INTERIM EUROMED REPORT ON BASIC LEVELS OF SOCIAL PROTECTION
Interim report presented by the Spanish ESC in cooperation with the ESCs of Bulgaria, Jordan and Morocco at the Euromed Summit of Economic and Social Councils and Similar Institutions held in Greece on 24 and 25 October 2016
Background
The right to social security recognised in the Universal Declaration of Human Rights means that everyone is entitled to realisation, through national effort and international cooperation and in accordance with the organisation and resources of each state, of the economic, social and cultural rights indispensable for his dignity and the free development of his personality. Social protection is a key political tool for reducing poverty and inequalities while also stimulating inclusive growth and social harmony and improving human capital and productivity, as well as supporting domestic demand and facilitating the structural transformation of national economies.
Achieving universal social protection is a core mission of the ILO, which – starting from the Social Security (Minimum Standards) Convention (No 102) in 1952 – has been constructing a framework of internationally accepted standards applicable to national systems. The Social Protection Floors Recommendation (No 202) of 2012, which was adopted by 185 countries in 2012, complements the framework of existing conventions and recommendations. Alongside the UN, the European Commission, ASEAN, the G20 and the OECD have announced that they are in favour of universal social protection. The common goal of the ILO-World Bank joint plan of action in this area is to increase the number of countries providing universal social protection and to help them to devise and implement universal and sustainable social protection systems. It is assumed that there are many ways to achieve universal social protection: it is up to each country to choose its own path and select the ways and means best suited to its individual circumstances.
This report comes as the 2030 Agenda for Sustainable Development – approved by the United Nations in September 2015 – is starting to be rolled out, representing an opportunity to move towards universal social protection for everyone, everywhere. Social protection systems are an essential part of achieving the first of the Sustainable Development Goals ("end poverty in all its forms everywhere"), which proposes implementing nationally appropriate social protection systems and measures for all, including floors, and – by 2030 – achieving substantial coverage of the poor and vulnerable. Social protection policies are also incorporated within the goals relating to gender equality and narrowing the gender pay gap.
It should also be noted that social protection, as well as social integration and the fight against poverty, are among the current and future EU and international areas of action contributing to the implementation of Rio+20. This means enhancing social protection, including the minimum standards of social protection and the application recommendations adopted by the ILO in line with the plans and policies of partner countries, as well as applying the measuresset out in the Communication on Social Protection in European Union Development Cooperation[1]. In this connection, and in the context of European cooperation, the European Social Charter (1961) and the Charter of Fundamental Rights of the European Union (2000) should be mentioned.
The global economic crisis of the past few years has made social protection an even more pressing need, at a time of economic uncertainty, low growth and rising inequalities. However, over and above the global economic crisis, we should not forget that the Euro-Mediterranean region is facing enormous social and economic challenges, including humanitarian upheaval due to armed conflict and violence, crises related to food and raw materials, the problem of access to water, and the consequences of climate change, as well as the displacement of large numbers of people caused by these factors, or the challenges of democratic governance. The scale of these problems has highlighted both the preventive role played by social protection and the consequences of not having systems that are able to support people confronting the various social risks that may arise during the course of their life. In this context, the mechanisms needed to counteract the risk of poverty becoming chronic must be developed.
However, it is clear that developing social protection systems and basic levels is not enough to tackle the causes of poverty and inequality, which are closely related to the challenges mentioned above, and indeed to the characteristics of the world economic system itself. Ideally, this development process should be part of a more holistic approach to social, political and economic policies that covers all of these issues, rather than simply seeking to alleviate the symptoms of poverty and inequality. However, it is clear that this would go beyond the aim and the practical possibilities of this report; moreover, these issues have already been discussed within the Euro-Mediterranean Partnership of Economic and Social Councils and Similar Institutions.
In terms of specific details regarding the development of social protection systems, it is worth recalling the Report on the fight against poverty and social exclusion adopted at the 2014 summit. In its conclusions, this report highlighted the role of social protection systems as a key element to confront the risk of poverty and promote social inclusion. Referring to European Union countries, it signalled the important preventive and compensatory role fulfilled by social protection systems, despite the not insignificant differences between countries and the pressure of budgetary adjustments that they had been subjected to in previous years. In the case of the MPCs, significant room for improvement with regard to the development of both the scope and effectiveness of public and institutional social protection systems was highlighted; the need to improve information and evaluation systems to enable better knowledge about the social situation in the Euro-Mediterranean region was also underlined. In this respect, it should be noted that the recent Report on social stakeholders and democratic governance adopted in 2015 invoked the importance of democratic and participatory governance as being the necessary institutional and procedural framework for effective and transparent policies in all countries of the region in order to achieve the objectives of sustainable growth, social welfare and inclusive development.
Purpose of the report
The purpose of this report is to give more prominence to an area of work – social protection – that hitherto has not, or at least not explicitly, been one of the socio-economic cooperation priorities of the Euro-Mediterranean Partnership. The variety of social protection "networks" and systems in the region, as well as the lack of adequate and sufficiently up-to-date sources of information, may have contributed to the under-representation of social protection in the Partnership's work. To facilitate comparability, the approach adopted in this report is based on the ILO's definition of social protection, while not neglecting the context of the network of events and the relevant reflections and proposals contained in previous work.
Proposed structure and content
In terms of its structure, which is detailed below, the report aims to describe the situation, challenges and trends relating to social protection in the context of the Euro-Mediterranean region and to clarify the meaning and scope of social protection "floors" in such a varied region. It also aims to help identify the potential role of Euro-Mediterranean cooperation in seeking to expand social protection and guarantee minimum levels of protection.
The introduction of the report will set out the thinking behind its approach and how it relates to the 2012 ILO recommendation on basic levels of social protection and the opportunity presented by the review of the Millennium Development Goals.
The second section will be given over to considering the meaning and extent of social protection levels and basic guarantees in a political, social and economic situation that is as varied as in the Union for the Mediterranean. First of all, World Bank and ILO data will be used to describe the main factors of the socio-economic situation in the region that have a bearing on the prospects for social protection. These factors include – but are not limited to – demographic challenges and their particular symptoms in the European Union and the MPCs; the characteristics of the labour markets; the development of social dialogue and the more or less widespread expansion of the informal economy; the range of situations related to the human development indicators, in particular with regard to the extent of poverty; the effects of the economic crisis on social protection systems and on certain population groups in particular, such as families with children; the burden of migration and the consequences of the humanitarian emergency caused by the refugee crisis. Moreover, in this context, it is necessary to take into account aspects such as gender and the persistence of territorial divides – such as the gap between urban and rural areas – that can significantly affect access to social protection. A general idea will also be given of the design and implementation of the basic levels of protection by bringing together and comparing the EU and MPCs, with the aim of bringing out national differences and factors, where appropriate.
The third section will briefly outline the state of social protection in a broad sense, including the main spending, financing, scope and coverage indicators (sub-section a), and will then address each area where the ILO recommends basic social security guarantees. Following the recommendation, the minimum levels should at least include basic social security guarantees in terms of essential health care, including maternity care (to be dealt with in sub-section b); basic income security for children providing access to nutrition, education, care and any other necessary goods and services (sub-section c); basic income security for persons of active age who are unable to earn sufficient income, in particular in cases of sickness, unemployment, maternity and disability (sub-section d); and basic income security, at least at a nationally defined minimum level, for older persons (sub-section e).
In line with the ILO recommendation, the basic social security guarantees must be provided via the most effective and efficient combination of benefits and schemes in the national context. These benefits may include child and family benefits, sickness and health care benefits, maternity benefits, disability and survivors' benefits, unemployment benefits and employment guarantees, public measures to reconcile work and family life, and any other social benefits in cash or in kind.
The fourth section will review the policies adopted in the context of Euro-Mediterranean cooperation that are most closely related to the subject of the report, such as European Union initiatives to boost social protection, or financial instruments linked to the regional programme for the Euro-Mediterranean Partnership under the European Neighbourhood Policy that are intended to enhance the ability and usefulness of social reforms to strengthen basic social protection guarantees. The role played by bilateral social security agreements in this regard must not be neglected. This section will also look at the situation in terms of developing national social security extension strategies based on national consultations through effective social dialogue and social participation, as set out in the aforementioned ILO recommendation.
With all this in mind, we suggest the following table of contents:
TABLE OF CONTENTS
- Introduction
- Basic levels: significance and context in the Euro-Mediterranean region
- Social protection in the Euro-Mediterranean region: state of play and trends
- State of play and general trends: expansion, financing, spending and coverage
- Health care
- Family and childhood protection
- Support for people of active age: disability and unemployment
- Social protection for the elderly
- Initiatives taken as part of Euro-Mediterranean cooperation: achievements and limitations
- Conclusions and proposals
EESC-2016-05332-00-00-TCD-TRA (ES) 1/6
[1]European Commission, Ending poverty and giving the world a sustainable future, COM (2013) 92 final, and Commission Communication on Social Protection in European Union Development Cooperation, COM (2012) 446 final.