New Directions in Social Policy: Alternatives from and for the South

Sarah CookACFID Conference ‘Development

Futures’Sydney, 21-22 November 2013

Key messages• Poverty reduction does not generally occur

through policies targeted at the poor • Social policies are essential components of

policies for equitable development and poverty reduction

• Currently (re)emerging economies are pursuing new social development policies that may provide alternative pathways to address 21st century risks and challenges

UNRISD report 2010

• What accounts for the persistence of poverty when concern for its reduction has been high on the policy agenda?

• Why have some countries been more successful than others in reducing poverty and inequality?

• How do current approaches to poverty reduction compare & contrast with the lessons of the past?

• Cases: Nordic countries, East Asia, Costa Rica, Mauritius, Kerala, Botswana, Brazil

• www.unrisd.org\poverty

Social policy in development context

Functions of ‘transformative’ social policy: Protection: protection from income loss, costs

associated with contingencies: unemployment, sickness, old age…

Production / accumulation: enhance productive capacities of individuals, groups and communities;

Distribution: create conditions for more equitable economic growth and redistribution

Social reproduction: reduce the burden on hhs / women of social reproduction including care-related work

Principles of transformative social policy

1. Social policy based on universalism societal transformation

2. Expenditures on basic social security and social services considered the costs of social progress solidarity through burden sharing

3. Those who benefit most from the progress should pay for the costs of social welfare redistribution

Principles of transformative social policy

4. Universal social programmes involve both universal entitlements and but also everybody with adequate income should pay (tax policy, formal labour markets) Inclusive growth

5. The benefit level should be socially acceptable vs the minimum only acceptable to the poor Politics of needs recognition

Achieved through political processes

A ‘quiet revolution’

New / expanding programmes

• Cash transfers - various types: – CCTs, social pensions, child benefits …

• Employment related, public works• Social investment• Social insurance• Universal health care• Global social policies / social protection

floor

Social contracts and compromises

• State – society on social security• Capital – labour on macro-economic

stability • Management – labour on

employment securityOther: inter-generational; gender;

North-South;

‘New’ risks and challenges

Globalisation Financialisation Changing nature of work / employment Demographic trends, ageing Multi-polarity, regionalism, nationalism Climate / environmental change

Social and political consequences Inequalities – national / transnational Political mobilisation

• Reconfiguration of institutions designed to address social and economic problems

• Institutions including:(1) Social contracts – explicit / implicit(2) Institutions for production / distribution(3) Institutions for welfare and redistribution

Elements of new social policies

• Address problems beyond traditional domain of social policy (eg financialisation)

• Proactive adaptation to new risks (climate) • National modes of addressing a changing global

context will vary – institutions matter• Social reproduction - ageing• Complementarities and trade-offs – (eg energy,

poverty, climate links)• New social contracts? Basis for universalism,

solidarity, security, coverage / protection against risks

‘Success stories’: The role of social policy

The most significant reductions in poverty have occurred in countries with comprehensive social policies that lean towards universal coverage.

Social policies may be ‘implicit’ – functional equivalents Where poverty is widespread, targeting is unlikely to make

significant and sustained inroads into poverty; it may fail to include middle income groups that are needed for funding and providing good quality services, may undermine forms of solidarity, and may condemn the poor to poor services.

Social policy investments are a policy choice: Mexico vs Brazil; Costa Rica

New research• How well do they meet ‘needs’? • How well do they serve development?• How do they respond to / address new

risks and challenges? • What new configuration of policies and

institutions is effective?• What normative / ethical underpinnings?• Are new ‘social pacts’ emerging?

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