Regional Social Policy

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Sistema Económico Latinoamericano y del Caribe Latin American and Caribbean Economic System Sistema Econômico Latino-Americano e do Caribe Système Economique Latinoaméricain et Caribéen Regional Seminar for Consultation on the Social Dimension of Integration in Latin America and the Caribbean Caracas, Venezuela 16 and 17 July 2008 SP/SRC-DSIALC/Di 7-08 Regional Social Policy Isabel Ortiz Senior Interregional Advisor Department of Economic and Social Affairs United Nations

Transcript of Regional Social Policy

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Sistema Económico Latinoamericano y del Caribe Latin American and Caribbean Economic System Sistema Econômico Latino-Americano e do Caribe Système Economique Latinoaméricain et Caribéen

Regional Seminar for Consultation on the Social Dimension of Integration in Latin America and the Caribbean Caracas, Venezuela 16 and 17 July 2008 SP/SRC-DSIALC/Di 7-08

Regional Social Policy Isabel Ortiz Senior Interregional Advisor Department of Economic and Social Affairs United Nations

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Copyright © SELA, July 2008. All rights reserved. Printed in the Permanent Secretariat of SELA, Caracas, Venezuela. The Press and Publications Department of the Permanent Secretariat of SELA must authorise reproduction of this document, whether totally or partially, through [email protected]. The Member States and their government institutions may reproduce this document without prior authorisation, provided that the source is mentioned and the Secretariat is aware of said reproduction.

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Department of Economic and Social Affairs (DESA)Department of Economic and Social Affairs (DESA)United Nations, New YorkUnited Nations, New York

Regional Social Regional Social PolicyPolicy

Isabel OrtizIsabel OrtizSeniorSenior Interregional Interregional AdvisorAdvisor

UnitedUnited NationsNations

LATIN AMERICAN AND CARIBBEAN ECONOMIC SYSTEMLATIN AMERICAN AND CARIBBEAN ECONOMIC SYSTEMCARACAS, VENEZUELA 16CARACAS, VENEZUELA 16--18 JULY 200818 JULY 2008

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Distribution of World IncomeDistribution of World IncomeDevelopment for whom?Development for whom?

Distribution of world GDP, 2000(by quintiles, richest 20% top, poorest 20% bottom)

Source: UNDP Development Report 2005

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Distribution of World IncomeDistribution of World Income: : Apartheid at a global scale? Apartheid at a global scale?

Fuente: ONU WIDER 2006

BUSINESS AS BUSINESS AS USUAL IS NOT USUAL IS NOT AN OPTION:AN OPTION:

-- Urgent need Urgent need of new of new development development policies policies

-- Need of NorthNeed of North--South South redistributionredistribution

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But Transfers are from South to NorthBut Transfers are from South to North

-4.35.47.15.712.511.8- Least Developed Countries

9.810.210.37.88.56.7- HIPCs

Memorandum

-125.1-54.6-26.1-49.43.6-2.7Transition Economies

-123.1-80.0-31.6-1.644.3-1.7Latin America

-194.7-69.8-18.4-29.734.820.1Western Asia

-244.7-162.1-146-119.1-128.421.8Eastern Asia

-10.14.55.32.812.17.5Sub-Saharan*

-95.3-35.0-6.7-27.715.65.9Africa

200620042002200019981995

Source: Source: NacionesNaciones UnidasUnidas, Department of Economic and Social Affairs., Department of Economic and Social Affairs.2007. 2007. World Economic Situation and Prospects, 2007World Economic Situation and Prospects, 2007. UN DESA, New York. UN DESA, New York..

NET FINANCIAL FLOWS TO/FROM DEVELOPING COUNTRIES, IN BILLION US$NET FINANCIAL FLOWS TO/FROM DEVELOPING COUNTRIES, IN BILLION US$..

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Increasing Global Reserve Increasing Global Reserve Accumulation, 1998Accumulation, 1998--20072007

Little left to governments to spend on Little left to governments to spend on social and economic developmentsocial and economic development

Capital flight Capital flight estimated at $11 estimated at $11 trillion, if taxed would trillion, if taxed would significantly increase significantly increase fiscal space for social fiscal space for social policypolicy

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Bringing Equity to the Development AgendaBringing Equity to the Development Agenda1995 Copenhagen World Summit: 1995 Copenhagen World Summit: ““A society for allA society for all””2005 NY World Summit 2005 NY World Summit –– ReaffirmedReaffirmed

A new financial architecture needed to support social A new financial architecture needed to support social and economic development and economic development –– More ODA, no SouthMore ODA, no South--North North flows, more Southflows, more South--South cooperationSouth cooperationUrgent need for global social policies, to counterbalance Urgent need for global social policies, to counterbalance

economic globalization, economic globalization, ““A globalization for allA globalization for all””..Urgent need to address food crisis Urgent need to address food crisis UN agencies: A global social floorUN agencies: A global social floor

Global Global LevelLevel

Need of new national policies oriented towards equity Need of new national policies oriented towards equity and productive development and productive development Need to integrate the social and economic domains Need to integrate the social and economic domains UN: See alternative Policy Notes done with UN: See alternative Policy Notes done with StiglitzStiglitz and and

others others http://http://esa.un.org/techcoop/policyNotes.aspesa.un.org/techcoop/policyNotes.asp

National National LevelLevel

Second best option, a constructive alternative to Second best option, a constructive alternative to unequal pattern of globalization unequal pattern of globalization

Need of regional social policiesNeed of regional social policiesCan be financed if flow of resources from South to North Can be financed if flow of resources from South to North

is stoppedis stopped

Regional Regional LevelLevel

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Regional integration is a constructive alternative to the Regional integration is a constructive alternative to the pattern of unequal globalizationpattern of unequal globalization

Social justice arguments: Need to redress social Social justice arguments: Need to redress social asymmetries, to eliminate poverty and to raise living asymmetries, to eliminate poverty and to raise living standards. standards.

But also economic arguments: Need to develop internal But also economic arguments: Need to develop internal marketsmarkets

Inequality is economically inefficient / dysfunctionalInequality is economically inefficient / dysfunctionalWorld problem of overproduction and global excess capacity in World problem of overproduction and global excess capacity in the context of weak effective demandthe context of weak effective demandConsumption concentrated in top income deciles in all countriesConsumption concentrated in top income deciles in all countriesRaising the incomes of the poor increases domestic demand and, Raising the incomes of the poor increases domestic demand and, in turn, encourages growth by expanding domestic marketsin turn, encourages growth by expanding domestic markets

Regional Social Policies Regional Social Policies

> Suggestion: To expand economic arguments of regional social > Suggestion: To expand economic arguments of regional social investments investments

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Regional Social Policies IIRegional Social Policies IIManagement of crossManagement of cross--border social problems:border social problems: Malaria, Malaria, chagaschagas, , SARS, Avian Flu, migrationSARS, Avian Flu, migration……

Economies of scale/division of Economies of scale/division of labourlabour e.g. specialized research e.g. specialized research centers on centers on ChagasChagas disease expensive, not all countries can afford to have disease expensive, not all countries can afford to have one; one; egeg. production of generic pharmaceuticals. production of generic pharmaceuticals

International risk pooling International risk pooling Redressing some of the limitations of national policies e.g. agrRedressing some of the limitations of national policies e.g. agricultural icultural insurance and reinsurance, disaster prevention and managementinsurance and reinsurance, disaster prevention and management

A stronger voice in international and national negotiationsA stronger voice in international and national negotiationsAvoiding weak negotiating positions and dispersion by associatinAvoiding weak negotiating positions and dispersion by associatingg

Empowering Ministries of Social Development Empowering Ministries of Social Development Residual social policies in 1980sResidual social policies in 1980s--90s, need to raise social profile, fight for 90s, need to raise social profile, fight for larger budgets larger budgets ––e.g. UNESCO meetingse.g. UNESCO meetings

An instrument to promote human rightsAn instrument to promote human rights (e.g. Inter(e.g. Inter--American System of American System of Human Rights, European Court of Human Rights)Human Rights, European Court of Human Rights)

> Suggestion: To expand cross> Suggestion: To expand cross--border border programmesprogrammes, possible economies of , possible economies of scale, meetings of Social Development Ministries, possible instiscale, meetings of Social Development Ministries, possible institutionalization tutionalization of mechanisms to promote Human Rightsof mechanisms to promote Human Rights

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Areas of Regional Social PolicyAreas of Regional Social PolicyEmployment and decent workEmployment and decent workHealthHealthRegulation of services, water, electricity and other utilitiesRegulation of services, water, electricity and other utilitiesSocial protectionSocial protectionEducation, in particular higher education and researchEducation, in particular higher education and researchHousingHousingCultureCultureInternational MigrationInternational MigrationDisaster prevention, management and mitigationDisaster prevention, management and mitigationConflict preventionConflict preventionHuman rightsHuman rights and empowerment of social groupsand empowerment of social groupsEquityEquity andand analysisanalysis ofof distributivedistributive impactsimpacts ofof economiceconomic policiespolicies

For a detailed description of potential programmes/activitieFor a detailed description of potential programmes/activities in each area, see: s in each area, see: Deacon, Ortiz and Deacon, Ortiz and ZelenevZelenev (2007). (2007). Regional Social Policy.Regional Social Policy. UNDESA Working Papers. United UNDESA Working Papers. United

Nations: New YorkNations: New York

> Suggestion: To expand areas, particularly social protection, > Suggestion: To expand areas, particularly social protection, equityequityandand analysisanalysis ofof distributivedistributive impactsimpacts ofof economiceconomic policiespolicies

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Building state capacity to promote Building state capacity to promote development, public investment, development, public investment, technology policy technology policy

Privatization of public assets Privatization of public assets services, minimalist services, minimalist government (state as government (state as predatory, crowding out predatory, crowding out private sector) private sector)

Public investment for development; Public investment for development; need to expand governmentsneed to expand governments’’ ““fiscal fiscal spacespace””

Cuts in public expenditures, Cuts in public expenditures, avoiding fiscal deficitsavoiding fiscal deficits

Growth and equity through active Growth and equity through active promotion of national development. promotion of national development. Winning Winning ““policy spacepolicy space””. Social and . Social and economic development integrated => economic development integrated => actually bringing equity and social actually bringing equity and social issues to all policy domains.issues to all policy domains.

Growth (Growth (““prioritypriority””) through ) through deregulation, free markets, deregulation, free markets, supply side economicssupply side economics, , minimalist governments, minimalist governments, residual social policies.residual social policies.

Emergent New Paradigm:Emergent New Paradigm:Standard Policies 1980sStandard Policies 1980s--90s 90s

Supporting New Development PoliciesSupporting New Development Policies

Source: United Nations National Development Strategies Policy NoSource: United Nations National Development Strategies Policy Notes, 2008tes, 2008httphttp://://esa.un.orgesa.un.org//techcooptechcoop//policyNotes.asppolicyNotes.asp

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Could double the health and Could double the health and education budget in each of education budget in each of three program yearsthree program years

--1.91.9--9.9 to 9.9 to ––8.08.0RwandaRwanda

Could have doubled primaryCould have doubled primaryhealthcare expenditure eachhealthcare expenditure eachyear of the 3year of the 3--year programyear program

--4.04.0--9.7 to 9.7 to ––5.75.7GhanaGhana

Could have doubled healthCould have doubled healthexpenditureexpenditure

--1.41.4--0.7 to 0.70.7 to 0.7CameroonCameroon

What this could buy What this could buy for one year for one year

ReductionReduction% GDP% GDP

Fiscal DeficitFiscal DeficitTargets over 3Targets over 3--yearyear

IMF ProgramIMF Program

CountryCountry

Alternative: Public investment for Alternative: Public investment for development; need to expand development; need to expand governmentsgovernments’’ fiscal spacefiscal space

Normally deficit reduction a Normally deficit reduction a prioritypriority

Alternative: Expansive, Alternative: Expansive, employmentemployment--generating generating macroeconomic policies, tolerance to macroeconomic policies, tolerance to limited inflation limited inflation

Normal inflation target: Normal inflation target: below 5% per annum below 5% per annum

Examples of Standard Macroeconomic Examples of Standard Macroeconomic Policies and Alternative OptionsPolicies and Alternative Options

Source: Oxfam International 2003 and Rick Source: Oxfam International 2003 and Rick RowdenRowden, Action Aid 2007, Action Aid 2007

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inflation rate1 2 3 4 5

macroeconomic stability

6 7 8 9 10 11 12 13 14 15 16 17 18

grey area

19 20 21 22 23 24 25

macroeconomic instability

IMF Papers Outside Papers Estimated Inflation ThresholdsFisher (1993) 15%-30 %

Bruno and Easterly (1998) 40%

Burdekin, et al (2000) 3% for developing and 8% for rich countries

Gylfason and Herbertsson (2001) 10%-20%

Pollin and Zhu (2005) 15%-18%

Bruno (1995) 20%

Barro (1996) Finds that a 10% increase in the annual inflation rate is associated on impact with a decline in GDP’s annual growth rate of only 0.24%.

Sarel (1996) 8%

Khan and Senhadji (2001)

11%-12% for developing and 1%-3 % for rich countries

Ghosh and Phillips (1998)

Finds that the inflation-growth relationship is convex, so that the decline in growth associated with an increase of 10-20% inflation is (1998) much larger than that associated with moving from 40% to 50% inflation.

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Decent work agenda, distribution issues (Decent work agenda, distribution issues (ieie. . wage policies); employment a result of adequate wage policies); employment a result of adequate macro, productive and social policiesmacro, productive and social policies

Labor flexibility, productivityLabor flexibility, productivity

Culture and values important for tackling Culture and values important for tackling exclusion and building social cohesionexclusion and building social cohesion

No interest for culture and values No interest for culture and values (intangible)(intangible)

Conflict preventionConflict preventionNo attention at sources of conflict No attention at sources of conflict ((““politicalpolitical””))

Unless nominal, avoidance of user fees, except Unless nominal, avoidance of user fees, except for upper income groups in tertiary servicesfor upper income groups in tertiary services

Cost recovery mechanisms (fees for Cost recovery mechanisms (fees for services)services)

Expansion of coverage of services (health) Expansion of coverage of services (health) ensuring retention (education)ensuring retention (education)

Commercialization of social servicesCommercialization of social services

Importance of expanding pension coverage Importance of expanding pension coverage (social pensions) addressing community needs (social pensions) addressing community needs

Social Protection: pension reformSocial Protection: pension reform

National coalitions and social pacts/dialogueNational coalitions and social pacts/dialogueSelective participatory processesSelective participatory processes

Universal policies (for all). Importance of social Universal policies (for all). Importance of social policies for development, equity, domestic policies for development, equity, domestic market, nation building, political stabilitymarket, nation building, political stability

Residual social policies (minimal, Residual social policies (minimal, targeted to the poor), safety netstargeted to the poor), safety nets

Emergent New Paradigm:Emergent New Paradigm:Standard Policies 1980sStandard Policies 1980s--90s 90s

Supporting New Development PoliciesSupporting New Development Policies

Source: United Nations National Development Strategies Policy NoSource: United Nations National Development Strategies Policy Notes, 2008tes, 2008httphttp://://esa.un.orgesa.un.org//techcooptechcoop//policyNotes.asppolicyNotes.asp

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Importance of Universal Social PoliciesImportance of Universal Social Policies

NeedNeed ofof healthhealth, , educationeducation andand otherother basicbasic social social servicesservices forfor allall, free , free ororwithwith nominal nominal feesfees. .

Residual approach 1980sResidual approach 1980s--90s:90s:Public services only for the poorPublic services only for the poorMain reforms focused on privatizing/commercializing services foMain reforms focused on privatizing/commercializing services for r

middle and upper classes (health, pensions, education)middle and upper classes (health, pensions, education)In a context of fiscal austerity, cost recovery mechanisms suchIn a context of fiscal austerity, cost recovery mechanisms such as as

fees for services were introducedfees for services were introduced

Problems of targeting:Problems of targeting:Expensive, at about 15% total Expensive, at about 15% total programmeprogramme costscostsComplex to implement Complex to implement –– not advised when poor large numbersnot advised when poor large numbersIt backfired politically, middle classes had to pay for both exIt backfired politically, middle classes had to pay for both expensive pensive

services and for the poorservices and for the poorPublic services became of bad quality (and not accessible when Public services became of bad quality (and not accessible when fees)fees)

⇒⇒United Nations agencies defend UNIVERSAL services (= for all, inUnited Nations agencies defend UNIVERSAL services (= for all, including cluding middle classes, as part of a countrymiddle classes, as part of a country’’s social contract) combined with s social contract) combined with targeting to fasttargeting to fast--track access of the poor. track access of the poor.

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ImportanceImportance ofof GeneratingGenerating DecentDecentEmploymentEmployment

Decent jobs are Decent jobs are a result of adequate economic and a result of adequate economic and labourlabour policies:policies:

(i) Employment(i) Employment--sensitive macroeconomic and productive sensitive macroeconomic and productive policies policies that boost aggregate demand; a tight monetary policy focussed onthat boost aggregate demand; a tight monetary policy focussed oncontaining inflation does not generate jobs. Adequate exchange containing inflation does not generate jobs. Adequate exchange rate policy combined with technology policy to stimulate output rate policy combined with technology policy to stimulate output growth; gradual and sequential trade opening to support it. growth; gradual and sequential trade opening to support it.

(ii) Labour policies(ii) Labour policies: Decent employment is not only about : Decent employment is not only about generating jobs, most poor people work long hours but they generating jobs, most poor people work long hours but they cannot bring their families out of poverty; it is also about adecannot bring their families out of poverty; it is also about adequate quate salary and working conditionssalary and working conditions, including , including labourlabour standards and fair standards and fair income.income.

Misconception: Education does not produce employment, young Misconception: Education does not produce employment, young generations are better educated than earlier generations but thegenerations are better educated than earlier generations but they y dondon’’t find decent employment.t find decent employment.

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Importance of Social Protection Transfers:Importance of Social Protection Transfers:-- 150150--200 million persons covered in developing countries 200 million persons covered in developing countries -- Transfers reduce poverty fast Transfers reduce poverty fast

Source: Source: ILO, 2007. Social Security Department, Geneva and UN DESA, 2007: World Economic and Social Survey 2007, United Nations

Bangladesh, Brazil, Colombia, Ecuador, Bangladesh, Brazil, Colombia, Ecuador, Honduras, Jamaica, MHonduras, Jamaica, Mééxico, Mongolia, xico, Mongolia, Nicaragua Nicaragua

Cash for Human Cash for Human DevelopmentDevelopment

Argentina, Argentina, EtiopEtiopííaa, India, South Korea, Malawi, , India, South Korea, Malawi, South AfricaSouth Africa

Cash for WorkCash for Work

ConditionalConditional

Mozambique, South AfricaMozambique, South AfricaChild/Family BenefitsChild/Family Benefits

Argentina, Bolivia, Bangladesh, Brazil, Argentina, Bolivia, Bangladesh, Brazil, BostwanaBostwana, Chile, Costa Rica, India, Lesotho, , Chile, Costa Rica, India, Lesotho, Mauritius, Moldova, Namibia, Nepal, Samoa, Mauritius, Moldova, Namibia, Nepal, Samoa, South Africa, Tajikistan, Uruguay, VietnamSouth Africa, Tajikistan, Uruguay, Vietnam

Social PensionsSocial Pensions

Chile, China, Mozambique, ZambiaChile, China, Mozambique, ZambiaHousehold Income Household Income SupportSupport

UnconditionalUnconditional

COUNTRIESCOUNTRIESTYPE OF TRANSFERSTYPE OF TRANSFERS

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South Africa Social Transfers Effective to South Africa Social Transfers Effective to Reduce Poverty and Destitution Reduce Poverty and Destitution –– Cost 3% Cost 3% GDPGDP

Source: Sampson, M. 2006, EFPRI South Africa

=> However social protection transfers are rarely considered to => However social protection transfers are rarely considered to reduce reduce poverty fast and achieve the poverty fast and achieve the MDGsMDGs => Transfers can make the difference => Transfers can make the difference between achieving MDG1 of halving poverty by 2015 or notbetween achieving MDG1 of halving poverty by 2015 or not

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UN: Social Pensions ($1 Day) Cost less UN: Social Pensions ($1 Day) Cost less than 1% GDP in Most Countriesthan 1% GDP in Most Countries

Source: UN DESA, 2007: World Economic and Social Survey 2007, United Nations

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Type of Type of ProgrammeProgramme/Activities in Areas/Activities in Areas•• Technical assistance, joint capacity building, learning from besTechnical assistance, joint capacity building, learning from best t

practicespractices

•• Harmonizing regulations and standards Harmonizing regulations and standards Labour and social security standards to ensure portability of Labour and social security standards to ensure portability of benefitsbenefitsRegulation of private social services and utilities (water, elecRegulation of private social services and utilities (water, electricity); tricity); regional formations are in a stronger position to negotiate withregional formations are in a stronger position to negotiate withprivate providers to ensure access, affordability and quality private providers to ensure access, affordability and quality standards.standards.

•• Social Charters and other mechanisms to give citizens a voice toSocial Charters and other mechanisms to give citizens a voice tochallenge rights abuse (e.g. Latin American System of Human Righchallenge rights abuse (e.g. Latin American System of Human Rights, ts, Council of EuropeCouncil of Europe’’s Court of Human Rights)s Court of Human Rights)

•• Redistribution Mechanisms/Investment FundsRedistribution Mechanisms/Investment Funds•• Targeting depressed areas or redressing social inequalities. Targeting depressed areas or redressing social inequalities.

Regional crossRegional cross--border border joint joint programmesprogrammes for international risk for international risk pooling such as crop and cattle insurance and reinsurance, pooling such as crop and cattle insurance and reinsurance, disaster prevention and managementdisaster prevention and management

> Suggestion: > Suggestion: ToTo distinguishdistinguish betweenbetween differentdifferent typestypes ofof programmesprogrammes//activitiesactivities

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SADC

SAARC

SICA

MERCOSUR

LAS

EU

CARICOM

CAN

CAFTA

AU

ASEAN

APEC

ALBA

Technical Cooperation/

Capacity Building

Social Rights/ Charters

Redistribution Mechanisms/

Funds

Regulation &Standards of

Labour and Soc. Services

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CrossCross--cutting Issues to be Mainstreamed cutting Issues to be Mainstreamed in Regional Social Policiesin Regional Social Policies

Earlier areas (health, education, Earlier areas (health, education, labourlabour, housing, social , housing, social protectionprotection……) are sectors, important given the existence of sector ) are sectors, important given the existence of sector Ministries. However, it is essential to ensure that policies reaMinistries. However, it is essential to ensure that policies reach ch people. people.

GenderGenderPeople below poverty line People below poverty line Indigenous peoplesIndigenous peoplesChildrenChildrenYouthYouthOlder personsOlder personsPersons with disabilitiesPersons with disabilitiesMinoritiesMinorities

For this, international and regional conventions and actionFor this, international and regional conventions and action plans plans exist (e.g. exist (e.g. IberoamericanIberoamerican Convention on the Rights of Young Convention on the Rights of Young People, UN Declaration of Indigenous Peoples) People, UN Declaration of Indigenous Peoples)

> Suggestion: National Action Plans for the different social gro> Suggestion: National Action Plans for the different social groups, ups, regional monitoring indicatorsregional monitoring indicators

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Regional Integration with Objectives Regional Integration with Objectives and Targetsand Targets

Need of binding agreements, with specific objectives and targetsNeed of binding agreements, with specific objectives and targets

Equity: How to improve income distribution. This is not about Equity: How to improve income distribution. This is not about abstract declarations and meetings, but how to effectively reducabstract declarations and meetings, but how to effectively reduce e social asymmetries. social asymmetries.

Issue: shortIssue: short--term electoral policies vs. longterm electoral policies vs. long--term policies needed term policies needed for regional integrationfor regional integration

The case of the Open Method of Coordination of the EU. The case of the Open Method of Coordination of the EU.

Multiplicity of Bilateral and Multilateral Multiplicity of Bilateral and Multilateral AgreementsAgreements

Contradiction among different agreements (e.g. Bilateral free Contradiction among different agreements (e.g. Bilateral free trade agreements vs. Regional integration)trade agreements vs. Regional integration)

> Suggestion: To insist on the need for binding objectives and t> Suggestion: To insist on the need for binding objectives and targets, to argets, to bring evidence on the distributional impacts of different internbring evidence on the distributional impacts of different international ational agreementsagreements

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Financing Regional Social Policies Financing Regional Social Policies

Financing: Expenditures evidence policy priorities; if reducing Financing: Expenditures evidence policy priorities; if reducing social social asymmetries is a priority, regional social policies have to go basymmetries is a priority, regional social policies have to go beyond eyond agreements, social charts, etc. Investing in regional social polagreements, social charts, etc. Investing in regional social policies icies necessary necessary

Financing sources:Financing sources:

NorthNorth--South TransfersSouth TransfersMultilateral and bilateral ODAMultilateral and bilateral ODANew sources of development finance (global funds etc) New sources of development finance (global funds etc)

IntraIntra--regional Transfersregional Transfers

SouthSouth--South CooperationSouth Cooperation

Regional Development Banks Regional Development Banks

> Suggestion: To develop a section on Financing > Suggestion: To develop a section on Financing

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Limited NorthLimited North--South Development AidSouth Development Aid

Source: OECD

MEMO: Regional investments represent less than 2% of total invesMEMO: Regional investments represent less than 2% of total investment tment ininregional development banks in Latin America and the Caribbeanregional development banks in Latin America and the Caribbean

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IntraIntra--regional Transfers regional Transfers IntraIntra--regional transfers important in the case of regional transfers important in the case of

the European Union and ALBAthe European Union and ALBA

EU: Cohesion funds for lesser developed EU: Cohesion funds for lesser developed regions 36% of total EU budget (regions 36% of total EU budget (€€4545 billion) billion)

This figure does not include the EU This figure does not include the EU Solidarity Fund, Globalization Adjustment Solidarity Fund, Globalization Adjustment Fund, Emergency Funds, and others in Fund, Emergency Funds, and others in support of national social policiessupport of national social policies. It works: It works: They developed EU internal marketThey developed EU internal market

Experiences such as Experiences such as PetrocaribePetrocaribe, , PetroamazonasPetroamazonas, , PetrosurPetrosur, Grand, Grand--national ALBA national ALBA projects etc are very important mechanisms, projects etc are very important mechanisms, more information need to be disseminated. more information need to be disseminated.

Credible institutional arrangements and goodCredible institutional arrangements and good--governance needed to attract either international governance needed to attract either international or intraor intra--regional fundingregional funding

E.g. the EU has specific eligibility criteria for E.g. the EU has specific eligibility criteria for funding, wellfunding, well--established procedures at all established procedures at all levels, including multiyear planning, levels, including multiyear planning, disbursement mechanisms, monitoring, disbursement mechanisms, monitoring, evaluation, and partnerships between evaluation, and partnerships between various levels of government and civil various levels of government and civil society.society.

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SouthSouth--South Bilateral ODASouth Bilateral ODALimited, estimated at 4.4% of total ODA Limited, estimated at 4.4% of total ODA Increasing role of China, Brazil, India, Qatar, Saudi Increasing role of China, Brazil, India, Qatar, Saudi Arabia, Venezuela Arabia, Venezuela

Multilateral Development BanksMultilateral Development BanksCAF, IADB, Caribbean Development BankCAF, IADB, Caribbean Development Bank

These banks exist for decades and have not changed These banks exist for decades and have not changed development patterns development patterns

Bank of the South and Bank of ALBABank of the South and Bank of ALBAAlternative character, created to redress regional social Alternative character, created to redress regional social asymmetries asymmetries For this, they will need to be articulated in a different For this, they will need to be articulated in a different manner than existing multilateral development banks.manner than existing multilateral development banks.

SouthSouth--South Cooperation South Cooperation –– FfDFfD

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Thank youThank you

United Nations Department for United Nations Department for Economic and Social AffairsEconomic and Social Affairshttp://www.un.org/esa/http://www.un.org/esa/

Email: Email: [email protected]@un.org