The Nordic Model of social protection

Transcription

1 The Nordic Model of social protection The social dimension in all policies By Ronald Wiman Finland s National Institute for Health and Welfare

2 Contents The concept of Nordic Welfare State The value base Case Finland Lessons from the history Comprehensive social policies Evidence speaks for it Do we share a mission?

3 The Welfare State The Welfare State is built on the following pillars: Human rights -based approach Social and gender equality in all sectors Right to free primary education and free or highly subsidized education at higher levels Universal, and free or affordable healthcare Universal Social Security systems, tax-funded Equal access to a variety of social welfare services across the life cycle Proven cost-effectiveness vs. targeted poor relief Services for poor people become poor services (Amartya Sen)

4 Basic models of the Welfare State Social Democratic/Nordic Model: High taxes, high degree of income redistribution, high level of participation of women in the labour market, high standard of living and citizens with a high level of confidence in their public system (Denmark, Norway, Iceland, Finland and Sweden). High level of child well-being. Conservative/Corporatist Model. Low level of participation of women in the labour market, dependency on social contributions instead of on taxes, moderate redistribution of income and higher levels of unemployment, especially in the countries of the South of Europe. (Austria, Belgium, Germany, Greece, Italy, Malta, Cyprus, Turkey, Luxemburg, the Netherlands, Spain and Portugal) Anglo-Saxon/Liberal Model Low level of total state spending, high level of inequality and low level of expenditure on social protection. (Switzerland, the United Kingdom and Ireland)

5 The value base The Nordic Welfare State, the Vision of A Society for All Human rights: equal weight on civil and economic, social and cultural rights Rule of law and Democracy Societal equality, including gender equality Universal access to social security and essential services etc

6 Case Finland: Basic facts Population 5,5, Mill GDP per capita USD (PPP), Gini Index 26,8 Unemployment rate 7,9 Poverty line: 1180 Poverty ( below 60% of median) rate 11,7% Universal access to basic social security and essential services Taxation funded Dual systems: public and private Health care Non- contributory and contributory social security (+private insurances) Summer (RW) Summertime (Ro-THL) Winter (Ro-THL)

7 Comprehensive social policies 1. Social Policies: The social dimension in all policies Balancing equal opportunity and equity ( Equality of access to education, housing, infrastructure etc) Good education for all incl. Tuition- free higher education (+ study allowance) Right to work and rights at work Equal access to free/affordable public health care services, - with private sector alternative (subsidized) 2. Universal Social Protection e.g. Contributory, earnings-based : Health insurance, pensions, unemployment, maternity, disability Non-contributory social assistance (in cash and kind) E.g, High quality Mother and Baby Clinic services and child daycare services Social work services

8 Comprehensive Social Policies for Development Case FINLAND: From one of the poorest countries in Europe to top performer in wellbeing - in one lifetime. Recipe: Growth with Equity World Bank: World Development Report 2006 (e.g. WDR-2006) Saasa & al (2003): Improving Effectiveness of Finnish Development Cooperation. Perspectives from the South. Ministry for Foreign Affairs of Finland

9 Evolution: From an agrarian society to a modern welfare state In one life time how did Finland do it? Finland used to be one of the poorest countries in Europe until the end of 19th century and fairly underdeveloped until the World War II Heavy investment in education was a key to develop the country and move from an agrarian society to an industrialised one investing in people Development of social policy Gender equality Social insurance was developed (e.g. national pension) and welfare state was seen increasingly as a productive factor

10 We can derive some lessons from history Social policy interventions and the decline of infant mortality rate in Finland (Matti Mikkola 2011) Child Poverty in Europe - 10

11 GDP per Capita (PPP)

12 EVIDENCE speaks for social protection as a central instrument for poverty reduction, and poverty eradication, and for its role in : Nation building Social cohesion Gender equality Reducing inequality Well-being of children and older people Economic growth Entrepreneurship (!, eg. In RSA and Finland s BIG experiment ) Sustainable development Etc.

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14 From safety nets to springboards Passive, last resort safety nets People fall through on nothing - or get stuck with no way out of poverty Winston Churchill (1940 s): Safety nets are not enough; we must also build ladders of opportunity Empowerment through inclusion, activities and empowering social work

15 Universal goals - local implementation The human rights principles and standards are the universal basis for social policies One size does not fit all The application of HRBA must be context-specific, decided, created and owned by the people The Nordic model cannot be adopted myabe it can be adapted Maputp Market 2015 RW

16 Social Protection is a central instrument for the sustainable development goals in all countries Development takes place in all countries to the better - or worse. Risk of rising inequalities within and between generations is our common challenge Interdependency of countries in the context of the sustainable development goals Calls for dialogue and mutual learning how social policies can best be instrumental for reaching those goals. Children have the right for sustainable development MORE international cooperation - not less Shutterstoch/THL

17 The mission: Towards an Inclusive Society for All From the Welfare State to a Welfare Society The Welfare State: strong and big state faring well A welfare society : a state where people fare well Development by people, for people, of people The country does not need to be rich to start development towards a welfare society, But in order to become rich it must involve the people: empowerment - Preventing exclusion, creating jobs, - Designing empowering social work services

18 Time for partnerships "Let me repeat, this is an era of partnerships, Government's cannot do it alone. The UN cannot do it alone and I am afraid NGOs cannot do it alone, and business can't." UN Secretary General Kofi Annan at the World Summit on Sustainable Development, 2002."

19 Thank You! Ronald Wiman Chief Specialist /Global Social Policy National Institute for Health and Welfare Cc Skype: ronaldwiman-eu-sps Mobile Global Social Policy Website EU-SPS Programme website