What is social protection and why is it important?

Capacity Development Workshop on Measuring Social Protection 1416 May 2013 BPS Statistics Indonesia, Jakarta, Indonesia

Cline Peyron Unemployment protection and social security technical advisor, ILO Regional Office for Asia and the Pacific, Bangkok

Slide | 1

Disclaimer: The views expressed in this paper/presentation are the views of the author and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Governors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequence of their use. Terminology used may not necessarily be consistent with ADB official terms.

Structure of the presentation

1. What is social security/ protection? 2. Social protection extension as main ILO objective

More people have access to better-managed and more gender-equitable social security benefits The Social Protection Floor Recommendation

3. Diagnostic, estimate of costs and policy coordination

Slide | 2

4. Examples of extension from other countries, challenges & opportunities

 1. What is social protection?

Slide | 3

What is social protection/ security?

People face contingencies during their lives

Maternity

Sickness / ill health

Unemployment

Work injury

Life cycle

...with children Families...

Death of the breadwinner

Invalidity

Old age

These have financial consequences

Slide | 4

What is social protection?

The protection provided by society
To compensate for the loss of income & covers health care expenditures
FINANCIAL SUPPORT

To facilitate access to social services and fulfill basic needs

ACCESS TO SERVICES
Slide | 5

SOCIAL TRANSFERS

What is social security?

Social security is a human right

The Universal Declaration of Human Rights (1948) The International Covenant on Economic, Social and Cultural Rights (1966) The Declaration of Philadelphia
(annex to the Constitution of the International Labour Organization) (1944)
Slide | 6

2. Social protection extension as main ILO objective

More people have access to better-managed and more gender-equitable social security benefits

How to extend social security?

Slide | 7

Social security extension

For a long time, SS was contributory and mainly adapted to the formal sector Assumption that these schemes would progressively extend their coverage with the shrinking of the informal sector
Level of protection

This did not happen.

???
Poor Rest of informal sector Population Formal sector

Slide | 8

Social security extension

Discussion on SS in 2001 -> new consensus: priority to the extension of coverage, exploring several strategies: adapted SI, micro-insurance, social assistance
Level of protection

Poor

Rest of informal sector Population

Formal sector

Slide | 9

Social security extension: the Social Protection Floor

All residents should enjoy at least a minimum level of social security Member states of the ILO should establish social protection floors as a fundamental element of their social security systems
Nationally defined social protection floor
Slide | 10
Level of protection

Poor

Rest of informal sector Population

Formal sector

Social security extension: the Social Protection Floor

Based on this floor, extend social security to provide progressively higher levels of SP benefits to more people
Level of protection

Higher levels of social security to more people

Nationally defined social protection floor

Slide | 11

Poor

Rest of informal sector Population

Formal sector

And endorsed by the 185 member states of the ILO in June 2012 with the adoption of the SPF Recommendation (No 202) 101st ILC 14 June 2012 456 yes votes 1 abstention

The recommendation 202 is a useful guidance for member states who wish to establish/maintain SPFs as part of their national social security systems
http://www.ilo.org/wcmsp5/groups/public/---ed_norm/--relconf/documents/meetingdocument/wcms_183326.pdf

Slide | 12

A national social protection floor guarantees that:

All residents have access to essential health care including maternity care

All children enjoy basic income security (providing

access to nutrition, education and care)

All persons in active age who are unable to earn

sufficient income (e.g. in case of sickness, maternity, unemployment, disability) enjoy basic income security All older persons enjoy basic income security
Slide | 13

Nationally defined Social Protection Floors

Not a one size fits all approach : each country defines the levels of benefits that it can/is willing to provide

Each country also decides how to do it through universal schemes, targeted social assistance, social insurance, a combination
Slide | 14

Give effect to the recommendation

According to ILOs Constitution ILO member states have to submit the Social Protection Floors Recommendation before the national authorities to enact legislation or take action to give effect to the Recommendation.

Slide | 15

In this context the Assessment Based National Dialogue Exercise is a useful tool since it proposes or will propose concrete routes for the further development

3. The process to support countries in implementing national social protection floors and further developing comprehensive social protection systems:
The Assessment Based National Dialogue exercise
Slide | 16

STEP 3 Finalisation & endorsement

9. Endorsement by UN/RTG joint team and presentation to the government (October 2012 March 2013)

1. Inventory of schemes through desk review and bilateral consultations (June 2011)

STEP 1 Assessment matrix

2. Draft assessment matrix (July 2011)

8. Finalization of the costing and assessment matrix; writing of the ABND report (May-August 2012)

National dialogue

3. Dialogue # 1 to validate the Assessment Matrix and provide policy recommendations (August 2011)

7. Dialogue # 3 to present the results of the costing and discuss the fiscal space (March 2012); Training on costing (May 2012); Training course on Social protection: Assessment, Costing and Beyond (October 2012)

4. Translation of policy recommendations into costable scenarios (September 2011 March 2012)

Slide | 17

STEP 2 Costing using the RAP model

6. Data collection for the RAP protocol and costing of the scenarios (November 2011 - March 2012)

5. Dialogue # 2 to validate the choice of scenarios (November 2011, February 2012)

Step 1: Building the assessment matrix: diagnostic, gaps, recommendations

The assessment matrix: objectives SP provisions gaps ation issues endations (strategy) A diagnosticprovisions of the social protection situation (Coverage gaps= SSI database) Health A set of recommendations A baseline for future monitoring (SSI database)
Children Four SPF guarantees Identifying existing situation in the country Identifying policy gaps and implementation issues, addressing which would complete the SPF Priority policy options, to be decided through national dialogue
SPF Existing Planned SP Policy ImplementRecomm-

Working age Elderly

Slide | 18

Step 2: Costing using the RAP model

Projections of population, active age group, economic indicators and government general operations budget Costing of some policy options Fiscal space analysis

Slide | 19

Can be used for informed policy planning and prioritization

Step 3: A mechanism for national dialogue and policy coordination

the UN / G joint team on social protection in the framework of the UNPAF/UNDAF on social protection
UN/G Team on social protection UN SPF Team
UN RC office ILO UNICEF UNDP UNFPA WHO UN WOMEN UNESCO UNHCR FAO WB, ADB IOM

Government group
Ministries of Social Welfare, Labour, Public Health, Education, Finance, Interior Budget Bureau NESDB National Commission on Social Welfare/Social Protection Statistics Offices Academia, Civil Society, Workers and employers representatives

Slide | 20

Used in many Asian and Pacific countries

ABND
Completed in 2011-2012 2013-2014 2014-2015

Slide | 21

Vanuatu and Solomon Islands

4. To conclude Examples of extension from other countries, challenges & opportunities

Slide | 22

Universal access to health care in Thailand

Level of protection

CSMBS 6.7% pop

Universal Coverage Scheme (UCS) 75.1% population

CMHI since 2009 (880,000 insured- Migrants)

SSF sect.33 and 39 15.5% pop

Poor

Rest of informal sector

Formal sector
Slide | 23

Quasi 100% Coverage Issues/ challenge: large number of undocumented migrant workers are not covered by the Compulsory Migrant Health Insurance (CMHI) due to problems of affordability

Cash transfers & scholarships for poor children in Indonesia

Level of protection

PKH and PKSA 1.5 million very poor households in 2012

Scholarship for the poor 6.3 million students in 2012

BOS program Free education 44.7 million students in 2012 (grade 1 to 9)

Poor Rest of informal sector Formal sector

Limitations: The PKH program should be expanded to cover at least all poor households (6.5 million instead of 1.5 million); lack of health and education supply may curb the impact of the program.

Slide | 24

Extension of social insurance to informal economy workers in Thailand

Social security Act, Section 40 Package 1: 70 baht / 30 baht Death, Work injury, Sickness
Recommendation from ABND: Expand package: maternity benefits Enhance employ ability programmes

Level of protection

SSF section 40

SSF sect.33 and 39 15.5% pop

CS 6.7% pop

Universal disability allowance of 500 baht/month Poor Rest of informal sector Formal sector

Challenges: With the introduction of subsidies, coverage has increased from 68 thousands persons to 1.3 million in 18 months. However the target population = 24 million informal economy workers. Also only 50% pay contributions regularly.

Slide | 25

Income security for the elderly in Viet Nam

Level of protection

Todays situation

Social pension (180,000 VND/month) for those above 80 years old

Voluntary insurance under government regulation

5 millions dont receive any pension

Problems with the vertical dimension: weak protection to formal workers

Slide | 26

1,300,000 social assistance +80 100,000 social assistance 60-80

100,000 voluntary participants

1,000,000 pensioners

Towards an enhanced social pension for the elderly in Viet Nam

Level of protection

Recommendation from the assessment report

Social pension

Slide | 27

Expand the social pension to all elderly above 65 years of age who do not receive any pension Increase the levels of benefits from 180,000 VND/month to 400,000 VND/month in rural areas and 500,000 VND/month in urban areas

And more: www.social-protection.org

THANK YOU!
Slide | 28