What is social protection and why is it important?

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

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

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

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

 1. What is social protection?

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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 Slide | 4

These have financial consequences

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
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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)
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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?

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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

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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

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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

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In a country with a Social Protection Floor,

Four guarantees:
All residents have access to essential health care

children enjoy income security through transfers All in cash or kind access to nutrition, education and care

All those in active age groups who cannot earn

sufficient income enjoy a basic income security
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All residents in old age and with disabilities have

(particularly in case of sickness, unemployment, maternity, disability)

income security through pensions or transfers in kind

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
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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. 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 of the SPF in Viet Nam, Thailand, Indonesia, and Lao PDR (still to be done).

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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
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Why based national dialogue?

UN agencies involved in SPF (ILO, UNICEF, WHO, UNESCAP, UNFPA, UNAIDS, UNESCO, UNWOMEN, UNDP, WFP), World Bank, ADB, other development partners

One or two champion Ministry/ies

National Statistics Office, academia

Line ministries (Labour, Health, Social Welfare, Planning, Education, Finance, Rural Development)

Civil society

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Worker and employer organisations

Local governments

Diagnostic, estimate of costs and policy coordination

1. What is the
Social Security Situation? 2. How far are we from the achievement of the SPF? -> gaps, issues 3. What should be done to complete the floor?

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STEP 1: Building the assessment matrix with a gender perspective

SPF objectives Existing SP provisions Planned SP provisions (strategy) Policy gaps Implementation issues Recommendations

Health DIAGNOSTIC/ MAPPING will enable: Identifying Identifying policy - Analysis of coverage gaps existing situation gaps and - Analysis of poverty rates & aggregate poverty gap in the country implementation Four SPF issues, guarantees addressing which would complete the SPF ILO SSI Priority policy options, to be decided through national dialogue

Children

Working age Elderly

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Diagnostic, estimate of costs and policy coordination

1. What is the
Social Security Situation? 2. How far are we from the achievement of the SPF? -> gaps, issues 3. What should be done to complete the floor?

4. How much would it

cost today and in the future?

5. Can the Government afford it? Do we need to increase the fiscal space?

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STEP 2: Rapid Assessment Protocol What is it? What is it for?

RAP is a simplified Excel tool developed by ILO to estimate the cost of providing SPF benefits (for health, children, working age and the elderly)

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Diagnostic, estimate of costs and policy coordination

1. What is the
Social Security Situation? 2. How far are we from the achievement of the SPF? -> gaps, issues 3. What should be done to complete the floor?

4. How much would it cost today and in the future?

5. Can the Government afford it? Do we need to increase the fiscal space?

6. How to ensure that the recommendations are endorsed and implemented?

7. How to advocate for the SPF as a whole or specific recommendations? (ROR)

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Used in many Asian and Pacific countries

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

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Fiji, Vanuatu and Solomon Islands

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

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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
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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
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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.

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
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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.

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 Problems with the vertical dimension: weak protection to formal workers

5 millions dont receive any pension 1,300,000 social assistance +80 100,000 social assistance 60-80

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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

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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