Development Cooperation Forum that met at ministerial level on 14-15 March 2023 in New York, included a session on "Building momentum for effective social protection measures." See the programme here.
Contributing to the debate on national social protection measures were Mr. Alexei Buzu, Minister of Labor and Social Protection of the Republic of Moldova; Mrs. Fatou Gueye Diane, Minister of Women, Family and Child Protection of Senegal; Ms. Marta Eugenia Esquivel Rodriguez, Executive President of the Costa Rican Social Security Fund; and Ms. Sarah Lynne S. Daway-Ducanes, Assistant Secretary, National Economic Development Authority of the Philippines.
International cooperation on social protection, in particular "circular" cooperation among developing countries, was the focus of discussion by Mr. Mariano Berro González, Executive Director of the Uruguayan Agency for International Cooperation, Mrs. Arunee Hiam, Deputy Director-General of the Thailand International Cooperation Agency; and Ambassador Paula Narváez Ojeda, the Permanent Representative of Chile to the United Nations, joined by ambassador Agustín Santos Maraver, Permanent Representative of Spain and Ms. Beate Andrees, Special Representative and Director of the International Labor Organization Office at the UN.
A recording of the discussion is available here.
Statement in the Development Cooperation Forum on behalf of
Congregation of Our Lady of Charity of the Good Shepherd
United Nations, New York, 15 March 2023
Madam President,
My name is Barry Herman, and I make this statement on behalf of the Congregation of Our Lady of Charity of the Good Shepherd, a member of the NGO Committee on Financing for Development in New York, a substantive committee of the Conference of NGOs, and on behalf of the Global Coalition for Social Protection Floors, a network of over 100 NGOs and labour organizations that advocates for enhanced social protection around the world. We all share a keen interest in this morning’s discussion.
The NGO Committee and the Global Coalition regard social protection as a human right. An adequate package of social protection programs would help ameliorate the inherent risks of daily life from conception to old age. It would help empower people to contribute more to society and lead lives of dignity. However, social protection must have an adequate standing in every country’s fiscal accounts.
Governments should want adequate, effective, efficient, universal and sustainable social protection systems. In many countries—rich, poor, and in between—governments are overly influenced by the rich and the companies they control. They would rather starve social protection of needed funds than accept their fiscal responsibility to society.
NGOs, such as the Congregation of Our Lady of Charity of the Good Shepherd, are hard pressed to fill the gap. In fact, they cannot marshal the resources needed. It must be a government responsibility.
How does international cooperation fit into this picture?
First, donor governments and international institutions can use their voices to strengthen the global call for adequate and universal social protection systems.
Second, they can help governments develop these systems when requested.
The development community works in this direction, but it has to do more.
Further policy and cultural reforms are warranted.
One example is the policy on social spending that the International Monetary Fund adopted in 2019. The new policy encourages IMF to engage with UN agencies as well as with the World Bank on social spending. It furthermore recognizes the value of taking into consideration the expertise of civil society in the countries its missions visit.
In fact, we see greater IMF cooperation with UN agencies and civil society. However, austerity pressures seem to still come down too hard on developing economies. We still struggle to ring fence social spending during austerity drives and then adequately expand it and the taxation it requires.
It is nonetheless good to hear the progress that countries are reporting here today.
Civil society recognizes that advancing social protection is an inevitable struggle at domestic and international levels. It is a struggle that we fully embrace.
Thank you, Madam President
The side event “Progress through Social Protection - Current initiatives and financing at national and international level” took place on Monday, March 6th 2023 during the Civil Society Forum of the Fifth United Nations Conference on the Least Developed Countries (LDC5) that was held in Doha, Qatar.
Speakers at the event were Massimiliano La Marca (Senior Economist, International Labour Office - ILO), Elibariki Msengi (Christian Council of Tanzania), Martha Bekele (Development Initiatives, Ethiopia) and Ana Zeballos (GCSPF).
Ana Zeballos presented the work of the GCSPF. Massimiliano La Marca talked about the work of the ILO in the LDCs, particularly in the framework of the SDGs. Martha Bekele did a presentation focused on domestic and international financing, the Global Fund for Social Protection embedded in the Global Accelerator for Jobs and Social Protection. Martha also presented the new discussion paper Should Global Public Investment finance social protection? And finally, Elibariki Msengi shared with the participants the expansion of health insurance in Tanzania. The presentations were followed by a lively discussion about the situation in the different countries.
Read the programme and the invitation.
This event was co-organised by the Global Coalition for Social Protection Floors (GCSPF), Africa Platform for Social Protection (APSP), Development Initiatives, Christian Council of Tanzania, Act Church of Sweden and Brot für die Welt.
Over 200 civil society organizations and trade unions unite to call for a Global Fund for Social Protection to protect the most vulnerable during COVID-19 and beyond.
The programme Improving Synergies Between Social Protection and Public Finance Management provides medium-term support to multiple countries aiming to strengthen their social protection systems at a national level and ensure sustainable financing. The programme aims to support countries in their efforts towards achieving universal social protection coverage.
