UN Calls for $20bn to Fund Social Safety Nets in World’s Poorest Countries
►http://www.globalpolicy.org/social-and-economic-policy/financing-for-development-1-45/general-analysis-on-financing-for-development/51991-un-calls-for-20bn-to-fund-social-safety-nets-in-worlds-poorest-c
By Mark Tran
Guardian
October 9, 2012
An overwhelming majority of states in the ILO has welcomed calls for a social safety net fund in the LDCs. The fund is expected to help setup a precautionary mechanism, as it is more economical to act preventatively than attempt to remedy ad-hoc situations as they arise. To win support from the fund, states will be required to design and implement structures that accept social protection as a globally recognized human right. However, the fund could also be used as a bargaining tool by wealthy states to negotiate deals with resource rich LDCs in return for sponsoring social protection schemes. The fund, which is still in infant stages, will no doubt have many obstacles to overcome. Who will undertake the oversight of such an operation- existing institutions or a new independent body- is only one of many questions.
UN experts have called for a $20bn global fund to promote the creation of social safety nets for the most vulnerable people in poor countries.
The International Labour Organisation (ILO) estimates the costs of universal social protection to be 2-6% of gross domestic product. As the total GDP of the world’s poorest 48 countries is about $1tn, a safety net would cost $60bn if using the 6% figure. The developing countries would be expected to contribute two-thirds, leaving $20bn to be financed by rich countries.