UNDP
Policy Dialogue
on Long-Term Social Protection
11 October 2010
Selwyn Jehoma
Deputy Director General: Comprehensive Social Security
Department of Social Development
Background
• The main forces - The inheritance of democratic government
• South Africa chose a broad conceptualization of social protection that:
1. Incorporates developmental strategies and programmes;
2. Provides a coherent framework for integrating existing and proposed
social and economic policy interventions. These wider functions and
objectives of social protection are better able to address socially and
economically embedded problems, new risks and increased
vulnerabilities;
3. Creates added potential for integration and links income transfers and
private, public and community sector interventions.
SOCIAL PROTECTION
FRAMEWORK
Three Pillar
Social Assistance
Act, 2004
South Africa Social
Security Agency Act
Free Basic Services:
Housing, Water,
Electricity, sanitation,
etc.
National Health Act
SA Schools Act
Compensation for
Occupational
Injuries &
Diseases
Act, 1993
Medical Schemes
Act, 1998
Pension Fund
Act 1956
Road Accident
Fund Act, 1996
Unemployment
Insurance Fund Act,
2001
Medical Schemes
Act, 1998
Constitution of the Republic of South Africa, 1996
The Social Protection Framework
Application
Key components
Income poverty
Universal/
eligibility criteria
Child
Capability poverty
Universal/ Eligibility
criteria
Free
Asset Poverty
Universal/ Eligibility
Access
Special needs
Eligibility criteria
Reformed
support grant (0-6 years)
State Old Age grant
Income support and Expanded Public Works
and adequate publicly-provided healthcare
Free primary and secondary education
Free water and sanitation (lifeline
Free electricity (lifeline
Accessible and affordable public transport
Access to affordable and adequate housing
to productive and income generating
assets such as land and credit
Access to social assets such as community
infrastructure
disability grant
Compensation for work related injuries
Compensation for Road Accidents
Defining social protection
• World Bank: “Portfolio of strategies & arrangements ranging from risk
reduction, avoidance or prevention”
• ILO, DFID, others: as income transfers through social insurance,
social assistance to protect employed citizens.
• Definitions proposed are similar.
• The traditional concepts of social protection do not always reflect the
realities of the developing world.
• Comprehensive social protection for South Africa seeks to provide the
basic means for all people living in the country to effectively
participate and advance in social and economic life, and in turn to
contribute to social and economic development
BASIC SERVICES
•
•
•
•
•
•
•
Inclusionary Housing Policy create housing
opportunities for low cost housing.
Free water supply is for those who cannot afford
Free electricity
Sanitation provided
Healthcare
Education
Land (re)distribution
SOCIAL ASSISTANCE SCHEME
Social Assistance is provided in the form of
– old age grant,
– disability grant,
– war veterans grant,
– care dependency grant,
– foster care grant,
– child support grant,
– grant-in-aid and social relief of distress
SOCIAL INSURANCE SCHEMES
• Social insurance is provided to protect employees and their
dependents, through insurance, against contingencies which
interrupt income.
• These schemes are contributory for both employers and
employees.
• The contributions are wage-related and the employees and
the employers are mandated by law/ bargaining council
arrangements in terms of sector of employment
• Social insurance covers contingencies such as pensions or
provident funds, medical benefits, maternity benefits, illness,
disability, unemployment, employment injury benefits, family
benefits and survivor’s benefits.
Strategic Challenges
•
•
•
•
•
Social Assistance
Social Insurance
Education
Housing
Water and Sanitation
How are we planning to
move towards a
Comprehensive Social
Security System?
REFORM: SOCIAL SECURITY
Partial Social Security
Universal Social Security
Pillar 1:
-
Universally available basic benefit for all citizens and specified
classes of legal residents
Pillar 2:
– Contributory environment over-and-above pillar 1, characterized by
strong mechanisms to ensure social solidarity:
• Income and Risk-based cross-subsidies and Mandatory
participation
Pillar 3:
– Discretionary social security over-and-above
minimum levels regarded as essential
Concluding remarks
• South Africa’s social assistance programme has been
expanding at an unprecedented rate, from covering just 2,7
million people in 1994 to over 12,5 million people today.
• Its total expenditure makes up 3,4% of GDP and is the
second biggest expenditure item of government’s budget
• Much work remains to be done in respect of the second pillar
to expand coverage for employment related social security,
including retirement provisions, health insurance,
unemployment insurance, etc.
• Backlogs in basic services a moving target
Thank You
Merci
Gracias
Obrigado
Asante sana