Addressing the challenges of social security systems through new social and fiscal pacts in the countries of Latin America and the Caribbean is more urgent than ever in the current unfavorable economic context and high uncertainty that the region is experiencing, raised representatives who participated on the opening day of the Second Regional Seminar on Social Development that is held virtually until Thursday.
The event, entitled “Social security and the prolonged crisis: an opportunity to combat inequality within the framework of a welfare state in Latin America and the Caribbean”, is organized by the Economic Commission for Latin America and the Caribbean (ECLAC), within the framework of collaborative work with the International Labor Organization (ILO) and the Pan American Health Organization (PAHO) and as a result of joint work with the German Cooperation and the Development Facility in Transition of the European Union.
The opening session featured remarks by Mario Cimoli, Acting Executive Secretary of ECLAC; Fabio Bertranou, Director of the ILO Office for the Southern Cone of Latin America; Carissa F. Etienne, Director of the Pan American Health Organization (PAHO); Volker Oel, Commissioner for Latin America of the Federal Ministry for Economic Cooperation and Development (BMZ) of Germany; and Jutta Urpilainen, Commissioner for International Associations of the European Commission (EC), moderated by Alberto Arenas de Mesa, Director of the Social Development Division of ECLAC.
“The current economic context is very difficult, with setbacks in social matters in the countries of the region. We are concerned about the indicators of poverty, inequality and well-being of the population. This event precisely seeks to maintain a dialogue with governments, promote cooperation and call for action now through new social and fiscal pacts”, said Mario Cimoli.
In a context of accumulated crises, ECLAC projects that Latin America and the Caribbean will return to a path of low economic growth in 2022, to which are added strong inflationary pressures, low dynamism in job creation, falls in investment and growing social demands given the increase in poverty and inequality.
Within this framework, ECLAC has urged the countries of the region to move towards universal, comprehensive, sustainable and resilient social protection systems within the framework of a welfare state. This requires a new social-fiscal pact that contributes to inclusive and transformative social development with gender equality and that guarantees the financial sustainability of policies to address inequality, says the United Nations regional body.
Fabio Bertranou, from the ILO, valued the space for dialogue and reflection and agreed that “effective and comprehensive social protection is not only essential for social justice and decent work, but also for the creation of a sustainable and resilient future” . Quoting ILO Director-General Guy Ryder, Bertranou indicated that “it is a propitious moment to use the response to the pandemic to build a new generation of rights-based social protection systems”.
Carissa F. Etienne, Director of PAHO, recalled that the Americas is the region in the world with the highest number of cases and deaths from the pandemic and stressed that the road to recovery will be complex. The threat of COVID-19 continues, so we must remain vigilant, she said. “Effective integration between the health, finance, and social development sectors to build universal social protection mechanisms is a priority for this region. The time for action has come,” she remarked.
For his part, Volker Oel, Commissioner for Latin America of the German BMZ, highlighted the role of social protection systems and the importance of exchanging experiences and regional and international cooperation to avoid setbacks in social development in the region and to advance in the achievement of the Sustainable Development Goals (SDG) of the 2030 Agenda. “Social protection must be understood as a key element for governance, especially in times of crisis”, he pointed out.
Finally, Jutta Urpilainen, EC Commissioner for International Associations, indicated that the COVID-19 pandemic has highlighted the need for stronger health and social security systems globally, including in Latin America and the Caribbean. “We need to collaborate on social policies, we need to create new social pacts. It is the best way to fight against poverty and inequalities and forge more democratic and inclusive societies”, she maintained.
Subsequently, the first panel of the meeting included interventions by Dean Jonas MP, Minister of Social Transformation, Human Resources Development and Blue Economy of Antigua and Barbuda; María Begoña Yarza, Minister of Health of Chile; José Carlos Cardona, Minister of the Social Development Secretariat of Honduras; María del Rocío García Pérez, Undersecretary of Welfare of Mexico; and Sonia Tarragona, Head of the Cabinet of Advisors Unit of the Ministry of Health of Argentina.
The three-day meeting seeks to be a space for dialogue and reflection on social security systems in the region, with a focus on diagnoses, challenges and strategic guidelines for reform and restructuring processes in pension and health systems. There will be keynote presentations by Nicholas Barr, Professor at the London School of Economics; Carmelo Mesa-Lago, Professor Emeritus at the University of Pittsburgh; and Sir Michael Marmot, Professor of Epidemiology at University College London (UCL) and Director of the UCL Institute for Health Equity, among other specialists.
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