Social protection and public policies

(Transcript of the Column by Karina Batthyány
in InfoCLACSO – August 5, 2020)

Let's continue what we've been discussing these past few weeks and address a point that I believe is central for our countries today: social protection. Now, what are we talking about when we talk about social protection? To put it very briefly, the idea of ​​social protection is to address the risks that the entire population faces throughout our life cycle, as well as the more structural problems of society, such as poverty and inequality. And that's why I'm making the connection, because we're in this cycle of inequality. And social protection includes policies that guarantee basic levels of living standards and well-being for everyone. For what purpose? To build fairer and more inclusive societies. If we consider the current context, this ongoing pandemic has made it abundantly clear how urgent it is right now, both globally and in Latin America, to accelerate the processes of establishing new social protection systems, at least with certain levels that guarantee—and listen to what I'm about to say—dignity in people's lives.

Let's recall that one of the latest United Nations reports told us that more than half of the world's population lacks security, protection, and social assistance. To put it another way: they lack social protection altogether, and only, for example, 20 percent of those currently unemployed—remember how this has increased during the pandemic—are entitled to unemployment benefits or unemployment insurance. Therefore, this crisis that has unfolded in Latin America and the Caribbean is reshaping the debates surrounding the role of the state, the role of politics in general, and, particularly, the role of public policy.

I believe we are truly at a crossroads toward societies that, I have no doubt, will undergo reconfiguration in the short and medium term. The current economic model has generated significant inequality, a concentration of wealth, and a concentration of access to social benefits, which are still considered a privilege in our region. Why? Because there is no universal welfare state. That is to say, there is no universal social welfare. Before the coronavirus, this was a serious problem in Latin America and the Caribbean; it was part of the structural inequality we have been analyzing. But today, with everything that has happened within the context of the pandemic, with what we have analyzed in recent weeks, the pandemic is not only a serious issue but a matter of survival. And it is absolutely essential in the medium term to rethink economic, social, and labor policies to ensure that at least basic social rights reach everyone. And in that sense, there is also a need to reorient development models. It is here that it appears, to situate those who are not listening, for example, some of the discussions we have had these days about citizen's income in Latin America.

-That's what I wanted to ask you about… First, I'd like you to explain a little for people, because there are Latin American countries where this income is in place, has been implemented, or where similar income programs existed. But there are other countries where it isn't. What exactly is meant when we talk about these universal basic incomes? And then I'd be interested in you elaborating a bit on the importance they can have for the most vulnerable sectors during times of crisis.

We're talking about defining a basic income that guarantees everyone access to the minimum goods and services necessary for social well-being, for a basic standard of living. We're talking about ensuring income for everyone, even in these crisis situations, like the pandemic we're experiencing now. There are various proposals, but we won't have time to analyze them all in depth. ECLAC is proposing at least a minimum income, for the duration of this pandemic, especially for those who have lost their income due to this health crisis. I think the important thing here is to bring this discussion, which is certainly not new, to the table and explain why we're proposing a citizen's income in Latin America and the Caribbean. It's based on the premise that it's necessary for access to the essential goods that allow us all to live a dignified life. And because, in our region, this has a very important connection to democracy, to the existence of a truly democratic citizenry, where a horizon of equality is guaranteed, as I said before, a horizon of dignity for all people.

Let's recall what we saw in previous weeks: if we're talking about 53 percent of our region's population working in the informal sector and therefore without any kind of protection, and if many of those 53 percent have had their informal incomes, which provide their daily sustenance, affected, then we see the gravity of the situation. Consider, for example, that only some countries in the region, such as Argentina, Brazil, Chile, Colombia, Ecuador, and Uruguay, have unemployment insurance or benefits; and these are only for workers in the formal sector. This illustrates the importance of reopening the discussion on social protection. The other element that became so clear in recent months is the issue of health systems and universal access to quality healthcare. The problem surrounding this issue and the absence of universal, and of course, quality healthcare systems in many of our countries became very clear in our own countries. I'm mentioning just two. When we look at the issue of social protection or welfare, we usually think of four pillars: health, which I just mentioned; social security, which we used as an example of unemployment benefits; education; and care. So, we're talking about ensuring these basic pillars of well-being for everyone. And that's something that's very far from being achieved in our region. It was before the coronavirus, and it's certainly still far from being achieved now due to the worsening inequality and the crisis, which means we have to promote public health, protect all workers, and all people regardless of their employment status. It means guaranteeing income, a universal basic income as we've already discussed, and other measures that we won't have time to explore in detail today. But I thought it was an important topic to raise, and of course, it's a topic that CLACSO is working on and reflecting upon.