During its 109th session in 2021, the International Labour Conference concluded that the ILO should provide technical support and assist Member States’ efforts to close financing gaps for social protection through domestic resources and development cooperation. The Flagship Programme supports countries to invest more in social protection, notably through domestic resources mobilization, as well as to invest better in social protection, applying the international social security standards, in particular Recommendation No. 202 and Convention No. 102. Activities on financing social protection within the Flagship Programme are centred on the following strategic approaches:
Enhancing domestic resource mobilization
Options to increase fiscal space for social protection exist even in low-income countries, including, inter alia, through increased taxation, a larger social security contribution base, and a more accommodating macroeconomic framework.
Broadening the tax and contributory base by extending social protection to informal economy workers.
Achieved by expanding coverage with different approaches, including by adapting the way contributions are determined, simplifying the payment of contributions, or subsidizing contributions for workers with limited contributory capacities.
Improving synergies between social protection and public finance management(PFM)
- Achieved in particular by increasing compliance and good governance of social protection systems and the government budget
- Social pressure to increase the transparency and accountability of social protection institutions improves provision, trust, and thus compliance
Facilitating the engagement of ILO constituents with ministries of finance and international financial institutions
Engaging in order to increase investments in social protection and enhance policy coherence through the evidence-based assessment of national social protection priorities and the formulation of options for sustainable financing
Mobilizing international financing
This, in combination with technical assistance, helps countries with limited domestic fiscal capacities or that face exceptional circumstances due to shocks, to support the development of sustainable and rights-based social protection systems.