Loveleen De, ILO Consultation in Clark 30 March 2015 Social Protection Floor and ABND exercise

Agenda Social Protection Floor (SPF) What is social protection? Extension of social protection SPF ABND Objectives Steps Result ABND in ASEAN Strengths and limitations

To cover against the financial consequences of: What is social protection? Life- cycle Work injury Maternity Unemployment Invalidity Families with children Sickness Medical care Old ageDeath of the breadwinner

To compensate for the loss of income and cover health care expenditures To facilitate access to social services and fulfill basic needs Financial supportAccess to services Protection provided by society Social transfers What is social protection?

…can be seen through a two-dimensional graph Rest of informal sectorFormal sector Level of protection Population Poor Extension of social protection

In countries of Asia, including Philippines, formal sector workers usually have access to social protection Some schemes target the poorest, leaving the rest of the informal sector uncovered Only some universal schemes exist (e.g. PhilHealth) Rest of informal sectorFormal sector Level of protection Population ?? Poor Extension of social protection

Social protection floor All residents should enjoy at least a minimum level of social protection Member states of the ILO should establish SPFs as a fundamental element of their national social protection systems Poor Rest of informal sectorFormal sector Level of protection Population Nationally defined SPF

Social protection floor Based on the SPF, extend social protection to provide progressively higher levels of benefits to more people Poor Rest of informal sectorFormal sector Level of protection Population Nationally defined SPF Higher levels of social security to more people

 All residents have access to essential health care  All children enjoy access to nutrition, education, care  All working age people enjoy basic income security, particularly in sickness, unemployment, maternity, disability  All older persons have basic income security Social protection floor At least 4 basic guarantees:

Social protection floors SPFs are defined nationally No ‘one size fits all’ approach in designing and implementing SPFs Each country decides on the type, extent and scope of schemes, such as targeted or universal, contributory or non- contributory

SPF adopted International Labour Conference 2012 (Recommendation No. 202) 15th Asia Pacific Regional Meeting, Dec 2011, prioritizes “reducing poverty and wide inequalities in income and wealth” and “building effective SPFs in line with national circumstances” ASEAN Declaration on Strengthening Social Protection, Sep 2013

Objectives of ABND It answers the question by: Identifying the existing situation and gaps in the social protection system Developing recommendations for achieving the SPF Taking steps on the recommendations It answers one question: How do we make the SPF a reality for the entire population of a country?

Step 1 – Assessment matrix Step 2 – Cost estimation Step 3 – Launch of the SPF Steps of ABND

1. What is the existing situation? 2. What are the policy and implementation level gaps? 3. Recommendations to close the gaps 4. How much will it cost to implement until 2020? 5. Is it affordable? 6. Finalizing the ABND report7. Launch of the SPF

Steps of ABND 1. What is the existing situation? 2. What are the policy and implementation level gaps? 3. Recommendations to close the gaps 4. How much will it cost to implement until 2020? 5. Is it affordable? 6. Finalizing the ABND report7. Launch of the national SPF We are here

SPF guarantees SPOFS provisions Existing schemes Policy gaps RecosImp issues Recos SPF-1 Health Social insurance Social welfare Safety nets LMIs SPF-2 Children Social insurance Social welfare Safety nets LMIs SPF-3 Working age Social insurance Social welfare Safety nets LMIs SPF-4 Elderly Social insurance Social welfare Safety nets LMIs Result of ABND

National SPF is defined  Priority recommendations  Cost of the recommendations  Can be included in national plans and implementation strategies

Example - SPF benefits as % of GDP in Thailand Result of ABND 0.5% 1.2%

ABND in ASEAN countries Completed Ongoing Planned

Strengths and limitations Strengths Coordinated approach to develop an SPF in a country Initiates national dialogue on SPF, existing problems and priority recommendations Provides evidence on the affordability of recommendations Limitations Analysis conducted under Step 1 and costing under Step 2 are meant to provide an overview and therefore, are simplistic Additional actuarial studies are needed to design new proposed schemes

Thank you