Presentation on theme: "Social protection training Asia Development Institute (ADI)"— Presentation transcript:
1 Policy tools of social protection: How policy can be conceptualised and designed Social protection trainingAsia Development Institute (ADI)Graduate School of Public AdministrationSeoul National UniversitySeoul, 25 February 2013Gabriele Köhler, development economist
2 Narrative Part I: Introduction Definitions: social protection- social security – social assistanceThe case for social protectionTrends globally and regionallyPrinciples, universal and regionalPart II: Challenge: to build a systemPolicies and strategies, design, management, administrationFinancing and costing“Policy construction”Social protection systems: a selective overviewThe ideal system
4 Social security versus social assistance Most countries of the world have social insurance schemesBUT, 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 ProtectionSocial InsuranceSocial Security Scheme(Contributory Schemes)Social AssistanceSupport in form of transfers (Non-Contributory Schemes/Programmes)
6 Social Security Scheme Support in form of transfers Social ProtectionSocial InsuranceSocial Security Scheme(Contributory Schemes)Old age, sickness and accident, unemployment, maternity, invalidity, old age(ILO Convention 102)Social AssistanceSupport 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) servicesEnormous economic and social insecurities: vulnerability and risk, food insecurity, chronic and acute income poverty, systematic social exclusionVery 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. 60The 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 ProtectionSocial InsuranceSocial Security Scheme(Contributory Schemes)Social AssistanceSupport 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 assistancecovering an estimated 10% of the world populationBarrientos et al 2010.
12 Conditional Cash Transfers in Latin America ArgentinaPrograma FamiliasBoliviaBeca FuturoBrazilBolsa Familia, Bolsa EscolaChileChile SolidarioColombiaFamilias en Accion ProgramCosta RicaPrograma SuperemonosEcuadorBono de Desarrollo HumanoEl SalvadorRed SolidariaHondurasPrograma de Asignacion FamiliarMexicoOportunidadesNicaraguaRed de Proteccion SocialSource: 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 BangladeshEmployment schemeCambodiaNational Social Protection StrategyChinaDibao (minimum income)IndiaNREGA; social pensionsIndonesiaJamkesmas, Jampersal, PKH, Rice for the poor, PNPMKorea (Republic of)Targeted social protection transfers for vulnerable peopleLao PDR…MongoliaUniversal child benefitSource: Gabriele Köhler 2013
15 Variety of Cash Transfers in Asia and the Pacific MyanmarCurrently being developedNepalEducation grants; employment scheme; social pensionPakistanBenazir Income Support ProgrammeSri LankaSamurdhi programmeThailandUniversal health coverage scheme, minimum pension schemeVietnamSocial 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, 1952Outlines rights to benefits for residents of a country: accident, illness, unemployment, maternity, old ageILO Recommendation R202: Social Protection Floor 2012Four income “guarantees”: children, poor, elderly, health
19 ILO’s two-dimensional strategy for the extension of social security: Building comprehensive social security systemsindividual/household incomeSocial Protection Floor: Access to essential health care and basic income security for allSocial security benefits of guaranteed levelsVoluntary insurance under government regulationlevel of protectionhighlowextension strategyVertical dimension: progressively ensuring higher levels of protection, guided by Convention No.102 and more advanced standardsfloor levelSource ILO GESS website.Social Protection Floor Recommendation, adopted at ILC 2012Outcomes can be guaranteed through different means – there is no one-size-fits-allHorizontal 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 developmentSocial welfare and protectionSocial justice and rightsEnvironmental sustainabilityAn ASEAN identityNarrowing the development gapSOURCE: 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
22 Principles 7th 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.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 workIndia 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: ChallengesSometimes large, but generally fragmented social assistance programmes, separated from social insuranceNeed to build a system of social protection
26 Indonesia: family-based social assistance programmes NameBLTUnconditional Cash Transfer( )RaskinRice for the PoorJamkesmasHealth ProtectionBSMScholarship for the PoorPKHConditional Cash TransferTransferTypeCashSubsidized RiceHealth service fees waivedCash & ConditionsTargetgroup (HHs)Poor & near poor HHsStudents from poor HHsVery poor HHsNumber of beneficiaries18.7 Mn HHs17.5 Mn HHs18.2 Mn HHs8 Mn Students1.5 Mn HHsBenefitlevelIDR 100,000 per month15 kg rice per monthUnlimitedIDR 480,000 per yearIDR 1,287,000 per yearKey executing agencyMinistry of Social Affairs(MoSA)Bureau of Logistics (BULOG)Ministry of Health (MoH)MoNE & MoRAMoSAEXAMPLE OF A FRAGMENTED APPROACH THAT IS NOW TRYING TO BECOME SYSTEMATICSource: 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 objectivesConceptualising the policy modelDesign: Laying out eligibilitiesManagement: coordination; recording participants
29 Philippines: objectives of the conditional cash transfer Selection Procedures of Target HouseholdsTo raise the average consumption rate in food expenditure of poor householdsTo increase the enrollment in and attendance rate of children in schoolTo improve preventive health care among pregnant women and young childrenTo reduce the incidence of child laborTo 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 activitiesGeographical TargetingHousehold 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 TestEligibility 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 regionsConditional on behavioursUnconditional
31 Indonesia: national targeting system The National Targeting System identifies and chooses beneficiaries (households, individuals, etc.) of targeted poverty reduction or social protection programs.PoorNot-PoorPast system: each program has its own list of targeting systemNow gradually moves into unified targeting systemMinimizing inclusion & exclusion errorsBeneficiaryof ProgramsNon-beneficiaryof ProgramsSource: 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 schemescreate an overarching coordinative body (Cambodia, Myanmar)M&EClaims and grievance mechanismsInformation 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 trendstrends for beneficiary entitlements over timeestimating the required budget, revenue collectionnegotiating fiscal space to reliably fund social protection over the long term
35 Fiscal diamondRathin Roy, Antoine Heuty , emanuel Letouze,
36 Source: ILO WORLD SOCIAL SECURITY REPORT 2010/11 PROVIDING COVERAGE IN TIMES OF CRISIS AND BEYOND
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 Source: ILO WORLD SOCIAL SECURITY REPORT 2010/11 PROVIDING COVERAGE IN TIMES OF CRISIS AND BEYONDFigure 7.3 p. 75.For 2008 – data taken from World BankThe figure measures expenditures as a share of GDP. Thecountries run from Bosnia-Herzegowina (7%) to less than 1% in the Maldives.For Asia, data are included only forIndia: 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. 3Note: for some countries (especially in Central Asia) this might be an overestimate, as some have already existing pension schemes.
40 Source: HelpAge 2011a, p. 427 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% GDP0.9% GDPSource: Valerie Schmitt, ILO Bangkok andILO 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 objectivesto 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 systemto create and adopt the necessary legislationto recognise and seize the policy moment
43 Social protection policy construction “Middle classes”Elites in legislation or decision makingGrass roots organisations, trade unions and their connections to the “poor”International pressure or models or fashionsThe 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 BrazilSistema Unico de Assistencia Social (SUAS)Covers social assistance. Federation of various levels and programmesCoordination with finance.Participatory model via periodic conferences and representativesCambodiaNational Social Protection SystemCovers social assistance, health insurance, employment schemes5 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, withMedium Term National Plan ( ) as overarching commitmentPT 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 schoolsMexicoVivir 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 familiesSouth AfricaSouth African Social Security Agency3-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.Vietnamparty 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 needSource: Gabriele Köhler, Draft note on social protection in Myanmar – opportunities and challenges. August 2012To 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 pensionIndia: RSBY, NREGACambodia: 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 allIndo several components – make people more employablePhilippines: universal health reformNepal: broad range of transfersIndonesia: Jamkesmas, Jampersal, PKH, Rice for the poor, PNPMVietnam: 10 years Social security strategy
46 THE IDEAL SOCIAL PROTECTION SYSTEM Rights based - Universal right/universal coverageCitizenship- or residents-basedCoherence with other policy areasAccompanied by supply side measures (social services, health and education)Accompanied by decent work policy & actionAddresses crises, chronic poverty, vulnerabilities, inequalities, social exclusionWell-targeted and publicised entitlements and special efforts to reach disadvantaged households/communitiesSustainable, predictable, meaningful benefit levelsAffordable and long-term sustainabilityTax financed, linking social protection reform and tax reformEmpowerment: guaranteeing space for civil society and public actionBuilt on notion of social solidarityAdvanced ITMonitoring & evaluation systemsTransparency and right to informationAccountability and complaint and appeals mechanismsSystemic – uniting fragmented programmes systemsLegally bindingSumming up the points made, reflecting current national, regional and international policy views
47 ResourcesASEAN 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.htmBarrientos, 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. BangkokEuropean 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 finalHickey, 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. www.ilo.org 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/http://www.ilo.org/public/english/protection/secsoc/downloads/policy/rapiven.pdfILO 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 2012World Bank Resilience, Opportunity and Equity. The World Bank’s Social Protection and Labor Strategy 2012–2022.
49 ANNEXList of costing toolsILO´s social protection assessment tool
50 Costing toolsBasic 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 situationSPF objectivesExisting SP provisionPlanned SP provisions (strategy)GapsRecommendationsDesign gapsImplemen-tation issuesHealthChildrenWorking ageElderlyThe Social Protection SituationDesign gaps and implementation issues (to complete the SPF)Social Protection Floor template: guarantees and objectivesSource: Valerie Schmitt, ILO Bangkok andILO 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 protectionDesign appropriate interventionsEstimate the cost of each intervention, with alternative level of coverage and benefits, with a good time lineVarious costing tools available from UN agenciesChoose appropriate, affordable, sustainable interventionsCombine with a fiscal budget analysis