OPINION: The UN Social Protection Floor ‘Global fund’: An entry point for the basic income?

by Ian Orton | Jun 3, 2013 | Opinion

In 2011, the United Nations (UN), fronted by Michelle Bachelet, head of UN Women, launched the Social Protection Floor [SPF] initiative (1). This initiative aims to support the development of social protection worldwide. Arguably, this development represents an opportunity for more experimentation with basic income and possibly fully-fledged basic income programmes.

National SPFs aim to extend social security vertically  (providing more comprehensive services and benefits) and horizontally  (extending coverage to a greater number) to cover all groups. In particular, SPFs can assist the extension of coverage to the unprotected, the poor and the most vulnerable, including workers in the informal economy and their families. Countries should define their floors according to national needs and priorities and progressively build their floors in the most advanced yet achievable manner. The UN states that SPFs should comprise at least the following social security guarantees:

• Access to essential health care, including maternity care;
• Basic income security for children;
• Basic income security for persons in active age who are unable to earn sufficient income;
• Basic income security for older persons (1,2).

The UN’s use of ‘basic income security’ should not be understood in the same way as the Basic Income Earth Networks use of “basic Income.” Basic income security literally means a set of minimum income guarantee that could or could not be arranged as an unconditional, universal payment. These guarantees can be fulfilled in different ways through social insurance, social assistance or effective minimum wage or labour market measures.

In spite of a possible divergence with BIEN’s conception of a basic income, it is likely that these policies would represent a significant step toward basic income by legitimising the idea of basic income security as an essential ingredient for human development. Arguably, these would create a social policy culture more conducive or receptive to BIEN-type notions of basic income. In fact, many of the income security programmes championed by the SPF are those often touted by the BIEN community as precursors to fully-fledged basic incomes, such as the Bolsa Familia in Brazil. Clearly, there is some convergence.

In June 2012, this initiative was bolstered further when the International Labour Conference of the International Labour Organization voted on an historic Recommendation for a SPF, which supports the extension of social protection coverage and the progressive building of national social security systems. The adoption of this new international labour standard, the Recommendation concerning national floors of social protection (No. 202) (3), marks a major milestone for social security, as it reaffirms the human right to social security and renews national commitments to extend coverage.

The current momentum gathering behind the SPF and the actual proliferation and strengthening of existing SPFs throughout middle- and low-income countries already provides the basic income with an entry point as well legitimising basic income discourse in general. In fact many social pensions and family benefits (as advanced by the SPF) are essentially a basic income for the elderly and for children. Moreover, they have proven their impressive positive economic and social impacts (4) However, extending a rights-based discourse to basic income (in the BIEN sense of the world) still remains plagued by an array of difficulties where active population (i.e. the working population) groups are concerned. In other words, the SPF has a more ‘workfare’ view of income guarantees for the working poor, and that this group should not get unconditional income guarantees. Rather they should have to participate in some kind of public works’ programme.

Perhaps even more interesting still, is the emergence of a new hot topic within development discourse of the SPF: the idea of a specific ‘global fund’ to finance SPFs globally (5). If new financing sources do become available this may open up new financing sources for basic income-type programmes to be introduced for specific population groups. Thus, all those interested in the basic income would be well advised to keep an eye on the emergence of a global fund.

Naturally, many have well founded reservations about a yet another vertical fund earmarked for a specific use. It may add to an already confounded and highly fragmented international development assistance architecture, and result in top down prescriptions of how countries should develop their SPFs.  Nonetheless, in spite of these concerns there is a discernable groundswell of political support for the idea of global fund for SPFs. It is perhaps conceivable that the idea of basic income will find ripe opportunities here. Watch this space.

For more information on this issues see:

1. ILO. 2011. The Bachelet report: Social Protection Floor for a fair globalization,  Report of the Advisory Group chaired by Michelle Bachelet Convened by the ILO with the collaboration of the WHO (Geneva).
www.ilo.org/global/publications/ilo-bookstore/order-online/books/WCMS_165750/lang–en/index.htm

2. Ian Orton. 2012. The ILO Recommendation on Social Protection Floors: A milestone in the extension of social security coverage. ISSA, Geneva.
www.issa.int/News-Events/News2/The-ILO-Recommendation-on-Social-Protection-Floors-A-milestone-in-the-extension-of-social-security-coverage

3. ILO. 2012. Social security for all: The ILO Social Protection Floors Recommendation (Briefing note). Geneva, International Labour Office.
www.social-protection.org/gimi/gess/RessFileDownload.do?ressourceId=31089

4. Ian Orton. June 2010. Reasons to be cheerful: How ILO analysis of social transfers worldwide augurs well for a basic income (with some caveats). Submitted for the 13th International Congress of the Basic Income Earth Network, Sao Paulo, Brazil, basic income as an instrument for justice and peace.
www.bien2010brasil.com

5. Magdalena Sepúlveda & Oliver de Schutter, 2012. Underwriting the Poor: A Global Fund for Social Protection. Briefing Note 7. United Nations SpecialRapporteur on the Right to Food.
www.srfood.org/images/stories/pdf/otherdocuments/20121009_gfsp_en.pdf

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The responsibility for opinions expressed in this article rests solely with the author and dissemination does not constitute an endorsement by the International Labour Organization of the opinions expressed in it.