Developing countries should invest $ 1.2 trillion in social protection
ILO assured that the investment will serve to guarantee basic income security and access to essential health care
The International Labor Organization reported this Friday that by 2020, developing countries should invest approximately 1.2 trillion dollars, which is equivalent to 3.8% of their GDP on average in order to guarantee basic income security and access to essential healthcare for all.
According to statistics from the fact sheet “Social Protection Financing Gaps: Global Estimates and Strategies for Developing Countries in the Context of the COVID-19 Crisis”, the social protection financing gap has increased by 30 %, product of the sanitary crisis that is lived in the current times.
On a regional scale, the relative burden of the gap is particularly acute in Central and West Asia, North Africa and Sub-Saharan Africa (between 8 and 9 percent of their GDP).
Currently, only 45% of the world’s population is covered by at least one social protection benefit. The rest of the population quantified in more than 4,000 million people is completely unprotected.
However, some countries have promoted innovative sources with the aim of increasing fiscal space and managing to extend social protection; Among them, the following stand out: taxes on the trade of large technology companies, unitary taxation on multinational companies, taxes on financial transactions or airline tickets.
K.Villarroel
Source: finanzasdigital
