Remarks by Director, ILO Country Office for Zimbabwe and Namibia
It is my pleasure and singular honour to be the guest speaker at this momentous event, where you are launching a revolving fund for self-sustaining projects for pensioners.
Indeed, this is a timely intervention and a significant milestone in the country’s progress towards the realisation of the noble goals of adequate social security benefits and poverty eradication for all Zimbabweans.
Globally, only 27% of the world’s population has adequate social security coverage and more than half lack any coverage at all. Zimbabwe does not fare any better with only 2% of the population receiving a monthly pension and/or social security benefit. More glaringly is that only 44% of the population aged 65 years and above receive both, a monthly pension and other social security benefits.
Social security schemes are a critical part of the global development agenda, as they are widely accepted globally as tools for poverty reduction. Well-designed and implemented social protection systems can powerfully shape countries, enhance human capital and productivity, eradicate poverty, reduce inequalities and contribute to building social peace. They are an essential part of National Development Strategies to achieve inclusive growth and sustainable development with equitable social outcomes.
The importance of social security is epitomised by the position adopted by the International Labour Conference (ILC), which in 1944 recognized the International Labour Organization’s obligation to “further among the nations of the world, programmes which will achieve…...the extension of social security measures to provide a basic income, to all in need of such protection and comprehensive medical care”. Since then, the ILO’s standards framework has set a unique set of Conventions and Recommendations that set out minimum standards of protection, to guide the building of universal social protection. Universal social protection entails actions and measures, to realize the human right to social security, by progressively building and maintaining nationally appropriate social protection systems, so that everyone has access to comprehensive, adequate and sustainable protection over the life cycle, in line with ILO standards.
In a globalizing world and the context of the Covid-19 pandemic, in which individuals and indeed, pensioners have been exposed to ever greater economic risks, it is clear that the launch of the Revolving Fund today, is a significant national initiative to contribute to alleviating the many negative effects of crises. It is a fitting follow-up and response to the recent 2021 ILC resolution calling for action for a human-centred recovery from the
COVID-19 crisis that is inclusive, sustainable and resilient.
Likewise, the Universal Declaration of Human Rights of 1948 states that; “Everyone, as a member of society, has the right to social security and is entitled to realization, through national effort and international co-operation and in accordance with the organization and resources of each state…”
Similarly, the Constitution of Zimbabwe also fully recognizes and affirms the people’s right to social security. Chapter 2, section 30, in particular, compels the State to take measures to provide social security and social care to those who are in need. These commitments need to be accompanied by adequate allocation of resources through the national budget in order to build a stronger universal social protection system and floor that guarantees basic social security and dignity.
Zimbabwe spends 1.2% of GDP or 7.3% of total national budget on social assistance programmes, which is inadequate compared to the current and emerging social protection needs. The country needs to move towards increasing social spending to the levels of other regional peers of above 2% of GDP on average and the global targets of about 6% of GDP to build stronger and resilient social protection floor.
Ladies and gentlemen, it is heartening to note that the objectives of the revolving
fund, launched today, is very much in line with the United Nations Sustainable Development Goal, particularly, Goal Number 1. The goal is to end poverty in all its forms everywhere as well as to expand social protection programmes, targeting appropriate schemes to the poor and most vulnerable, in order to ensure that no one ls left behind.
For social security benefits to effectively reduce poverty, they must be adequate. It is, thus, important for governments and their social security administration agencies to explore measures that augment statutory monthly social security benefits to build resilience.
This revolving fund is one such a measure. The fund is critical for the empowerment of pensioners, as well as for fostering inclusive economic development. As the ILO, we heartily applaud what NSSA has done and we encourage continued dialogue with key stakeholders to find innovative ways to improve the welfare of all vulnerable people, including the elderly, pensioners and those working in the informal economy.
Indeed, social security systems require continuous reinvention and rebooting in response to ever-changing socio-economic contexts. In that regard, the ILO remains committed to offer technical and advisory support, where possible.