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Course outline (Under Review)

 

 

Social security is a fundamental human right recognized in numerous international instruments, in particular the Declaration of Philadelphia (1944) which is an integral part of the Constitution of the International Labour Organization, the Universal Declaration of Human Rights (1948) adopted by the General Assembly of the United Nations, and the ILO Declaration on Social Justice for a Fair Globalization (2008) adopted by the International Labour Conference. However, the exercise of the right to social security and social protection is denied to vast numbers of citizens of Africa because they do not have access to the existing schemes in most countries of the continent.

The enhancement of the coverage and effectiveness of social protection for all is one of the four strategic objectives of the Decent Work Agenda that guides the programme of the International Labour Office (ILO). The sound governance of social protection schemes – in particular their effective financial governance – is an essential prerequisite for the enhancement of the coverage and effectiveness of social protection.

To strengthen the financial governance of social protection schemes in Africa, the ILO, with financing from the Federal Republic of Germany, has implemented the project QUATRAIN AFRICA. The project focuses on improving the capacities of national policymakers, administrators, and financial specialists responsible for the financial planning and management of social protection schemes. The expected outcomes are the strengthening of the sustainability of the social protection schemes already in place, their improvement in the future, the development of financially sustainable and well-managed new schemes where gaps now exist, and, as a consequence, the reduction of poverty and the enhancement of welfare in African countries.

QUATRAIN AFRICA encompasses several interventions, directed to different target groups (policymakers and tripartite partners, managers, financial specialists). The most significant of the interventions in terms of achieving the expected outcomes just described is the establishment of an Executive Master of Science in Social Protection Financing (Executive Masters’ Programme) in Africa through a partnership between the ILO and the University of Mauritius. The Executive Masters Programme is patterned after similar programmes at Maastricht University in the Netherlands (Maastricht Graduate School of Governance) and the Université de Lausanne in Switzerland (Hautes Etudes Commerciales) with which the ILO is already partnered.

 

 

The Masters Programme is designed for social protection financial specialists and managers. The Programme is one academic year in length, and is composed of two semesters, each consisting of four modules of four weeks each and one ‘streamed module’ running throughout the semester.

A schematic diagram of the Programme’s structure is given in Table 1 below. The curriculum is given in Table 2 at the end of this section:

Table 1:   Course Structure
Executive Master of Science in Social Protection Financing

 

As shown in Table 1, the modules in both semesters are complemented by a streamed module. In the first semester, the streamed Module 1 (Foundations of Empirical Analysis) provides students with the minimum formal mathematical and statistical knowledge necessary to understand the modules of both semesters. In the second semester, the streamed Module 10 (Applied project in social protection) gives students an opportunity to apply and deepen their acquired skills and knowledge.

The four modules of the first semester cover interrelated core elements required to understand the objectives and the functioning of social protection schemes and institutions and to participate in current debates on social protection. These consist of Module 2: Public Economics; Module 3: The Socio-Economics of Social Protection; Module 4: Social Protection Financing; and Module 5: Risk Management.

Module 2

(Public Economics, understood here mainly as the economics of the public sector and its interactions with the wider society) first introduces students to the core concepts and tools of micro- and macro-economic analysis. From that starting point, the module examines issues such as market failure, collective decision-making and equity. The module goes on to address topics such as incomplete markets, public goods, external effects, collective choice, winner-loser analysis, second-best theory, and – to the extent that they are applicable to social protection – other concepts related to individual and collective behaviour such as moral hazard, free-rider behaviour, and stabilization of aggregate demand. This module both applies as well as partially complements the mathematics learned in streamed Module 1.

Equipped with this knowledge, students proceed to
Module 3

(The Socio-Economics of Social Protection). This module provides students with a systematic overview of the contemporary design of social protection. This includes issues of formal institutional design and functional orientation (purpose) of social protection, the stakeholders in social protection, and interrelations between social protection and the other sectors of the economy. Students are given an introduction to different funding and delivery mechanisms of social protection. On that basis, the module introduces students to basic demographic, economic and political aspects of recent reform processes. In order to strengthen their capacity to make independent judgments, students receive a formal introduction to the demographic and economic environment of social protection.

In Module 4

(Social Protection Financing) students are exposed to the full range of topics that lie at the heart of the contemporary debate on the best way to finance social protection. Students are introduced to the main factors influencing social protection revenues and expenditures, and the possible methods of financing social protection. Topics include sources of financing, institutional versus individual arrangements for social protection financing, and their dependency on legislation and other factors. The interdependencies between economics and developments in social protection financing are given prominence. In this regard, the design, implementation and management of the financial operations underlying social cash transfers are given special attention.

Module 5

(Risk Management) introduces students to the main risks to which social protection schemes and their management are exposed. This includes financial and non-financial risks and the ways to address them. On that basis, students develop an understanding of financial methods related to the governance of social protection institutions, including specific emphasis on the tools and instruments (accounting, etc.) required for financial reporting.

The four modules of the second semester build on those of the first and equip students with the analytical tools required to manage the planning and administration of social protection systems. These consist of Module 6: Quantitative Social Protection Analysis; Module 7: Modeling and Social Budgeting; Module 8: Social Protection Administration and Policy Implementation; and Module 9: Comparative Analysis of Social Protection.

Module 6

(Quantitative Social Protection Analysis) begins by introducing students to the methods of effective and efficient data management – that is, the management information systems which allow the management of social protection systems through the ‘daily diagnoses’ of the status of social protection schemes. From that starting point, students are introduced to using management information systems for data management, which is the basis for continuous system analysis. Students learn to identify and manage key data. They are also made familiar with the methods of allowing the analysis and interpretation of data from social protection institutions using statistical and other methods.

Through the first six modules, students will have acquired substantial analytical and methodological knowledge about social protection and its principal interactions with the larger environment in which social protection operates. Also, students will have learned (refreshed) the mathematical and statistical knowledge and skills required to understand the contents of Module 7.

Module 7

(Modeling and Social Budgeting) teaches students the basic methods of modelling of schemes such as universal benefits, social assistance, family allowances, pensions, health insurance and short-term benefits. This includes all aspects required to mathematically map revenues, expenditures and reserves (where applicable) of the different types of schemes. Students are introduced to the concept of social budgeting as a formal method allowing the combination of clearly structured financial information on social protection systems with social protection modelling. This includes basic social accounting as well as model-based projections. The students are taught to understand the link between social budgeting, fiscal space and performance reviews. By the end of the module, students are in a position to understand the process required for financial and demographic projections of social protection schemes. As well, students understand the social budgeting concept and are able to apply its basics to country cases. Such country-specific applications form the basis for Module 10.

Module 8

(Social Protection Administration and Policy Implementation) evolves naturally out of the previous modules. Social protection schemes are, first and foremost, obliged to execute the law. However, they are also permanently under re‑construction, adjustment and reform. The reasons for this are manifold. For example, demographic, economic and/or political developments exert influence on routine operations, calling either for incremental changes or for substantial parametric and/or systemic reform. The analytical exploration of social protection, which is the purpose of the previous modules, is an indispensible prerequisite for the implementation of programme changes (whether incremental, parametric or systemic). However, analysis alone is not sufficient to actually implement proposed changes. Social protection systems also need adequate administration. In fact, the administration of social protection is the only channel through which changes can be implemented. Therefore, this module introduces students to the principal aspects of the administration of social protection schemes, including the problems typically encountered and possible solutions. In this context, the module has a special focus on client orientation, which is necessary for the long-term acceptance of social protection schemes by the insured population. Finally, the module examines policy aspects, and in particular, issues such as to how to make policy effective in the sense that it takes into account the available administrative capacity for implementation.

Module 9

(Comparative Analysis of Social Protection) provides students with an insight into the practice of social protection in Africa and elsewhere. This includes the analysis of common as well as differing design and policy options. The module includes a structured introduction to publicly accessible databases providing more detailed information on social protection systems and their functioning around the world

 

Table 2:         Curriculum
Executive Master of Science in Social Protection Financing

Module	Credits	Weeks	Hours: Class 1	Hours: Total 2
1.     Foundations of Empirical Analysis	4	16	60	120
Mathematics and statistical methods
Introduction to Excel and VBA
2.     Public Economics	4	4	60	120
Basic public economics
Public economics of the social protection sector
3.     The Socio-Economics of Social Protection	4	4	60	120
Introduction to social protection
Demographic and economic context
Social Protection Financing	4	4	60	120
Social protection financing
Design, implementation and management of social cash transfers
5.     Risk Management	4	4	60	120
Risk management
Accounting, auditing and actuarial reports
6.     Quantitative Social Protection Analysis	4	4	60	120
Social protection data and information system
Social protection performance review
7.     Modeling and Social Budgeting	4	4	60	120
Social protection modelling
Social budgeting
8.     Social Protection Administration and Policy Implementation	4	4	60	120
Social protection administration
Social protection policy implementation
9.     Comparative Analysis of Social Protection	4	4	60	120
Development of social protection perspectives
Comparative instruments at the international level
10.   Applied Project in Social Protection	6	16	90	180
Total	42	32	630	1,260

 

 

 

Module 1: Foundations of Empirical Analysis

Number of credits: 4 credits
Number of weeks: 4 weeks
Number of hours: 120 hours (60 class time and 60 study time)

 

 

Objective

The first objective of this module is to introduce students to the mathematical methods typically applied to social protection issues. By the end of the module, the students should be able to understand these methods. With the evolution of the other modules and the students’ increasing understanding of social protection and its challenges, students should also be able to apply the mathematical methods learned to social protection issues.

The second objective of the module is to develop the statistical knowledge and skills required for the preparation and analysis of social protection reports, data and information systems. The understanding, analysis and interpretation of potentially large volumes of data require command of a certain set of statistical methods. As well, knowledge and skills are required for the analysis of historical trends (time series) and the calibration of projection models.

Contents of the Module

 

- Partial differentiation;

- Financial mathematics: practical application of compound interest, discounting and accumulating;

 

- Introduction to index theory;

- Elements of probability theory; the law of large numbers, the central limit theorem; sampling;

- Distribution of variables; parameter estimation; confidence intervals;

- Regression analysis;

- Introduction to hypothesis testing;

- Interpolation and graduation (Sprague, etc.);

 

 

 

Objective

The objective of this module is to equip students with the skills necessary to develop computer programme applications to help them develop a framework for efficient analyses. The module examines guiding principles and provides applied knowledge on calculations and programming in Excel/VBA. By the end of the module, the students should be able to apply Excel/VBA techniques to perform complex quantitative analysis in the field of social protection.

Contents of the Module

- Introduction to the Excel environment;

- Basic Excel formulas and functions;

- Analysing and processing data with Excel (database, pivot tables, etc.);

- Interactions between Excel and VBA; Introducing the Visual Basic Editor;

- Essential VBA language elements;

- Using VBA and worksheet functions;

- VBA program procedures that perform actuarial calculations;

- Modifying code in programs written by other people;

- Error-handling techniques;

- VBA programmes applied to the social protection field.

 

 

Number of credits: 4 credits
Number of weeks: 4 weeks
Number of hours: 120 hours (60 class time and 60 study time)

 

Objective

The objective of this module is to introduce students to the core concepts and issues of public sector economic analysis.

Contents of the Module

- Core concepts of micro- and macro-economics;

• - Issues of market failure, collective decision–making;

• - Equity issues,

• - Public goods, external effects, collective choice;

- Winner-looser analysis, second-best theory, and others.

 

 

 

Objective

The objective of this module is to introduce students to applying the core issues of public economics to social protection.

Contents of the Module

 

- Behaviour and interaction of different sectors (state, private households, enterprises and rest of the world) in social protection;

- Determinants of private household behaviour;

- The role of the state (government);

- Public revenues and expenditures;

- The position of social protection spending (expenditures) in overall government spending (revenues);

- Public budgets, social budgets; and fiscal space.

 

 

Number of credits: 4 credits
Number of weeks: 4 weeks
Number of hours: 120 hours (60 class time and 60 study time)

 

Objective

 

The first objective of this module is to provide students with an overview of the origins and the basic components of the development of social protection, including current policies on social protection. By the end of the module, students should be able to answer questions such as: What is social protection? What are its economic, political, ethical and other roots? What are the design concepts of core social protection systems? Who are the stakeholders in social protection? What are the different funding and delivery mechanisms of social protection? What is the reality of social protection around the world?

The second objective of the module is to introduce students to the basic political aspects of social protection and of the most recent reform processes. By the end of the module, students should be able to answer questions such as: Who are the political actors of social protection? What are the main political issues in social protection? What are the costs and benefits of social protection?

 

Contents of the Module

 

- The functions and institutions of social protection;

- The architecture and political, economic, ethical and other origins of social protection;

- The responsibilities and roles of governments, private households and enterprises in social protection;

- Core elements of social protection legislation;

- Policy instruments of social protection (contributory, non-contributory, tax credits and tax incentives, in cash/kind, public goods, etc);

- The principal interdependencies of social protection and the economy;

- Costs and benefits of social protection functions and institutions;

- Social protection as a development strategy;

- Social protection and the Millennium Development Goals;

- International comparisons of social protection systems;

- Fiscal resources assigned to social protection systems: international and intra-African comparisons;

- Current core issues of social protection policy.

 

 

 

Objective

The objective of this module is to put social protection more formally into the demographic and economic environment. By the end of the module, students should be able to identify core ’rules’ (correlations) as to how demographic and economic factors influence the financial dynamics of social protection schemes.

Contents of the Module

 

- Demographic information bases:

- Population censuses and demographic databases;

- Household, labour force and enterprise surveys;

- Mortality, migration and fertility trends;

- Population projections: cohort-based and other methodologies;

- Assumption setting in population projections;

- Labour force participation rates, employment and unemployment, projection methods (the labour market balance);

- Macro-economic variables as input to social protection system analyses and projections: measuring and projecting employment; productivity, GDP, primary income distribution and wage growth, inflation and interest rate.

 

Number of credits: 4 credits
Number of weeks: 4 weeks
Number of hours: 120 hours (60 class time and 60 study time)

 

Objective

 

The objective of this module is to introduce students to the main methods of financing social protection and to the factors influencing social protection financing. By the end of the module, students should be able to answer questions such as: What are the possible sources for financing social protection? How can they be influenced? How are they linked to the economy?

 

Contents of the Module

 

- The size of the welfare state: trends, patterns and determinants of social expenditures; international and intra-African (regional) perspectives;

- The public finance nexus and resource mobilization strategies;

- Financing techniques;

- Investing social security reserves.

 

 

Objective

The objective of this module is to introduce students to the design, implementation and management of social cash-transfer operations.

Contents of the Module

 

- Definition, design;

- Social cash-transfers parameters: eligibility and conditionality;

- Unconditional cash transfers versus conditional cash transfers;

- Relevance of cash transfers for household incomes: examples;

- Cash transfers, fiscal space and public budgets: setting priorities, short-term needs versus long-term fiscal stability, strategies for cash transfers;

- Regional disparities and the impact of cash transfers;

- Financial impact on demand: consumption, investment, imports, exports, exchange rates; the ‘Dutch’ disease;

- Planning and institutional implementation

- Administration of cash benefits: special issues

 

 

Number of credits: 4 credits
Number of weeks: 4 weeks
Number of hours: 120 hours (60 class time and 60 study time)

 

Objective

The objective of this module is to introduce students to the main risks associated with social protection schemes and their management. These include financial and non-financial risks and ways to address them. By the end of the module, students should have an understanding of the financial methods related to the governance of social protection institutions, with a specific emphasis on financial reporting.

Contents of the Module

 

- Financial markets and institutions;

- Financial instruments;

- Asset-liability and cash-flow management;

- Risk management (financial, non-financial) and underwriting issues;

- Strategies for addressing risks.

 

 

 

Objective

The objective of this module is to introduce students to the basic instruments and principles of accounting, applied to social protection schemes. By the end of the module, students should be able to understand and generate basic accounting instruments such as a balance sheet, a statement of income and expenditures, and a statement of cash flow. The module also addresses questions of appropriate accounting software. The module introduces students to principles and methods of audit and controlling based on accounting techniques.

In addition, the module introduces students to the work of the actuary. By the end of the module, students should understand the main roles of the actuary in social protection schemes, including the meaning of good actuarial practice and essential outputs of actuarial work.

 

- Contents of the Module

- Accounting instruments;

- Accounting cycles;

- Financial statements, cash flow and annual reports;

- Analysis of financial statements;

- Cash flow estimation and risk analysis;

- International accounting standards and practices;

- Tasks and techniques of auditing;

- Objectives and methods of controlling;

- Principles and interpretation of actuarial reports

 

Number of credits: 4 credits
Number of weeks: 4 weeks
Number of hours: 120 hours (60 class time and 60 study time)

 

Objective

Modern social protection schemes rely heavily on effective and efficient data management. The principal objective of this module is to introduce students to the design and potential of management information systems. By the end of the module, students should be able to identify key data needs, how to manage the relevant data, and how to transform system management data into routine statistical reporting.

Contents of the Module

- Management information systems in social protection institutions;

- Data generation and validation; quality control, consistency, reliability and credibility of data;

- The use of management information systems in social protection institutions;

- Analysis of past and current experience: revenue collection rates; benefit payment rates; timeliness of collection and payment;

- Periodical administrative, operational and investment performance reporting;

- Reconciliation of administrative data and financial reports;

- Use of data output for accounting and statistics;

- The costs of a management information system: investment; recurrent costs;

- Compatibility with other national management information systems.

 

 

Objective

The objective of this module is to introduce students to the broader analysis of social protection expenditure and performance reviews (SPERs), which are based on scheme-specific and other data. SPERs go beyond scheme-specific (institutional performance) monitoring and, thus, include the impact of expenditures on living conditions, vulnerability, informality and income distribution, as well as the influence of social revenues and expenditures on the overall economy.

 

Contents of the Module

 

- Living conditions and vulnerability;

- Patterns of informality/formality;

- Income distribution and the impact of social protection on income distribution;

- Measurement of performance in social protection;

- Indicators: benchmark against policy targets, past and national experience, national and international standards, international average and best practice indicators;

- Social protection and fiscal space;

- Interrelation of social protection financing and general government revenues and expenditures

 

 

Number of credits: 4 credits
Number of weeks: 4 weeks
Number of hours: 120 hours (60 class time and 60 study time)

 

Objective

The objective of this module is to introduce students to the basic methods of modelling of schemes such as universal benefits, social assistance, family allowances, pensions, health insurance and short-term benefits. This includes all the quantitative parameters such as beneficiaries, costs and financing. By the end of the module, students should understand the core design of social protection schemes, including the standard data sets available under those schemes. On that basis, students are introduced to designing basic models of social protection schemes, including their interrelationships with the demographic and economic environments.

Contents of the Module

- Demographic, economic and labour market modelling;

- Modeling selected non-contributory and contributory schemes;

- Projecting scheme specific revenues and expenditures;

- Model calibration and validation;

- Understanding and interpreting model outputs;

- Modeling and understanding reform scenarios.

 

 

Objective

 

The objective of this module is to introduce students to the basic principles and methods of social budgeting. This includes basic social accounting as well as model-based projections. By the end of the module, students should understand the social budgeting concept and be able to apply its basics. Students are taught to understand the link between social budgeting, fiscal space and performance reviews.

Contents of the Module

 

- History of social accounting and social budgeting;

- Budgeting the social sector versus social budgeting;

- The compilation of the statistical basis of social budgeting;

- Social accounting system; standard classifications of revenues and expenditures;

- Linkages with other national and international accounting systems;

- Social budgeting in the context of fiscal space and public finance.

 

Number of credits: 4 credits
Number of weeks: 4 weeks
Number of hours: 120 hours (60 class time and 60 study time)

 

Objective

 

The objective of this module is to introduce students to the main aspects of administering social protection schemes. This comprises questions of routine scheme operations, including aspects of improving client-orientation. Issues such as the adjustment of scheme parameters (benefit adjustments; ceiling(s); contribution rates; resource allocation formulas) are also covered. Special attention is given to the administrative capacity to implement major parametric or systemic reforms and to make incremental adjustments to schemes.

 

Contents of the Module

- Standard scheme operations: registration, contribution collection, claims processing and management;

- Client-centered social protection services;

- Administration of social protection benefits;

- Administration of finance and contribution collection;

- Relations and payments to service providers and procurement;

- Institutional arrangements, national coordination, international relations;

- Communication and information;

- Summing up: integrated financial management and monitoring units (INFIMOs): monitoring, planning, policy studies and policy advice; international relations.

 

 

 

Objective

The objective of this module is to provide students with examples of good and bad social protection policy implementation

Contents of the Module

 

- Political economy of social protection;

- Political implications of designing and maintaining social protection schemes;

- The Latin American reforms of the 1990s/2000s: from hope to failure and back to muddling through;

- Bulgaria: a poor country maintains its social protection;

- Ukraine: a potentially rich country misses the chance;

- The case of Mauritius.

 

Number of credits: 4 credits
Number of weeks: 4 weeks
Number of hours: 120 hours (60 class time and 60 study time)

 

Objective

 

The first objective of this module is to give students an insight into the practice of social protection policies in Africa. This includes the identification and analysis of common patterns as well as differences.

Contents of the module

- Historical background;

- African and developing countries social protection in numbers;

- Approaches to social protection policies;

- Different situations of social protection in African countries;

- Overall fiscal resources assigned to social protection systems: an international and regional African comparison;

- International comparative analysis of social protection system;

- International databases and information bases (ISSA, EU, ILO, UNDP, WHO, OECD, etc);

- Major gaps in social protection in emerging and developing countries;

- Examples of successful implementation of social protection instruments;

- Challenges and perspectives.

 

 

Objective

The objective of this module is to introduce students to various comparative databases on social protection

Contents of the Module

• - Quantitative versus qualitative information bases;

• - ISSA databases;

• - EU MISSOC;

• - ILO databases;

• - World Bank databases;

• - UNDP databases;

• - WHO databases;

OECD databases

How to use the databases.

•  

Number of credits: 6 credits
Number of weeks: Part-time assignment carried out in the second half of the academic year
Number of hours: 90 hours (0 class and 90 study time)

Objective

The objective of this module is to enable students to analyze and design social protection schemes. This module emphasizes the importance of conceptual understanding and the ability to apply financial governance techniques to concrete country situations. By the end of the applied project, students should have developed the skills and knowledge required to take sound financial and policy decisions

 

Contents of the Module

- Analysis of an existing social protection system of a given country;

- Analysis of the demographic and economic environment;

- Social protection expenditure and performance reviews of a given country;

- Analysis of past experience;

- Policy analysis and design of a new social protection benefit;

- Risk analysis and strategy for addressing risks;

- Financing options;

- Administrative options;

- Accounting and actuarial controlling;

- Monitoring and performance evaluation;

- Link between monitoring and evaluation and management decision;

- Interpretations and recommendations.