Black SashSubmission to Social

Development Portfolio Public Hearings on the Taylor Report

9 June 2003

Black Sash• Human rights based NGO since 1955• Access to justice through 7 paralegal advice offices• Cases on the ground inform our advocacy work• Underlying problem that presents rooted in poverty,

which undermines dignity. Economic marginalisation leads to social marginalisation.

• Emphasis on access to social assistance and social security work due to delays in accessing grants

• 10 963 of 24 786 cases last year on social grants (44.2%); followed by labour (dismissals) 18.3%

Beginning of reform to comprehensive social security policy

1997 Welfare White Paper

“There will be universal access to an intergrated and sustainable social security system. Every South African should have a minimum income, sufficient to meet basic subsistence needs”

1998 Presidential Jobs Summit

• “… parties to the Jobs Summit commit themselves to implementing a comprehensive social security system aimed especially at those living in poverty and the unemployed. A basic income grant may be considered part of such a system. The process to reach agreement on the elements of such a system should begin with an investigation”.

Committee of Inquiry into a Comprehensive Social Security

• Investigation to begin the process to reach agreement on implementing comprehensive social security system

• Terms of reference:– Options on ultimate objectives and targets for the social

security system– Options for immediate practical implementation– Viability and implications of options considered

• Released report: May 2002

• Should be seen as a thinking document, should feed into transparent consultative policy making process, with draft

white paper published for comment.

Black Sash submissions to Taylor

Committee on Social Security Reform • Comprehensive social assistance for children,

including children affected/ infected with HIV/AIDS• Social Security in South Africa• Unemployment Insurance• Disability• Basic Income (Citizen’s) Grant• Unconstitutional aspects of the Social Assistance Act

Constitutional Imperatives guiding development of policy

for social security

Section 7(1)

“This bill of rights is a cornerstone of democracy in South Africa. It enshrines the rights of all people in our country and affirms the democratic values of human dignity, equality and freedom

Section 7(2)“The state must respect, promote and fulfill the rights in

the Bill of Rights”• State cannot erode exisiting rights• State must protect rights from erosion by third parties• State has a positive duty to deliver in terms of the

rights contained in the bill of rights• All rights, including socio-economic rights are

justiciable. Constitution is tool for social transformation

Section 27(1)(c) and (2)“Everyone has the right to have access to social

security, including if they are unable to support themselves and their dependants, appropriate social assistance.

“The state must take reasonable legislative and other measures, within its available resources, to achieve the progressive realisation of each of these rights”.

Progressive realisation within available resources

• Set out in the Grootboom judgement• State must design, implement and

constantly review a reasonable policy to realise the right of access to social assistance

• Work within available resources• Even if state can show statistical success, a

policy will not pass test of reasonableness if it fails to address the needs of the most vulnerable

Current Poverty (Taylor findings)• 22 million people - 53% of the population -live

on average on less than R144 per month• 2 in 3 children live in poverty

– 25% of children under 5 have severe to moderate stunting

– 10% of Africans are malnourished• 3.1 million workerless African households

(1999) up from 1.9 million in 1995 • Long term structural unemployment• One of the most unequal societies in the

world

Current Take up of grantsMarch 2003

Old Age Pension 2 000 041

Disability 897 050

Grant in aid 12 279

Foster Care 133 309

Care Dependency Grant 56 150

Child Support Grant 2 513 693

Total 5 617 151

Gaps in current provisioning

• No income support for poor children between 7-18 years

• No income support for poor adults between 18-59 years

• No general assistance for poor households where no-one is employed

• Over 13 million people live below the poverty line (the very poor) with no access to social security

Taylor findings on adequacy of current social security provisioning

• Lack of policy to address income poverty has been a constraining feature of South Africa’s socio-economic programmes

• The gaps in social security leave the state open to constitutional challenges

• The committee therefore recommends that an appropriate social security concept for South Africa must prioritise the needs of people without any incomes, with insufficient incomes and those who are engaged in informal activities

Taylor recommendations of Comprehensive Social Protection

• Preventative interventions

• Developmental paradigm

• Empower the poor and socially excluded to move towards sustainable livelihoods

Elements of Comprehensive Social Protection

– Income poverty - BIG, SOAP, extended CSG

– Capability poverty - Health care, education, water and sanitation, electricity, public transport, housing, jobs and skills training

– Asset poverty – Land, credit and community infrastructure

– Special needs - Reformed disability, foster care, CDG

– Social insurance

Income Poverty – Basic Income Grant

• Recommended by Taylor Committee as the substratum to comprehensive social protection

• Effective direct payment provides immediate relief (Budget 2002)

• Empowers the poor by providing springboard to move beyond confines of destitution

Cont.• Universal, non means tested grant• Taylor report found that the poorest decile fail

to receive social assistance currently (which fails constitutional imperative to provide for most vulnerable)

• Universal entitlement; target assistance through recovery of value of tax PROGRESSIVELY through the tax system

Taylor Recommendations on Special Needs

• Need to distinguish between poverty alleviation and special needs

• Disabled – need for uniform, needs -based assessment tool, taking into account socio-environmental needs of persons

• HIV/AIDS – committee did not address issues of earlier intervention through state assistance to sustain healthy people; keep people employable and reduce number of orphans

Financing of CSP

• Taylor Committee found it was affordable:

“sufficient fiscal capacity for improved social spending without adverse macro-economic impact”

• R62 billion per year been given back in tax cuts to income earners since 1995

• Number of options for progressive financing; financing policy is a political choice

Administration

• Dove tailed system based on the HANIS smart card

• Financial Institutions – 2002 Financial Sector Summit commitment to find inter alia, affordable delivery/ payment mechanisms – e.g. co-operative banks

• Post Bank• Multi purpose Community Centres• Informal points of sale terminals

Single Delivery Agency• Committee recommends introduction of a single

social security agency to administer all social security• We do not believe this will solve problems of delivery

by itself• Way forward: Set aside the assignment of the

administration of Social Assistance Act to promote nationally enforceable norms and standards; delegate necessary functions to provinces; then review principle of single agency for broad social security, not just social assistance

Conclusion• Comprehensive approach of the

Committee is developmental, aiming to move people away from dependecy on income poverty initiatives to sustainable livelihoods

• Need to address immediate needs caused by poverty while implementing initiatives that lead to self sufficiency – asset poverty; skills deficit; jobs creation

7 June 2003: Growth and Development Summit

• Recognition of role of social security measures to fight poverty

• All parties commit to address take up and overcome obstacles to accessing current grants

• Discuss extension of social protection framework

• Government in process of finalising policy on comprehensive framework for social protection.

• Welcome announcement – need for coherent policy

• Policy should be published in draft form for public comment

• Parliament should encourage executive to do so to facilitate oversight of passage of legislation to implement policy.