Effective and Inclusive Social Security System

National Conference on Iraq’s Ratification of the Social Security Convention 102

Center for Policy Research (CPR)

American University of Iraq – Baghdad (AUIB)

Baghdad 6th October 2022

Important Deadlines:

* Please submit your abstract to ILO.Conference@auib.edu.iq. For further information you can contact Center for Policy Research muslih.irwani@auib.edu.iq

Background

Iraq has initiated the national process for the ratification of The Social Security (Minimum Standards) Convention, 1952 (No. 102) with the publication of Law No. 3 of 2021 in the Official Gazette of Iraq in 2021, which makes Iraq the 61st country in the world and 2nd in the Arab region to ratify C102. Moreover, the ratification of C102 makes compliance with its normative framework a legal obligation. However, the existing social security and social protections arrangements include significant gaps in extent and scope of coverage in addition to design issues that reduce its impact and affect long-term sustainability. Currently, Iraq’s social protection system covers two distinct groups of the population: public employees and the poor.

The “State Employees Pension Fund,” as regulated in the Unified Pension Law No. 9 of 2014, and amended by Law No. 26 of 2019, provides a proficient level of social security protection for civil servants, military and security forces, and employees in state-owned enterprises. Nonetheless, reports have pointed out design issues that limit its long-term fiscal sustainability. The second group covered by the social protection system in Iraq includes the poor and vulnerable Iraqis, who are targeted by several programs, most importantly, the Social Safety Net and the Public Distribution System. In spite of the numerous programs targeting the poor, reports highlighted the significant coverage limitation that resulted in many eligible low incomers not receiving sufficient benefit packages.

Additionally, coverage is not guaranteed to other working adults and their families, such as those in the private sector, or those in generally unstable forms of wage employment, such as the self-employed. Despite this, the Social Security Law No. 39 of 1971 (and its amendments) instructs that all workers covered by the Labor Law No. 37 of 2015 should be formally registered with the Pension and Social Security Fund for Workers.

Over the past few decades, Iraq has enjoyed a favorable demographic profile characterized by a working-age population, which is widely referred to as the “demographic window of opportunity.” While the expansion of the working-age population can be considered a driver for sustainable economic growth, Iraq’s inability to create sufficient jobs to absorb the rapidly growing labor force has led to numerous waves of social unrest. Youth unemployment is especially alarming, estimated at 22 percent and 66 percent for male and female labor forces, respectively. This age and gender dimensions of the unemployment ratios in Iraq is coupled with the low participation rate of female citizens in the labor market, currently at only 11.76 percent in comparison to male labor at 74 percent (ILOSTAT, 2021). The discriminatory labor market in Iraq has resulted in unequitable outcomes and differential coverage rates between male and female labor force participants. For instance, reports indicated that for every 100 males covered by the Pension and Social Security Fund for Workers, only 8.7 females are covered.

Recognizing the changes and challenges faced, a Social Protection Commission to manage social assistance in Iraq was established by the 2014 law. The Iraq Social Protection Strategic Roadmap 2015-2019 was developed to support implementation of the 2014 law. Its vision is to have a comprehensive social protection system in Iraq that covers three main pillars: social safety net, social insurance, and labor market policies. Further, the 2018-2022 Poverty Reduction Strategy by the Government of Iraq and development partners identified the establishment of an effective social protection system has been recognized as a strategic priority by the government.

However, the Covid-19 pandemic, along with restriction measures on movement, has exposed the coverage gap. In a few days or weeks, hundreds of thousands became unemployed as businesses were forced to shut down temporarily or permanently, or reduce operations, causing tremendous financial hardship, especially for the daily and irregular wage earners. A study of the World Bank and UNICEF showed a major spike in poverty that revealed the current safety nets were insufficient to address the needs for economic protection.

The Government of Iraq has realized the need to create flexibility in the labor market and allow greater movement of the workforce between the public and private sectors. This reduces the benefits gap between the public and private insurance systems, as well as making both systems more sustainable, efficient, and comprehensive in coverage.

In this endeavor, two drafts of social security laws for the private sector workers are in the process of enactment. They will cover both federal and KRI regions and currently in the respective Parliaments. The two laws will replace the current Social Security Law No. 39 of 1971 and amendments. If passed, it is hoped that the draft laws will introduce many changes that will bring Iraqi social security legislation closer to meeting the minimum requirements of the C102. Most important features include: extending coverage to workers in the informal sector, self-employed, and business owners. They also introduce new benefits to all workers in the private sector (formal and informal) such as maternity and unemployment, which are added to old-age pension, survivor and disability pensions, work-related injuries, and sickness benefits.

Objective

In coordination with the Iraqi Parliament, the Ministry of Labour and Social Affairs and the International Labour Organization in Iraq, and funded by European Union, Center for Policy Research at AUIB will organize a national conference bringing together representatives from the government, MPs, employer and worker organizations of Iraq, key policymakers and practitioners, UN agencies, development partners, and academics to rigorously analyze and propose home-grown and scalable policy options that balance the economic growth and the right to social security for Iraqis as required by the C102.

The event, entitled “National Conference on Iraq’s Ratification of the Social Security Convention 102” will examine key aspects and challenges to the reformation of the social security environment in Iraq to meet international standards and best practices, taking into account Iraq’s legal commitment to the C102. The conference will propose a set of recommendations to ensure the inclusivity of Iraq’s social security environment. There will be opportunities to present regional and international best practices through this platform. Ultimately, this event will provide a tool to stimulate constructive dialogue leading to policy messages for policy makers and to advocate for designing and implementing inclusive and integrated social protection systems in Iraq.

Young researchers and graduate students are encouraged to participate in this highly interactive event to ensure that their views, needs, and ideas for Iraq’s future labor force are included.

Themes of the Conference

The conference themes include, but are not limited to:

• Legal Assessment and Reform
• Administrative Structure and Processes
• Pervasive Informality in the Labor Market and Access to Social Security
• Gender Discrimination in the Labor Market and the Social Security Coverage Gap
• Sustainability of Social Security Systems

• Synergy between Contributory and non-contributory schemes to close the coverage gap

Academic Committee

Dr. Amjad Rabi, ILO-Iraq

Dr. Muslih Irwani, Center for Policy Research, AUIB

Dr. Charl Swart, College of International Studies, AUIB

Dr. Adnan Yasin Mustafa, ILO Senior Consultant

Important Notes:

* The language of the conference will be English and Arabic, and simultaneous interpretation will be provided. Prospective researchers are welcome to submit their abstracts (limited to 500 words) in Arabic or English. Accepted abstracts will be announced, and their researchers will be invited to submit the original research papers (4000 – 7000 words).

For inquiries about the conference, please email:

muslih.irwani@auib.edu.iq or ILO.Conference@auib.edu.iq

** There are 10 research grants awarded as below:

5 x US$ 2,600 for best full research papers presented by senior researchers and practitioners.

5 x US$ 1,000 for best full research papers presented by students and postgraduate researchers.

*** Selected research papers will be published in a conference proceeding both in English and Arabic languages.