poverty and exclusion enhancing human and social capacity for development the case of france julien...
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Poverty and Exclusion
Enhancing Human and Social Capacity for Development
The case of France
Julien DamonAssociate Professor, Sciences Po, Paris
13 June 2010, Hong Kongwww.julien-damon.com
Summary
I. Poverty and Exclusion: a World of Differences and Similarities
II. Social Protection in France and the Fight Against Poverty
I. Enhancing Human and Social Capacity: Demographic Performances and New Tools
8
0
5
10
15
20
25
30
35
EE LT RO BG SK MTIE
CY CZ PL LU ES HUSI
GR PT FIUK
IT
EU 27
AT DE DK NL BE SE FR
Source : Eurostat
Public social expenditure in percentage of GDP, in 2006
Social SecurityINSURANCE
Social AssistanceASSISTANCE
ExtrasPROVISION FOR THE FUTURE
The Post-War Scheme Optional and compulsory
protection Mutual associations,
insurance companies, contingency fund organizations
1945 goal: progressive reduction of the need for contingency mechanisms
Needs-based risk coverage
Principally financed through taxation
Mainly vertical redistribution
1945 goal: assistance expected to become residual
Risk coverage for “social assistance” beneficiaries
Principally financed through contributions
Mainly horizontal redistribution
Divided into different programs
1945 goal: universality
The various social insurance programs provide four-fifths of the benefits
A “new” social risk: povertyFour “social risks”...
• Occupational injuries• Old age• Illness• Family
... that grew to eleven!• Maternity• Unemployment• Work transitions• Survivors• Disability• Housing• Poverty
Old age
Health
Family
Employment
Housing
Poverty
By broad risk area, 2007
French social policies have met many of the goals they were designed to achieve...
• providing coverage for the whole population
• achieving one of the highest fertility rates in the Western world
• significantly improving the overall health of the population
• fulfilling a role as an effective, Keynesian-inspired, economic stabilizer
• limiting inequality through a relatively high level of redistribution
• reducing poverty, particularly among seniors
Bird's-eye View (1)
... they have, however, been hindered by substantial difficulties arising from economic and social change
• persistently high unemployment, resulting in lost revenue and increased social expenditures
• structural deficits that create a burden for future generations• aging population• poor, insufficient, or incomplete coverage of new risks
(dependency in old age, exclusion, immigrant integration, etc.)• changes to the family structure that challenge the
“male breadwinner” concept• increasing individualism and consumerism of users and
beneficiaries
Bird's-eye View (2)
A RETENIR
• Rejuvenation• Urbanization• More working poor• « Single-parentization »• And… migrations
France and poverty:Five characteristics of poverty
Quantitative target setting•MDG (UN) – 2000: Reduce by half the proportion of people living on less than a dollar a day•OMC (UE) – 2000: Eradicate poverty•France – 2007: Reduce poverty by one third in five years
France and poverty:A new agenda
Progression des naissances hors mariage
Source : INED
New Realities number of births and proportion
of births outside marriage
Public spending on family benefits, in per cent of GDP, 2005
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
France
LuxembourgUnited Kingdom
DenmarkSwedenBelgiumHungaryGermanyFinlandIcelandNorwayAustriaAustralia
New Zealand
Ireland
NetherlandsCzech RepublicSlovak Republic
Cyprus 1,2SloveniaPortugalEstoniaRomania
Switzerland
ItalyLatviaJapan
United States
SpainLithuania
PolandCanadaGreeceBulgariaMexicoMaltaKorea
Cash Services Tax breaks towards family
Source : OECD
Aging, everywhere….Median age (years)
Source: Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat, World Population Prospects: The 2008 Revision,n
Another important relationship: share of births outside marriage and fertility rate
fertility rate,
Sources: OECD, National Statistical Offices and Eurostat Demographic Statistics for EU countries.
Three key words:
Protection
Innovation
Investment
Asset building. Why not?
The case of CTF
In the end