VOLUME 18: SUCCESSFUL SOCIAL PROTECTION FLOOR EXPERIENCES

Chapter 1:Extension of the Universal Family Allowance: The Universal Child Allowance -Argentina


INTRODUCTION

The discussion taking place in academia, international agencies, other organizations and in Argentina about the establishment of a social protection floor starts from different conceptions of the economy and social policies, which lead to conceptually diverse proposals. Discussions on linking social protection and employment in particular are perhaps the most intense since they involve political and social actors with very different positions.

SUMMARY

• Promotes economic security of children and adolescents;

• Launched in November 2009;

• Transfer is equivalent to the benefit that children of formal workers and of beneficiaries of unemployment insurance receive;

• Coverage of 0 to 18-year-olds who are children of unemployed and informal workers as well as of beneficiaries of other programmes who were transferred to AUH;

• 3.5 million new beneficiaries (85 per cent of Argentine children are covered);

• Closely linked to essential services, particularly education and health care.

Target Group

Programme

Benefit


Childhood and adolescence

Universal Child Allowance (Asignación Universal por Hijo, AUH) Arg$180 (US$46.20) per month per child provided that those of school age attend school and in all cases register for health-care services.

Family Allowances (Asignaciones Familiares) Arg$180 (US$46.20) on average per month per child (provided that those of school age attend school) of formal salaried workers and social security old-age, invalidity or survival beneficiaries. Additional transfers for childbirth and adoption.

In the case of Argentina, the drive to establish a universal child allowance was a longstanding demand, based on proposals from various sectors, social actors, unions and politicians. The main objective was to develop and implement a massive public policy campaign in order to reduce poverty, especially extreme poverty, and benefit the lower income sectors. In this sense, the configuration of a more precarious and fragile labour market, which had previously excluded a large segment of workers from social security benefits and thus from this policy instrument, could repair the effects of this failing. However, the proposal does not mean abandoning the goal of achieving a labour market and an employment sector that guarantee social security coverage and adequate incomes.

From an alternative theoretical perspective, there is an advancing school of thought that locates the source of the problem not in the lack of jobs but in the “lack of social integration because of the type of employment offered by the economic system” (Lo Vuolo, 2001). This type of thinking emphasizes the need to separate income security from job security and proposes a more comprehensive notion of labour. Thus, taking as a reference the analytical framework used by Groot and van der Veen (2002), international experience shows that systems of income transfers are slipping from traditional so called “conditional welfare” schemes to other variants. These variants include workfare schemes as well as proposals regarding the concepts of “basic income” and “participation income”.

Despite the substantive changes in the labour market mentioned earlier, since 2003 Argentina has seen a very significant increase in registered jobs. This showed that the creation of employment, protected employment and better working conditions are obtained from the reformulation of an economic policy that had and still has as its cornerstone job creation and job quality (graph 1). The momentum towards the generation of formal jobs exposed the fallacy of the “end-of-work” theory that arose from orthodox economic models and that appeared to be an irreversible characteristic. This empirical evidence was able to promote and support alternative Keynesian economic policies of underpinning demand by generating more and better jobs and by having an active State presence in the distribution of income.

Despite these substantial changes in the labour market, however, there still remained a very significant proportion of workers and families with no social security coverage. It should be noted that Argentina had a rich and historical institutional experience in social security, including the subsystem of Family Allowances (Asignaciones Familiares) covering the children of registered workers. Therefore, the implementation of the Universal Child Allowance (Asignación Universal por Hijo, AUH) Decree was analysed and approved within the legal framework of this social security system, which granted full rights to all children whose parents had been excluded from the formal labour market.


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