A Social and Green Agenda for the Next Decade Kick off Conference

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A Social and Green Agenda for the Next Decade -
Kick off Conference

• "Social cohesion and inclusion as an essential
  pillar of sustainable development.
• Sian Jones, EAPN Policy Coordinator

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Outline

• Introduction
• Presenting EAPN
• Lisbons record on delivering social cohesion
  challenging the myths.
• Social cohesion - an essential element in
  sustainable development
• Bridging Social and Sustainable.

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Who is EAPN?

• Independent EU Network of NGOs committed to fight
  against poverty and social exclusion
• Started in 1990 key actor in poverty programmes
  and development of social OMC .
• Receives financial support from the European
  Commission (PROGRESS)
• 25 National Networks and 22 European NGOs as
  members. (1,500 organisations)

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Key Objectives

• To put the fight against poverty and social
  exclusion on the political agenda of the European
  Union
• To promote and enhance the effectiveness of
  actions against poverty and social exclusion
• To lobby for and with people and groups facing
  poverty and social exclusion

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EAPN and the Lisbon Strategy.

• Participation with national members in Social
  OMC, EES, NRP since 2000.
• Recent reports Social Stocktaking, Social
  Inclusion Scoreboard
• Main Concerns
• Loss of social dimension of Lisbon in 2005.
• Sidelining of the Social OMC restricted to
  feeding in and feeding out.
• Reduction of European Employment Strategy to
  instrument of macro/micro- economic strategy
  focussed on increasingly punitive active labour
  market measures and conditionality.
• Negative impacts of growth and jobs strategy on
  poverty, social exclusion and growing inequality
• No significant progress on governance,
  participation of NGOs and people experiencing
  poverty.

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What happened to the Lisbon pledge?.

• Original objectives of Lisbon strategy 2000
•   create the most competitive and
  knowledge-driven economy in the world, capable of
  sustainable economic growth, with more and better
  jobs and greater social cohesion 
• Commitment to make a decisive impact on poverty
  by 2010.
• Change in 2005 to focus on Growth and Jobs
• Trickle down theory to impact on social cohesion
  is it working? Is this the right basis for
  future strategies?

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Challenging some Growth and Jobs Myths

• Economic Growth leads to social inclusion
• A Job is the best way out of poverty
• Social protection is a cost on growth
• Activation - the best means to ensure access to
  jobs
• Make Work Pay guarantees labour supply
• Liberalisation of Services provides better
  cheaper services

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Lisbons Success

• Between 2001 and 7, average growth of 2.1
• Employment Growth reached 1.8.
• Employment Rate increased to 65.4 - mainly
  through employment of women (58.3) in PT work
• Unemployment from 8.6 to 7.1 by 2007
• Long term unemployment from 4 to 3.
• But with the economic crisis what remains?

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Has this delivered social inclusion?

• 16 of EU population at risk of poverty 78
  million people
• No significant decrease since 2000 (15 in 2001,
  Old MS), increases in AT, BE, NL, UK and PL.
• Higher poverty risk faced by women (17),
  children (19) and older people (19)
• Value of poverty threshold varies 558 EU for
  single person Rumania/ compared to 17, 087 in
  Luxembourg.
• Inequality gap rising with SE, SL, CZ, DK, FI,
  AT and LU with lowest gaps and highest gaps in
  PL, LA, LI, PT.
• In 2006, income of richest 20 nearly 5 times
  higher than income of the poorest 20.
• Poverty risk is highest where greatest income
  inequalities

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Challenging the myths 1. Better growth leads to
social inclusion

• The assumption that economic growth will raise
  the adequacy of standards of living of all, just
  as a tide lifts all boats together, is not often
  observed in practice (Commission SWD Monitoring
  progress towards the objectives of the European
  Strategy for Social Protection and Social
  Inclusion, 6.10.08)
• In LT, EE, PL, SK, IE, MT and CY, strong economic
  growth did not result in big reduction in poverty
  rates.(2004/5)
• In CZ, EL, LU, HU and SE the poverty rate
  increased.
• No causal link between growth and living
  standards for different groups, if no mechanisms
  established to improve the situation of those at
  the bottom of the income distribution ( rise in
  low wages, income redistribution(European
  Commission.).

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2. A job is the best route out of poverty

• Unemployed face higher risk of poverty
• 41 of unemployed live under poverty threshold
• In 2007, 9.4 of children lived in jobless
  households.
• But 8 of people in work at risk of poverty
• 20 of the those at risk of poverty are in work
  12 of the poor are unemployed..
• Why? low wages, precarious jobs, enforced
  part-time work.
• A job is not enough to guarantee an escape from
  poverty. Quality work/living wages provide
  essential floor to sustainable economy

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3. Social protection as a cost on growth

• Average gross spending on social protection
  ranges from 15 of GDP ( Baltic States, RO) to
  more than 28 in BE, DE, DK, and SE. Spending has
  declined in most MS.
• Social Spending reduces risk of poverty by nearly
  40, without it the rate would be 26 (instead of
  16)
• Countries with the lowest at risk of poverty
  rates are those who spend more on social
  benefits.
• Increased expenditure on social protection linked
  to increased prosperity as measured by GDP per
  capita
• Countries with the highest spending on social
  benefits/ with the lowest rates of inequality are
  also generally the happiest!
• Effective Social protection systems not only
  reduce poverty, and increase security, but
  provide an essential platform for participation,
  and social cohesion as well as supporting growth.

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4. Activation is the most effective way to get
people into work.

• Minimum safety nets not sufficient to take
  people out of poverty, majority below the 60
  median income -
• In all countries except Latvia, Germany, UK and
  Ireland, couples with 2 children on MI below the
  poverty line.
• Low take up rates (vary between 40 and 60 OECD
  2004).
• Increased conditionality, aggravates deprivation
  particularly now on the inactive.
• More effective in getting people off benefit than
  into work.
• how can you reduce benefit to someone on 440
  Euros a month? EAPN France.
• Supportive, needs-focused approaches, proven to
  be more effective at supporting vulnerable groups
  into sustainable work, from the base of an
  adequate income ( UK National Council of One
  Parent Families Study/Bridging the Policy Gap.)

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5. Make Work Pay ensures labour supply

• Current approach driven by objective to reduce
  benefit levels, force people into jobs, at any
  price.
• Negative hierarchy between minimum income and
  wages .
• Supply-side focus with limited job creation
  focussed on knowledge-based innovation/high
  skilled areas what access for those furthest
  from labour market? What support for low-skilled?
• Impact from crisis unemployment, downward
  pressure on wages, flexibility, reduced
  employment protection and access for those
  already on the edges.
• Ensuring adequate income and decent wages as
  fundamental social right also provides means to
  prime economy,
• Job creation in areas of social need provides
  road to inclusion and expansion of new services
  (role of social economy and inclusive
  entrepreneurship)

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6. Privatisation and Liberalisation of Services
boosts growth and better services

• Primary driver expansion of the internal
  market/increased competition will drive down
  prices/increase quality?
• Impact of liberalisation on SGIs, not visibly
  resulted in long-term lower prices, - reduced
  access and affordability - evidence of price
  rises/Energy Poverty -.(Energy Watch Report
  2008). Too often A choice between heating and
  eating
• Withdrawal of the state from direct provision/
  regulation/ underfunding and investment in
  essential Services of General Interest.
• Consumer choice too often a privilege of the
  wealthy/ undermining of rights-based access to
  basic services.
• Social Services specificity as key pillar of
  social protection systems undermined.
• Financial and Economic Crisis highlights the
  failure of the market to guarantee the public
  good over private profit..
• Reemergence of the State as defender of the
  Public Good - Guaranteeing Rights based
  affordable access to key services including
  housing, education and health as well as
  energy/water, as key pillar of sustainable
  development..

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Growth and Jobs to Social and SustainableSocial
Cohesion a key pillar in sustainability.

• Original SD Strategy in Gothenburg sets broad
  vision, linked to Lisbon 2000
• Renewed SD Strategy aims to create a socially
  inclusive society by taking into account
  solidarity between and within generations, and
  increasing quality of life of citizens as
  pre-condition for lasting individual well-being.
• This requires new integrated approaches to
  tackling key challenges related to social change,
  tackling inequality, increasing poverty and
  global inequity
• SD Strategy currently subordinated to growth and
  jobs but Economic Crisis/Recovery Package
  supporting Smart Green Growth,
• Stable, more equal, socially just and cohesive
  societies are an essential pre-requisite for
  delivering long term sustainability
• Restoring the balance to the social eco-system,
  confirming rights, reducing inequalities and
  reviving the role of the public good.
• Environmental Growth cannot deliver a sustainable
  future for people and planet, in an increasingly
  divided world

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Social and Sustainable the way forward?Key
Elements.

• New Development Model based on green and social
  market economy identifying the limits to
  growth?
• Restoring the State as guarantor of the public
  good over private profit
• New model of accountability/participative
  democracy, local endogeneous development
• Investment in people social protection as
  refuge and springboard for inclusion.
• Rights driven approach to guarantee equal access
  to quality services and resources, driving up
  social standards
• Adequate minimum income and decent living
  wages/quality work as sustainable economic
  base/global pact on decent work and social
  protection.
• Equality and global equity as driver for social
  cohesion to secure sustainabilty.
• Financial sustainability through a new, fairer
  redistribution model away from individual to
  shared risk.

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For further information

• For further information contact
• Sian Jones, Policy Coordinator, EAPN
• Square de Meeus 18, 1050 Brussels
• E-mail Sian.Jones_at_eapn.eu
• Tel [phone]