1. Valerie Schmitt, Jo Hyung Kyu, Celine Felix 14 September 2010
Extending Social security in East and South-East Asia: the 2 dimensions ...
Valerie Schmitt, Jo Hyung Kyu, Celine Felix
14 September 2010
Decent Work for All ASIAN DECENT WORK DECADE

2. Structure Social security, social protection, social protection floor
ILO promotes the right to social security
The problem: a major coverage gap
How to extend social security?
What is the situation and what do we do at country and regional level?

3. Social security Social protection
A series of public measures ; statutory / compulsory nature
A human right (Universal Declaration of HR, article 22)
Schemes financed through contributions and taxes:
Statutory contributory social insurance
Targeted tax-financed social assistance
Universal coverage schemes
Delivery: State or parastatal institutions; private entities with public mandate
Schemes financed through contributions or donations:
Certain types of private insurance
Certain types of micro-insurance
Donor-funded safety nets …
It also includes private measures or non statutory regimes, provided that the contributions to these schemes are not wholly determined by market forces (i.e., redistribution) ; voluntary nature
Delivery: Private sector, churches, NGOs …
Protection against financial consequences of nine contingencies :
-Sickness, maternity, employment injury, unemployment, invalidity, old age, death of the breadwinner + Access to health care + Family benefits
NB: « assurance de personnes » ; NOT insurance of goods / means of production … The ILO does not include Access to Education
World Labour report 2000

4. Social security Social protection Social protection Social security
ILO SECSOC used to work here
Voluntary private insurance (ex: pension fund)
Voluntary private insurance (ex: Micro-Health Ins.
Assistance from private donors, charity …
Social protection
Compulsory & contributory social insurance
Social assistance
Universal access to health care
Partial contributory schemes
Social security
Civil servants
Armed forces
Private sector employees
With STEP it extended its work to strategies for Informal economy and the linkages between statutory and non statutory schemes
Informal economy
Poor and near poor

5. Types of Social security schemes
Contributory schemes : The contributions made by beneficiaries (& employer) determine entitlement to benefits
-Statutory social insurance scheme
National provident funds (lump sum to beneficiaries when particular contingencies occur, typically old age, invalidity or death)
Partially contributory schemes (subsidized contributions)
Universal schemes for all residents (ex: guarantee access to health care) or for specific categories of the population (ex: minimum income to the elderly above a certain age or children below a certain age). Generally tax-financed, but may require a co-payment (ex: user fees for health care)
World Labour report 2000
Social assistance (means tested) schemes (ex: Conditional cash transfers provide cash to families subject to the condition that they fulfil specific “behavioural” requirements; Employment guarantee schemes ensure access to a certain number of workdays a year to poor households …)

6. Social protection floor
A set of basic social rights, services and facilities that each member of society should enjoy
A SPF should consist of:
Availability of essential services:
Housing, WATSAN,
Education/skills,
Health care supply,
Food/Nutrition, …
Accessibility of these services through basic transfers in cash or in kind:
-Subsidized health insurance / health cards,
-Scholarships & school buses,
-Minimum income support to families (family/child benefits), the working poor (cash transfers and PWPs) and the elderly (minimum pensions) …
Notion of availability and accessibility – both work hand in hand

7. Social protection floor
Social security
Social protection
Social protection floor
RIGTH TO SS and SPF
Social protection
Compulsory & contributory social insurance
Social assistance
Universal access to health care
Partial contributory schemes
Social security
Civil servants
Armed forces
Voluntary private insurance (ex: pension fund)
Private sector employees
Informal economy
Voluntary private insurance (ex: Micro-Health Ins.
Availability of essential services:
Housing, WATSAN,
Education/skills,
Health care supply,
Food/Nutrition, …
Basic transfers in cash or in kind:
SP Floor
Assistance from private donors, charity …
Poor and near poor

8. Structure Social security, social protection, social protection floor
ILO promotes the right to social security
The problem: a major coverage gap
How to extend social security?
What is the situation and what do we do at country and regional level?

9. ILO promotes the right to SS
Social security is a human right
Universal Declaration of Human Rights, and the International, article 22
Covenant on Economic, Social and Cultural Rights (ICESCR), article 9
Achieving the right to social security demands the establishment of non-contributory (for example, tax-financed) schemes, or other social assistance measures to provide support to those individuals and groups who are unable to make sufficient contributions for their own protection
Many other arguments… social and economic stabilizer; productivity at enterprise level; impact of redistribution on consumption & domestic markets; etc. … and a basic set of social protection is affordable!  political decision

10. ILO promotes the right to SS
1919
Preamble of ILO Constitution
Realization of the right to social security part of ILO mandate
1944
Declaration of Philadelphia
Extension of social security part of ILO mandate
1952
C102, minimum standards
2001
89th ILC
Social security, a new consensus
2003
91th ILC
Global campaign for the extension of social security for all
2008
ILO Declaration on social Justice for a fair globalization
96th ILC
2009
Adoption of the Global jobs pact, which includes the Social protection floor “countries that do not yet have extensive social security are requested to build adequate social protection for all, drawing on a basic social protection floor”
97th ILC
Part of UN CEB 9 joint initiatives
Realization of the right to social security. Is part of ILO’s mandate enshrined in its original (1919) Constitution
In 1944, the mandate of the ILO was widened by the Declaration of Philadelphia, which was the first international legal instrument to stipulate the right to social security as a right belonging to all and can be seen, moreover, as the first moment in history that the world community declared its commitment to the extension of social security to all.
General discussion on social security at 89th ILC in 2001 « Social security: a new consensus »
Launching of a Global Campaign for the extension of social security for all, in 2003
A contemporary vision of ILO’s mandate enshrined in the ILO Declaration on Social Justice for a Fair Globalization (adopted by the ILC 2008)
In April 2009 the UN Chief Executives Board (CEB) have agreed on nine joint initiatives to confront the crisis, accelerate recovery and pave the way for a fairer and more sustainable globalization
One of them: the Social Protection Floor initiative 10

11. ILO promotes the right to SS
Social security conventions and recommendations are the main tools through which the ILO promotes right to social security
« Flagship Convention » Social Security (Minimum Standards) Convention, 1952 (No. 102)
Defines nine areas of social security: medical care, sickness, unemployment, old age, employment injury, maternity, invalidity, survivors, and benefits for families with children
Sets minimum standards for each of these branches
Other up-to-date conventions
Employment Injury Benefits Convention, 1964 (No. 121);
Invalidity, Old-Age and Survivors’ Benefits Convention, 1967 (No. 128);
Medical Care and Sickness Benefits Convention, 1969 (No. 130);
Employment Promotion and Protection against Unemployment Convention,1988 (No. 168);
and Maternity Protection Convention, 2000 (No. 183).
In addition, the Equality of Treatment (Social Security) Convention, 1962 (No. 118), makes provision for the equality of treatment between national and non-national workers with regard to coverage by the branches of social security
Up to date conventions:
Equality of Treatment (Social Security) Convention, 1962 (No. 118)
Employment Injury Benefits Convention, 1964 (No. 121)
Invalidity, Old-Age and Survivors' Benefits Convention, 1967 (No. 128)
Medical Care and Sickness Benefits Convention, 1969 (No. 130)
Maintenance of Social Security Rights Convention, 1982 (No. 157)
Employment Promotion and Protection against Unemployment Convention, 1988 (No. 168)
Maternity Protection Convention, 2000 (No. 183)
Recommendations:
Income Security Recommendation, 1944 (No. 67)
Medical Care Recommendation, 1944 (No. 69)

12. Structure Social security, social protection, social protection floor
ILO promotes the right to social security
The problem: a major coverage gap
How to extend social security?
What is the situation and what do we do at country and regional level?

13. Coverage & resource gap
Only about 20 per cent of the world’s working-age population (and their families) have effective access to comprehensive social protection
Three dimensions of coverage (& gap)
Scope. Number and type of social security branches to which the population of the country has access
Extent. Percentage of persons covered within the whole population for each branch
Level. Adequacy of coverage by a specific branch of social security
Distinction between legal and effective coverage (often lower : enforcement issues and resource gap)
Limited coverage linked with a resource gap: countries especially in Asia do not invest enough in social security
However a basic SPF (universal pension, child benefit, basic HC, employment guarantee scheme) is affordable (in selected Asian countries: between 4 and 8% of GDP)

14. Coverage & resource gap
Percentage of population legally covered by social health protection Some exceptions such as UCS in Thailand
Providing coverage in the time of crisis and beyond
SOURCE: (ILO, 2010)World Social Security Report
Preliminary version, 15 March 2010

15. Coverage & resource gap
Legal and effective coverage for old age pensions
Effective coverage

16. Coverage & resource gap
How much do countries invest in social security? In Asia the benefits of growth have not been equitably shared
5.3% of GDP

17. Structure Social security, social protection, social protection floor
ILO promotes the right to social security
The problem: a major coverage gap
How to extend social security?
What is the situation and what do we do at country and regional level?

18. How to extend social security? The Social Security Staircase
Voluntary private insurance
Statutory contributory social insurance
Vertical dimension (higher levels of benefits for those who can contribute)
100% full coverage
Basic coverage
Intermediate coverage
Partially contributory & linked schemes
Basic benefits / social protection floor for all. Non contributory for the poor; other groups may contribute …
Horizontal dimension (SPF & schemes for informal economy)
Civil servants
Armed forces
Private sector employees
Informal economy
Poor and near poor

19. How to extend social security? The social protection floor initiative
SPF-I = one of the 9 UN CEB initiatives (April 2009) to face the crisis and accelerate recovery
Lead agencies: ILO and WHO
At global level:
A SPF Advisory Group headed by Mrs Bachelet
A manual & strategic framework developed jointly
SPF success stories
A flagship Global SPF Report under preparation
Knowledge sharing through the GESS platform
At country level: establishment of SPF team … 1st lead by the ILO = SPF team in Thailand
SPF success stories, Development Cooperation Seminar (DCS) on the SPF in October, SPF assessment to be conducted jointly

20. How to extend social security? The social protection floor in Asia
China: minimum living standard guarantee program; new rural corporative medical care (NRCMC); health insurance for urban uninsured residents (HIUR); rural old-age pension
India: RSBY, NREGA
Cambodia: CARD’s SP strategy for the poor and the vulnerable with clear reference to the SPF … including HEFs, CBHIs, Food distribution, Cash transfers, PWPs…
Lao: extension of SHP for all
Thailand: UC scheme, minimum pension scheme (500 THB)
Vietnam: 10 years Social protection strategy

21. Structure Social security, social protection, social protection floor
ILO promotes the right to social security
The problem: a major coverage gap
How to extend social security?
What is the situation and what do we do at country and regional level?

22. Extension of 5 benefits to Informal Economy* (article 40)
Situation in Thailand
76% population
Provident fund system
-Govt P Fund
-Private school teachers WF
* maternity, invalidity, death, sickness and old age benefits
Extension of 5 benefits to Informal Economy* (article 40)
Workmen’s Compensation Fund (WCF)
Social Security Fund (SSF)
-Non contr. pension sch.
-CS Medical Benefit Sch.
UCS since 2001 (health) and 500 Bath scheme (pension) since 2009…
Social assistance
Civil servants
Armed forces
Private sector employees
Informal economy
Poor and near poor
Challenges to extend coverage to IE workers (+/- 60 people joined)
Fragmentation of social security schemes
Inequalities have increased over past years … Capitation amount under UCS = 2,200 THB/capita whereas under CSMBS = 12,100 THB/capita

23. ILO’s implication in Thailand
Vertical dimension
Technical assistance: (1) Financial Management of the Thai Health Care System (EU project) – finished 2009
(2) Actuarial Valuation of the Old-Age Pension Branch of Social Security Scheme (KIHASA) - ongoing
Advice / extension of social security to IE workers?
Facilitation of SPF Team - ongoing
Policy advice on: (1) Pension reform (M. Cichon) – July 2009
(2) 10 years of implementation of UCS – planned in 2011
Horizontal dimension

24. Scattered CBHI schemes
Situation in Cambodia
80% population
NSSF
-Only work injury
-Health insurance under study
NSSF-C
-Only pensions
-Health insurance under study
Scattered CBHI schemes
Scattered social assistance programs: Health Equity funds and others
Civil servants
Armed forces
Private sector employees
Informal economy
Poor and near poor
CARD’s National Social Protection Strategy for the Poor and Vulnerable
CBHI very limited coverage (100,000 people)
NSSF and NSSF-C provide very limited scope of coverage

25. ILO’s projects in Cambodia
Vertical dimension
Feasibility studies of Social health insurance for private sector and civil servants through the ILO-EU project
Support to MIS for NSSF work injury scheme
Nothing for IE workers…
NSPS: drafting (reference to the social protection floor); documenting the process (SPF Success story); costing of the strategy (ILO-EU project)
Horizontal dimension

26. Voluntary scheme for SME and IEco (35,000 people!)
Situation in Viet Nam
Vertical dimension
75% population
Mandatory Social Insurance
old-age pensions, disability, health, sickness and unemployment insurance
9.4 million workers i.e. 18 per cent of the total workforce
Voluntary scheme for SME and IEco (35,000 people!)
Voluntary subsidized HI
11 million people covered
Some social assistance (1.23% population)
Mandatory Health insurance
30 million people covered
Poor and near poor
Informal economy
State owned enterprises, public and private sector
Horizontal dimension
National Social Protection Strategy for the ten coming years ( ) .. Objectives: Universal health insurance by 2014; increase coverage of informal economy; social protection floor for all …

27. ILO’s projects & plans in Viet Nam
Vertical dimension
Role of SPF Advisory group??
Implementation of Unemployment Insurance through 2 projects (800,000 US$, 1 UN fund & ILO-Japan)
ILO plan : Piloting (STEP expertise)
ILO plan: Support to the implementation of the national social protection strategy & the development of a Social protection floor (Resource Gap)
Horizontal dimension

28. Situation & ILO’s plan in Indonesia
83% population
Jamsostek
Taspen
Askes
Asabri
Own hospitals
Jamsostek pilot project (400,000 p. covered)
Jamkesmas (76.4 million p. covered)
CCTs / UCT; Rice for the poor; Scholarships; Community Empowt prog.
Poor and near poor
Informal economy
Private sector employees
Civil servants
Armed forces
National social protection strategy for the ten coming years
Objective of universal HC coverage by 2014 (already 46% in 2009)
Fragmentation of Social assistance ; challenges for IEconomy
ILO plan: Support to the implementation of the national social protection strategy & Indonesian Jobs Pact through policy work, piloting, capacity building and increasing coordination (Resource gap)

29. Situation & ILO’s project in Lao PDR
88% population
SSO (8 benefits)
SASS
Scattered CBHI schemes
Health Equity Funds
Civil servants
Armed forces
Private sector employees
Informal economy
Poor and near poor
7th Social Economic Development Plan (NSEDP) includes extension of social security for all by the year 2020
Merger of SSO-SASS and CBHI-HEF  merger of the 4 schemes
ILO New project : 1. Support Lao PDR’s efforts towards the extension of social health protection, even if at a modest basic level, to the whole population … 2. Pave the way for the future implementation of more comprehensive social protection benefits for all the population by supporting the continuous development of social security schemes
(4 MoUS$, 3 years; waiting for Luxembourg’s approval)

30. Regional Level Activities
Support / promotion of UI / EI schemes (ILO-Japan ASEAN project + Feasibility in Malaysia and Philippines)
Synergies // SP Floor teams: Thailand, Cambodia, Viet Nam …Willingness in Lao PDR and Indonesia
Two regional training on (1) SPF; (2) Quantitative tools and methods
Two awareness raising tools (schools, private enterprises)
Knowledge sharing: GESS platform; ROAP website

31. Develop synergies with:
Active Market Labour Policies & LED
CSR & French multinationals
HIV-AIDS
Green Jobs
 Research, workshops, joint projects?