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

I. Poverty and Exclusion: a

World of Differences and Similarities

Absolute Poverty (up to $1 a day)

Source : www.worldmapper.org

Slum growth (1990-2001)

Source : www.worldmapper.org

Sewerage Sanitation(2002)

Source : www.worldmapper.org

II. Social protection

in France

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

III.

Enhancing Human and Social Capacity:

Demographic Performances and New

Tools

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

Thank you for your attentionMerci谢谢