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Policy tools of social protection: How policy can be conceptualised and designed Social protection training Asia Development Institute (ADI) Graduate School.

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Presentation on theme: "Policy tools of social protection: How policy can be conceptualised and designed Social protection training Asia Development Institute (ADI) Graduate School."— Presentation transcript:

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 1

2 Narrative Part I: Introduction 1.Definitions: social protection- social security – social assistance 2.The case for social protection 3.Trends globally and regionally 4.Principles, universal and regional Part II: Challenge: to build a system 1.Policies and strategies, design, management, administration 2.Financing and costing 3.“Policy construction” 4.Social protection systems: a selective overview 5.The ideal system 2

3 Part I: Introduction 3

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. 4

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

6 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/Programme s) 6

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 7

8 Low coverage rates: Old age pension coverage 8

9 Low coverage rates: unemployment protection Old age pension coverage 9

10 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) 10

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

12 Conditional Cash Transfers in Latin America ArgentinaPrograma Familias BoliviaBeca Futuro BrazilBolsa Familia, Bolsa Escola ChileChile Solidario ColombiaFamilias en Accion Program Costa RicaPrograma Superemonos EcuadorBono de Desarrollo Humano El SalvadorRed Solidaria HondurasPrograma de Asignacion Familiar MexicoOportunidades NicaraguaRed de Proteccion Social 12

13 Unconditional Cash Transfers in Sub-Saharan Africa 13

14 Variety of Cash Transfers in Asia and the Pacific BangladeshEmployment scheme CambodiaNational Social Protection Strategy ChinaDibao (minimum income) IndiaNREGA; social pensions IndonesiaJamkesmas, Jampersal, PKH, Rice for the poor, PNPM Korea (Republic of)Targeted social protection transfers for vulnerable people Lao PDR… MongoliaUniversal child benefit 14

15 Variety of Cash Transfers in Asia and the Pacific MyanmarCurrently being developed NepalEducation grants; employment scheme; social pension PakistanBenazir Income Support Programme Sri LankaSamurdhi programme ThailandUniversal health coverage scheme, minimum pension scheme VietnamSocial assistance to poor households and poor children: Conditional cash transfer focusing on disadvantaged communities (under consideration) 15

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. 16

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. 17

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 18

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

20 Vietnam example: developing a social protection floor

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 21

22 Principles 7 th ASEAN GO-NGO FORUM FOR SOCIAL WELFARE AND DEVELOPMENT 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. 22

23 BRICS and the „export“ of social protection Source: BRICS+map&hl=en&client=safari&sa=X&rls=en&biw=1280&bih=611&tbm=isch&prmd=imvns&tbnid=RqNceHxgRU8i9M:&imgrefurl= 23

24 ESCAP and social protection 24

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

26 26 Program Name BLT Unconditional Cash Transfer (2008-09) 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 Cash & Conditions Target group (HHs) Poor & near poor HHs Students from poor HHs Very poor HHs Number of beneficiari es 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 Indonesia: family-based social assistance programmes

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 27

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

29 o To raise the average consumption rate in food expenditure of poor households o To increase the enrollment in and attendance rate of children in school o To improve preventive health care among pregnant women and young children o To reduce the incidence of child labor o 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 Philippines: objectives of the conditional cash transfer Geographical Targeting Household Assessment (Enumeration) Selection of Poor Beneficiaries using Proxy Means Test Eligibility Check Selection Procedures of Target Households 29

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 30

31 31 The National Targeting System identifies and chooses beneficiaries (households, individuals, etc.) of targeted poverty reduction or social protection programs. Indonesia: national targeting system  Past system: each program has its own list of targeting system  Now gradually moves into unified targeting system  Minimizing inclusion & exclusion errors PoorNot-Poor Beneficiary of Programs Non-beneficiary of Programs

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 32

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

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 34

35 Fiscal diamond 35

36 36

37 Annual costs of social protection programmes – middle income countries 37

38 Social protection expenditures in % of GDP, 75 low-income countries 38

39 39

40 40

41 0.9% GDP 1.6% GDP Thailand: Social floor costing example 41

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 42

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 43

44 Systems approaches CountryNameFeatures & functions BrazilSistema 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) ChinaComplex system2 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. IndonesiaComplex system, with Medium Term National Plan (2010-2014) 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 MexicoVivir MejorCoordinates 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 AfricaSouth 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. 2 nd pillar includes Unemployment Insurance Fund – protecting retrenched workers, including those in the informal economy. Vietnamparty resolution on key social policies 2012-2020. (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 44

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

46 THE IDEAL SOCIAL PROTECTION SYSTEM 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 46

47 Resources ASEAN 2012. 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 2011. Social protection floor for a fair and inclusive globalization. Report of the Advisory Group. ILO 2011.­‐the-­‐ ilo/press-­‐and-­‐media-­‐centre/news/WCMS_166292/lang-­‐-­ ‐en/index.htm Barrientos, Armando, Miguel Niño-Zarazúand Mathilde Maitrot Brooks 2010. Social Assistance in Developing Countries Database. Version 5.0 July 2010. World Poverty Institute. The University of Manchester. Centre for Social Protection 2013. Talking Point on Systems of Social Protection, CSP Newsletter 23, February 2013, IDS. By Gabriele Köhler. ESCAP, 2011. The promise of protection. Social Protection and development in Asia and the Pacific. Bangkok European Commission 2012. 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, 20.8.2012 COM(2012) 446 final Hickey, Sam 2008. 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? 47

48 Resources cont´d ILO 2010. Social Security for All. ILO 2010. Extending social security to all. A guide through challenges and options. publ/documents/publication/wcms_146616.pdf ILO 2012. Social Protection Floors Recommendation, 2012 (No. 202) ILO 2012. 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. 2012. Single Window Service in Asia and the Pacific. Piloting integrated approaches to implementing Social Protection Floors. ISSA. International Social Security Association. UNICEF Myanmar 2012. Social protection: A Call to Action. Conference report. Yangon 2012 World Bank 2012. Resilience, Opportunity and Equity. The World Bank’s Social Protection and Labor Strategy 2012–2022. 48

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

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) 50

51 SPF objectives Existing SP provision Planned SP provisions (strategy) GapsRecommen dations Design gaps Implemen- tation issues Health Children Working age Elderly Social Protection Floor template: guarantees and objectives The Social Protection Situation Design gaps and implementation issues (to complete the SPF) Priority policy options to be decided through national dialogue Analysing social protection options Step 1 –Assessment of social protection situation 51

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 52

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