OIT - Reporte Mundial de Seguridad Social 2010-2011

8/2/2019 OIT - Reporte Mundial de Seguridad Social 2010-2011

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The International Labour Organization

The International Labour Organization was founded in 1919 to promote social justice and, thereby,

to contribute to universal and lasting peace. Its tripartite structure is unique among agencies afliated

to the United Nations; the ILOs Governing Body includes representatives of governments, and of

employers and workers organizations. These three constituencies are active participants in regional

and other meetings sponsored by the ILO, as well as in the International Labour Conference a world

forum that meets annually to discuss social and labour questions.

Over the years the ILO has issued for adoption by member States a widely respected code of

international labour Conventions and Recommendations on freedom of association, employment, social

policy, conditions of work, social security, industrial relations and labour administration, and child

labour, among others.

The ILO provides expert advice and technical assistance to member States through a network of ofces

and multidisciplinary teams in over 40 countries. This assistance takes the form of labour rights and

industrial relations counselling, employment promotion, training in small business development, project

management, advice on social security, workplace safety and working conditions, the compiling and

dissemination of labour statistics, and workers education.

ILO Publications

The International Labour Ofce is the Organizations secretariat, research body and publishing house.

ILO Publications produces and distributes material on major social and economic trends. It publishes

policy studies on issues affecting labour around the world, reference works, technical guides, research-

based books and monographs, codes of practice on safety and health prepared by experts, and training

and workers education manuals. The magazine World of Work is published three times a year in printed

form by the Department of Communication and Public Information and is also available online at

www.ilo.org.

You may purchase ILO publications and other resources securely on line at www.ilo.org/publns;or request a free catalogue by writing to ILO Publications, International Labour Ofce, CH-1211

Geneva 22, Switzerland; fax +41 (0) 22 799 6938; email: [email protected]


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World Social Security Report 2010/11Proiding coerage in times o crisis and beyond


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World Social Security Report 2010/11Proiding coerage in times o crisis and beyond

INERNAIONAL LABOUR OFFICE GENEVA


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World Social Security Report 2010/11

World Social Security Report 2010/11: Providing coverage in times o crisis and beyondInternational Labour Oice Geneva: ILO, 00

ISBN 978-9--8- (print)ISBN 978-9--9-8 (web pd)

International Labour Oice

social security / scope o coverage / gaps in coverage / social security policy / role o ILO / developed countries / developing countries

0.0.

Copyright International Labour Organization 00

First published 00

Publications o the International L abour Oice enjoy copyright under Protocol o the Universal Copyrig ht Convention. Nevertheless, short excerptsrom them may be reproduced without authorization, on condition that the source is indicated. For rights o reproduction or translation, applica-tion should be made to ILO Publications (Rights and Permissions), International Labour Oice, CH- Geneva , Switzerland, or by email:

[email protected]. he International Labour Oice welcomes such applications.

Libraries, institutions and other users registered with reproduction rights organizations may make copies in accordance with the licences issued tothem or this purpose. Visit www.irro.org to ind the reproduction rights organization in your country.

he designations employed in ILO publications, which are in conormity with United Nations practice, and the presentation o material therein donot imply the expression o any opinion whatsoever on the part o the International Labour Oice concerning the legal status o any country, area orterritory or o its authorities, or concerning the delimitation o its rontiers.

he responsibility or opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does notconstitute an endorsement by the International Labour Oice o the opinions expressed in them.

Reerence to names o irms and commercial products and processes does not imply their endorsement by the International Labour Oice, and anyailure to mention a particular irm, commercial product or process is not a sign o disapproval.

ILO publications and electronic products can be obtained through major booksellers or ILO local oices in many countries, or direct rom ILOPublications, International Labour Oice, CH- Geneva , Switzerland. Catalogues or lists o new publications are available ree o charge romthe above address, or by email: [email protected]

Visit our web site: www.ilo.org/publns

Graphic design PAPPhotocomposed in Switzerland WEIPrinted in Switzerland SA

ILO Cataloguing in Publication Data


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vSocial security is a human right as well as a social and economic necessity. All suc-cessul societies and economies have employed development strategies where socialsecurity systems played an important role to alleviate poverty and provide economicsecurity that helps people to cope with lies major risks or the need to quickly adapt tochanging economic, political, demographic and societal circumstances.

Te crisis has shown that social security systems are by design powerul economic

and social stabilizers o economies and societies. Tey stabilize income o individualswho are afected by unemployment or underemployment and hence help to avoid hard-ship and social instability. hey also stabilize aggregate domestic demand in times

when external demand contracts due to reduced economic activity. We have alsolearned rom past crises that countries that had efective and e cient social securitysystems in place beore a crisis hit were much better equipped to cope with its alloutthan those who had not had the oresight to put such systems into place.

It is also clear that income transers through social security have a powerul efecton the income inequality and poverty in developing countries. Tere is little hope thatthe MDG targets will be reached without a decisive global move towards introducinga national social protection oor o basic social security benets in countries where no

such scheme exists or where they only have a limited coverage.Te Declaration o Philadelphia 1 in 9 established the solemn obligation o the

International Labour Organization to urther among the nations o the world pro-grammes which will achieve, among others, the extension o social security measuresto provide a basic income to all in need o such protection and comprehensive medi-cal care. In June 008, the ILC conrmed this mandate in the ILO Declaration onSocial Justice or a Fair Globalization.

In 00 the ILO launched a Global Campaign on Social Security and Coverageor All. his requires the deinition o eective and sustainable national social se-curity policies. Sound policies have to be based on acts and gures. Only through in-depth actual inormation about the perormance o existing social security systems

1 Te ILC adopted the Declaration concerning the aims and purposes o the International Labour Organ-ization at its th Session in Philadelphia on 0 May 9.

Preface


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and individual schemes all around the world can national policies benet rom globalexperience. Tis report provides such inormation.

It is the rst in a series o World Social Security Reports which will also help tomonitor the global progress on social security coverage and thus support the ILOs andnational campaigns to extend coverage.

Each new edition o the report will take up one specic topic. Tis time or obviousreasons it had to be the crisis. It ends with repeating the plea o the Global Jobs Pactthat was adopted by the constituents o the ILO in June 009 and requested countriesto make ull use o social security systems when coping with the social and economicallout o the crisis. It requested countries to develop adequate social security or all,drawing on a basic social protection oor including access to health care, income se-curity or the elderly and persons with disabilities, child benets and income securitycombined with public employment guarantee schemes.

We hope that this report will be a useul tool or all who have to design, implement,manage, administrate or as the case may be deend social security systems. I youhave eedback or us that would help us to improve the next version please post yourcomments on our web platorm: http://www.socialsecurityextension.org/gimi/gess/ShowTeme.do?tid=98

Assane Diop Michael CichonExecutie Director Director o the Social Security Department

Social Protection Sector Social Protection Sector

International Labour Of ce International Labour Of ce


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viiPreface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v

Abbreviations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xv

Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Introduction. Context, objectives, scope and structure of the report . . . 7

Part I. Monitoring the state of social security coverage . . . . . . . . . . . . . .

1 Defnitions, standards and concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Basic denitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Te scope o social security as dened by ILO standards

and by other international organizations . . . . . . . . . . . . . . . . . . . . . . . 8. Coverage concepts and measurements . . . . . . . . . . . . . . . . . . . . . . . . .

2 Scope o social security coverage around the world:Context and overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. Te labour market context . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. Scope o comprehensive coverage by statutory schemes . . . . . . . . . . . . . Efective comprehensive population coverage . . . . . . . . . . . . . . . . . . . .

3 Social health protection coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Denition and measurement o social health protection . . . . . . . . . . . . Financing health care . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gaps in health-care coverage and access decits . . . . . . . . . . . . . . . . . . 0

4 Coverage by social security pensions: Income security in old age . . . . . . . From legal to efective coverage by old-age pensions: An overview . . . . . Coverage gaps and employment status o the elderly . . . . . . . . . . . . . . . Efective extent and level o coverage at the country level . . . . . . . . . . . 0

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5 Income support to the unemployed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7. Scope o coverage by statutory unemployment schemes . . . . . . . . . . . . 8

. Efective extent and level o coverage . . . . . . . . . . . . . . . . . . . . . . . . . .

6 Coverage by other branches o social security . . . . . . . . . . . . . . . . . . . . . . Employment injury . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Maternity protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

7 Minimum income support and other social assistance . . . . . . . . . . . . . . 7

8 Investments in social security: Amounts, results and e ciency . . . . . . . 798. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 798. Resources allocated to the nancing o social security

across the world . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 808. Measuring efectiveness and e ciency o investments in social security:

An overview o approaches in selected international organizations . . . 87

9 Identiying actors or extended social security coverage . . . . . . . . . . . . 99

PART II. Thematic focus: Social security in times of crisis . . . . . . . . . . . 0

10 Responding to economic crisis with social security . . . . . . . . . . . . . . . . . 00. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0

0. Cushioning the impacts o unemployment while protectingand creating jobs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0

0. Te expansion o social security as a crisis response . . . . . . . . . . . . . . . 0. Consolidating social expenditure: Short-term

versus long-term concerns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0. Impact o the crisis on pension unding: Te need to revisit

recent pension reorms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70. Impact o the crisis on social health protection nancing . . . . . . . . . . 9

Conclusion. Closing the coverage gapsand building social security for all . . . . . . . . . . . . . . . . . . . . .

Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Statistical Annex . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part A. Te demographic, economic and labour market environment . . . . . Part B. Social security coverage and expenditure . . . . . . . . . . . . . . . . . . . . . 99


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Tables

. Employees (wage and salary workers) in the labour market worldwide, 008 8

. Participation in the labour market o elderly (+), and lie expectancyat age , 98000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

. Projected elderly population in 00 and 00 . . . . . . . . . . . . . . . . . . . . .

. Unemployment protection: Extent o legal and efective coverage,countries grouped by income level, latest available year . . . . . . . . . . . . . . . 0

8. Social security expenditure by region and globally, latest available year . . . 8

8. Social security expenditure by income level and globally, latest available year 8

8. Structure o social security receipts by type and sector o origin,7 EU Member States, 007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

8. Efectiveness and e ciency o social security cash transers received by

households, and taxes paid by households, OECD countries, mid-000 98. Concentration coe cients o benets in diferent branches o social

security, 7 OECD countries, mid-000 . . . . . . . . . . . . . . . . . . . . . . . . . . 9

9. Legal provision, resources committed and coverage achievedin countries: A typology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0

0. Unemployment schemes in diferent country groups by income level, 009 09

0. Crisis response: Extending coverage and raising benets,selected countries, 00809 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

0. Crisis response: Reductions in contributions, selected countries, 00809

Figures

Figure S. Social security expenditure by income level and branch, weightedby population, latest available year (percentage o GDP) . . . . . . . . .

Figure . Employees (wage and salary workers) in total employmentworldwide, latest available year (percentages) . . . . . . . . . . . . . . . . . . 9

Figure . Latin America: Social protection coverage among employeesaccording to type o contract, 00 . . . . . . . . . . . . . . . . . . . . . . . . . 0

Figure . Countries grouped by level o vulnerability, povertyand inormality combined, latest available year . . . . . . . . . . . . . . . .

Figure . Branches o social security: Number covered by a statutory socialsecurity programme, 00809 . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Figure . Date o the rst law adopted or each contingency, countries groupedby Human Development Index (HDI), latest available year . . . . . .

Figure . Branches o social security: Countries with statutory programmesor limited provision, latest available year (percentages) . . . . . . . . . .

Figure . WHO: owards universal health coverage . . . . . . . . . . . . . . . . . . .

Figure . Health-care nancing: otal and public per capita expenditureby national income level o countries, 007 . . . . . . . . . . . . . . . . . . . 7

Figure . Health-care nancing levels and sources o unds, 00

(percentage o GDP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Figure . Vulnerability o countries and sources o unds: Public and private health

expenditure and composition o health expenditure by levelo vulnerability at the country level, 00 (percentage o GDP) . . . 8


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Figure . Share o out-o-pocket expenditure as a percentage o total healthexpenditure by level o country vulnerability, latest available year . . 0

Figure . Out-o-pocket expenditure as a percentage o total health expenditureby poverty incidence, 00 (percentage o people living on less thanUS$ PPP per day) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0

Figure .7 Health protection: Proportion o the population covered by law,latest available year (percentages) . . . . . . . . . . . . . . . . . . . . . . . . . . .

Figure .8 Decits in legal health protection coverage by vulnerabilityat the country level, latest available year (percentage o populationnot covered) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Figure .9 ILO access decit indicator, 00 (shortall o skilled medicalproessionals as a proxy) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Figure .0 Te global decit in social health protection coverage and efectiveaccess to health services in 00 (ILO methodology) . . . . . . . . . . .

Figure . Old-age pensions: Legal coverage and efective active contributorsin the working-age population, by region, 00809 (percentages) . .

Figure . Old-age pension beneciaries as a proportion o the elderlyby income level, various countries, latest available year . . . . . . . . . . . 7

Figure . Old-age pension beneciaries as a percentage o the populationabove retirement age, latest available year . . . . . . . . . . . . . . . . . . . . 7

Figure . Old-age pensions: Efective active contributors as a percentageo the working-age population by the share o wage employmentin total employment, latest available year (percentage o working-age population) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Figure . Persons above retirement age receiving pensions, and labour orceparticipation o the population aged and over, latest available year(percentages) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0

Figure . European Union: Old-age pension recipients, ratio to populationover the legal retirement age (excluding anticipated old-age

pensions), 00 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Figure .7 Arica: Old-age pensioners (all ages) as a proportion o the elderlypopulation, latest available year (percentages) . . . . . . . . . . . . . . . . .

Figure .8 Asia Pacic and the Middle East: Old-age pensioners (all ages)

as a proportion o the elderly population, latest available year(percentages) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Figure .9 Latin America and the Caribbean: Old-age pensioners (all ages)as a proportion o the elderly population, latest available year(percentages) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Figure .0 Male and emale old-age pensioners (all ages) as a proportion o maleand emale populations respectively, aged 0 and over, latest available

year (percentages) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Figure . Existence o unemployment protection schemes by type o scheme,00809 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Figure . Unemployment protection schemes by type o scheme, 00809 . . 9Figure . Unemployment protection schemes: Legal extent o coverage

worldwide as a percentage o the economically active population(EAP), latest available year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0


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Figure . Unemployment protection schemes: Legal extent o coverage,regional estimates, as a percentage o the economically active

population (EAP), latest available year . . . . . . . . . . . . . . . . . . . . . . Figure . Unemployment: Efective coverage worldwide unemployed

who actually receive benets, latest available year (percentages) . . . .

Figure . Unemployment: Efective coverage, regional estimates unemployedwho actually receive benets, latest available year (percentages) . . . .

Figure .7 Unemployed receiving unemployment benets, selected countries,latest available year (percentage o total unemployed) . . . . . . . . . . .

Figure . ypes o scheme providing protection in case o employment injury,by region, 00809 (multiple responses) . . . . . . . . . . . . . . . . . . . . .

Figure . Extent o legal coverage by employment injury scheme, 00809 . .

Figure . Active contributors or protected persons as a percentageo working-age population and employment, latest available year . . 8

Figure . Inequities in access to maternal health services in rural and urbanareas, latest available year (percentage o live births) . . . . . . . . . . . . 9

Figure . Inequities in access to maternal health services by wealth quintileby national income level o countries, latest available year . . . . . . . . 9

Figure . Maternity legal provision: ypes o programmes worldwide, 009 70

Figure .7 Legal duration o maternity leave worldwide, 009 (weeks) . . . . . . . 7

Figure .8 Amounts spent on paid maternity leave per year and per child,selected countries, latest available year (US$ current) . . . . . . . . . . . 7

Figure 7. Means-tested and non-means-tested benet expenditure,European countries, 007 (percentage o GDP and ratio) . . . . . . . . 7

Figure 7. Means-tested benets in European countries: otals and by unction,007 (percentage o GDP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Figure 7. Social assistance expenditure, 7 countries, 008(percentage o GDP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Figure 7. Social protection expenditure by type (ADB denitions),selected countries, 008 (percentage o GDP) . . . . . . . . . . . . . . . . . 7

Figure 8. Social security expenditure by region, weighted by population,latest available year (percentage o GDP) . . . . . . . . . . . . . . . . . . . . . 8

Figure 8. Social security expenditure by income level, weighted by population,000 compared with latest available year (percentage o GDP) . . . . 8

Figure 8. Social security expenditure by income level and branch, weighted bypopulation, latest available year (percentage o GDP) . . . . . . . . . . . 8

Figure 8. Social security expenditure by vulnerability and branch, weighted bypopulation, latest available year (percentage o GDP) . . . . . . . . . . . 8

Figure 8. Size o government resources (ratio o government expenditureto GDP) and amount o social security expenditure (percentageo GDP), latest available year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Figure 8. Size o government resources (ratio o government expenditure to

GDP) and GDP per capita, latest available year (international $ PPP) 8Figure 8.7 Share o government spending invested in social security

and size o government (ratio o government expenditure to GDP),latest available year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8


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Figure 8.8 Percentage o lower-income persons (rst three income quintiles)reporting unmet health needs, and public spending on health

(percentage o GDP), European Union countries, 007 . . . . . . . . . 89Figure 8.9 Non-pension cash transers: Reduction in poverty risk,

European Union countries, 007 . . . . . . . . . . . . . . . . . . . . . . . . . . 90

Figure 8.0 Percentage reduction in the Gini coe cient, and share o socialsecurity cash transers in household incomes, OECD countries,mid-000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Figure 8. Poverty rates and social security expenditure or persons o workingage and retirement age, OECD countries, mid-000 (percentages) . 9

Figure 8. Structure o the ADB Social Protection Index . . . . . . . . . . . . . . . . 9

Figure 8. Investments in social protection: Expenditure (percentage o GDP)

in Asian countries or three SPI indicators. . . . . . . . . . . . . . . . . . .

9Figure 9. Components o the typolog y by level o income . . . . . . . . . . . . . . . 0

Figure 0. Number o unemployed receiving social security unemploymentbenets, weighted average, selected countries, 0070(Index value 00 = January 008) . . . . . . . . . . . . . . . . . . . . . . . . . . 07

Figure 0. Number o unemployed receiving unemployment benets,selected countries, trends 000 . . . . . . . . . . . . . . . . . . . . . . . . . 08

Figure 0. Tailand: Number o unemployed receiving unemployment benets(monthly), and trends in the proportion o total unemployedreceiving benets, 0009 (percentages) . . . . . . . . . . . . . . . . . . . .

Figure 0. Real investment returns o pension unds, OECD countries,008 (percentages) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Boxes

. Individual and societal need or protection by social security . . . . . . . . . . .

. An introduction to the terminology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. Social security or migrant workers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

0. Argentina, policy responses to the crisis: A stimulus package . . . . . . . . . . .

Annex tables

Part A. Te demographic, economic and labour market environment

Demographic indicators

able . Demographic trends: Dependency ratios . . . . . . . . . . . . . . . . . . . . . .

able . Demographic trends: Ageing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

able Fertility rates, inant and maternal mortality rates,and lie expectancy at birth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

able Lie expectancy at 0 or 0 years old, exact age x, both sexes (in years) 0

Labour orce and employment indicators

able Labour orce to population ratios at ages . . . . . . . . . . . . . . . .

able Labour orce to population ratios at ages + . . . . . . . . . . . . . . . . . .

able 7 Youth employment to population ratio at ages . . . . . . . . . . . . 7

able 8 Employment to population ratio at ages + . . . . . . . . . . . . . . . . . . . 7


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able 9 Status in employment (latest available year) . . . . . . . . . . . . . . . . . . . . 77

able 0 Unemployment as a percentage o the labour orce . . . . . . . . . . . . . . 8

Economic and poerty indicators

able Poverty and income distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

able Levels o vulnerability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

able GDP and Human Development Index (HDI), various years 997008 9

Part B. Social security coverage and expenditure

Social security legal proision

able Ratication o ILO social security Conventions, by region . . . . . . . . 00

able Overview o social security statutory provision . . . . . . . . . . . . . . . . . 0

able Social security statutory provision: Old age . . . . . . . . . . . . . . . . . . . . 08

able 7 Social security statutory provision: Employment injury . . . . . . . . . . .

able 8 Social security statutory provision: Unemployment . . . . . . . . . . . . . .

able 9 Social security statutory provision: Regional estimates . . . . . . . . . . . 0

able 0 Maternity social security legal provision . . . . . . . . . . . . . . . . . . . . . .

Social security indicators o eectie coerage

able Indicators o efective coverage worldwide: Old age. Activecontributors and elderly who receive an old-age pension,latest available year (percentages) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0

able a Indicators o efective coverage worldwide: Unemployment.Unemployed who actually receive benets, latest available year(percentages) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

able b Indicators o efective coverage worldwide: Unemployment duringthe nancial crisis 00809. Unemployed receiving unemploymentbenets, monthly data, selected countries . . . . . . . . . . . . . . . . . . . . .

able Indicators o efective coverage: Employment injury. . . . . . . . . . . . . .Active contributors or protected persons, selected countries . . . . . .

able Indicators o efective coverage: Occupational injury. Cases o injurywith lost workdays, selected countries (total cases: atal and non-atal)

Social security expenditure

able Public social security expenditure, 000 and latest available year(percentage o GDP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

able Public social security expenditure by branch, latest available year(percentage o GDP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Specic health indicators

able 7 otal (public and private) health care expenditure not nancedby private households out-o-pocket payments (percentages) . . . . . . . 7

able 8 Health coverage and access to medical care: Births attendedby skilled health staf, and child immunization . . . . . . . . . . . . . . . . . 70

able 9 Multiple dimensions o health coverage, by levels o vulnerability . . . 7


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xvADB Asian Development BankANSES Administracin Nacional de la Seguridad Social (Social Security

Administration) (Argentina)

ASSEDIC Association pour lemploi dans l industrie et le commerce(Association or Employment in Industry and rade) (France)

CC conditional cash transerCIS Commonwealth o Independent States

CLEEP Comprehensive Livelihood and Emergency EmploymentProgramme (Philippines)

COFOG Classication o Functions o the Government (United Nations)

DB dened benet

DC dened contribution

DWA Decent Work Agenda (ILO)

DWI Decent Work Indicators (ILO)

EAP economically active population

ECLAC Economic Commission or Latin America and the CaribbeanESSPROS European System o Integrated Social Protection Statistics

EU European Union

EUROSA Statistical O ce o the European Communities

GDP Gross Domestic Product

GESS Global Extension o Social Security database (ILO)

GFS Government Finance Statistics (IMF)

HBS Household Budget Survey

HDI Human Development Index (UNDP)

ICLS International Conerence o Labour Statisticians

ILC International Labour Conerence

ILFS Integrated Labour Force Survey

IMF International Monetary Fund

Abbreviations


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xvi

ISSA International Social Security Association

KILM Key Indicators o the Labour Market (ILO)

LABORSA Labour Statistics database (ILO)LFS Labour Force Survey

MDGs Millennium Development Goals

NHIS National Health Insurance Service (Ghana)

NREGA National Rural Employment Guarantee Act (India)

OECD Organisation or Economic Co-operation and Development

OMC Open Method o Coordination (EU)

PAYG Pay As You Go

PPL paid parental leave

PPP purchasing power parity

SME small and medium-sized enterprise

SOCX Social and Welare Statistics: Social expenditure database (OECD)

SPC Social Protection Committee (EU)

SPI Social Protection Index (ADB)

SSA Social Security Administration (United States)

SSI Social Security Inquiry (ILO)

ME ripartite Meeting o Experts (ILO)

UNDP United Nations Development Programme

WHO World Health Organization

WHOSIS WHO Statistical Inormation System


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1can be directly measured only separately or each othe speciic branches, such as health care, old age orunemployment; or even or a group o specic schemes

within each branch. here is no universally acceptedmethodology to aggregate these branch-specic cover-age indicators into one overall indicator. However, the

report makes an eort to provide at least a technicalsynopsis o the individual dimensions o coverage andthe size o national social protection expenditure.

Some level o protection by social security exists innearly all countries, though only a minority o countries

provide protection in all branches. Tere is no countryin the world without any orm o social security, but inmany countries coverage is limited to a ew branchesonly, and only a minority o the global populationhas both legally and eectively access to existingschemes. Only one-third o countries globally (inhabited

by 8 per cent o the global population) have compre-hensive social protection systems covering all branches osocial security as dened in ILO Convention No. 0.aking into account those who are not economicallyactive, it is estimated that only about 0 per cent o the

world s working-age population (and their amilies)have efective access to comprehensive social protection.

Social health protection coverage

Although a larger percentage o the worlds populationhas access to health-care services than to various cashbenets, nearly one-third has no access to any healthacilities or services at all. For many more, necessary

Objective and structure of the report

Tere is little hope that the Millennium DevelopmentGoals will be reached without a decisive global move to-

wards introducing a national social protection oor obasic social security benets in countries where no such

scheme exists or where they have only limited coverage.Sound social security policies have to be based on

acts and gures. Tis report provides that actual basisto support the development o national social security

policies. It is the rst in a series oWorld Social SecurityReports which will also help to monitor the globalprogress on social security coverage and thus supportthe ILOs campaign to extend coverage. It deals irst

with the scope, extent, levels and quality o coverageby various social security branches; it then examinesthe scale o countries investments in social security,

measured by the size and structure o social security ex-penditure and the sources o its nancing; and nallypresents the nature o social security responses to thecrisis as a thematic ocus. Te main objective o the cur-rent report is to present the knowledge available on cov-erage by social security in diferent parts o the world,and to identiy existing coverage gaps.

Main general findings

he notion osocial security used here has two main(unctional) dimensions, namely income security andavailability o medical care. Social security coverage

Executivesummary


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2

Coverage of minimum income support

benefits and other social assistance

In most countries with developed social security sys-tems a large part o the population is covered by socialinsurance schemes, while social assistance plays onlya residual role, providing income support and otherbenets to the minority who or some reason are notcovered by mainstream social insurance.1 In the Euro-

pean Union (plus Iceland, Norway and Switzerland),expenditure on means-tested benets does not exceed per cent o GDP on average, while total social protec-tion expenditure is on average over per cent. Whilethere are countries in the European Union (such as Ire-land, Malta and the United Kingdom) where a rela-tively high share o social security benets is deliveredthrough targeted social assistance, nowhere does totalsocial assistance benet expenditure exceed per cento GDP.

While in most o the developed countries (exceptAustralia and New Zealand) social assistance-typeschemes play an important although residual role inclosing relatively small coverage gaps, in many middle-and low-income countries non-contributory incometranser schemes have been recently gaining import-

ance. Particularly in countries with large inormal econ-omies and where only a minority are covered by socialinsurance schemes, non-contributory social security

provides an opportunity not only to a lleviate povertybut also at least in some cases to ll a large part othe sizeable existing coverage gaps shown in this report.In act, the most promising innovations that can help tocover the global coverage gap are conditional or uncon-ditional cash transer schemes in a number o develop-ing countries, i.e. tax-nanced social assistance schemes,such as the Bolsa Famliascheme in Brazil, the Opor-

tunidadesschemes in Mexico, the social grant systemo South Arica, or universal basic pension schemes incountries such as Namibia and Nepal.

Coverage by other branches

of social security

Most countries in the world oer some coverage orwork-related accidents and diseases. Coverage is gen-erally limited to those working in the ormal econ-

omy, and even there efective coverage is low with only

1 Australia and New Zeala nd are the most prominent exceptionsamong OECD members; in these countries income-tested benets playa dominant role in the provision o social security.

expenditure on health care may cause nancial catastro-phe or their household, because they have no adequate

social health protection which would cover or reundsuch expenditure.

Coverage by social security pensions:

Income security in old age

Coverage by old-age pension schemes around the world,apart rom in the developed countries, is concentratedon ormal sector employees, mainly in the civil serviceand larger enterprises. he highest coverage is oundin North America and Europe, the lowest in Asia andArica.

Worldwide, nearly 0 per cent o the population oworking age is legally covered by contributory old-agepension schemes. In North America and Europe thisnumber is nearly twice as high, while in Arica less thanone-third o the working-age population is covered evenby legislation. Efective coverage is signicantly lowerthan legal coverage. With the exception o North Amer-ica and to a lesser extent Western Europe, efective cov-erage is quite low in all regions. In sub-Saharan Aricaonly per cent o the working-age population is efect-

ively covered by contributory programmes, while thisshare is about 0 per cent in Asia, the Middle East andNorth Arica. In Asia some countries have made majoreforts to extend coverage beyond the ormal sector. Atthe same time, while in high-income countries 7 percent o persons aged or over are receiving some kindo pension, in low-income countries less than 0 percent o the elderly receive pension benets; the medianin this group o countries is just over 7 per cent.

Coverage of income support systemsfor the unemployed

Present entitlements to unemployment benets tend tobe restricted to those in ormal employment, and existmostly in high- and middle-income countries. In a large

part o the world where extreme poverty is high, thevery concept o unemployment seems to be irrelevant,as everybody has to work in order to survive. O 8countries studied, statutory unemployment social se-curity schemes exist in only 78 countries ( per cent),

oten covering only a minority o their labour orce.Coverage rates in terms o the proportion o unem-

ployed who receive benets are lowest in Arica, Asiaand the Middle East (less than 0 per cent).


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Executive summary

3

in igure S., and so this average does not relect thesituation or the majority o the worlds population,

who live in lower-income countries where much less isinvested in social security.Although this prevailing pattern shows a strong

correlation between income levels and amounts o re-sources allocated to social security, it cannot be con-cluded there is no scal or policy space or lower-incomecountries to decide on the size o their social securitysystem. Countries with a similar level o GDP percapita may take very diferent decisions as to the size othe public sector. And at any size o government, coun-tries have some choice as to what portion o public re-sources to invest in social security.

Despite methodological di culties we attempted tobuild a rst approximation o a typology o situations indiferent countries, i.e. o actors that ensure success interms o social security coverage. Te typology uses twoinput actors (legal oundations built, sustained levelo resources committed), and a proxy or efective andgood quality coverage as an output measure.

Not all the theoretically possible combinations odiferent actors occur in reality: not even the widestlegal oundations can ever result in adequate coverageoutcomes i they are not enorced and not backed by

su cient resources. But strong legal oundations are anecessary condition or securing higher resources; thereare no national situations where generous resources areavailable despite the lack o a legal basis. In 9 per cento countries that were analysed, a comprehensivelegal basis and high levels o resources coincided withhigh levels o good quality coverage.

a certain portion o accidents reported and compen-sated. In the inormal economy prevailing in many low-

income countries, conditions and saety o work areoen dramatically bad, accidents and work-related dis-eases widespread and with no protection at all or their

victims. Globally, estimated legal coverage representsless than 0 per cent o the working-age population,

which is less than 0 per cent o the economically active.Reducing maternal, neo-natal and under- mortal-

ity through social security maternity benets is globallyamong the greatest challenges o social protection; itconcerns million children who die beore the ageo , and 00,000 mothers dying during maternity(WHO, 00). Coverage o cash beneits beore andaer birth is limited to ormal sector employees. Difer-ences in access to health care in the context o maternity

protections between countries at diferent income levelsand within countries are striking. In low-income coun-tries no more than per cent o all women in ruralareas have access to proessional health services, whilein urban areas the access rate amounts to an average oabout 70 per cent, which is still more than 0 percent-age points lower than the access in high-income coun-tries (where it is nearly complete).

Investments in social security

and a tentative summary

On average, 7. per cent o global GDP is allocatedto social security. However, these expenditures tend tobe concentrated in higher-income countries as shown

Figure S.1. Social security expenditure by income level and branch, weighted by population,

latest available year (percentage of GDP)

Link: http://www.socialsecurityextension.org/gimi/gess/RessFileDownload.do?ressourceId=15128

Note: The number of countries for which detailed social security data on expenditure by branch are available is smaller than the number of countries cov-

ered for the calculation of total expenditure as presented in figure 8.2. This explains some differences in the results for total expenditure.

Source: ESSPROS (European Commission, 2009a). See also ILO, GESS (ILO, 2009d).

Low-i ncome count ries Med ium-i ncome count ries High-income countries

Percentages

otal public social security expenditureas a percentage o GDP which is composed o:

Public health

Public old age

Other pensions: Survivors and disability

Public u nemployment

Public amily allowances

Other social security benefts

0

5

10

15

20

25

4.1

1.4 1.10.3 0 0.1

0.6

7.0

1.82.5

0.4 0.1 0.2

1.5

19.4

6.67.2

2.5

1.2 1.4 0.8


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4

European countries, in this crisis government strategyin a number o countries, such as France, Germany

and the Netherlands, aims at the avoidance o ull un-employment by expanding the application, eligibilityand coverage o partial unemployment benets. Partialunemployment benets allow workers to stay in theiremployment relationship, but or example with re-duced working hours. Tey aim at preventing the losso skills and the discouragement o workers, both o

which may occur when they become ully unemployed.he most common orm o response in middle-

income countries is the extension o cash transerschemes (or example, in Brazil) or public employmentschemes (or example, in the Philippines). Te latteroten have an ad hoc character: they may be imple-mented more quickly than social security schemes, anddiscontinued once the crisis is over. Te availability omeasures or crisis response is clearly the most limitedin low-income countries. Schemes providing incomesupport in case o unemployment exist, but rarely. Inaddition, many o these countries, in particular in sub-Saharan Arica, were already acing mass poverty andunderemployment well beore the recent global eco-nomic crisis.

Corrections to pension schemes might also be re-

quired in all countries where schemes were reormedduring the last three decades. Te crisis and the conse-quential losses in pension reserves clearly demonstratedthe vulnerability o pension levels, and hence old-ageincome security, to the perormance o capital marketsand other economic uctuations. Te unpredictabilityo pension levels may be reduced by introducing de-ned-benet-type guarantees into dened-contributionschemes, or by guaranteeing rates o return in such amanner as would provide replacement rates on retire-ment at target levels.

Tere remains a risk that countries that ollowed anexpansionary scal policy during the crisis will now ace

pressure or scal consolidation to cope with increaseddecits and public debt. I and wherever it happens, thismay result in uture cuts o social security spending toeven below pre-crisis levels. Tis may not only directlyafect social security beneciaries and consequently thestandards o living o a large portion o the populationbut also, through aggregate demand efects, slow downor signicantly delay a ull economic recovery.

Thematic focus:Social security in times of crisis

In addition to providing income replacement or thosewho lose their jobs, thus saeguarding them rom pov-erty, social security benets also have major economicimpacts through stabilizing aggregate demand. And,contrary to earlier belies, no negative efects on eco-nomic growth o increased social spending during andater crises have been ound. On the contrary, well-designed unemployment schemes and social assist-ance and public works programmes efectively preventlong-term unemployment and help shorten economicrecessions.

In those countries reviewed that have at least elem-ents o comprehensive social security responses in areassuch as pensions, health schemes or amily benets, themain crisis responses are usually automatic increasesin number o beneciaries and expenditure as well asexpansions in coverage and in beneit levels o exist-ing schemes, except or a limited number o countries

which have been orced by circumstances to actuallydecrease benets or to narrow coverage.

Measures expanding beneits and coverage can

be ound everywhere in high-, medium- and low-income countries. Where they exist, unemploymentinsurance schemes are the branch o social securitythat bears the brunt o costs o income replacementor employees who have lost their jobs. But unemploy-ment insurance schemes are in place in only othe 8 countries or which inormation is availa-ble. Social assistance, public works and similar pro-grammes also have very limited coverage globally. Inthe economic crises o past decades which aectedcountries such as those in Asia and Latin America

where social security schemes were absent, it provedto be di cult i not impossible to introduce newschemes or ad hoc measures quickly enough to cush-ion the impact o the crisis. But countries which hadintroduced unemployment schemes beore the onseto the crisis, such as the Republic o Korea, could rela-tively easily scale up these measures to respond in anappropriate and timely way.

In high-, medium- and low-income countriesanalysed, government responses are ound in all thethree groups o countries providing income support

to the unemployed. he most common responses inhigh-income countries are modications o existing un-employment schemes. Since past recessions have ledto higher structural unemployment in some Western


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Executive summary

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social security systems. Tus, to prepare global societyor uture economic downturns and to achieve other

global objectives such as the Millennium DevelopmentGoals, sustainable economic development and a airglobalization, a undamental task is to develop com-

prehensive social security systems in countries whereonly rudimentary systems exist so ar, starting with the

provision o basic income security and afordable accessto essential health care. Te ILO is promoting the re-shaping o national social security systems based onthe principle o progressive universalism. Inter alia, theGlobal Jobs Pact, adopted by the International LabourConerence in June 009, advocates ensuring a mini-mum set o social security benets or all a social pro-tection oor. Based on that oor, higher levels o socialsecurity should then be sought as economies developand the scal space or redistributive policies widens.

Conclusions

Te current crisis has once more proved how importanta role social security plays in society in times o crisisand adjustment. It works as an irreplaceable economic,social and political stabilizer in such hard times bothor individual lives and the lie o society as a whole.Social security plays this role in addition to its otherunctions providing mechanisms to alleviate and alsoto prevent poverty, to reduce income disparities to ac-ceptable levels, and also to enhance human capital and

productivity. Social security is thus one o the condi-tions or sustainable economic and social development.It is a actor in development. It is also an importantactor in a modern democratic state and in society.

his report clearly shows that the majority o theworld population still has no access to comprehensive


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7the best strategy or progress is or these countries toput in place a set o basic social security guaranteesor all residents as soon as possible, while planning tomove towards higher levels o provision as envisagedin the Social Security (Minimum Standards) Conven-tion, 9 (No. 0) as their economies develop. At

the same time such a strategy would signicantly helpcountries to achieve their Millennium DevelopmentGoals.

Although social security is a human right, only aminority o the worlds population actually enjoys thatright, while the majority lacks comprehensive and ad-equate coverage. More than hal lack any type o pro-tection at all. In sub-Saharan Arica and South Asia,the number o people with access to even the most ru-dimentary protection is estimated to be less than 0 percent. And people in these countries need social protec-

tion, in particular when acing additional demographicand labour orce challenges due to the impact o HIV/AIDS.

In 00 the International Labour Conerence laidthe oundation or a sustained ILO eort to addressthis challenge, by calling or a major campaign to pro-mote the extension o social security coverage. heGlobal Campaign on Social Security and Coverage orAll was oicially launched at the 9st Session o theConerence in 00 by ILO Director-General Juan So-mavia, who said: Social security systems contribute

not only to human security, dignity, equity and socialjustice, but also provide a oundation or political in-clusion, empowerment and the development o demo-cracy. Well-designed social security systems improve

Social security is a undamental human right recog-nized in numerous international legal instruments,in particular the Declaration o Philadelphia (9),

which is an integral part o the Constitution o theInternational Labour Organization (ILO), and the Uni-

versal Declaration o Human Rights (98) adopted by

the General Assembly o the United Nations.More recently, the ILO Declaration on Social Jus-

tice or a Fair Globalization was adopted by the Inter-national Labour Conerence (ILC) at its 97th Session(008). Te Declaration recognizes that the ILO:

based on the mandate contained in the ILO Con-stitution, including the Declaration o Philadelphia(9), which continues to be ully relevanthasthe solemn obligation to urther among the nationso the world programmes which will achieve the

objectives o ull employment and the raising ostandards o living, a minimum living wage and theextension o social security measures to provide abasic income to all in need, along with all the otherobjectives set out in the Declaration o Philadel-phia. (ILO, 008a, Annex, Part II, Section B)

In recent years ILO work on social security has beenconducted within the ramework o the Global Cam-

paign on Socia l Security and Covera ge or Al l, asmandated by the International Labour Conerence o

00. Te Campaign ocuses on the act that there stillremain many countries in the world where social se-curity coverage is low, particularly among those withlow- and middle-income levels. Te ILO believes that

IntroductionContext, objectives, scopeand structure of the report


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8

impacts and on the costs and afordability o provid-ing at least basic social protection or all in need in the

poorest countries.1 In addition to the present report,the ILO is publishing a complementary guide to recentexperience across the world and proposing strategiesto extend social security to all those in need, as well assummarizing challenges and developing guidelines on

practice and existing strategic options.2his report aims to inorm social security plan-

ners, researchers and decision-makers about the stateo social security coverage. It provides the inormationthat policy-makers need to benchmark their national

policy decisions against international experience andthe situation in countries with comparable demograph-ics, social and economic conditions. Te report is also aglobal monitoring instrument that supports the ILOscampaign to extend social security coverage.

Te report is the rst in a series oWorld Social Se-curity Reports whose chie aim is to present the results oregular statistical monitoring o the state and develop-ments o social security in the world. Te World SocialSecurity Reports will look at, irst, the scope, extent,levels and quality o coverage by various social securitybranches; then at the scale o countries investments insocial security measured by size and structure o social

security expenditure and sources o its nancing; andinally at the eectiveness and eiciency o social se-curity systems in reaching various national social policyobjectives, as well as other impacts o the policies whichmay be o special interest. It is based to a large extenton inormation and statistics collected within the ILOSocial Security Inquiry and in this respect it may beseen as a continuation o the reports produced over pastdecades (since the 90s) by the ILO on the cost osocial security, but with broader ambitions.

1 See, among others, ILO, 00: Social protection as a productieactor, Report to the Employment and Social Policy Committee o the

Governing Body o the International Labour Organization (Geneva);ILO, 008b: Social health protection: An ILO strategy towards uniersal

access to health care , Social Security Policy Briengs, Paper (Geneva);ILO, 008c: Setting social security standards in a global society: An ana-lysis o present state and practice and o uture options or global social se-curity standard setting in the International Labour Organization , SocialSecurity Policy Brie ngs, Paper (Geneva); ILO, 008d: Can low incomecountries aord basic social security?, Social Security Policy Briengs,Paper (Geneva); ILO, 009b: Social security or all: Investing in social

justice and economic deelopme nt, Social Security Policy Briengs, Paper7 (Geneva); see a lso the recently published book: ownsend (ed.), 009:

Building decent societi es: Rethinking the role o social security in deelop-

ment(Geneva, ILO and London, Palgrave Macmillan). See also Dixon-Fyle and Mulanga, 00:Responding to HIV/AIDS in the world o workin Aica: Te role o social protection (Geneva, ILO).

2 See ILO, 00a: Extending social security to all: A guide throughchallenges and options (Geneva).

economic perormance and thus contribute to the com-parative advantage o countries on global markets. We

have the will, and now must nd the way, to providemore people with the social benets needed to surviveand prosper.

Te enhancement o the coverage and efectivenesso social security or all is one o the our strategic ob-

jectives o the Decent Work Agenda that guides theprogramme o the ILO. he eective governance osocial security schemes in particular their eectivenancial governance is an essential prerequisite orthe enhancement and extension o coverage and the en-hancement o the efectiveness o social security.

he recent global inancial crisis has once moredemonstrated how important it is or a country to havea comprehensive social security system. In times o crisissuch a system not only cushions the impact o the eco-nomic downturn on workers and their amilies thuscontributing to social stability but it works at thesame time as an economic stabilizer supporting aggre-gate demand and acilitating recovery. In April 009, asone o its joint Crisis Initiatives, the UN System ChieExecutives Board or Coordination adopted the SocialProtection Floor Initiative (UN, 009a). Te ILO, to-gether with the World Health Organization (WHO)

and a number o collaborating agencies, are leading thisinitiative. At its core is the building o a coalition ointernational agencies and donors, supporting coun-tries in their eforts to plan and implement sustainablesocial transer schemes and essential social services onthe basis o the concept o a Social Protection Floor.

Tis concept was endorsed as a part o the GlobalJobs Pact that the International Labour Conerenceadopted in June 009. he Pact requests countriesthat do not yet have extensive social security to buildadequate social protection or all, drawing on a basic

social protection oor including: access to health care,income security or the elderly and persons with dis-abilities, child benets and income security combined

with public employment guarantee schemes or the un-employed and the working poor, and urges the inter-national community to provide development assistance,including budgetary support, to build up a basic social

protection oor on a national basis (ILO, 009a).Te World Social Security Report 2010/11 is a ac-

tual report, not a policy document. Policy aspects osocial security have been covered over the last years in

a number o other ILO publications. In recent yearsthe ILO has published a number o reports and otherdocuments discussing the need or social security, andgathering evidence on its positive economic and social


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Introduction

9

009); and data and estimates rom the World HealthOrganization (WHO, 009a) on health expenditure

and national health accounts.Despite the multiple sources available, there stillexist many gaps which do not allow a ull assessmento all the dimensions o coverage. It is to be hoped thatthanks to the joint international efort presently under

way, the picture presented in the next report wil l bemore detailed and accurate.

Te structure o the report is as ollows:

Part I presents the main concepts, denitions andmeasurement methodologies used in the report andglobal and regional estimates o multiple dimen-

sions o social security coverage both in generaland in selected branches o social security.

Part II discusses a special eature selected or this00 report: the role o social security in timeso economic crisis.

Te Statistical Annex provides in tabular orm themain characteristics o the demographic, labourmarket and economic environment o social se-curity, as well as more detailed data on the scope,extent and levels o coverage by social security acrossthe world. It provides basic inormation or re-

searchers and policy-makers in social security. Tedata in the Statistical Annex tables, as well as thedata used or most gures and tables in the body othe report, are also available in spreadsheet ormatin the ILO Social Security Department databaseGlobal Extension o Social Security (GESS) (ILO,009d), accessible at http://www.socialsecurityex-tension.org/gimi/gess/ShowTeme.do?tid=98.

he report is the result o a joint eort by the ILOsSocial Security Department research and statistical

team led by Florence Bonnet and Krzyszto Hagemejer.Te team was signicantly aided in its preparation bythe work o Axel Weber, Xenia Scheil-Adlung, SylvieRenault and Elena Lanza. Parts o the content draw onearlier research as well as results o technical cooper-ation activities by staf o the Social Security Depart-ment and ILO social security specialists in the ield.Te authors are grateul or detailed and constructivecomments rom many colleagues, in particular NomaanMajid o the ILOs Employment Sector, and rom ananonymous external reviewer.

Te main objective o the current report is to presentthe knowledge available on coverage by social security

in diferent parts o the world, and to identiy existingcoverage gaps. Te measurement o social security cov-erage in all its dimensions is still a subject o debate. Inaddition, the statistical inormation available not onlyat the international but also at the national level isar rom complete. he report thus ocuses on threeelements: () mapping social security coverage globallyand by region or other country grouping (such as levelo income) using the various inormation and statis-tical sources available; () presenting various methodsand approaches to assessing social security coverage;() identiying and indicating gaps in measurable stat-istical knowledge on social security coverage, costs andimpacts, in order to raise awareness o the need or andimportance o high-quality social security statistics.

Due to the data situation this rst edition is biasedtowards assessing the extent o population cover-age rather than aspects o scope and level o coverage.It is based on the available statistical data and othertypes o relevant inormation. In addition to data col-lected by the ILO within its Social Security Inquiryit makes extensive use o inormation on existing legal

provisions designed to provide social security coverage,

rom the database Social Security Programs Trough-out the World jointly developed and maintained by theUS Social Security Administration (SSA) and Inter-national Social Security Association (ISSA) (SSA/ISSA, 008, 009). Data included in the ILO SocialSecurity Inquiry (SSI) (ILO, 009c) incorporates in-ormation rom databases o other organizations: theSocial expenditure database (SOCX) o the Organi-sation or Economic Co-operation and Development(OECD, 009a); the Living Conditions and Welare(social protection expenditure and receipts) database

(ESSPROS) o EUROSA, the Statistical O ce othe European Communities (European Commission,009a); data on expenditure and coverage by social pro-tection programmes in Asia rom the database usedto calculate the Social Protection Index o the AsianDevelopment Bank (ADB, 00, 008); and data onexpenditure, nancing and coverage or selected coun-tries collected by ISSA (ISSA, 009). Te report alsomakes extensive use o data on government expendi-ture rom the database Government Finance Statis-tics (GFS) o the International Monetary Fund (IMF,


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13social protection may be largely interchangeable, andthe ILO (ollowing the European tradition) certainlyuses both in discourse with its constituents and in the

provision o relevant advice to them.2In this report, accordingly, reerence is made to

social protection as having the ollowing aspects: ()

interchangeable with social security or () as protec-tion provided by social security in case o social risksand needs.

Social security

he notion osocial security adopted here covers allmeasures providing benets, whether in cash or in kind,to secureprotection, inter alia, rom

(a) lack o work-related income (or insu cient income)caused by sickness, disability, maternity, employ-ment injury, unemployment, old age, or death o aamily member;

(b) lack o access or unafordable access to health care;

(c) insu cient amily support, particularly or childrenand adult dependants;

(d) general poverty and social exclusion.

2 It may be noted, however, that the ILO does use the institutionaltitle Social Protection Sector which comprises a wider range o pro-grammes than social security; the Sector deals with issues includingsaety at work, labour migration and aspects o working conditions suchas hours o work, wages and others.

This chapter ocuses on the basic concepts, deini-tions and methodology guiding the analytical worko the ILO on social security.

1.1 Basic definitions

Te terms social protection andsocial security are used invarious and not always consistent ways, difering widelyacross countries and international organizations, andalso across time. It is not the purpose o this sectionto assert any universal deinitions; it is rather simplyto clariy terms and concepts as they are used in thisreport and in the ILO.

Social protection

Te termsocial protection is used in institutions acrossthe world with a wider variety o meanings than social

security. It is oen interpreted as having a broader char-acter than social security (including, in particular, pro-tection provided between members o the amily ormembers o a local community),1 but it is also used insome contexts with a narrower meaning (understoodas comprising only measures addressed to the poorest,most vulnerable or excluded members o society). Tus,

in many contexts the terminology social security and

1 Tis usage was reected in ILO, 000: World Labour Report2000: Income security and social protection in a changing world(Geneva).

Definitions, standardsand concepts 1


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character) which can partially assume selected rolesusually played by social security, including in particular

occupational pension schemes, which complement andmay substitute in considerable measure or elements o

public social security schemes. Entitlements to socialsecurity are conditional either on the payment o socialsecurity contributions or prescribed periods (i.e. con-tributory schemes, most oen structured associal insur-

ance arrangements) or on a requirement, sometimesdescribed as residency plus, under which benets are

provided to all residents o the country who also meetcertain other criteria (i.e. non-contributory schemes).Other criteria may make benet entitlements condi-

tional on age, health, labour market, income or otherdeterminants o social or economic status and/or evenconormity to certain orms o behaviour. Means-testedsocial assistance is a special case, envisaged underthe provisions o Recommendation No. 7 concerningincome security.

What distinguishes social security rom other socialarrangements is that: () benets are provided to bene-ciaries without any simultaneous reciprocal obligation(thus it does not, or example, represent remunerationor work or other services delivered); and () that it is

not based on an individual agreement between the pro-tected person and provider (as, or example, a lie insur-ance contract) but that the agreement applies to a widergroup o people and so has a collective character.

Social security thus has two main (unctional) di-mensions, namely income security and availability

o medical care, which are speciically identiied inthe ILO Income Security Recommendation, 9(No. 7), and the Medical Care Recommendation,9 (No. 9), respectively, as essential elements osocial security. Tese Recommendations envisage that,irstly, income security schemes should relieve wantand prevent destitution by restoring, up to a reasonablelevel, income which is lost by reason o inability to work(including old age) or to obtain remunerative work orby reason o the death o the breadwinner (No. 7,Guiding principles, Paragraph ). Secondly, a medical

care service should meet the needs o the individual orcare by members o the medical and allied proessionsand medical care services should cover all memberso the community (No. 9, Paragraphs and 8). Tisduality is also reected in the ormulation o the Dec-laration o Philadelphia which speaks o social securitymeasures to provide a basic income to all in need osuch protection and comprehensive medical care.

Access to social security is, in its essential nature, apublic responsibility, and is typically provided throughpublic institutions, nanced either rom contributions

or taxes. However, the delivery o social security canbe and oten is mandated to private entities. More-over, there exist many privately run institutions (oinsurance, sel-help, community-based or o a mutual

Box 1.1 Individual and societal need for protection by social security

Everybody needs protection from risks and the insecurity they cause. When this need for protection remainsunmet for the individual and for households, numerous negative ef fects follow. A growing body of evidenceindicates that unfulfilled protection results in increasing poverty, higher levels of exclusion from access tohealth and education, low access to productive activities, an increase in the prevalence of child labour,HIV/AIDS and so on. The need for protection depends to a large extent on several factors that exist at theindividual and household level as well as the national level. These include income, sex, age, health status,occupation, employment status, the location of the residence and the workplace; and at the macro level theyrefer to factors such as political stability, economic trends, price trends and so on.

When considering these various factors, it is relatively easy to identify situations that increase vulnerabilityand the need for protection. For example, at the individual level these might include being chronically ill orhaving a hazardous occupation. At the macro level it could refer to a financial crisis or increases in foodprices. The poor tend to amass several risk-laden situations simultaneously, so that they face increasedinsecurity: their low income means they are less able to save and accumulate assets. This in turn rendersthem less able to deal with a crisis when it strikes; they most often work in the informal economy anunregulated environment with unsafe working conditions; they may lack basic education (illiteracy) and areoften beyond the reach of prevention or health education programmes because they are unaware of theirsocial entitlements. In addition, they may live in remote areas far away from public social services. For poorpeople, dealing successfully with the risks they face is often a matter of life or death. But risks affect notonly the existing poor; they can also plunge the non-poor into poverty. For example, the World Health Organ-ization (WHO) estimates that each year 100 million people fall into poverty as a result of the financial burdenof health-related risks, or the need to pay for health-care services.

See also the wider discussion in Extending social security to all: A guide through challenges and options(ILO, 2010a).


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Definitions, standards and concepts

salary employment, contributions are usually paid byboth employees and employers (by and large, employ-

ment injury schemes are ully nanced by employers).Contributory schemes can be wholly nanced throughcontributions but oen are partly nanced rom tax orother sources, either in the orm o a subsidy to coverthe decit, or in the orm o a general subsidy supplant-ing contributions altogether, or subsidizing only specicgroups o contributors or beneciaries (those not con-tributing because they are caring or children, studying,in military service, unemployed, or have too low a levelo income to ully contribute, or receive benets belowthe minimum because o low contributions in the past).

Insurance schemes, in the context o social security,reer to schemes that guarantee protection through aninsurance mechanism. Insurance is based on: () the

prior payment o premiums or contributions, i.e. beorethe occurrence o the insured contingency; () risk shar-ing or pooling; and () the notion o a guarantee. Te

premiums paid by (or or) insured persons are pooledtogether and the resulting und is used to cover the ex-

penses exclusively incurred by those persons aectedby the occurrence o the relevant (clearly dened) con-tingency or contingencies. It is common that contribu-tory schemes make use o an insurance vehicle (usually

social insurance), but the reverse is not necessarily true(national provident unds, or example, do not generallyeature risk-pooling). It should be noted that social in-surance is distinguished in strict technical terms in thatthe risk-pooling is based on the principle o solidarity,as against insurance arrangements o a more amiliar,commercial type, based on individually calculated risk

premiums.Many social security schemes o the contributory

type are presented and described as insurance schemes(usually social insurance schemes), despite being in

actual act o mixed character, with some non-contribu-tory elements in entitlements to benets; this allows ora more equitable distribution o benets, particularlyor those with low incomes and short or broken workcareers, among others. hese non-contributory elem-ents take various orms, being nanced either by othercontributors (redistribution within the scheme) or bythe State.

Conversely, non-contributory schemes or social as-sistance schemes normally require no direct contribu-tion rom beneciaries or their employers as a condition

o entitlement to receive relevant beneits. Non-con-tributory schemes include a broad range o schemes in-cluding universal schemes or all residents and somecategorical or means-tested schemes. Non-contributory

Depending on the category o applicable conditions,a distinction is also made between non-means-tested

schemes (where the conditions o beneit entitlementare not related to the total level o income or wealth othe beneciary and his amily) and means-tested schemes(where entitlement is granted only to those with incomeor wealth below a prescribed threshold).

A special category o conditional schemes includesthose which, in addition to other conditions, requirebeneciaries (and/or their relatives or amilies) to par-ticipate in prescribed public programmes (or example,specied health or educational programmes). In recent

years, schemes o this type have become known as con-ditional cash transer (CC) schemes.

Social transfers

All social security benets comprise transers, either incash or in kind, i.e. they represent a transer o incomeor services (most oen health-care services). Tis trans-er may be rom the active to the old, the healthy to thesick, or the a uent to the poor, among others. Te re-cipients o such transers may be in a position to receivethem rom a speciic social security scheme because

they have contributed to such a scheme (contributoryscheme), or because they are residents (uniersal schemesor all residents), or they ull specic age criteria (cat-egorical schemes), or they experience speciic resourceconditions (social assistance schemes) or because theyull several o these conditions at the same time. Inaddition, it is a requirement in some schemes that ben-eciaries accomplish specic tasks (employment guar-antee schemes, public works) or that they adopt specicbehaviours (as in CCs). In any given country, severalschemes o dierent types generally coexist and may

provide benets or similar contingencies to diferentpopulation groups. Te more specic characteristics othese diferent schemes are outlined below.

In contributory schemes the contributions made bybeneiciaries directly determine entitlement to bene-ts (acquired rights). Te most common orm o con-tributory social security scheme is o a statutory socialinsurance scheme or ormal wage employment and, insome countries, or the sel-employed. Other commontypes o contributory scheme, providing in the ab-sence o social insurance a certain level o protection,

include national provident unds that usually pay alump sum to beneciaries when particular contingen-cies occur (typically old age, invalidity or death). In thecase o social insurance schemes or those in wage or


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threshold. Such targeted schemes are very diverse intheir design and eatures. Tis diversity may maniestitsel through the methods o targeting that are em-

ployed, the supplementary conditions required or ben-eciaries to access benets and the inclusion o otherinterventions that are delivered on top o the actualincome transer itsel.

Conditional cash transers (CCs) are social assist-ance schemes that provide cash to amilies subject to the

condition that they ull specic behavioural require-ments. Tis may mean they must ensure their childrenattend school regularly (typically 890 per cent attend-ance) or that they utilize basic preventative nutritionand health-care services; CCs are usually means-tested.

Employment guarantee schemes ensure access to acertain number o workdays a year to poor households,generally providing wages at a relatively low level (typ-ically at the minimum wage level i this is adequatelydened). Such programmes generally take the orm opublic works activity.

Social security schemes, programmes and measuresshould be seen as a distinct body o rules and, thereore,characterized by at least a certain degree o ormality,supported by one or more social security institutions

schemes are usually nanced through tax or other staterevenues.

Universal schemes or all residents provide benetsunder the single condition o residence. Such schemesare mostly put in place to guarantee access to healthcare. Tey are generally tax-nanced, but may require aco-payment by users o health services; sometimes withexemption or the poorest (typically the latter may re-ceive vouchers).

Categorical schemes target speciic groups (cat-egories) o the population. he most requent ormso categorical schemes are those that transer incometo the elderly above a certain age or children below acertain age. Some categorical schemes also target house-holds with specic structures (one-parent households,or example) or occupational groups such as rural work-ers. Categorical schemes may also be grouped as uni-

versal i they cover all residents belonging to a certaincategory, or include resource conditions (as in social as-sistance schemes). Tey may also include other types o

conditions such as perorming or accomplishing certaintasks. Most categorical schemes are tax-nanced.

Means-tested schemes target people whose means(usually their assets and income) all below a certain

Box 1.2 An introduction to the terminology

Contingenciesare events that might or might not occur (having an accident or winning the lottery, for ex-ample). Hazards(often mis-termed as risks) are contingencies that are perceived as having a negative effecton individuals, groups or societies or even more complex entities, such as the environment. Hazards includea broad range and variety of contingencies such as flood, earthquake, conflict, loss of job, the death of anincome-earning household member or chronic illness. The term riskshould describe exclusively the prob-ability that a contingency or a hazard occurs. Unfortunately it is often used in literature as a synonym forhazard and at the same time as probability that a contingency occurs and that has a negative connotation.

You are exposedto a hazard or a contingency if a certain event can occur and affect you for instance,living in an environment where a certain illness can be contracted. If you move to a country where thatparticular illness does not exist, you are no longer exposed. You are vulnerable to a certain hazard if youhave no means of coping with the consequences of that hazard once it has occurred: for example, not beingable to afford medical care that can help you regain your health. If you are vulnerable to a certain hazardthen you are in need of a protecting mechanism that reduces your vulnerability. Social securitymakes youless vulnerable to the financial consequences of certain hazards if and when they materialize, i.e. it providessecurity or reduces insecurity. Apart from what can be done through accident or illness prevention, thedirect contribution of social security to reducing exposure to hazards is of course limited.

Not all hazards are unforeseeable and beyond our control. For example, the probability of contractinga certain illness can be reduced by health-conscious behaviour, the hazard of unemployment by movingto a region where your skills are in greater demand, and your familys exposure by sending them out of acountry that is beset by political unrest or poor health conditions. If you are paying insurance contributionsthat entitle you to a cash benefit should a certain contingency occur, this would help to mitigate the impactof that hazard. If your society provides you with social assistance benefits should you fall into poverty,these benefits if adequatemay help you to cope with the hazard once it has occurred. The wholeportfolio of strategies and arrangements, ranging from risk reduction, avoidance or prevention to hazardmitigation and coping, is called by the World Bank socialrisk managementand should strictly be calledsocial hazard management.

Source: Based on Cichon et al., 2004.


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Definitions, standards and concepts

In the context o its campaign to extend social se-curity to all, the ILO is promoting the social transer

component o the social protection loor, that is, thesocial security oor, a basic and modest set o essentialsocial guarantees realized through transers in cash andin kind that could ensure a minimum level o incomesecurity and access to health care or all in need. Tegoal o such a basic set o guarantees is a situation in

which, in all countries:

all residents have the necessary nancial protectionin order to be able to aford and have access to a na-tionally dened set o essential health-care services,

whereby the State accepts the general responsibility

or ensuring the adequacy o the (usually) pluralisticnancing and delivery systems;

all children have income security, at least at the na-tionally deined poverty level, through amily orchild benets aimed at acilitating access to nutri-tion, education and care;

all those in active age groups who are unable to earnsu cient income in the labour market should enjoya minimum level o income security through socialassistance or other social transer schemes (such as

transer income schemes or women during the lastweeks o pregnancy and the irst weeks ater de-livery), combined with employment guarantees orother labour market policies;

all residents in old age or with disabilities haveincome security, at least at the nationally deined

poverty level, throug h pensions or old age anddisability.

Te level o benets and scope o population covered(or example, age eligibility or old-age pensions) or

each guarantee should be dened according to nationalconditions (potential scal space, demographic struc-ture and trends, income distribution, poverty spreadand gap, and so on), political choices,

OIT - Reporte Mundial de Seguridad Social 2010-2011

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