Governance, Administration, and Implementation Issues: from Principles to Practice

Outline What is governance and what does it comprise? Definition of governance and its objectives Administrative and institutional structures Responsibility of the State and mechanisms that establish responsibility for due provision of the benefits How to ensure good governance and what are the prerequisites for good governance? How to ensure good governance? What are the prerequisites for good governance? Administration issues: what should the law make provisions for to ensure the establishment of a sound and responsible administration? Good practices in Asia Implementation issues: enforcement of social security legislations Enforcement and compliance mechanisms Complaint and appeal mechanisms

1. What is governance and what does it comprise ?

A. Definition of governance and its objectives “the manner in which the vested authority uses its powers to achieve the institution’s objectives, including its powers to design, implement and innovate the organization’s policies, rules, systems and processes, and to engage and involve its stakeholders”. Objectives of governance Insuring a coherent social protection structure and an effective national social protection system: “The effective governance of social protection schemes is an essential prerequisite for the enhancement of the coverage and effectiveness of social protection. Efficient governance can make a lasting difference. No system of social protection can achieve its objectives without good governance- and a pivotal element of good governance is financial governance”.

Governance framework can be classified in 4 broad areas: (1) Financial sustainability; (2) Sound investments; (3) Member coverage and contributions, and member benefits and services; (4) Resource management: Human resources and Information and Communication Technology (ITC)

2. How to ensure good governance and what are the prerequisites for good governance?

A. How to ensure good Governance? Good governance involves: 1-strategic and macro policy issues 2-organizational arrangements 3-administrative operations 1-Strategic and macro-policy issues: policy formulation which balances social protection needs with national resources, a balanced national policy ensuring wide coverage and adequate benefits, and the desired level of income redistribution, a legislative procedure to give effect to policy decisions and subsequent changes.

2- Institutional arrangements: deciding how to implement the structure institutional arrangements which are appropriate for implementation of the scheme, opportunities for contributors and beneficiaries to influence decisions and to monitor the administration of the scheme, financial control mechanisms to monitor the allocation and management of resources. 3- Administrative operations: making the structure work efficient collection of contributions and accurate accounting for contributions and for benefits, which must be promptly paid, a minimal cost of administration within the desired level of service, contributors and beneficiaries are aware of their rights and obligations, monitoring and reviewing administrative performance.

What are the prerequisites for good governance? Good governance implies that the exercise of the vested authority is: Accountable: ability to legally hold responsible the officials in charge thus requiring the establishment of norms and standards enabling the evaluation of achievements of the institution; Transparent: availability and accessibility of accurate, essential and timely information to ensure that stakeholders are well-informed of the true state of the social security programme and how it is being managed; Predictable: refers to the consistent application of the law and its supporting policies, rules and regulations Participative: Participation refers to the active education, engagement and effective involvement of stakeholders to ensure the protection of their interests Dynamic: refers to changing and improving on the status quo itself, by doing things more efficiently and equitably, and by responding to the evolving needs of programme members and beneficiaries, thereby creating new value

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