Ahead of the 2023 Annual meetings of the World Bank and IMF, 71 civil society organizations supported the release of a joint statement calling on the Bank and IMF to change their social protection policies and practices. The group of signatory organizations urged the IMF and the World Bank to commit to realizing the right to social security, end poverty-targeted programs in countries without universal coverage, support equitable and sustainable public systems, and to halt austerity measures that threaten rights.
We restated our concerns with the start of the 2024 Spring Meetings, in an open letter to World Bank and IMF executive directors, proposing four measures to realize the right to social security.
Human rights, faith-based, and economic justice organizations wrote to the World Bank Group (WBG) and the International Monetary Fund (IMF) Executive Directors to express concerns that the WBG and the IMF are failing to support States to realize the human right to social security for all. The letters were sent in the framework of the Spring Meetings of the Boards of Governors of the IMF and the WBG that are taking place from April 15 to 20, 2024, in Washington DC.
Dear Executive Directors,
We, the undersigned human rights, faith-based, and economic justice organizations, are writing to express concerns that the World Bank and IMF are failing to promote the human right to social security for all.[1] We are proposing four policy changes that would advance the right to social security in line with human rights standards, and we would like to meet with you to explore how your office may support them.
As underlined by the Global Partnership for Universal Social Protection to Achieve the Sustainable Development Goals (USP2030),[2] which the World Bank is co-chairing, “universal social protection is a human right and key to recovery, for a green transition and sustainable and inclusive economic and social development for individuals, communities, and nations”. At present, however, over half of the world’s population has no access to even one social security program.[3]
Among international development actors, the World Bank is the largest funder of social protection systems.[4] Despite the World Bank’s commendable commitment in 2015 to promote universal social protection, we are concerned that the World Bank continues to promote narrowly targeted “safety nets,” where eligibility hinges on estimates of the extent of poverty that have acknowledged large exclusion errors, rather than embracing a more inclusive and rights-aligned universal approach.[5]
Research by Oxfam International and others found that 85 percent of the world’s population lives in countries where governments’ austerity measures impede their ability to deliver on their human rights obligations.[6] While as part of its country assistance programs, the IMF has increasingly included some level of protection for social spending, the Fund continues to promote heavily means-tested programs that cover only a tiny fraction of the population. This undermines global efforts to work towards universal social protection systems consistent with human rights.[7]
The negative impacts of this approach are well-documented, especially in countries without universal social security systems and where the majority of people work and live in informal settings. Evidence shows that such programs are often designed too narrowly and exclude many of the poorest.[8] “The poor” is not a static group, and in reality, households dynamically move between societal welfare rankings over short periods.[9] Further, most governments lack up-to-date data to accurately identify “the poor.” “Targeting” is also vulnerable to mismanagement or corruption.[10] By focusing only on people in poverty or even extreme poverty, these programs exclude large segments of the population who may not be considered “poor” at one moment but are far from enjoying their rights. They also fail to build a shared sense of solidarity and can undermine trust within societies.[11]
Further, through macroeconomic policy advice, the World Bank and IMF have a history of undermining public social insurance systems by promoting individualized savings schemes such as privately managed pensions, over investment in public systems.[12]Recent reforms in some countries have further eroded the right to social security, leading to reduced coverage and lower benefits.[13] In some countries, these changes involved cuts to employer contributions or reduced benefits for the majority in the public system. Research by the International Labour Organization (ILO) shows that privatization of social insurance in some countries worsened poverty and inequality, disproportionately affecting women and older people.[14]
The current approach taken by the World Bank and IMF falls short of their obligations under international law. International financial institutions have an obligation to avoid causing harm by not demanding cuts or a re-design of social security programs that would undermine rights, and to provide as many resources as they can to help build universal social security systems that are rights-aligned.[15]
The Bank and IMF have an opportunity to course-correct and adopt a rights-aligned approach to social security that sets the tone and leads the way toward more just societies and economies. We strongly urge the World Bank and IMF, as pivotal actors in financing and shaping social security policies in low- and middle-income countries, to take four measures to progressively realize the right to social security:
We would greatly appreciate the opportunity to meet with you and discuss these proposed policy reforms. Given that several of our organizations will be in Washington DC for the 2024 Spring meetings, we kindly request a meeting either in person during the Spring meetings or online the week following the meetings.
For additional details on our unified call to action and priorities for realizing the right to social security, please refer to the full statement on the Global Coalition for Social Protection Floors website via the following link: https://www.socialprotectionfloorscoalition.org/social-security-for-all/.
Sincerely,
Notes:
[1] In October 2023, 71 organizations signed a joint statement that provides additional details on our unified call to action and priorities for realising the right to social security, see here: https://www.socialprotectionfloorscoalition.org/social-security-for-all/.
[2] See: https://usp2030.org.
[3] See: https://www.social-protection.org/gimi/WSPDB.action?id=32.
[4] In 2022, the World Bank reported a portfolio of almost US$29.5 billion in social protection financing, covering an estimated 880 million people in 71 countries. See: https://openknowledge.worldbank.org/entities/publication/84ba2380-624c-553a-b929-2882e72c7468
[5] We understand poverty versus universal programs as follows: i) Poverty-Targeted Programs are means-tested and attempt to target people based on their income or assets. ii) Universal Programs do not limit eligibility based on peoples’ resources, but rather emphasize universal eligibility for everyone within specific groups that encompass stages of life or statuses in which people’s economic, social and cultural rights are particularly at risk (e.g., children, people with disabilities, unemployed adults, caretakers, older people, etc.).
[6] “85% of the world’s population will live in the grip of stringent austerity measures by next year.” Oxfam. 2022. https://www.oxfam.org/en/press-releases/85-worlds-population-will-live-grip-stringent-austerity-measures-next-year.
[7] “Bandage on a Bullet Wound: IMF Social Spending Floors and the Covid-19 Pandemic.” Human Rights Watch. 2023. https://www.hrw.org/report/2023/09/25/bandage-bullet-wound/imf-social-spending-floors-and-covid-19-pandemic.
[8] “Hit and Miss: An assessment of targeting effectiveness in social protection with additional analysis.” Stephen Kidd and Diloá Athias. Act Church of Sweden and Development Pathways. 2020. See: https://www.svenskakyrkan.se/default.aspx?id=1909511.
[9] “Advocating for universal social security: how to win hearts and minds.” Stephen Kidd, Gunnel Axelsson Nycander, and Holly Seglah. 2023. https://www.developmentpathways.co.uk/wp-content/uploads/2023/02/Advocating-for-universality_v1c.pdf.
[10] “The social contract and the role of universal social security in building trust in government.” Stephen Kidd, Gunnel Axelsson Nycander, Anh Tran and Madeleine Cretney. Act Church of Sweden and Development Pathways. 2020. https://www.svenskakyrkan.se/default.aspx?id=2151346.
[11] “Towards universal social protection.” Development Pathways and the Economic and Social Commission for Asia and the Pacific. 2022. https://www.developmentpathways.co.uk/publications/towards-universal-social-protection/.
[12] “Reversing Pension Privatizations: Rebuilding public pension systems in Eastern Europe and Latin America.” International Labour Organization. 2018. https://www.ilo.org/wcmsp5/groups/public/---ed_protect/---soc_sec/documents/publication/wcms_648574.pdf.
[13] “End Austerity: A Global Report on Budget Cuts and Harmful Social Reforms in 2022-25.” Isabel Ortiz and Matthew Cummins. 2022. https://publicservices.international/resources/publications/end-austerity-a-global-report-on-budget-cuts-and-harmful-social-reforms-in-2022-25?id=13501&lang=en.
[14] “Reversing Pension Privatizations: Rebuilding public pension systems in Eastern Europe and Latin America.” International Labour Organization. 2018.
[15] “Questions and Answers on the Right to Social Security.” Human Rights Watch. 2023. https://www.hrw.org/news/2023/05/25/questions-and-answers-right-social-security.
[16] Stephen Kidd, Nahya Mansoor, Angela Barca. 2023. “An affordable and feasible pathway to universal social security using the principle of universality.” Act Church of Sweden, Action Against Hunger France, Development Pathways. 2023. https://www.developmentpathways.co.uk/wp-content/uploads/2023/06/Affordable-and-feasible-pathway-to-universal-social-security.pdf.
[17] “Social registries: a short history of abject failure.” Stephen Kidd, Diloá Athias & Idil Mohamud. 2021. https://www.svenskakyrkan.se/filer/578537/Social-registries-a-short-history-of-abject-failure-June-1%20(1).pdf?id=2244266.
The Global Campaign for the Right to Social Security invites you to join our session at the Civil Society Policy Forum (CSPF), titled “Examining the Progress of the World Bank's Commitment to Universal Social Protection.” You can also attend online.
The event will take place on April 17, 2024 at the World Bank I Building 2-250 from 16:15 pm to 17:45 pm (GMT-4).
The video of the event "Building a New Eco-social Contract and Advancing Social Security in Times of Debt and Austerity" is now online. The event took place on Friday, October 13, 2023 during the Civil Society Policy Forum of the WBG-IMF Annual Meetings 2023 held in Marrakech, Morocco.
Recent research analyzing IMF programs show that, far from “mitigating” austerity measures, IMF policies and social spending floors fail to address negative social impacts. The panel explored how the World Bank and IMF could build a human rights-based economy with better developmental outcomes.
The event was moderated by Shahir Ishak (Senior Social Protection Specialist, Inclusive Social Security Policy Forum).
And the speakers were Sarah Saadoun (Senior Researcher, Human Rights Watch), Allana Kembabazi (Program Manager, Initiative for Social and Economic Rights), Isabel Ortiz (Director of the Global Social Justice, Initiative for Policy Dialogue) and Rodrigo Cerda (Division Chief, IMF), the World Bank Group (WBG) declined the invitation to participate in the event.
The event was organized by Act church of Sweden, ActionAid international, AWC, ANND, Amnesty International, CESR, End Austerity Campaign, FTC, Global Coalition for Social Protection Floors (GCSPF), Global Social Justice/Initiative for Policy Dialogue (IPD), HRW, ISSPF, ISER, ITUC, Kvinna till Kvinna Foundation, Oxfam International, BWP, WIEGO, ARI and MenaFem.
Further information on this event is available here. Further information about the Right to Social Security Campaing is available here.
Members of the Social Security for all Campaign participated at the Annual Meetings of the World Bank Group (WBG) - International Monetary Fund (IMF) Annual Meetings 2023 held in Marrakech, Morocco, from 9 to 15 October, 2023.
Members of the Social Security for all Campaign participated at the Reclaim our Future Conference, from 8 to 9 October 2023. The event End Austerity! Reclaim the Right to Education, Health and Social Security took place on October 8th.
This session presented the new austerity policies advised by the IMF and the World Bank, and implemented by most Ministries of Finance, from cuts to public services and social security/social protection, to privatization and labor flexibilization reforms, affecting more than 6 billion people. All the human suffering these reforms cause is unnecessary: there are alternatives that even the poorest countries can implement to achieve human rights including the right to education, health and social security.
The speakers were Isabel Ortiz (Director of the Global Social Justice Programme), Matti Kohonen (Director of the Financial Transparency Coalition), Nabil Abdo (Senior Policy Advisor, Oxfam International), Roos Saalbrink (Global Lead on Economic Justice and Public Services, ActionAid International) and Sarah Saadoun (Senior Researcher and Advocate, Poverty and Inequality, Human Rights Watch).
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Members of the Social Security for all Campaign participated at the Civil Society Policy Forum (CSPF) of the WBG-IMF Annual Meetings 2023, from 9 to 13 October 2023. The event "Building a New Eco-social Contract and Advancing Social Security in Times of Debt and Austerity" took place on Friday, October 13th. The video is here and further information is available here.
Recent research analyzing IMF programs show that, far from “mitigating” austerity measures, IMF policies and social spending floors fail to address negative social impacts. The panel explored how the World Bank and IMF could build a human rights-based economy with better developmental outcomes.
The event was moderated by Shahir Ishak (Senior Social Protection Specialist, Inclusive Social Security Policy Forum). And the speakers were Sarah Saadoun (Senior Researcher, Human Rights Watch), Allana Kembabazi (Program Manager, Initiative for Social and Economic Rights), Isabel Ortiz (Director of the Global Social Justice, Initiative for Policy Dialogue) and Rodrigo Cerda (Division Chief, IMF), the World Bank Group (WBG) declined the invitation to participate in the event.
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Members of the Social Security for all Campaign participated at the Global Counter-Summit of Social Movements, that was held from 12 to 15 October 2023. See the programme here.
Further information about the Right to Social Security Campaign is available here. Please sign on to the statement using this link here, and help us spread the word and encourage others for endorsements.
The session “Building a New Eco-social Contract and Advancing Social Security in Times of Debt and Austerity” will take place during the Civil Society Policy Forum (CSPF) of the WBG-IMF Annual Meetings 2023 in Marrakech, Morocco.
Recent research (for instance, by Oxfam, IPD, and HRW) analyzing IMF programs show that, far from “mitigating” austerity measures, IMF policies and social spending floors fail to address negative social impacts. The panel will explore how the World Bank and IMF could build a human rights-based economy with better developmental outcomes.
The organizers of the session are Act Church of Sweden, ActionAid international, AWC, Arab NGO Network for Development (ANND), Amnesty International, CESR, End Austerity Campaign, FTC, GCSPF, Global Social Justice/Initiative for Policy Dialogue (IPD), HRW, ISSPF, ISER, ITUC, Kvinna till Kvinna Foundation, Oxfam International, BWP, WIEGO, ARI and MenaFem.
Moderator: Shahir Ishak, Senior Social Protection Specialist, Inclusive Social Security Policy Forum
The Panelists are:
Friday, October 13th, 2023 - 2 pm - 3:30 pm (Marrakech time). Confirm your local time here.
Hybrid session: Location Room SC03 Saghro
Join us on Zoom at: https://imf.zoom.us/j/91582662390?pwd=dUtYUjIwNnI4NnJDbFFYTmt4ZGpUZz09
Governments and international financial institutions should make a commitment to create social security systems that enable everyone to realize their rights, 43 human rights and economic justice organizations said today. Governments and financial institutions should end policies that have been failing millions of people.
The groups sent a joint statement to the World Bank and International Monetary Fund in advance of the 2023 annual meetings of both institutions in Marrakesh, Morocco, from October 9 to 15, 2023. The groups will hold an online meeting on October 4 to explain their call for change. Experts and activists will provide testimonies from Argentina, Chile, Uganda, and Sri Lanka.
“Amid mounting poverty and soaring inequality, where millions grapple daily to realize their economic, social and cultural rights, we cannot afford to maintain social security approaches that have been shown to fail rights,” said Tirana Hassan, Executive Director of Human Rights Watch. “Governments and international financial institutions have an opportunity to course-correct and adopt a rights-aligned approach to social security that sets the tone and leads the way toward more just societies and economies.”
Social security is one of the cornerstones of human rights, sustainable economies, and just societies. It is enshrined in numerous legally binding international treaties and is provided through a set of public policies and programs often known as social protection. These programs ensure income security throughout an individual's life, offering support during life events such as childbirth, old age, illness, disability, unemployment, and circumstances such as climate disasters that elevate the risk of income insecurity, such as the earthquake that recently shook Morocco.
“The right to social protection for all is enshrined in the 1948 Universal Declaration of Human Rights and yet, 75 years later, global social protection falls shamefully short, with more than half of the global population lacking basic coverage, violating human rights,” said Luc Triangle, Acting General Secretary of the International Trade Union Confederation. Triangle said:
The international financial institutions bear immense responsibility for achieving universal social protection, but it's imperative to shift away from an outdated economic model that often endorses austerity measures. The workers’ call is clear: scaling up social protection financing, an investment for societies which dramatically reduces inequalities while boosting employment, skills, productivity, demand for goods and services, and overall GDP growth.
Many governments rely on social security programs that are means-tested, in which eligibility hinges on income, assets, or narrow poverty indicators. Research shows that these programs are often ineffective because of high error rates, corruption, and social mistrust. Focusing only on people in poverty or extreme poverty also excludes large segments of the population, including those who are not officially considered poor but are far from experiencing economic stability.
“This campaign shows that there are more and more civil society organizations who sees through the statement that ‘poverty-targeting is pro-poor’. In fact, universality is pro-poor, in line with human rights and a key strategy to promote social justice,” said Henrik Fröjmark, Policy Director of Act Church of Sweden.
Stephen Kidd, CEO of Development Pathways, said:
The push by international financial institutions to promote poverty-targeted social assistance schemes–following the poor relief model used by Europe in the 19th century– across lower-income countries has meant that the vast majority of those living on low incomes have been excluded from social security, while national social contracts have been undermined as a result of citizens losing trust in their governments. It’s time that the international financial institutions got behind a modern system of universal life cycle social security system that ensures that everyone can receive protection from childhood to old age and, importantly, helps rebuild trust in government, democracy and strong social contracts.
For decades, the World Bank and the IMF have promoted this flawed approach, the groups said. They have failed to consider social security as a right and that it contributes to building fairer and more stable societies, and not just charity. This has contributed to a global reality in which 53 percent of people lack any form of social security, and whereas instability, social defiance, and polarization are growing and the needs for resilience are greater than ever in the face of the climate crisis.
“On the African continent we have witnessed the dire impact of failing to prioritize social protection resulting in inequality, rising poverty, children dropping out of school and unnecessary deaths,” said Angella Nabwowe, Ag. Executive Director of the Initiative for Social and Economic Rights. Nabwowe said:
Governments must seize this moment to rethink current approaches to social protection that have excluded large segments of the population through targeting and must holistically invest in social protection. The World Bank/IMF and other funders must desist from promoting austerity and poverty targeting, all of which reduce the ability of our governments to adequately finance social protection and prioritize public services, including social protection.
Recent reforms in some countries have also eroded the right to social security, leading to reduced coverage and benefits. In some countries, these changes, supported by the World Bank or IMF, involved cuts to employer contributions or reduced benefits for the majority in the public system. Additionally, privatization of social insurance in some places has worsened poverty and inequality, disproportionately affecting women and older people.
Dr. Maria Ron Balsera, Director of Program at the Center for Economic and Social Rights, said:
The current polycrisis should trigger a shift to a rights-based economy which includes promoting the right to social security for all, supported by the framework of values and obligations of human rights. A rights-based economy demands action to redistribute resources, remedy inequalities, and rebalance power in our economies.
The groups strongly urge the IMF and the World Bank, pivotal actors in financing and shaping social security policies in low- and middle-income countries, to take four measures that could improve the lives of hundreds of millions of people:
“It is high time that governments, the World Bank, and the IMF acted to make universal social protection a reality,” said Marta Schaaf, the climate, economic and social justice, and corporate accountability director at Amnesty International. Schaaf said:
The extraordinary combination of political, economic and climate crises is battering the lives and livelihoods of billions of people who have little or no access to social protection measures. Investing in universal social protection can provide security and dignity, and fulfill the right to social security for all. Protecting people against personal losses or losses due to shocks, from disasters or economic reversals, can be transformational, enabling children to stay in education, improving health care, reducing poverty and income inequality.
“We demand a full restructuring and change in social protection policies,” said Shereen Talat, MenaFem Movement for Economic, Development and Ecological Justice director. “We reject incremental reforms and call for a transformation of the global system. Genuine social protection means empowering the marginalized, eradicating poverty, and ensuring ecological justice. Anything less than this will be undermining the global crisis and perpetuation of injustice."
Signatories to the joint statement:
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
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The Covid-19 pandemic and its related shocks have revealed the value of public services and social protection floors. Institutions tasked with ending poverty like the World Bank are increasingly under pressure to support vital public services and play a key role in wider universal social protection (USP) discussions. The World Bank recently released its latest commitment to social protection: A Social Protection and Jobs Compass to “chart a course towards USP,” which provides guidance to Bank staff on jobs and social protection issues.
Following a limited consultation process, civil society were eager to respond to the Compass. Lena Simet of Human Rights Watch concluded that the Compass guidance note, “makes a strong commitment to USP. However, its guidance on how countries can get there is problematic.”
The Bretton Woods Institutions (BWIs) have long been challenged on their claims of being pro-poor in their approach to social protection. A wealth of evidence has highlighted the flaws of the targeted approaches to social protection preferred by the BWIs, such as Conditional Cash Transfers (CCTs), which have been shown to be ineffective at reaching the poorest – as the Bank itself acknowledged – prone to corruption, and less likely to protect human rights than universal schemes.
| Instead of simply dismissing public social insurance and potentially creating costly parallel structures, we call on the World Bank to support countries in adapting their social security systems to be more inclusive. DR LAURA ALFERS, WIEGO |
The International Trade Union Congress released a statement citing “considerable reservations”, about the Compass as it “prioritise[s] the extension of targeted, non-contributory social assistance at the expense of social security, especially pensions.” The Global Coalition for Social Protection Floors (GCSPF) also responded, echoing concerns about the Bank’s ‘universal’ approach, citing incompatibility with the Bank’s focus on privatised and voluntary schemes, and a “lack of references and alignment with human rights and international labour standards,” such as social security minimum standards of the International Labour Organisation (ILO) Convention 102 and Recommendation 202. GCSPF also highlighted that both private finance and voluntary private schemes, which rely on individuals to have savings and often are inaccessible to informal workers, are considered by the Bank to be alternatives to public social security. The Bank’s preference for privately schemes and targeted systems, which are methods to define eligibility for programmes between the poor, not only “fail to cover the majority of the population but also fail to reach the people living in dire situations, [it] also prevents States from developing their own social protection systems,” noted a September report by civil society organisations (CSOs) Action Against Hunger, Development Pathways and Act Church of Sweden titled Can a leopard change it’s spots?.
Dr Laura Alfers, of global network Women in Informal Employment: Globalizing and Organising (WIEGO) commented: “We welcome the commitment by the World Bank to Universal Social Protection. As informal workers remain largely excluded from social protection, it is encouraging that efforts to extend coverage to the ‘missing majority’ are central to the World Bank’s new strategy. However, we disagree with the promotion of voluntary savings schemes, which are presented as central tools to expand coverage to informal workers, and as ‘alternatives’ rather than complements to public social security. Instead of simply dismissing public social insurance and potentially creating costly parallel structures, we call on the World Bank to support countries in adapting their social security systems to be more inclusive.”
The World Bank’s influence over countries’ social protection spaces is significant; it describes itself as the largest funder of social protection, citing a portfolio of $29.5 billion across 71 countries. The Bank commits to the Global Partnership for Universal Social Protection to Achieve the Sustainable Development Goals (USP2030), a mission to achieve Sustainable Development Goal (SDG) 1.3.” Further to this, the Bank entered a global partnership with the ILO on achieving universal social protection in 2016.
USP2030 defines USP as “nationally defined system[s] of policies and programmes that provide equitable access to all people and protect them throughout their lives against poverty and risks to their livelihoods and well-being,” which can consist of “cash or in-kind benefits, contributory or non-contributory schemes, and programmes to enhance human capital, productive assets, and access to jobs…benefits/support for people of working age in case of maternity, disability, work injury or for those without jobs; and pensions for all older persons.” USP2030 also defines universal social protection as a human right.
UK-based CSO Development Pathways found that the BWIs not only do harm by prioritising poverty targeting, but have actively advocated for removing universal systems created by governments (see Observer Spring 2018). Both institutions tend to attach austerity-driven loan conditionalities focused on shrinking fiscal space and cutting public sector wage bills (see Observer Winter 2019), and national social protection systems are often the target of such cuts.
8 December 2022
Source: Bretton Woods Project.
Response from the Global Coalition for Social Protection Floors to the World Bank’s new Strategy for Social Protection.
With this statement, the Global Coalition for Social Protection Floors (GCSPF), representing more than 120 civil society organisations and trade unions from all over the world, intends to react to the World Bank’s new strategy for social protection, published under the title “Charting a Course Towards Universal Social Protection: Resilience, Equity, and Opportunity for all”.
Recognising the human right to social security, as well as the central role that social protection plays in ensuring adequate standards of living, promoting inclusive and sustainable growth, enhancing resilience, and achieving the Sustainable Development Goal (SDGs), the GCSPF promotes the right of all people to social security and universal Social Protection Floors (SPF).
The GCSPF therefore welcomes the explicit commitment by the World Bank to Universal Social Protection (USP). We further appreciate the strategy’s systems approach to social protection, emphasising that comprehensive and effective coverage requires expansions of interconnected social insurance, social assistance, economic inclusion programmes, and care services. The recognition that social protection is not just an effective tool to fight poverty, but also vital to help people face a wider range of challenges and vulnerabilities throughout their lives, is likewise important. The emphasis that social protection, as well as tax systems, can reduce inequality is also crucial. While ambitious plans to expand coverage are necessary to close the large coverage gaps, the World Bank’s strategy rightly highlights the importance of ensuring the adequacy of benefits and the inclusion of marginalised and vulnerable groups that may face barriers to access. Given the widespread exclusion of informal workers from social protection systems, it is encouraging that efforts to extend coverage to the ‘missing majority’ are central to the World Bank’s new strategy.
The GCSPF also agrees that social spending is a necessary and effective investment in human development, as well as inclusive and sustainable growth. We hope that the new World Bank strategy represents a step up of support from International Financial Institutions on social protection, enabling in particular low-income countries to put in place adequate and comprehensive social protection systems in line with people’s rights. Increased investment in social protection is particularly important in the wake of the COVID-19 pandemic, which has decimated the incomes of the world’s poorest people and left low-income countries exposed to the current social, economic and ecological ‘polycrises’.
While the GCSPF appreciates the overall direction of the World Bank’s new social protection strategy, we have a number of serious concerns. Primarily, we are surprised by the lack of references and alignment with human rights and international labour standards. It thus appears as though the World Bank’s vision of universal social protection deviates from internationally agreed commitments and definitions, in particular social security minimum standards set out in ILO Convention 102 and Recommendation 202.
The GCSPF also disagrees with the role that private finance is accorded, as well as the promotion of voluntary private schemes, which are promoted as key mechanisms to expand coverage, in particular for informal workers, and presented as ‘alternatives’ rather than complements to public social security. Given the often low and volatile earnings of informal workers, and following the devastating impacts of the COVID-19 crisis, it is questionable whether individual savings accounts alone will offer much protection. The continued promotion of individualised and privatised approaches to social protection is all the more disappointing as the strategy recognises that the previous wave of pension privatisations in Latin America and Eastern Europe “did not lead to the expansion in coverage that early reformers envisioned, and the systems are also increasingly failing to deliver adequate pensions” (page 36). It is therefore crucial that the World Bank re-considers these efforts to individualise and privatise social protection and recognizes that the responsibility to realise the human right to social security cannot fall entirely on individuals but is instead a responsibility of governments. The GCSPF disagrees with the World Bank’s dismissive stance towards public social insurance systems and their ability to include informal workers, which certainly requires adaptations of systems but is clearly possible, as a number of countries are showing.
Even though the strategy is framed around universal social protection, it underplays existing efforts of governments to provide universal protection. The strategy claims that governments “have played a role in increasing access to risk management tools, but only in limited ways. [...]. First, they provide social assistance to a limited portion of the population who are either income-poor or vulnerable” (page 18). This ignores the fact that numerous countries across the income spectrum have made significant progress towards USP and introduced universal child benefits and social pensions.
While rightly emphasising the importance of reaching excluded and hard-to-reach groups, the strategy fails to recognise that universal programs tend to be the most effective way to reach all and leave no one behind. More generally, the strategy lacks a clearly articulated and credible pathway for the progression from largely poverty-targeted to universal systems. Therefore, we call on the World Bank to develop, through meaningful consultation, concrete action plans at national levels to move towards universality. It is concerning that in the recent past, the World Bank has discouraged or opposed the introduction of universal programs in many contexts. Moreover, we are worried that the World Bank is blurring the conceptual distinction between means-tested and universal benefits in an effort to reconcile the discrepancy between its endorsement of USP and its continued operational focus on narrowly targeted ‘safety nets’. While the strategy is less explicitly advocating for poverty-targeting than previous documents and refers to ‘progressive realization’ rather than “progressive universalism” the World Bank’s approach still fails to live up to the principles of social protection standards. Indeed, the persistent focus on poverty-targeting is evident in the promotion of ‘social registries’. While recognising significant challenges in their design and implementation, the strategy does not present convincing arguments or evidence that “dynamic inclusion” can overcome these challenges.
Despite welcoming the necessity of addressing unpaid care and domestic work, it is concerning that the World Bank appears to assume that the default provider of care services should be the private sector, with the state merely regulating or providing financing. Indeed, public care services are presented as if they were needed only in case of particular difficulties in the household. The GCSPF reiterates that care and education services should be publicly organised and accessible to all. The strategy could offer a more critical framing of the burden of unpaid domestic work, recognising the role of patriarchy, and that the impact of austerity on households is often cushioned by women absorbing both paid employment and domestic responsibilities simultaneously.
Finally, while appreciating the opportunities to engage with the World Bank during the development of the strategy, we regret that it was shared only in its final form, with no possibility to react to it. In addition, the finalised version did not take on board the comments provided by civil society in the process.
The strategy closes by stressing the importance of partnerships and collaboration between governments, donors, civil society, labour unions, and the private sector to achieve universal protection. As civil society, we intend to do our part by holding duty bearers to account, amplifying the voices of the people, and supporting the realisation of universal and rights-based social protection for all. We call on the World Bank to ensure the meaningful participation of civil society, unions and workers’ organisations in the operationalisation of the strategy at all levels.
November 2022.
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.
