Presentation to MISSOC Trends in social security in Asia 6th June 2016, Amsterdam Simon Brimblecombe, Head of Policy Analysis and Research, ISSA

Social Security in Asia in 20 minutes… Where we are now Five challenges ahead and selected responses of social security 21/11/2018

Creative StudioGetty Images 21/11/2018 47% receive them . Legal coverage is lowIn Asia and the Pacific, 47 per cent of older persons receive an old-age pension, compared to 16.9 per cent in sub-Saharan Africa, 36.7 per cent in North Africa, 56.1 per cent in Latin America and the Caribbean, and over 90 per cent in Europe and North America. 21/11/2018 Creative StudioGetty Images

If we take China out…

Proportion of population affiliated to national health services, social, private or micro-insurance schemes, latest available year (percentages) Health coverage 21/11/2018

Creative StudioGetty Images 21/11/2018 Legal coverage under mandatory work injury programmes is available to 30 per cent of the total labour force in Asia and the Pacific, compared to 20 per cent in Africa, over 50 per cent in Latin America, and between 70 and 80 per cent in Europe and North America. 21/11/2018 Creative StudioGetty Images

Unemployment Benefit 21/11/2018 The effective coverage rate under unemployment protection schemes (both contributory and non-contributory) is 5 per cent in Asia and the Pacific, compared to 3 per cent in Africa, 5 per cent in Latin America, 64 per cent in Western Europe and a global average of 12 per cent. 21/11/2018 Creative StudioGetty Images

What do we have ahead ? Five key challenges for Asian social security 21/11/2018 What do we have ahead ? Five key challenges for Asian social security Stubbornly high informal sector Climate change Migration Rapid ageing + family & society changes Non-Communicable Diseases And financing adequate social security in this new context Non-health public social protection expenditure for people of working age in the region accounts for 1.5 per cent of GDP, compared to 0.5 per cent in Africa, 5.1 per cent in Latin America and the Caribbean, 5.9 per cent in Western Europe and a global average of 2.3 per cent. What are adequate benefits ? 21/11/2018 Creative StudioGetty Images

1. Stubbornly high informal sector 21/11/2018 1. Stubbornly high informal sector Challenges Despite economic growth, informal sector remains significant Economic growth has outstripped (formal) job growth Challenges include access, incentives, financing and equity Responses: SEWA in India Linking construction permits with social security contributions in China Seasonal worker coverage in Vietnam For instance, in South Asia between 2009 and 2014, average annual economic growth rates of 6.1 per cent were partnered with employment growth of only 1.4 per cent per annum 135 million children under the age of 5 are unregistered 21/11/2018 Creative StudioGetty Images

2. Climate Change Challenges Responses: Increasing number of extreme 21/11/2018 2. Climate Change Challenges Increasing number of extreme Business interruption, migration and emergency response Mortality rates & health likely to change Responses: Short and long term responses in the Philippines Rethinking migration policy in Vanuatu Adaptation & mitigation through public works in India Responses: Calamity and emergency loans at concessional rates Grant of moratorium on loan amortizations Advanced grant of pensions of up to 3 months. Accelerate procedures for processing and pay out 21/11/2018 Creative StudioGetty Images

3: Migration Challenges Responses: 21/11/2018 3: Migration Challenges Difficult to cover but vulnerable and increasing in numbers Financing coverage and coordinating benefits Responses: Bilateral and multilateral agreements in the Philippines Sri Lanka – social security for migrants and family members Foreign residents to be covered for health care in Indonesia Sri Lanka – travel expenses Voluntary savings and insurance for Indian migrants Creative StudioGetty Images

4: Rapid ageing + family and society changes 21/11/2018 4: Rapid ageing + family and society changes Challenges Ageing much more rapid than elsewhere At the same time, family structures and attitudes are changing weakening informal support mechanisms Responses: Active ageing policies in Japan Increasing female participation rates in Korea Increasing retirement ages & incentives for late retirement The elderly population (aged 65+) has nearly doubled (from 173 million to more than 330 million) between 1990 and 2014, and is expected to double again by 2045. The old-age dependency ratio for East and North East Asia is currently nearly 11 dependant elderly persons per 100 people of working age, which is twice as high as in South and South West Asia. Some countries in the East Asia region in particular are experiencing a more rapid pace of population ageing than that experienced by the world’s more developed “aged” economies. Korea, fewer than 30 percent of older people live with their children. In China, 43 percent of those ages 65 to 70 live with their children, down from two-thirds in the early 1980s. But retirement ages too low and mainly the already older countries making effort (eg Korea and Japan only with late retirement) Migration “Getting old before getting wealthy” http://www.worldbank.org/en/region/eap/brief/rapid-aging-in-east-asia-and-pacific-will-shrink-workforce-increase-public-spending 21/11/2018 Creative StudioGetty Images

5: Non-communicable diseases Challenges Lifestyle change which is reflected in change in morbidity Significant increases in diabetes, obesity related diseases and cancer Years living in disability increasing but limited preventive focus at present Direct and indirect impacts on social security Responses: ??? 21/11/2018

Recent examples of the extension of social protection in low- and middle-income countries

sustainable benefits whilst respecting intergenerational and 21/11/2018 Financing adequate proactive and sustainable benefits whilst respecting intergenerational and intragenerational equity aims is the real challenge ahead ! Increasing number of tax financed social protection. Adequacy of benefits. Gaps Creative StudioGetty Images

Thanks for your attention 21/11/2018