LUXEMBOURG (ILO News) - The International Labour Office (ILO) today launched an unique international solidarity fund, the Global Social Trust to provide health insurance and pension coverage to the most vulnerable in Ghana.
The new initiative launched by the ILO's Social Security Department is the first of its kind, and will involve the transfer of funds collected by the OGB-L ONG Solidarité Syndicale from individuals in Luxembourg to families in Ghana-mostly pregnant women and mothers with young children.
The initiative, a first of its kind, is designed to address the fact that in some parts of sub-Saharan Africa less than 10 per cent of the active population is covered by a health insurance system or a pension system. This new "Global Social Trust" fund will have as its first link Luxembourg and Ghana.
"The right to social security as well as the right to health are fundamental human rights," says Michael Cichon, Director of the ILO's Social Security Department. "In developing countries, these rights often do not exist, due to a lack of structures and lack of means to access when they do exist. This grim situation can be remedied. With a modest contribution of a few Euros, we can save the lives of populations that are vulnerable."
Under the fund, individuals in Luxembourg may voluntarily contribute five Euros per month. The funds collected by OGB-L ONG Solidarité Syndicale will then be transferred to Ghana to benefit recipients there. Ghana was chosen as the beneficiary country because national authorities have taken steps to extend social protection to all the population.
A National Health Insurance System was adopted in 2003 but it lacks the means to meet all the needs. In the context of the introduction of this system, the Social Security Department of the ILO has already been working with the Dangme West district mutual health insurance scheme with the financial support of the Government of Netherlands and the support of the Government of the United Kingdom. The funds collected in Luxembourg by the Global Social Trust will support initially Dangme West. Over a three-year period, between 3000 and 4000 poor people have benefited from a subsidization of 75 per cent of their health insurance premiums.
The social partnership between Luxembourg and Ghana is a long-term partnership and will extend to the rest of the country as more donors from Luxembourg are mobilized.
For further information please consult: www.ilo.org/gst.