Rights in Crisis:
Older Persons’ Social and
Economic Rights during the
Global Recession
Human Rights Social Forum
United Nations, Geneva, 1 April 2014
Isabel Ortiz
Director Social Protection Department
International Labour Organization
Older Persons Affected by Global Crisis (I):
Crisis Transmission Channels
1.




2.



Income and Employment
Pension reforms
Negative returns from pension
funds
Household family income affected
by unemployment and wage cuts
4. Government Spending
Decreased demand for migrant
workers, lower remittances
on Social Sectors
 Education
 Health
Prices
Basic food, agricultural inputs
 Social security
Fuel
Medicines, drugs
5. Aid Levels - ODA
3. Assets and Credit


Loss of savings due to bank
failures
Loss of savings due to coping
mechanisms
The Right to Social Security – Old Age Pensions:
A Right Unfulfilled for most
Source: ILO, World Social Security Report 2014 (forthcoming)
The Main Source of Older Persons’ Income is
Work – But Labour Demand Falling
Employment to Population Ratios 1990-2011
Source: Ortiz and Cummins. 2012. A Recovery for All. UNICEF.
Only in OECD countries the main source of
income for older persons are public pensions...
now under reform because of austerity policies
Source: ILO, World Social Security Report 2014 (forthcoming)
Older Persons Affected by Global Crisis (II):
Higher Food Prices
200
190
180
170
160
150
140
130
120
110
Local Food Price Index (UNICEF, 55 countries)
Global Food Price Index (FAO, March 2013)
Jan-07
Apr-07
Jul-07
Oct-07
Jan-08
Apr-08
Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
Jan-10
Apr-10
Jul-10
Oct-10
Jan-11
Apr-11
Jul-11
Oct-11
Jan-12
Apr-12
Jul-12
Oct-12
Jan-13
100
Source: Ortiz and Cummins. 2012. A Recovery for All. UNICEF
Older Persons Affected by Global Crisis (III):
Public Expenditures in Crisis Phase I (2008-09) –
Fiscal Expansion
Social Protection 25% Fiscal Stimulus Plans 2008-09
Source: Ortiz and Cummins.2013. The Age of Austerity. IPD and the South Centre
Women Affected by Global Crisis (III cont.):
Countries Contracting Public Expenditures
During Second Phase Crisis (2010 onwards)
Number of Countries Contracting Public Expenditures as a % GDP, 2008-16
131
132
122
119
106
111
68
55
37
89
91
94
90
Source: Ortiz and Cummins.2013. The Age of Austerity. IPD and the South Centre - based on IMF’s World Economic
Outlook (October 2012)
How are Expenditure Cuts Affecting Older Persons?
Austerity Measures in 174 Countries, 2010-13
120
119
30
100
98
100
22
80
High-income countries
94
86
23
39
89
78
75
Developing countries
31
60
40
80
25
63
37
47
55
20
32
25
17
12
15
Health
reform
Labour
reforms
0
Contracting
expenditures
in 2013*
Limiting
subsidies
Wage bill
Increasing
cuts/caps consumption
taxes
Pension
reform
Further
targeting
safety nets
Source: Ortiz and Cummins. 2013. The Age of Austerity. IPD and the South Centre – based on 314 IMF
country reports 2010-2013
A Crisis of Social Support
131 countries contracting public expenditures in 2014 (91
developing countries) in areas critical to Older Persons
 Removing subsidies (food, fuel and others) in 100 countries, despite
record-high food prices in many regions
 Wage bill cuts or caps in 98 countries, reducing the salaries of publicsector civil servants like health and social workers who provide essential
services to the population
 VAT increases on basic goods and services that are consumed by the
poor in 94 countries
 Rationalizing and narrow targeting safety nets are under consideration
in 80 countries, at a time when governments should be looking to scale
up benefits though social protection floors
 Reforming pension and health care systems in 86 and 37 countries
 Labor flexibilization reforms in 30 countries, eroding workers rights
Source: Ortiz and Cummins. 2013. The Age of Austerity. IPD and the South Centre
Future pensioners receive lower pensions in at
least 14 countries of Europe
Reduction in theoretical replacement rates for average wage workers retiring at 65 after
40 years, 2006-46 (percentage points of theoretical average wage)
Source: ILO, World Social Security Report 2014 (forthcoming)
Expansion of old-age pensions in developing countries
Contraction in Europe and Former Soviet Union
Source: ILO, World Social Security Report 2014 (forthcoming)
Old Age Pensions: Coverage
Source: ILO, World Social Security Report 2014 (forthcoming)
Social Protection Floors Recommendation 202
approved by world countries
• June 2012: The Recommendation Concerning National
Floors of Social Protection adopted at the 101st session
of the ILC in Geneva, by governments, unions and
employers.
 July 2012: Rio+20 – “The future we want” UNGA
A/RES/66/288 Para 156. “We stress the need to provide
social protection to all members of society, fostering
growth, resilience, social justice and
cohesion, including those who are
employed in the informal economy.
We strongly encourage providing social
protection floors for all citizens”
Basic Pillars of Recommendation 202
Social Protection Floors
NATIONAL SOCIAL SECURITY SYSTEM
Higher levels
of protection
NATIONAL SOCIAL PROTECTION FLOOR:
nationally defined basic social security guarantees
essential health care
including maternity
care
basic income
security for girls and
boys providing access
to nutrition, education,
and any other necessary
goods and services
basic income
security for women
and men in active
age unable to earn
sufficient income
basic income
security for women
and men in old age
Post 2015 Agenda: A Rights-based target and
indicator to change the life of older persons by 2030
TARGET: All older persons
receive an adequate
pension
• INDICATOR: Share of persons
above retirement age that
benefit from an old-age pension
• ILO monitored indicator, exists
for 175 countries
• Currently 51.5% (weighted world
average, latest available year
2009-2012)
• FYI - High income countries 90%;
developing 44.3%, LDCs 16.8%
• Potential for quick increases in
middle income countries
16
Fiscal Space for Older Persons and Socio-Economic
Recovery Exists Even in the Poorest Countries
 There is national capacity to fund social protection floors in
virtually all countries. There are many options, supported by
UN and IFIs policy statements:
• Re-allocating public expenditures
• Increasing tax revenues
• Increasing contributions
• Fighting illicit financial flows
• Lobbying for increased aid and transfers
• Tapping into fiscal and foreign exchange reserves
• Restructuring debt
• Adopting a more accommodative macroeconomic
framework (e.g. tolerance to some inflation, fiscal deficit)
Ortiz and Cummins. 2012. A Recovery for All. UNICEF
It is not too late: Policies for an Equitable Recovery
 Current crisis presents an opportunity to rethink socioeconomic policies for an equitable
recovery
 1929 financial crash led to a New
Deal that radically altered the
development model of the day:
 Stimulated economic growth
and employment
 Regulated the financial sector
 Expanded social security
 A comparable policy push is needed today
 It is not too late
Thank you
Contact: Isabel Ortiz,
Director Social Protection Department,
International Labour Organization.
Email: ortizi@ilo.org
Visit: www.social-protection.org
http://www.ilo.org/