VOLUME 18: SUCCESSFUL SOCIAL PROTECTION FLOOR EXPERIENCES

Chapter 14: Setting Up a Social Protection Floor - Mozambique

Country details


INTRODUCTION

Mozambique has recently approved a strategy (the National Strategy for Basic Social Security) and a regulation (Decree nr. 85/2009) that establishes the Regulation for the Basic Social Security Subsystem. The latter, together with Law 4/2007 (the Social Protection Law) and the Regulation for Obligatory Social Security, creates the basis for a comprehensive model that can be seen as a step in the direction of a social protection floor.

SUMMARY

Mozambique recently approved the National Strategy for Basic Social Security (April 2010) and the Regulation for Basic Social Security (December 2009) that set the stage for a comprehensive model that can be seen as another step in the direction of a national social protection floor (SPF).

Earlier in 2007, the Social Protection Law (4/2007) took the first step, organizing the social protection system at three levels: basic social security, obligatory social security and complementary social security.

Therefore, the legal framework creates an inclusive juridical foundation, establishing a mix of funding mechanisms (both contributory and non-contributory) and offering a set of potential benefits and mechanisms aligned with the SPF definition. The Regulation is a step forward, protecting key rights, establishing universalization as a goal, but also noting that the expansion of social protection will be gradual in accordance with government capacity.

The Regulation for Basic Social Security divides basic social security into four areas of intervention that are very relevant to the social protection floor:

• direct social action. Managed by the Ministry of Women and Social Action, it comprises social transfers used to address the needs of the most vulnerable (older people, people with disabilities, those who are chronically ill, and households with orphans and vulnerable children) and to respond to situations of transitory vulnerability;

• health social action. Managed by the Ministry of Health, it assures the universal access of the most vulnerable populations to primary health care;

• education social action. Managed by the Ministry of Education, it promotes the participation of the most vulnerable populations in the education system; and

• productive social action. Jointly managed by different sectors and including Social Inclusion through Work programmes, it targets female heads of households, people with disabilities and other people living in absolute poverty.

The approval of the Regulation for Basic Social Security constitutes a very significant step towards the implementation of the social protection floor in Mozambique, but it also raises a major challenge considering the institutional capacity of the national organizations involved.

Important items for discussion are efficiency of the programmes, definition of priorities, funding of the Strategy and fiscal space.

This legal framework creates an inclusive juridical foundation, establishing a mix of funding mechanisms (both contributory and non-contributory) and offering a set of potential benefits and mechanisms aligned with the definition of a social protection floor. The Regulation for the Basic Social Security Subsystem is a step forward, protecting key rights, establishing universalization as a goal, but also noting that the expansion of social protection will be gradual in accordance with government capacity.

Indeed, as a result of the approval of the new Regulation, Mozambique now has a very comprehensive set of legal instruments. On one hand, the Social Protection Law establishes three pillars of protection: non-contributory basic social security, contributory or obligatory social security, and complementary private insurance. On the other hand, the Regulation for the Basic Social Security Subsystem defines four areas of intervention: direct social action (monetary and in-kind transfers), health social action, education social action and productive social action. In addition, the Regulation for Obligatory Social Security foresees the extension of the social insurance mechanisms to the self-employed.

The three pillars of protection pro- vide a diversified range of solutions for the extension of social security coverage and for the development of a social protection floor. Nevertheless, it is important to recognize that while being an important step, the existence of a good legal framework is not a sufficient condition for the successful implementation of a social protection floor.

This case study will focus on the most recent advances in the area of basic social security that target the most vulnerable populations, establishing “a set of essential social rights and transfers” as specified in the definition of the Social Protection Floor Initiative.

Regarding the policy level, the National Strategy for Basic Social Security (Estratégia Nacional de Seguranca Social Básica, ENSSB) defines three objectives: (a) extending the cover- age and impact of the programmes, (b) increasing the efficiency of the system, and (c) assuring the coordination of dif- ferent programmes and services. The strategy definition was steered by the Ministry of Women and Social Action (MMAS), which will be responsible for implementing the strategy. Implementation will nonetheless take place in strong coordination with other ministries as well as national and international partners.

Different mechanisms for coordination are in place. The Regulation creates the National Council for Basic Social Security, which will be led by the Ministry of Women and Social Action and involves the participation of ministers from other sectors that will be associated with the implementation of the strategy. At the policy level, the Poverty Reduction Strategy Paper (PRSP) Working Group on Social Action played a significant consultative role in defining the strategy. It also constitutes the main forum for policy discussion between the Government and its national and international cooperation partners. The Government and partners see the Working Group as an excellent space for the definition of common strategies promoting the agenda on the expansion of basic social protection. A second working group that supports the Food Subsidy Programme (Programa Subsídio de Alimentos, PSA) focuses on developments at the operational level.

In the context of the social protection floor, it is important to highlight that Mozambique has one of Africa’s oldest non-contributory schemes in the Food Subsidy Programme (PSA). The PSA is a government programme that, since approximately 20 years ago, has been implemented by the National Institute of Social Action on a national scale, making it the precedent for the current expansion of basic social security benefits. More details about this programme will be pro- vided in a subsequent section.

Although this progress represents important achievements for the sector, widespread coverage remains a big challenge. The manner in which the sector will face the challenges brought on by the strategy in the coming years will be very important to the future of social protection in the country. Areas such as the efficiency of programmes, the definition of priorities, and discussions concerning the funding of the strategy and fiscal space will certainly be among the most important aspects of the work that the Ministry of Women and Social Action will undertake in the near future.


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