inter-american committee on social development cides – oas second meeting of ministers and high...

Inter-American Committee on Social Development CIDES – OASInter-American Committee on Social Development CIDES – OAS

Second Meeting of Ministers and High Second Meeting of Ministers and High Authorities of Social Development:Authorities of Social Development:

Strengthening and Supporting Social Strengthening and Supporting Social Protection SystemsProtection Systems

Presidency of Colombia Presidency of Colombia 2008-20102008-2010

JUAN MAURICIO RAMÍREZJUAN MAURICIO RAMÍREZGeneral SubdirectorGeneral Subdirector

National Department of Planning (Colombia)National Department of Planning (Colombia)April 2010April 2010

Inter-American Committee on Social Inter-American Committee on Social Development (CIDES) of the OASDevelopment (CIDES) of the OASPresidency of COLOMBIA 2008-2010Presidency of COLOMBIA 2008-2010

1. Background: The impact of the crisis on social protection systems of the Region.

2. Proposal of CIDES work areas for the 2010-2012 period, based on the work plan of the 2008-2010 period.

3. Support of Colombia on specific themes focused on strengthening work priorities.

Content

SOCIAL PROTECTION NETWORKS

Vulnerable Population

SOCIAL PROTECTION SOCIAL PROTECTION SYSTEMSYSTEM

GeneralPopulation

HEALTH

MITIGATING

NATURAL DISASTE

RS

STRENGTHENING HUMAN CAPITAL

PENSIONS

RISK OF UNEMPLOYME

NT

The impact of the crisis on social protection systems in the Region

Social Programs

Social Programs

Integral and multidimension

al policies

Integral and multidimension

al policiesGeneral

protection against

multiple risks

General protection

against multiple risks

• Decrease in the volume of exports• Decrease in remittances• Decrease in tax revenueECONOMY

• Youth drop out from schoolEDUCATION

• Reduction of tax revenue may reduce spending in the health sectorHEALTH

• Rising food prices impacted the commercial balance of the food industry, resulting in inflation and reduction of consumer capacity of households.

NUTRITION

SOCIAL• Deceleration decreasing trend of poverty and inequality• Increase in unemployment rates• Deterioration of job quality for poorest population


Over the last decade, the region has shown a downward trend in the incidence of poverty and it is very important to prevent this trend from reversing.

COMPARISON OF THE GNP PER CAPITA AND THE INCIDENCE OF POVERTY, 1980-2008* LATIN AMERICA (19 COUNTRIES) (in dollars and percentages of population)

•Source: ECLAC (2009) Panorama Social en América Latina., p. 35, sobre la base de tabulaciones especiales de las encuestas de hogares de los respectivos países y cifras oficiales. *Promedio ponderado

33.2

US $4.59

7


The region enacted strategies that positively impacted the population during the crisis and its institutions responded more effectively to its effects.

INSTRUMENTS OF SOCIAL POLICY USED IN THE ECONOMIC CRISIS

Monetary transfers that mitigate the decrease in income

Social programs of delivery of food and subsidies to gain access to social services

Policies to increase the demand for jobs in the housing and infrastructure sectors

Policies that favor employability of the poorest and most vulnerable population

Source: ECLAC (2009) Panorama Social en América Latina y el Caribe.


In Colombia: The policy to confront the economic crisis is based on 4 principles

Investment in infrastructure to generate

jobs and promote competitiveness

Investment in infrastructure to generate

jobs and promote competitiveness

Investment in the social protection network to maintain consumption levels of the vulnerable

population

Investment in the social protection network to maintain consumption levels of the vulnerable

population

Strengthen investor confidence to maintain the

dynamic of private investment

Strengthen investor confidence to maintain the

dynamic of private investment

Ensure access to financingEnsure access to financing

4 PRINCIPLES4 PRINCIPLES

Colombia: Characteristics of countercyclical policyColombia: Characteristics of countercyclical policy

Creation of a High Presidential Council for Countercyclical Policy

Setting goals for public investment and social protection with monthly monitoring through a system of traffic lights

Countercyclical monetary policy of the independent Banco Central (Central Bank)

Impact: Growth of GNP in 2009: +0.4% Growth of public demand: +10.2% Growth of GNP without public demand: -2.4% Job creation: 642.000

The expansion of public spending compensated the decrease in private demand


The countercyclical policy was applied with fiscal responsibility

The countercyclical policy was applied with fiscal responsibility

Change in debt* (Projection 2010-Observed 2008) (% of GNP)

20.2

11.5

4.6

0.0

5.0

10.0

15.0

20.0

25.0

Advanced economies Emerging

and developing

economies

Colombia

The effects of the crisis were greater in the Caribbean countries, increasing the unemployment rate higher than that of the Latin American average



• With more solid market variables, the Latin American and the Caribbean region was able to confront the crisis more easily than in the past.

• Despite the return to positive growth, recovery of social variables is usually slower.

• Three main challenges:• recover the capacity to increase and sustain high rates (what is

the potential growth rate of the Latin American and Caribbean economies?)

• Accelerate the recovery of social variables (poverty/unemployment) – catching up vis-a-vis economic recovery (pro-poor growth)

• Promote effective social protection and social promotion (CIDES AGENDA)

• Reach these goals while guaranteeing the fiscal sustainability and a stable macroeconomic environment.

Post-Crisis ChallengesPost-Crisis Challenges

Proposal of work areasProposal of work areasCIDES 2010 - 2012CIDES 2010 - 2012

1. Tools to promote efficient and effective social protection for the entire population

2. A policy for more and better employment for the region

3. Strengthening Food and Nutritional Security policy

4. Promote Public-Private Partnerships as a mechanism to strengthen the impact of development in the region

5. Strengthen the processes of Risk Management in the Hemisphere with the goal of reducing social, physical and financial vulnerability, in the occurrence of adverse natural and/or unintentional anthropic events.

Tools to promote efficient and effective social protection social protection for for the entire populationthe entire population


• Update and deepen the diagnostic on the different tendencies that the LAC countries have adopted as they designed and put into practice their Social Protection Systems.

• Guarantee the inclusion of the poorest and most vulnerable people in Social Protection Systems.

• Guarantee the sustainability of Social Protection Systems in the demographic challenges that confront the region: i) improving the living conditions of persons over 60 years of age, especially those lacking social protection; and ii) promoting active aging throughout the life cycle.

• Strengthen the response mechanisms of Social Protection Systems in adverse shocks of a covariant nature like financial, epidemiological, economic, or humanitarian crises, or natural disasters with the goal of ensuring the quality of life of the entire population.

A policy for more and better employment for the region

Promote exchange of information exercises that allow identification of best practices in development and short and long term instruments to protect or reactivate the labor market.

Analyze the most prominent actions and tools employed in the region as a response to the restrictions imposed on the majority of the vulnerable population in terms of autonomous income generation or access to labor opportunities.

i) Promote the identification of successful experiences in terms of income generation, as well as the implementation of pilot projects to test their effectiveness in other scenarios.

ii) Develop exchange of information exercises in the framework of the CIDES to make a joint evaluation of the promoted pilot projects.


Strengthening Food and Nutritional Security Food and Nutritional Security policypolicy

The approach of an integral policy for food and nutritional security should incorporate the following principles: a) Availability of food; b) Physical and economic access to food; c) Consumption of foods; d) Biological use; and e) Quality and safety.

Develop an integral public policy framework in the area of food and nutritional security.

Socialize and strengthen best practices, highlighting integral care programs and nutritional rehabilitation during childhood, the practices of consumption, and productive projects with small producers.

Generate regional networks that involve commercial agreements.

Define a group of priority foods to which the food and nutritional security policy is aimed.

Strengthen regional integration through the creation of an information network on management of and activities for food and nutritional security in the region.


Identify the obstacles to generating and developing the partnerships to define viable and appropriate mechanisms that facilitate their implementation.

Strengthening mechanisms to arrange and negotiate alliances among various actors that increase the relevance, impact, and definition of roles.

Generate viable and sustainable projects that promote the complementary public and private actions with alternatives to philanthropy (i.e. inclusive business)

Guide the private actions toward the development priorities of the country, strengthening systems of focus that channel the efforts to segments with the highest poverty indices.

Identify the best practices and lessons learned to be socialized on a regional level.


Public-Private Partnerships as a tool to promote development and fight poverty

Public-Private Partnerships as a tool to promote development and fight poverty

Strengthening the Risk and Social Reconstruction Management to reduce vulnerability of the victims of natural disasters Promote cooperation mechanisms between countries and exchange of experiences, technical and scientific assessment in the following aspects:

• Risk evaluation.

• Incorporation of risk management in territorial and sectoral planning and development.

• Coordinate efforts to care for the victims of disasters and evaluate how Social Protection Systems can respond immediately or adapt to the social consequences of these unexpected events.

• Disaster mitigation and reduction projects.

• Design and implementation of financial protection mechanisms in disasters.

• Post-disaster reconstruction Promote agreements of mutual assistance between countries in case of national disasters.


Colombia’s support on specific Colombia’s support on specific themes focused on strengthening themes focused on strengthening

job prioritiesjob priorities

Strengthening Social Protection Systems

Technical assistance, through the National Department of Planning to countries interested in applying the “Sisben” index (Beneficiary Identification System):

• Breakdown of the index

• Dimensions and vulnerability

• Statistical method

• Technological platform

• Inter-institutional coordination and among levels of government

• Benefits and limits to applying Sisben

Design and Implementation of the new Sisben III

Improvements included in Sisbén III

Design of the Index

1. Starting point: Evaluation of Sisben II

2. Redefining variables: Include new living conditions, include vulnerability elements and exclude highly malleable variables (Estrato, geographic area)

3. Change in the statistical methods: Conjuntos Borrosos (antes, prinqual/componentes principales). Reasons: better characterization of the poor population, fewer errors of inclusion and exclusion, and greater robustness

4. Change in geographic disaggregation: Previous 2 indices (Urban and rural). Now 14 main cities, the rest urban and rural

SISBEN

1. The targeting should be seen as a process:• Identification• Selection• Assignment

2. SISBEN responds to the first process

i) Normative support, ii) update, control and quality of the information (certified basis), iii) interoperability (intersection), iv) integration of the different levels of government and entities, and v) evaluation of the instrument

SISBEN

3. Define cut-off points for each program (selection)

4. An important targeting example is the RED JUNTOS. 86% of the population belong to the top two quintiles of the 1st level of Sisben (the poorest

of the poor)

Job training in the Caribbean Basin

Strengthen job training strategies through the improvement of learning processes based on technology, information, and communication training – TICs. Institutional strengthening for the implementation of favorable learning environments and modernizing curricula.

Technical training in person and online, relevant to and situated in the productive sector.

Colombia has an initial total of US$200.000 for its development.

Colombia’s support on specific Colombia’s support on specific themes focused on strengthening themes focused on strengthening

job prioritiesjob priorities

ConclusionsConclusions

I. Strengthen the regional cooperation and technical assistance spaces for institutional development and of Social Protection Systems – the Inter-American Social Protection Network.

II. Strengthen Social Protection Systems to confront the challenges of the post-crisis stage, taking best practices and learning from the experiences of least impact.

The 2010 – 2012 Work Plan should:

THANK YOU

inter-american committee on social development cides – oas second meeting of ministers and high...

Documents

social services policies

instruments of social

nutrition social deceleration

social development cides

poorest population

content slide

support of colombia

vulnerable population