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Social protection training Asia Development Institute (ADI)

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1 Policy tools of social protection: How policy can be conceptualised and designed
Social protection training Asia Development Institute (ADI) Graduate School of Public Administration Seoul National University Seoul, 25 February 2013 Gabriele Köhler, development economist

2 Narrative Part I: Introduction
Definitions: social protection- social security – social assistance The case for social protection Trends globally and regionally Principles, universal and regional Part II: Challenge: to build a system Policies and strategies, design, management, administration Financing and costing “Policy construction” Social protection systems: a selective overview The ideal system

3 Part I: Introduction

4 Social security versus social assistance
Most countries of the world have social insurance schemes BUT, in most low-income countries, only a small fraction of the population is covered by social insurance. Most countries of the world, South and North, have social insurance schemes. They are contributory and cover formal sector employees – government employees, workers in large domestic or international enterprises, and members of the military (see ISSA database). Conversely, as is well known, in most low-income countries, only a small – and privileged – fraction of the population is covered by any such forms of established social insurance.

5 Social Security Scheme
Social Protection Social Insurance Social Security Scheme (Contributory Schemes) Social Assistance Support in form of transfers (Non-Contributory Schemes/Programmes)

6 Social Security Scheme Support in form of transfers
Social Protection Social Insurance Social Security Scheme (Contributory Schemes) Old age, sickness and accident, unemployment, maternity, invalidity, old age (ILO Convention 102) Social Assistance Support in form of transfers (Non-Contributory Schemes/Programmes)

7 The case for social assistance
majority of the world’s population: livelihoods from agriculture or fisheries, the informal economy, home-based work, (invisible) services Enormous economic and social insecurities: vulnerability and risk, food insecurity, chronic and acute income poverty, systematic social exclusion Very low social protection coverage rates

8 Low coverage rates: Old age pension coverage
Source ILO World Social Security Report 2010 p 47. Thus shows that in Asia-Pacific, less than 50% of the population have pension coverage; in Lao PDR and Cambodia less than 20%. Pensions have a huge influence on people's sense of dignity and economic security. They also influence family size, and sex preference of children in societies where old age security is the responsibility of one's children, and usually of the male children. Pensions thus have a bearing for child wellbeing and health. Where pension coverage is high – US, Australia, Latin America, it is for social security scheme members.

9 Low coverage rates: unemployment protection Old age pension coverage
Source ILO World Social Security Report 2010 p 47. figure 5.3, p. 60 The figure shows that in Asia-Pacific between none to at most one third of the economically active population have some entitlement to social protection the case of unemployment.

10 Social Security Scheme
Social Protection Social Insurance Social Security Scheme (Contributory Schemes) Social Assistance Support in form of transfers (Non-Contributory Schemes/Programmes) Support against poverty; food subsidies; social pensions; education grants, child grants; public works programmes, etc (ILO Recommendation 202) Over the past decade, social assistance programmes geared to address acute poverty or social exclusion have been introduced on an unprecedented scale in many regions of the world. They take form of monthly cash transfers, food subsidies, school meals or education stipends, social pensions, or public employment schemes

11 Social assistance trends
roughly 50 countries today provide some form of non-contributory social assistance covering an estimated 10% of the world population Barrientos et al 2010.

12 Conditional Cash Transfers in Latin America
Argentina Programa Familias Bolivia Beca Futuro Brazil Bolsa Familia, Bolsa Escola Chile Chile Solidario Colombia Familias en Accion Program Costa Rica Programa Superemonos Ecuador Bono de Desarrollo Humano El Salvador Red Solidaria Honduras Programa de Asignacion Familiar Mexico Oportunidades Nicaragua Red de Proteccion Social Source: IDS Centre for Social Protection

13 Unconditional Cash Transfers in Sub-Saharan Africa
Source: IDS Centre for Social Protection

14 Variety of Cash Transfers in Asia and the Pacific
Bangladesh Employment scheme Cambodia National Social Protection Strategy China Dibao (minimum income) India NREGA; social pensions Indonesia Jamkesmas, Jampersal, PKH, Rice for the poor, PNPM Korea (Republic of) Targeted social protection transfers for vulnerable people Lao PDR Mongolia Universal child benefit Source: Gabriele Köhler 2013

15 Variety of Cash Transfers in Asia and the Pacific
Myanmar Currently being developed Nepal Education grants; employment scheme; social pension Pakistan Benazir Income Support Programme Sri Lanka Samurdhi programme Thailand Universal health coverage scheme, minimum pension scheme Vietnam Social assistance to poor households and poor children: Conditional cash transfer focusing on disadvantaged communities (under consideration) Source: Gabriele Köhler 2013

16 Right to Social Protection
Universal Declaration of Human Rights (1948): Article 22: Everyone, as a member of society, has the right to social security. International Covenant on Economic, Social and Cultural Rights (1966): Article 9: The States Parties to the present Covenant recognize the right of everyone to social security, including social insurance. Source: Köhler

17 Right to Social Protection
Convention on the Eradication of All Forms of Discrimination against Women (CEDAW) (1979): Articles 11(e), 13(a), 14(c) The right to social security, particularly in cases of retirement, unemployment, sickness, invalidity and old age and other incapacity to work, as well as the right to paid leave; The right to family benefits; Taking into account the particular problems faced by rural women and the significant roles which rural women play in the economic survival of their families … (c) To benefit directly from social security programmes. The Convention on the Rights of the Child (CRC) (1989): Article 26: For every child the right to benefit from social security, including social insurance, and necessary measures to achieve the full realization of this right in accordance with national law. Convention on the Rights of Persons with Disabilities (CRPD) (2006) Article 28(b) To ensure access by persons with disabilities, in particular women and girls with disabilities and older persons with disabilities, to social protection programmes and poverty reduction programmes. Source: Köhler

18 Right to Social Protection
ILO Convention C102: Social Security (Minimum Standards) Convention, 1952 Outlines rights to benefits for residents of a country: accident, illness, unemployment, maternity, old age ILO Recommendation R202: Social Protection Floor 2012 Four income “guarantees”: children, poor, elderly, health

19 ILO’s two-dimensional strategy for the extension of social security: Building comprehensive social security systems individual/household income Social Protection Floor: Access to essential health care and basic income security for all Social security benefits of guaranteed levels Voluntary insurance under government regulation level of protection high low extension strategy Vertical dimension: progressively ensuring higher levels of protection, guided by Convention No.102 and more advanced standards floor level Source ILO GESS website. Social Protection Floor Recommendation, adopted at ILC 2012 Outcomes can be guaranteed through different means – there is no one-size-fits-all Horizontal dimension: Guaranteeing access to essential health care and minimum income security for all, guided by Recommendation No. 202

20 Vietnam example: developing a social protection floor
Source:ILO and IMF, Towards effective and fiscally sustainable Social Protection Floors

21 ASEAN 2009 Socio-cultural community blueprint
Human development Social welfare and protection Social justice and rights Environmental sustainability An ASEAN identity Narrowing the development gap SOURCE: ASEAN SOCIO-CULTURAL COMMUNITY BLUEPRINT 2009. The 6 pillars outline what the ASEAN member states commit to promote, with a section specifically on social protection

Everyone, especially those who are vulnerable, entitled to have equal access to social protection covering essential services; Access to social protection – a human right that should be promoted, protected and fulfilled; Universality of protection based on social solidarity, non- discrimination, accessibility, gender equality, social inclusiveness, coherence, accountability, collective financing and risk pooling; Implementation of SPF is part of national strategies for the progressive extension of social security towards higher level of protection; Investment in people to empower them to meet their basic needs and adjust to changes in the economy and labour markets; Cross-cutting issue, hence requires coordinated and holistic approaches; Family unit is an important element in providing support to the vulnerable people and should be strengthened and preserved; Governments, communities, civil society, private sector and social partners are key stakeholders; Inclusive, participatory and rights-based approach in planning, programming and budgeting, implementation, M&E. SOURCE: RECOMMENDATIONS . THE SEVENTH ASEAN GO-NGO FORUM FOR SOCIAL WELFARE AND DEVELOPMENT “Promoting Social Services and Social Protection for Vulnerable Groups” 12 September 2012, Ha Noi, Viet Nam

23 BRICS and the „export“ of social protection
BRICS SANYA, China 2011 Summit: outcome document commitment to social protection and decent work India and Brazil are very active in “exporting” social protection in their regions and also globally, while South Africa and India are pexporting social protection ideas in their immediate region. Source: BRICS+map&hl=en&client=safari&sa=X&rls=en&biw=1280&bih=611&tbm=isch&prmd=imvns&tbnid=RqNceHxgRU8i9M:&imgrefurl=

24 ESCAP and social protection
In Asia/Pacific, the UN has been active in pushing social protection.

25 Part II: Challenges Need to build a system of social protection
Part II: Challenges Sometimes large, but generally fragmented social assistance programmes, separated from social insurance Need to build a system of social protection

26 Indonesia: family-based social assistance programmes
Name BLT Unconditional Cash Transfer ( ) Raskin Rice for the Poor Jamkesmas Health Protection BSM Scholarship for the Poor PKH Conditional Cash Transfer Transfer Type Cash Subsidized Rice Health service fees waived Cash & Conditions Target group (HHs) Poor & near poor HHs Students from poor HHs Very poor HHs Number of beneficiaries 18.7 Mn HHs 17.5 Mn HHs 18.2 Mn HHs 8 Mn Students 1.5 Mn HHs Benefit level IDR 100,000 per month 15 kg rice per month Unlimited IDR 480,000 per year IDR 1,287,000 per year Key executing agency Ministry of Social Affairs (MoSA) Bureau of Logistics (BULOG) Ministry of Health (MoH) MoNE & MoRA MoSA EXAMPLE OF A FRAGMENTED APPROACH THAT IS NOW TRYING TO BECOME SYSTEMATIC Source: Nazara, Suahasil. Poverty alleviation in Indonesia: Progress and challenges. Social Protection Conference, Myanmar, June 2012.

27 System building strategies
“top-down”: fostering processes of formalising the economy, so that all citizens move from the informal to the formal economy and become eligible for social insurance “bottom-up”: universalising social assistance to cover all citizens – or even all residents

28 System building strategy
Defining the objectives Conceptualising the policy model Design: Laying out eligibilities Management: coordination; recording participants

29 Philippines: objectives of the conditional cash transfer
Selection Procedures of Target Households To raise the average consumption rate in food expenditure of poor households To increase the enrollment in and attendance rate of children in school To improve preventive health care among pregnant women and young children To reduce the incidence of child labor To encourage parents to invest in their children’s (and their own) human capital through investments in their health and nutrition, education, and participation in community activities Geographical Targeting Household Assessment (Enumeration) Source: Solloso, Ernestina Z.. Philippines conditional cash transfer program. Social protection conference: call to action. Myanmar, June 25-26th, 2012. Selection of Poor Beneficiaries using Proxy Means Test Eligibility Check

30 System building: design components
Universal for some types of social assistance (pensions, child grants) Targeted for other types – by income levels, identity groups, disadvantaged regions Conditional on behaviours Unconditional

31 Indonesia: national targeting system
The National Targeting System identifies and chooses beneficiaries (households, individuals, etc.) of targeted poverty reduction or social protection programs. Poor Not-Poor Past system: each program has its own list of targeting system Now gradually moves into unified targeting system Minimizing inclusion & exclusion errors Beneficiary of Programs Non-beneficiary of Programs Source: Nazara, Suahasil. Poverty alleviation in Indonesia: Progress and challenges. Social Protection Conference, Myanmar, June 2012.

32 System building: management
define roles and responsibilities of respective governmental ministries and departments that often each administer separate social assistance schemes create an overarching coordinative body (Cambodia, Myanmar) M&E Claims and grievance mechanisms Information access

33 System building: administration
citizens´ registries (India; Indonesia) “single window” access to social assistance (Cambodia) bank transfer modalities (Pakistan)

34 System building: financing
actuarial calculations of population trends trends for beneficiary entitlements over time estimating the required budget, revenue collection negotiating fiscal space to reliably fund social protection over the long term

35 Fiscal diamond Rathin Roy, Antoine Heuty , emanuel Letouze,


37 Annual costs of social protection programmes – middle income countries
Source: DFID, 2011, p. 67

38 Social protection expenditures in % of GDP, 75 low-income countries
PROVIDING COVERAGE IN TIMES OF CRISIS AND BEYOND Figure 7.3 p. 75. For 2008 – data taken from World Bank The figure measures expenditures as a share of GDP. The countries run from Bosnia-Herzegowina (7%) to less than 1% in the Maldives. For Asia, data are included only for India: 3% Indonesia: 2% Sri Lanka: 1% Vietnam: 1% Bangladesh, China less than 1%. Philippines, Tajikistan and Maldives are the thee lowest spenders.

39 Source: HelpAge, 2011a, p. 3 Note: for some countries (especially in Central Asia) this might be an overestimate, as some have already existing pension schemes.

40 Source: HelpAge 2011a, p. 4 27 out of the 50 countries spend more on military expenditures than it would to cost to provide universal pensions to all 60 and older (Help Age 2011a, p4).

41 Thailand: Social floor costing example
1.6% GDP 0.9% GDP Source: Valerie Schmitt, ILO Bangkok and ILO Assessment Based National Dialogue on Social protection in Asia and the PacificA Participatory Approach.

42 System building: social protection policy construction
to define the policy – its overarching principles and objectives to build coalitions or a social compact between tax-paying middle and high income groups and those who stand to gain initially from an enhanced and unified social assistance system to create and adopt the necessary legislation to recognise and seize the policy moment

43 Social protection policy construction
“Middle classes” Elites in legislation or decision making Grass roots organisations, trade unions and their connections to the “poor” International pressure or models or fashions The middle classes typically pay the bulk of taxes, so initially may face additional tax burden. They can be convinced – either of growing inequities create a moral discomfort or actually begin to impact on their political or personal security.

44 Systems approaches Country Name Features & functions
Brazil Sistema Unico de Assistencia Social (SUAS) Covers social assistance. Federation of various levels and programmes Coordination with finance. Participatory model via periodic conferences and representatives Cambodia National Social Protection System Covers social assistance, health insurance, employment schemes 5 ministries (social affairs, health, education, labour and vocational training, rural development). •Coordinates policies •Supervises social protection and pubic employment schemes, as well as health insurance, education grants etc •Monitors NSPS (based on DB) China Complex system 2 minimum living standard guarantee schemes (urban and rural residents below the locally-defined income threshold); 3 health insurance programmes (urban working population; rural; economically inactive populations). New rural pension system. Indonesia Complex system, with Medium Term National Plan ( ) as overarching commitment PT Jamsostek: employment-related insurance for informal sector workers; Program Nasional Pemberdayaan Masyarakat (PNPM) A community empowerment programme in poor districts and sub-districts; Bantuan Operasional Sekolah (BOS) Programme: block grants to schools Mexico Vivir Mejor Coordinates Oportunidades, conditional cash transfer for poor families; 70 y Más social pension scheme for the elderly; and the Seguro Popular health insurance scheme for previously uninsured families South Africa South African Social Security Agency 3-pillar approach to social security: non-contributory (tax-financed), contributory and private voluntary pillars. 1st pillar: Old age grant (to citizens aged 60 and older); Disability grant; Care dependency grant; Child support grant (payable to poor households with children) etc. Free Primary Healthcare to pregnant mothers, people with disabilities, pensioners and the indigent. 2nd pillar includes Unemployment Insurance Fund – protecting retrenched workers, including those in the informal economy. Vietnam party resolution on key social policies (mainly social protection, replaces draft National Social Protection Strategy) labour market policies, social insurance policies, health-care policies, social welfare/assistance, poverty reduction programmes and access to public social services. Universal health-care coverage by 2014; to provide access to basic social services for all such as education, health care, housing, drinking water, electricity, information, sanitation and legal advice; and to provide a minimum income to those in need Source: Gabriele Köhler, Draft note on social protection in Myanmar – opportunities and challenges. August 2012 To be rewritten with Mark Davies, IDS; as a CSP working paper

45 Pathways to social protection systems
China: minimum living standard guarantee program; new rural corporative medical care (NRCMC); health insurance for urban uninsured residents (HIUR); rural old-age pension India: RSBY, NREGA Cambodia: NSPS with clear reference to the SPF … including HEFs, CBHIs, Food distribution, PWPs,… Thailand: UC scheme, minimum pension scheme (500 THB) Laos: extension of SHP for all Indo several components – make people more employable Philippines: universal health reform Nepal: broad range of transfers Indonesia: Jamkesmas, Jampersal, PKH, Rice for the poor, PNPM Vietnam: 10 years Social security strategy

Rights based - Universal right/universal coverage Citizenship- or residents-based Coherence with other policy areas Accompanied by supply side measures (social services, health and education) Accompanied by decent work policy & action Addresses crises, chronic poverty, vulnerabilities, inequalities, social exclusion Well-targeted and publicised entitlements and special efforts to reach disadvantaged households/communities Sustainable, predictable, meaningful benefit levels Affordable and long-term sustainability Tax financed, linking social protection reform and tax reform Empowerment: guaranteeing space for civil society and public action Built on notion of social solidarity Advanced IT Monitoring & evaluation systems Transparency and right to information Accountability and complaint and appeals mechanisms Systemic – uniting fragmented programmes systems Legally binding Summing up the points made, reflecting current national, regional and international policy views

47 Resources ASEAN RECOMMENDATIONS. THE SEVENTH ASEAN GO-NGO FORUM FOR SOCIAL WELFARE AND DEVELOPMENT “Promoting Social Services and Social Protection for Vulnerable Groups” . 12 September 2012, Ha Noi, Viet Nam. Bachelet Michelle Social protection floor for a fair and inclusive globalization. Report of the Advisory Group. ILO ilo/press-­‐and-­‐media-­‐centre/news/WCMS_166292/lang-­‐-­‐en/index.htm Barrientos, Armando , Miguel Niño-Zarazúand Mathilde Maitrot Brooks Social Assistance in Developing Countries Database. Version 5.0 July World Poverty Institute. The University of Manchester. Centre for Social Protection Talking Point on Systems of Social Protection, CSP Newsletter 23, February 2013, IDS. By Gabriele Köhler. ESCAP, The promise of protection. Social Protection and development in Asia and the Pacific. Bangkok European Commission Social Protection in European Union Development Cooperation . COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Brussels, COM(2012) 446 final Hickey, Sam Conceptualising the politics of social protection in Africa. In A. Barrientos & D. Hulme (Eds.), Social Protection for the Poor and Poorest: Concepts, Policies and Politics. London: Palgrave. Holmes, R. (2008). Child Poverty: a role for cash transfers?

48 Resources cont´d ILO 2010. Social Security for All.
ILO Social Security for All. ILO Extending social security to all. A guide through challenges and options . ILO Social Protection Floors Recommendation, 2012 (No. 202) ILO Social protection floors for social justice and a fair globalization. Report IV (1) . Geneva ILC.101/IV/ ILO Regional Office for Asia and the Pacific Single Window Service in Asia and the Pacific. Piloting integrated approaches to implementing Social Protection Floors. ISSA. International Social Security Association. UNICEF Myanmar Social protection: A Call to Action. Conference report. Yangon 2012    World Bank Resilience, Opportunity and Equity. The World Bank’s Social Protection and Labor Strategy 2012–2022.

49 ANNEX List of costing tools ILO´s social protection assessment tool

50 Costing tools Basic social protection tool - Electronic model (ILO & UNICEF) Simulation and costing tool ADePT (World Bank) Micro-simulations (ILO) Actuarial and financial advisory services (ILO FACTS) Performance Indicators (PIS) of Statutory Social Insurance Schemes (ILO) Pension costing tool (HelpAge) Pension reform options simulation toolkit (PROST) (World Bank) Modeling for health insurance (WHO) Modeling for agricultural/crop insurance systems (UNCTAD/World Bank) Rapid Assessment Protocol (RAP) (ILO) Rapid Assessment Protocol Plus (RAP+) (ILO) Marginal Budgeting for Bottlenecks (UNICEF/World Bank)

51 Analysing social protection options
Step 1 –Assessment of social protection situation SPF objectives Existing SP provision Planned SP provisions (strategy) Gaps Recommendations Design gaps Implemen-tation issues Health Children Working age Elderly The Social Protection Situation Design gaps and implementation issues (to complete the SPF) Social Protection Floor template: guarantees and objectives Source: Valerie Schmitt, ILO Bangkok and ILO Assessment Based National Dialogue on Social protection in Asia and the PacificA Participatory Approach. Priority policy options to be decided through national dialogue

52 Analysing social protection options Step 2 – Costing of “SPF” recommendations
Decide on priorities in social protection Design appropriate interventions Estimate the cost of each intervention, with alternative level of coverage and benefits, with a good time line Various costing tools available from UN agencies Choose appropriate, affordable, sustainable interventions Combine with a fiscal budget analysis

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