Economic Transformation Strategy

CHAPTER 2 / BROAD STRATEGY FOR DEVELOPMENT PILLAR 3: SOCIAL COHESION Social cohesion addresses issues of national unity, national identity, togetherness and community spirit. It relates to the rules and norms that allow people to work and live together. A socially cohesive society is one which works towards the wellbeing of all its members, fights exclusion, racism and marginalisation, creates a sense of belonging, promotes trust and tolerance and offers its members the opportunity of upward mobility. Poverty, social inclusion and culture are key features of the 2030 Agenda for Sustainable Development, and its 17 Sus- tainable Development Goals. Goal 1: No Poverty explicitly seeks to end poverty in all its forms, everywhere, in line with Vision 2033 and its related strategies. Goal 5: Gender Equality, addresses the universal desire to migrate towards a fu- ture inclusive of all genders. The social cohesion pillar reflects the development outcomes of Agenda 2063, for example, Aspiration 5 of Agenda 2063: Africa with a strong cultural identity, common heritage, values and ethics. Furthermore, Aspiration 4: A peaceful and secure Africa, reiterates the quintessential role of peace, security, and stability as a platform for inclusive and sustainable development. Social cohesion is a fundamental pillar of the NDS 2019-2023, reflecting the desire to address socioeconomic challen- ges of present-day Seychelles, as well as to maintain the fabric of Seychellois society. The broad public consultations brought forward several issues for which the people are seeking resolutions. These include poverty, social protection and welfare, drug and alcohol abuse, crime and security, cultural identity and religious tolerance to name a few. The cost of social protection is high, at 4.3 percent of GDP in 2015. The current social protection system reduces poverty but it is not positioned to counter growing pressures on equity and social cohesion. The composition of social protection spending is mostly skewed towards the elderly, which raises equity and efficiency concerns (see table below). In 2015, 79 percent of total social protection spending was on the elderly. It is projected that the proportion of the population aged 65 years and above will be approximately 21 percent by the year 2050. The Agency for Social Protection (ASP), in 2015 had expenditures in excess of SCR400m on the Universal Retirement Benefit, as a single line item. Furthermore, in the same year, the expenditures (from ASP) to the Home-Care scheme for the elderly exceeded SCR170mn. There are lingering concerns surrounding the sustainability of such far-reaching social protection expenditures. The figure below provides some more detailed information on the scope and cost of social protection programmes. 56

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