1. Social Protection Floor initiative
Why progressively tending towards universal social protection matters: an international perspective
Valerie Schmitt
ILO Decent Work Team, Bangkok
Development Cooperation Seminar
Social Protection: Towards universal Coverage in Thailand
Bangkok, 5 November 2010

2. Three points: It is important to expand social protection
What is the SPF concept & approach?
The SPF approach is adapted to Thailand

3. First point: It is important to expand social protection … Because:
Social security / social protection is a human right
Although it is a human right only 20% of the world’s population has access to adequate social protection
Social protection is a social and economic stabilizer and was included in many stimulus packages
It enhances productivity at enterprise level
It contributes to develop the domestic market
It is affordable and feasible to establish a basic set of social protection for all
It contributes to social peace

4. It is important to expand social protection…
Social security / social protection is a human right …
Universal Declaration of Human Rights (1948), UN Member States have recognized social security as a basic human right :
Article 22: Everyone, as a member of society, has the right to social security
Article 25: Everyone has the right to a standard of living adequate for the health and well-being of himself and of his family

5. It is important to expand social protection…
Although it is a human right only 20% of the world’s population has access to adequate social protection
Social security schemes often target formal sector employees, leaving Informal economy workers with no protection at all
Effective coverage is even lower than legal coverage (delivery problems, enforcement problems)

6. It is important to expand social protection…
Legal/effective coverage for old age pensions in selected countries
Source: ILO, Social Security Inquiry

7. It is important to expand social protection…
Social protection acts as a social and economic stabilizer and was included in many stimulus packages
Increased support to low- income households (CCTs and social assistance)
Bangladesh (destitute women and others), Nepal (children, elderly, deprived castes), Viet Nam, India (widows, disabled), Philippines (CCT, very poor)
Employment programmes (PWP)
Cambodia (small projects in rural areas), Viet Nam (infrastructure in poorest districts), Philippines, Pakistan, India
Increased support to the elderly & old age pensions
Bangladesh, Nepal, China
Increasing coverage of unemployment benefits
Viet Nam, China
Measures to protect
migrant workers
Bangladesh, Nepal, Viet Nam India (Kerala), Philippines, Pakistan

8. It is important to expand social protection…
Social protection has a positive impact on consumption & the development of domestic market
In China the development of reliable and universal social protection schemes was seen as a means to develop the domestic market
Because protected households would reduce their extraordinary high savings rate and consume more

9. It is important to expand social protection…
Redistribution of Income through social protection is possible but based on a choice of society
A basic set of social protection is affordable and would cost 3 to 5% of GDP
Mizunoya, S et al “Can Low Income Countries Afford Basic Social Protection? First Results of a Modelling Exercise for Five Asian Countries

10. It is important to expand social protection…
Redistribution of Income through social protection is possible but based on a choice of society
Thailand
Source: ADB, Key Indicators for ASIA and the Pacific 2010

11. It is important to expand social protection…
1995
Latest available year
GINI coefficient increased in many countries
Gini coefficient (value of 0 = total equality and value of 1 = maximal inequality)
Source: ADB, Key Indicators for ASIA and the Pacific 2010

12. It is important to expand social protection…
Social protection can be effective to prevent conflict and create politically stable societies
Poverty and gross inequities tend to generate intense social tensions and violent conflict
Social benefits ensure the political/ electoral support of citizens

13. Second point: What is the Social protection floor concept & approach?
The social protection floor is a set of basic social rights, services and facilities that each member of society should enjoy
It is not a safety net
It is included in the social security staircase and is the 1st step towards the development of a comprehensive system of social protection
It is a precondition to inclusion in labor market and can support ALMPs
It is recognized as a powerful approach to address low social protection coverage in Asia
Many countries in Asia have developed elements of the SPF

14. What is the Social protection floor concept & approach?
The social protection floor initiative
One of the nine UN initiatives to confront the crisis
Many actors involved (UN agencies, ministries, civil society …)
Advisory group
Teams at country level
Conclusions of the 8th ASEM meeting, 4 & 5 Oct. 2010
Heads of States and of Governments of 46 Asian and European countries noted with interest the concept of SPF
Leaders called for further sharing of experiences and for technical assistance in implementing social welfare policies

15. What is the Social protection floor concept & approach?
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, are articulated

16. What is the Social protection floor concept & approach?
The SPF is not a safety net

17. What is the Social protection floor concept & approach?
The SPF is not a safety net
Criteria
Safety Nets
Social Protection Floor
Overall Objective
Poverty reduction
Giving effect to the Human Right to Social Security
Type of interventions
Targeted set of non-contributory transfers, depending on government priorities
Universal entitlement to protection through a defined basic package for all in need
Benefit levels
Minimum
National poverty lines
Role
SNs as transitory response measures/ short term (crisis, reforms)
Rights-based, systemic “insurance” against poverty for all residents

18. What is the Social protection floor concept & approach?
The SPF = 1st level of the SS staircase
Vertical dimension (higher levels of benefits for those who can contribute)
Voluntary private insurance
100% full coverage
Statutory contributory social insurance
Intermediate coverage
Partially contributory & linked schemes
Basic benefits / social protection floor for all. Non contributory for the poor; other groups may contribute …
Basic coverage
Civil servants
Armed forces
Private sector employees
Informal economy
Poor and near poor
Horizontal dimension (SPF & schemes for informal economy)

19. What is the Social protection floor concept & approach?
Many countries in Asia have developed elements of the SPF :
nation wide non-contributory or highly subsidized social protection programs
national strategies to accelerate the implementation and scaling up of diverse and scattered basic social protection programs

20. What is the Social protection floor concept & approach?
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
Indonesia: Implemen-tation of SS Law starting with health: Jamkesmas

21. SPF around the world …
Elements of the SPF already exist in many developing countries (85)
Social pensions: Brazil, South Africa, Bolivia (pension dignidad),
Chile (pension basica solidaria), Thailand (500 Bath scheme), China (rural old age pension)…
HEALTH: China (urban & rural), India (RSBY), Thailand (UCS), Mexico (Seguro popular), Colombia (regimen subsidiado), Uruguay, Chile (plan AUGE), Burkina Faso, Rwanda …
CCTs: Brazil (Bolsa Familia), Mexico (Oportunidades)
Comprehensive SPF: Brazil, Mexico, Chile, Uruguay
Employment guarantee schemes: India (NREGA),
Uruguay (Política de empleo promovido),
Argentina (Plan jefes y jefas de familias) 21

22. Last point: The SPF approach is adapted to Thailand
The SPF approach relevant with:
The SS Staircase in Thailand & the objective of a welfare society
The SPF approach can be useful to:
Develop a consistent national social protection strategy
Bring more coherence at policy level
Enhance coordination at implementation level
Ensure a more efficient delivery

23. The SPF approach is adapted to 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

24. The SPF approach is adapted to Thailand
The SPF approach can be useful to:
Develop a consistent national social protection strategy going beyond what is already in place (500 Bath, UCS)
Bring more coherence at policy level
Example: Lack of coordination between Min of Finance and Min of Labour in the design and implementation of the three existing/planned old age schemes for workers in the informal economy:
500 Baht pension and National Saving Fund
Article 40 of Social Security Act

25. The SPF approach is adapted to Thailand
The SPF approach can be useful to:
Operationalize the concept of “Welfare Society” by increasing coordination between all actors involved in the social protection landscape:
Supply side and Demand side
National / local level (communities)
Make sure that the right to social protection is effective by systematically identifying and addressing delivery issues
Example: A number of delivery issues of the UCS limit the efficiency of this scheme such as lack of information on the UCS; Fear of stigma and discrimination; Perceived quality of health care facilities and reception of patients (under UCS) is low …

26. More information on the SPF www.socialsecurityextension.org