Mapping out a new social policy for the ESCWA region

19 December 2008

Report

Editor's note: The following is the first half of a report by ESCWA on integrated social policy from concept to practice. The second half of the report will be printed in Saturday's issue of The Daily Star.

Section 1

INTEGRATED SOCIAL POLICY:

WHAT AND WHY

Social policy embodies the totality of interventions designed to change social welfare, social relations and social institutions by expanding choices and opportunities for people throughout the development process. It simultaneously addresses all aspects of social production, reproduction, protection and redistribution, as well as issues of equity, inclusion and rights. Social policy integrates and connects the economic and social dimensions of development into a coherent whole.

Common misconceptions regarding social policy include:

1. A belief that there is an inevitable trade-o between economic growth and social welfare.

2. An understanding that social policy is synonymous with social services (health, welfare, etc.) and is best left for implementation by the Social Affairs, Health and Education ministries.

3. The idea that social policy is synonymous with poverty-reduction.

The following section briefly reviews traditional approaches to social policy and explores their underlying assumptions, particularly those of "growth-first" approaches to economic development and social change.

The limitations of economic development predicated on a growth-first model are explored, as witnessed in Asia and the ESCWA region. The next section then explores the significance of placing equity at the centre of integrated social policy to promote human development.

A. PROBLEMS OF A GROWTH-FIRST MINDSET

Despite accumulating evidence from various parts of the world demonstrating the pitfalls of an exclusive reliance on a "growth-first" approach to solving social problems, Arab countries, and many others, still rely exclusively on economic development as the main engine of change, and from whence social benefits are expected. Conditioned by decades of consultations with classical economists, accustomed to the requisites of Structural Adjustment Policies from the World Bank and the International Monetary Fund (IMF), and confronted with the challenges of competing in the global economy, Arab governments are often wary of approaches that appear to dilute their economic edge.

In the growth-first approach, social dimensions are relegated to a secondary role, or treated as a residual outcome of economic production. As such, social tags are merely appended to economic policy as a presumed outcome, or social packages (safety nets, targeted social services to be delivered by sector-specific ministries) are designed in isolation of the state's economic and development process. The fundamental assumptions of neoliberal economic policymaking thus remain unchallenged, and, more importantly, social programs and policies remain shackled to the expected economic benefits from the growth-first approach. Negative experiences from across the world prove this approach has not delivered socially stable societies, nor has it delivered the equitable, gender sensitive and environmentally friendly dividends of development.

1. Indonesia and Thailand

Like the Arab world, some of the "Asian tigers" (most notably, Indonesia and Thailand) focused on an economic growth-first policy, only to discover that accelerated economic growth deepened social disparities, increased marginalization and benefited a select few. As their economies grew, their social welfare policies focused mainly on generating employment without anticipating the needs for protection of the huge number of the newly unemployed and under-employed. Indonesia and Thailand witnessed vast industrial growth, but not the production of quality jobs. As the gross national product of these countries grew, the quality of life worsened for those working sub-standard jobs with long hours, extremely limited pay and without social protection. Insufficient attention was paid to education and health services, and few quality employment alternatives were created.

Large swathes of the population became dependant on their meager incomes to meet all their daily needs. The economic crisis of the 1990s resulted in the mass unemployment of those with the fewest resources to fall back on.

The East Asian crisis brought out the negative aspects of this model. First, crisis has demonstrated that the model's viability depended on high growth and that, in times of crisis, the system could not provide the social safety net that welfare systems are supposed to. The regressive nature of its redistributive measures has highlighted the inequalities in the model. Reliance on the non-state sector meant that women bore most of the burden, and this reinforced male dominance and female dependency.

Built upon successful integration into global markets, the model was vulnerable to external conjuncture. Finally, it is important to note that the model thrived in essentially authoritarian contexts and would thus be unlikely to survive the wave of democratization that is likely to push for more

As a result, these countries were forced to reassess their priorities, instituting social development planning as part of the economic growth process.

2. The ESCWA region

Achieving peace and social stability alongside economic prosperity in the ESCWA region remain fundamental, and mostly unmet, goals. The widening gap between "winners" and "losers" in much of the region has exacerbated social tensions, increased mistrust in governments and provided fertile ground for social and political disruption and extremism. In some countries, entry into the World Trade Organization (WTO) or other international trade agreements were expected to mitigate poverty conditions; the social consequences, however, were often the opposite.

For example, instead of reaping the expected economic rewards of employing local women in its Free Trade Zones, Jordan discovered that these types of industries imported foreign labour. (See box 2 below for an example of widening social disparities in Jordan.)

Moreover, instead of benefiting local communities, the products were exported abroad and their profits not taxed. In the end, little income was generated for Jordan.

In addition, the short and long-term environmental impact of these enterprises have lasting implications on the health and well-being of local communities and the environmental viability of these locales, all of which highlight missed opportunities for equitable economic and social development under these types of free trade arrangements.

All countries in the ESCWA region are preoccupied with the challenge of competing in the global economy and have responded largely by concentrating on developing the productive capacity of their country to promote and ensure economic growth. Egypt, for example, when trying to apply the Structural Adjustment Policies urged on it by the IMF and World Bank, experienced the dislocation of traditional economies, and continues to face a worrisome rise in the numbers of unemployed and people living in poverty as a result.

The oil-rich counties of the Gulf, however, have applied variations of a growth- first economic approach, with varying results. The United Arab Emirates used its vast oil resources to build its economies, with Dubai now a hub for business enterprises and free trade. Its trajectory of successful economic growth has brought prosperity to its people, but everyone does not benefit equally. There is a heavy reliance on low paid foreign migrant labourers (construction workers, domestic help, etc), who exist on the fringes of society, without adequate social protection and care. The government is aware that ensuring productive capacity requires investment in reproductive and social well-being, promoting human development to keep the engine of economic change running. Training the Gulf's youth to compete in the modern world, and ensuring that individuals and families in all walks of life are given access and opportunity, are emerging priorities. However, the needs and rights of foreign labourers in Gulf countries must also be integrated into social planning and developmental initiatives if those countries are to ensure not only robust economies, but also equally healthy societies and comprehensive social equity.

B. THE CONTRIBUTION OF A SOCIAL POLICY APPROACH

Recently, traditional economists addressed the failures of a singular emphasis on economic growth and argued that there can, and should, be economic growth with equity. In other words, there is no "trade-o " or either/or choice between economic growth and social development. Even institutions such as the World Bank and the IMF have come on board, and are increasingly attuned to the need for a complete development framework rooted in "social policy."

Social policy is a consistent and engaging approach that systematically and institutionally checks the social equity and equal-opportunity implications of every public policy making - be it economic, social, environmental, gender-based, or otherwise - and seeks to curb and control its possible adverse effect on particular groups or constituencies from the outset. It engages with economic-growth imperatives in a manner designed to help individuals and communities shape and manage their lives through an equity-based and a redistributive public policymaking.

Social policy:

Builds societies for all citizens;

Attends to the needs of the poor and vulnerable, ensuring that people have access to social services that promote their health and well-being and thereby enhance their ability to contribute to society;

Ensures that people have equal access to opportunities and participation in society and the economy;

Empowers the necessary regulations and institutional mechanisms to remove any barriers to inclusion and participation.

Social policy enhances economic growth by addressing those social structures and conditions that may prevent people from access, participation and full inclusion as citizens and human beings.

Social policy can be consistent with a commitment to human rights, universal rights that belong to all human beings. This includes the right to development, whereby human development and human equity are themselves inalienable human rights, which all humans are entitled to participate in, contribute to, and enjoy the fruits of economic, social, cultural, and political development.

Compared to the language of poverty reduction and raising incomes (such as achieving minimum wages), a social policy emphasizes the language of equity and human rights within the elements of a "minimum decent living."

Extreme inequality is not just bad for poverty reduction - it is also bad for growth. Long-run efficiency and greater equity can be complementary. Poor people remain poor partly because they cannot borrow against future earnings to invest in production, the education of their children and assets to reduce their vulnerability. Insecure land rights and limited access to justice can create further barriers to investment and pro-poor growth.

Social policy in action

The example of South Korea can be instructive. Following the Asian Financial crisis of the 1990s that struck all the Asian tigers, South Korea responded to the negative fall-out from structural adjustment processes, economic crises and an increasing skewed export-oriented economy by enlarging its welfare state and expanding the right of citizens to social services.

Its revamped social policy combined economic growth with "active social policy initiatives that aimed to provide social protection to the unemployed or those who had become poor during the economic restructuring process"

C. ANALOGY OF A 100-METER RACE

Integrated social policy is about fairness. It is about creating the right conditions - such as equal opportunities and equal responsibilities - to ensure social justice. It's about creating regulatory mechanisms to guarantee equity is perpetuated. Integrated social policy ensures fair play.

Consider, for example, a 100-meter race. In a fair race, all contestants line up at the starting line. During their sprint, they encounter identical obstacles, and have equal access to support and opportunities. In short, their success depends solely upon their ability and dedication.

When applied to real life, unfortunately, this fair race rarely exists. All societies are burdened by disparity: the poor, disadvantaged and disenfranchised all too often are forced to start their race far back from the starting line, face a disproportionately high number of obstacles and can rarely access opportunities to improve their quality of life. In countries with high socio-economic disparities, moreover, the inequity is deepened such that a privileged few, due to wealth and access to decision-makers, start their race considerably ahead of the starting line, face few if any obstacles and can access more than their fair share of opportunities.

Well-designed and implemented social policy provides a corrective mechanism to these inequities, ensuring that everyone is provided equal access to equal opportunities. Social policy also ensures regulatory mechanisms and checks are in place to address failures and abuse. In essence, integrated social policy creates a level playing field.

Government action or inaction regarding Social Rights, Social Regulation and Social Redistribution (the three Rs) determine the fairness, legitimacy and outcome of the race. Social Respect, Social Responsibility, and Social Representation can guide government's application of the three Rs.

1. Social Rights

Equality of condition: Where you start off in a race clearly a affects the outcome. Has institutionalized sexism, for example, created unequal conditions for men and women such that women still start further back than men? Are the children of the rural poor still less healthy than their urban cohorts, and will the former thus spend their lives trying to catch up?

Equality of opportunity: How opportunities are applied to remedy past disparities or discrimination also affects the outcome. To use the same analogies, are women, for example, allowed to train equally with men? Are people from rural areas given the extra resources they may need to catch up with their urban counterparts? Equally importantly, can these opportunities be accessed?

Translated into social policy, the above two circumstances point to the responsibility of governments to establish the regulatory mechanisms to respect and protect the rights of all citizens without discrimination.

2. Social Regulation

The outcomes of a race are also determined by how the authority in question exercises its responsibilities for regulating the race. This governing body is responsible for: (a) creating and monitoring conditions throughout the race to ensure maximum fairness and transparency; (b) establishing and applying consensus-based standards for all the rules governing the race to ensure acceptance and compliance by all competitors, and (c) devising and applying the necessary mechanisms to check and bring to task every abuse or exploitation.

Where is everyone starting from? Do people in rural areas have access to the same quality of education and health services? Why do some people face fewer obstacles than others?

Translated in terms of social policy, this social regulatory role underscores the principle of the responsibility of the government as the representative body to create and ensure a fair and transparent process - one that is accepted and trusted by the people, and to which they can hold the government accountable.

3. Social Redistribution

Ultimately, to ensure the fairness and outcome of the race, a new distribution or redistribution of resources will be needed. For the still marginalized members of society, alternative arrangements can be implemented. In creating a special budget to offer women and girls opportunities to train and compete. Residents of rural areas may require special investments in primary health care, environmentally friendly enterprises, infrastructure or other basic services.

Translated into social policy, redressing conditions of the socially marginalized and excluded populations (whose problems are often the very product of Structural Adjustment Policies and economic growth processes) may require rethinking, retooling and redistributing economic wealth and benefits and narrowing the gaps caused by undue emphasis on economic "growth-first" policy in the first place. This approach requires thinking beyond "poverty-alleviation" to address the structural conditions (and opportunities) underpinning social inequity in a particular society.

Social redistribution for persons with disabilities

Social services for a person with a disability might consist of creating a special home to facilitate his or her movement. However, an active social policy to address disability would pass laws and institute services and licensing to enable persons with disabilities to move about freely and to lead autonomous, dignified and rewarding lives. These measures could include easily accessible public transport for the disabled, barrier-free town planning, vocational training, housing, information services, and job integration, etc.

Key messages:

Instead of a "trade-off," social policy harmonizes economic growth and prosperity with social welfare to enhance human development. An integrated social policy reflects a comprehensive approach that links economic production to equity and equal opportunity, and hence to social protection.

Poverty is not merely a residual outcome of economic development, but is the result of policy and structural denial of human rights and equitable human development.

An integrated social-policy approach reflects and supports a strong state committed to ensuring the appropriate checks and balances for measuring progress in incorporating equity in development planning and delivery.

Section II.

A THREE-TIERED FRAMEWORK FOR SOCIAL POLICY

Through its Integrated Social Policy project, ESCWA developed a unique application of social policy predicated upon three essential interrelated pillars: vision, shared consensus and service provision. Each pillar in this framework simultaneously supports the other two, and the implementation of a strong social policy requires each component of this framework in equal measure. Through its research and analysis of national policies, ESCWA has determined that social policies in the region and elsewhere, when applied, all too often lack one or more of these pillars, crippling their impact. The balanced application of this three-pronged framework, however, establishes and binds together the mutually reinforcing role between people and the state in a complementary process of economic and social development.

ESCWA's social policy framework

Clear policy vision and leadership: Vision entails both a conviction in social equity, and the political will to implement integrated social policy. Strong leadership, a robust regulatory public force, transparent governance at the central and sub-national level, and institutional and accountable checks and balances are all needed to ensure a fair social dividend for all.

A shared and negotiated consensus: A shared consensus requires institutional space and mechanisms to enable the dialogue and checks and balances vital to ensuring citizens' participation in equitable development. It is the space citizens, communities and their governing bodies occupy when actively forging a common understanding of human development for all.

Coordinated social action and

implementation:

Effective, responsive service provision employs a comprehensive approach to how people are involved with, receive and benefit from social services. Embracing an overall vision of development that focuses on enhancing productivity, social well-being and long-term social cohesion, social policy service provision addresses social problems within the greater context of economic development planning.

A. VISION AND LEADERSHIP

A vision of an integrated social policy redefines public policymaking such that social equity and equal opportunity are understood as the most effective path to human development. Two core elements define the political leadership: a political vision needed to appreciate short and long term contributions of a socially responsible public policy, and the political will and commitment to see this policy through.

A vision of integrated social policy:

(a) Provides the necessary analysis to strike a balance between economic priorities (economic growth) and current and ultimate social costs and outcomes, (poverty, unemployment, achieving the MDGs, etc.);

(b) Institutionally and systematically checks actual or potential adverse effects of economic hegemony;

(c) Creates regulatory and institutional tools to curb excesses and boost social dividends, particularly for the most vulnerable groups;

(d) Invests the necessary financial resources to enhance social equity and opportunities in the development process;

(e) Devises system-based cushioning mechanisms integrated into the very processes of production (beyond investing in alternative or residual social protection programs);

(f ) Reaffirms responsible citizenship through redistribution, securing equal participation in economic and social processes, while also rallying the support of primary economic actors by demonstrating the benefits of equitable human development; and

(g) Shapes and determines the ultimate social directions of economic development processes.

1. Social policy actors

Identifying entry points for dialogue on social policy vision requires understanding the context of the main policy actors and political bodies to determine how policy is formulated. In the ESCWA region, pertinent questions include:

Which government bodies lead the vision for social and economic development?

In general, policymaking in the region is highly centralized, where the head of state articulates the general contours and vision for the country, and the premiers, cabinets and others in the executive branch fashion distinct policy directions. Parliaments and legislatures may pass the necessary laws and bills to realize the vision, and sector ministries may participate in different degrees in planning and implementation.

Because of their responsibility in overseeing and ensuring economic stability and growth, of finance ministries commonly enjoy more influence relative to other sector ministries.

Who collaborates in the design of strategic development plans (who contributes information, analyses etc.)?

It is important to identify which bodies and agendas drive national strategic development plans, and which inputs and sources of data inform these plans. It is also important to determine the extent to which national and local government agencies are representative of the communities they serve, and how citizen groups and the public at large perceive the former. These factors may indicate entry points for enhancing buy-in by public bodies, civil society organizations, private and business sectors, and the general public. Representation is a vital component of service provision, as a government will be perceived as legitimate to the extent that it regulates (and redistributes) service provision in a manner that is perceived as fair, accessible and equitable.

In this regard, the policy and agenda-setting role of social affairs ministries in the ESCWA region has been somewhat limited and confined to the delivery of social services to vulnerable and target groups. of Social affairs ministries may benefit from the lessons and experiences of similar ministries in Ireland, Canada, and Norway, for example, where the role of the ministry in checking the social impact of public policy is of foremost importance. In these cases, the ministries are active in checking government policy at every stage and putting forward alternative policy options that take into account impact on poor and vulnerable groups.

What informs the vision of strategic social policy?

A lack of reliable and valid data stands in the way of designing effective social policy. In the ESCWA region, the dearth of data is caused by inconsistent indicators and measurements. Furthermore, data is often selective and politicized. Much of the information in the Arab world is currently designed to measure specific indicators, in particular regarding poverty. Very little information and data is gathered that would enable social policy analysis. A different set of indicators could be used to determine which groups may be further marginalized through a given public policy, which groups will have difficulty catching up in the labor market, and who is being excluded from the mainstream.

Collecting reliable and valid data for social policy also requires the capacity to disaggregate as needed, namely, by gender, age, rural/urban, and so on. The capacity of both public and non-governmental organizations (NGOs) in the ESCWA region to provide disaggregated analysis, as well as budget assessments and the monitoring and evaluation of outcomes, is uneven.

B. SHARED CONSENSUS

A social policy framework can function, sustain itself and deliver social development dividends for citizens only to the extent that a consensus is constantly argued and eventually shared by the different constituencies and interest groups. Countries in the ESCWA region should be more responsive to the vital importance of a shared belief in citizen responsibility and social solidarity, given their role in deterring extremist ideologies and preventing civil strife. Instead, preserving a strong state in the face of various internal and external challenges has become a preoccupation of many governments in the ESCWA region.

Governments in the ESCWA region face the challenge of striking an appropriate balance between preserving highly centralized decision-making and inviting citizen participation, all the while trying to ensure economic growth, prosperity and social stability in an ever-changing national and regional environment.

Governments may perceive that in the interest of security and stability they are compelled to take decisions without ensuring wide participation of constituencies, individual and public initiatives, and maintain a highly centralized and bureaucratic system of control. While governments may succeed in the short term, the social impacts of current economic growth processes (more poverty, higher unemployment, etc.) are growing and social tensions continue to build. In Lebanon, for example, the combination of parochial social identifications and growing economic grievances has created fertile ground for instability, insecurity and hindered prospects for development.

Moreover, the benefits of social policy, when developed and delivered in partnership with its constituents, are manifold: people who experience an improvement in their lives and prospects are more likely to have confidence in the state, and are more likely to accept the legitimacy of measures undertaken to remove barriers to access and opportunities (redistributive justice). A sense of inclusion leads to more opportunities for more people to participate in viable economic development - and economic growth and prosperity in turn fosters a more secure sense of social solidarity and citizenship. Social policy, when approached as an integral part of economic development planning, serves to strengthen, not weaken, the role of the state.

A shared consensus on social policy:

(a) Strengthens shared understandings of successful strategies given a society's national, regional and globalized constraints;

(b) Garners support from citizens and other constituencies for the current and future costs for the government, the state, the private sector and particular groups;

(c) Advocates mainstreaming social dividends against excessive socially costly profit-based approaches, while ensuring a necessary level of competitiveness, high productivity, effectiveness and efficiency;

(d) Provides opportunities for instituting effective mechanisms for oversight and monitoring of inputs and outcomes of policymaking at different levels.

Citizen and civil society participation

The partnership between public office holders and civil-society constituencies is a critical element in achieving a shared consensus on social policy. The roles and responsibilities of each must be clearly defined. Instruments and mechanisms should be put in place to define the role of public office holders in shaping policy, monitoring the performance of policy and program and creating the space for effective civil society participation. Likewise, civil-society groups must be prepared and equipped to take part in a social policy dialogue and to monitor and check the impact of public policy and programs.

Pertinent questions in the ESCWA region include:

Who are the main civil society actors and what is their role?

The ESCWA region boasts a wide range of civil society actors, including: national civil society organizations, non-government and semi-government organizations, charitable organizations, trade unions, professional associations, media outlets, etc. Civil society actors also include academic and research institutions, and international NGOs. Additionally, the private sector may include national and foreign enterprises, banks, foundations, investment companies, chambers of commerce, small business entities and a host of other institutions.

Mapping relevant civil society sectors and actors in any given society establishes who and what interests enjoy influence at any given point in time and indicates who and what interests may be marginalized or excluded.

In much of the ESCWA region, civil society supplement public services that the governments fail to deliver. It is also important to map the respective mandates and capacities of these civil society entities. This tool provides information on who is eligible to join organizations and whom the organizations represent; for example, professional and trade unions may be restricted to specific populations.

Other pertinent information includes how the leadership is constituted (whether elected or appointed); what services are provided and where different organizations are located geographically in a country; what kind of skills and capacities do they have, and how equipped are they to assume a partnership role with the government.

Citizen participation, civil society actors and their impact on state services

Do private business interests hold sway, and if so, how does this affect government approaches to, and financing of, services to citizens? Are women, the poor, refugees, the youth and elderly and other vulnerable groups invited or allowed input into decisions that affect their lives?

What is the relationship between civil society and government?

Civil society and citizen organizations may be subject to varying government regulations concerning their mandate and activities. Provisions concerning the fund-raising activities of charitable religious organizations, for example, will affect the scope of services provided and the populations served by these organizations.

Citizen groups may enjoy varying degrees of access and influence with government agencies (as with corporate business interests) that in turn shapes the potential for enhancing citizen involvement throughout society.

Among civil-society actors, the media plays a significant role as an agent of civil society by airing the voice of the public and disseminating information about government priorities. However, in the ESCWA region the media is all too often censored, either by its range and ownership - whether government or independently owned and operated - or by governmental laws.

In the highly regulated context of many countries of the ESCWA region, other pertinent questions include whether alternative media exists (i.e. Internet based) and its accessibility, as well as how journalists and broadcasters are selected and which sectors of society they represent.

Copyright The Daily Star 2008.