Social Protection & Public Social Spending: A LAKSHMI VAIDHIYANATHAN Trade Union Perspective

Regional Secretary, Public Services International Asia-Pacific Regional Office (PSIAPRO) Jakarta, Indonesia, September 2011

Inclusive Growth
“Growth is not inclusive unless it is job intensive & ensure Social protection Social inclusiveness means appropriate public policies that ensure a life of dignity for all Public investment in public services and social benefits is central to social and economic development

Number and quality of jobs not keeping pace with MIC’s economic growth

Increasing unemployment & under-employment  Increasing informalization of labor force Precarious work  Lower lifetime earnings  Rising income inequality  work related stress and sickness

Financial crisis
cuts in public services(public spending eg.Health, education) No proactive strategies by governments

WHY Quality Public Services (QPS)
•Quality public services available to all enhance the quality of peoples’ lives. •Public spending in essential services and infrastructure has played a major role in the growth of high-income countries •QPS is crucial in MICs and developing countries. Global Unions assert that the highest quality services can only be delivered by workers who are qualified and well trained and have decent work

Public spending & employment
Public spending supports half of all jobs in the world. Public spending supports employment in three main ways:
direct employment of public service workers;  indirect employment of workers, by contractors supplying outsourced goods and services;  employment of workers on infrastructure projects.

Global jobs supported by public spending and public services (as % of all employees)

Impacts of restructuring in MICs
Resulted in job losses, outsourcing & less social protection Quality of public services is undermined Increased tariffs and less accessibility Working conditions become precarious Rights to organize are threatened

Natural disasters an emerging issue

need for the public services felt at every stage whether it is water, electricity, fire or health services

implementing cuts to the sustainable public services

emerging trend is caution to governments

FTT: Innovative financing for public investment
Global Unions are supporting the introduction of financial Transactions Tax (FTT)

Such a tax may form part of financial regulatory measures  Dampen unproductive speculation and help governments strengthen public  investments

If applied globally, an FTT could raise over USD $1trillion per year, or 2% of global GDP, even at a rate of 0.01%.


Best Social protection is Decent work for all
Decent work leads to decent lives for communities, and builds productivity

Promote social wage for working families, their social security and pensions.

Attain gender equality and the empowerment of women.

Protect and create opportunities for disadvantaged groups and those who suffer discrimination. Ensure rights for all

Social protection for more inclusive growth =
Quality public services for a fair and sustainable society

Appropriate and innovative financing for key public services
  

Greater job creation ensuring decent work

Support public-public partnerships and technology transfer in key sectors, e.g. renewable energy and recycling of water, waste management

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