1. Policy tools of social protection: How policy can be conceptualised and designed
Social protection training
Asia Development Institute (ADI)
Graduate School of Public Administration
Seoul National University
Seoul, 25 February 2013
Gabriele Köhler, development economist

2. Narrative Part I: Introduction
Definitions: social protection- social security – social assistance
The case for social protection
Trends globally and regionally
Principles, universal and regional
Part II: Challenge: to build a system
Policies and strategies, design, management, administration
Financing and costing
“Policy construction”
Social protection systems: a selective overview
The ideal system

3. Part I: Introduction

4. Social security versus social assistance
Most countries of the world have social insurance schemes
BUT, in most low-income countries, only a small fraction of the population is covered by social insurance.
Most countries of the world, South and North, have social insurance schemes. They are contributory and cover formal sector employees – government employees, workers in large domestic or international enterprises, and members of the military (see ISSA database). Conversely, as is well known, in most low-income countries, only a small – and privileged – fraction of the population is covered by any such forms of established social insurance.

5. Social Security Scheme
Social Protection
Social Insurance
Social Security Scheme
(Contributory Schemes)
Social Assistance
Support in form of transfers (Non-Contributory Schemes/Programmes)

6. Social Security Scheme Support in form of transfers
Social Protection
Social Insurance
Social Security Scheme
(Contributory Schemes)
Old age, sickness and accident, unemployment, maternity, invalidity, old age
(ILO Convention 102)
Social Assistance
Support in form of transfers
(Non-Contributory Schemes/Programmes)

7. The case for social assistance
majority of the world’s population: livelihoods from agriculture or fisheries, the informal economy, home-based work, (invisible) services
Enormous economic and social insecurities: vulnerability and risk, food insecurity, chronic and acute income poverty, systematic social exclusion
Very low social protection coverage rates

8. Low coverage rates: Old age pension coverage
Source ILO World Social Security Report 2010 p 47.
Thus shows that in Asia-Pacific, less than 50% of the population have pension coverage; in Lao PDR and Cambodia less than 20%.
Pensions have a huge influence on people's sense of dignity and economic security. They also influence family size, and sex preference of children in societies where old age security is the responsibility of one's children, and usually of the male children. Pensions thus have a bearing for child wellbeing and health.
Where pension coverage is high – US, Australia, Latin America, it is for social security scheme members.

9. Low coverage rates: unemployment protection Old age pension coverage
Source ILO World Social Security Report 2010 p figure 5.3, p. 60
The figure shows that in Asia-Pacific between none to at most one third of the economically active population have some entitlement to social protection the case of unemployment.

10. Social Security Scheme
Social Protection
Social Insurance
Social Security Scheme
(Contributory Schemes)
Social Assistance
Support in form of transfers (Non-Contributory Schemes/Programmes)
Support against poverty; food subsidies; social pensions; education grants, child grants; public works programmes, etc
(ILO Recommendation 202)
Over the past decade, social assistance programmes geared to address acute poverty or social exclusion have been introduced on an unprecedented scale in many regions of the world. They take form of monthly cash transfers, food subsidies, school meals or education stipends, social pensions, or public employment schemes

11. Social assistance trends
roughly 50 countries today provide some form of non-contributory social assistance
covering an estimated 10% of the world population
Barrientos et al 2010.

12. Conditional Cash Transfers in Latin America
Argentina
Programa Familias
Bolivia
Beca Futuro
Brazil
Bolsa Familia, Bolsa Escola
Chile
Chile Solidario
Colombia
Familias en Accion Program
Costa Rica
Programa Superemonos
Ecuador
Bono de Desarrollo Humano
El Salvador
Red Solidaria
Honduras
Programa de Asignacion Familiar
Mexico
Oportunidades
Nicaragua
Red de Proteccion Social
Source: IDS Centre for Social Protection

13. Unconditional Cash Transfers in Sub-Saharan Africa
Source: IDS Centre for Social Protection

14. Variety of Cash Transfers in Asia and the Pacific
Bangladesh
Employment scheme
Cambodia
National Social Protection Strategy
China
Dibao (minimum income)
India
NREGA; social pensions
Indonesia
Jamkesmas, Jampersal, PKH, Rice for the poor, PNPM
Korea (Republic of)
Targeted social protection transfers for vulnerable people
Lao PDR …
Mongolia
Universal child benefit
Source: Gabriele Köhler 2013

15. Variety of Cash Transfers in Asia and the Pacific
Myanmar
Currently being developed
Nepal
Education grants; employment scheme; social pension
Pakistan
Benazir Income Support Programme
Sri Lanka
Samurdhi programme
Thailand
Universal health coverage scheme, minimum pension scheme
Vietnam
Social assistance to poor households and poor children: Conditional cash transfer focusing on disadvantaged communities (under consideration)
Source: Gabriele Köhler 2013

16. Right to Social Protection
Universal Declaration of Human Rights (1948):
Article 22:
Everyone, as a member of society, has the right to social security.
International Covenant on Economic, Social and Cultural Rights
(1966): Article 9:
The States Parties to the present Covenant recognize the right of everyone to social security, including social insurance.
Source: Köhler

17. Right to Social Protection
Convention on the Eradication of All Forms of Discrimination against Women (CEDAW) (1979): Articles 11(e), 13(a), 14(c)
The right to social security, particularly in cases of retirement, unemployment, sickness, invalidity and old age and other incapacity to work, as well as the right to paid leave;
The right to family benefits;
Taking into account the particular problems faced by rural women and the significant roles which rural women play in the economic survival of their families … (c) To benefit directly from social security programmes.
The Convention on the Rights of the Child (CRC) (1989): Article 26:
For every child the right to benefit from social security, including social insurance, and necessary measures to achieve the full realization of this right in accordance with national law.
Convention on the Rights of Persons with Disabilities (CRPD) (2006) Article 28(b)
To ensure access by persons with disabilities, in particular women and girls with disabilities and older persons with disabilities, to social protection programmes and poverty reduction programmes.
Source: Köhler

18. Right to Social Protection
ILO Convention C102: Social Security (Minimum Standards) Convention, 1952
Outlines rights to benefits for residents of a country: accident, illness, unemployment, maternity, old age
ILO Recommendation R202: Social Protection Floor 2012
Four income “guarantees”: children, poor, elderly, health

19. ILO’s two-dimensional strategy for the extension of social security: Building comprehensive social security systems
individual/household income
Social Protection Floor: Access to essential health care and basic income security for all
Social security benefits of guaranteed levels
Voluntary insurance under government regulation
level of protection
high
low
extension strategy
Vertical dimension: progressively ensuring higher levels of protection, guided by Convention No.102 and more advanced standards
floor level
Source ILO GESS website.
Social Protection Floor Recommendation, adopted at ILC 2012
Outcomes can be guaranteed through different means – there is no one-size-fits-all
Horizontal dimension: Guaranteeing access to essential health care and minimum income security for all, guided by Recommendation No. 202

20. Vietnam example: developing a social protection floor
Source:ILO and IMF, Towards effective and fiscally sustainable Social Protection Floors

21. ASEAN 2009 Socio-cultural community blueprint
Human development
Social welfare and protection
Social justice and rights
Environmental sustainability
An ASEAN identity
Narrowing the development gap
SOURCE: ASEAN SOCIO-CULTURAL COMMUNITY BLUEPRINT 2009.
The 6 pillars outline what the ASEAN member states commit to promote, with a section specifically on social protection

22. Principles 7th ASEAN GO-NGO FORUM FOR SOCIAL WELFARE AND DEVELOPMENT
Everyone, especially those who are vulnerable, entitled to have equal access to social protection covering essential services;
Access to social protection – a human right that should be promoted, protected and fulfilled;
Universality of protection based on social solidarity, non- discrimination, accessibility, gender equality, social inclusiveness, coherence, accountability, collective financing and risk pooling;
Implementation of SPF is part of national strategies for the progressive extension of social security towards higher level of protection;
Investment in people to empower them to meet their basic needs and adjust to changes in the economy and labour markets;
Cross-cutting issue, hence requires coordinated and holistic approaches;
Family unit is an important element in providing support to the vulnerable people and should be strengthened and preserved;
Governments, communities, civil society, private sector and social partners are key stakeholders;
Inclusive, participatory and rights-based approach in planning, programming and budgeting, implementation, M&E.
SOURCE: RECOMMENDATIONS . THE SEVENTH ASEAN GO-NGO FORUM FOR SOCIAL WELFARE AND DEVELOPMENT
“Promoting Social Services and Social Protection for Vulnerable Groups”
12 September 2012, Ha Noi, Viet Nam

23. BRICS and the „export“ of social protection
BRICS SANYA, China 2011 Summit: outcome document commitment to social protection and decent work
India and Brazil are very active in “exporting” social protection in their regions and also globally, while South Africa and India are pexporting social protection ideas in their immediate region.
Source:
BRICS+map&hl=en&client=safari&sa=X&rls=en&biw=1280&bih=611&tbm=isch&prmd=imvns&tbnid=RqNceHxgRU8i9M:&imgrefurl=

24. ESCAP and social protection
In Asia/Pacific, the UN has been active in pushing social protection.

25. Part II: Challenges Need to build a system of social protection
Part II: Challenges
Sometimes large, but generally fragmented social assistance programmes, separated from social insurance
Need to build a system of social protection

26. Indonesia: family-based social assistance programmes
Name
BLT
Unconditional Cash Transfer
( )
Raskin
Rice for the Poor
Jamkesmas
Health Protection
BSM
Scholarship for the Poor
PKH
Conditional Cash Transfer
Transfer
Type
Cash
Subsidized Rice
Health service fees waived
Cash & Conditions
Target
group (HHs)
Poor & near poor HHs
Students from poor HHs
Very poor HHs
Number of beneficiaries
18.7 Mn HHs
17.5 Mn HHs
18.2 Mn HHs
8 Mn Students
1.5 Mn HHs
Benefit
level
IDR 100,000 per month
15 kg rice per month
Unlimited
IDR 480,000 per year
IDR 1,287,000 per year
Key executing agency
Ministry of Social Affairs
(MoSA)
Bureau of Logistics (BULOG)
Ministry of Health (MoH)
MoNE & MoRA
MoSA
EXAMPLE OF A FRAGMENTED APPROACH THAT IS NOW TRYING TO BECOME SYSTEMATIC
Source: Nazara, Suahasil. Poverty alleviation in Indonesia: Progress and challenges. Social Protection Conference, Myanmar, June 2012.

27. System building strategies
“top-down”: fostering processes of formalising the economy, so that all citizens move from the informal to the formal economy and become eligible for social insurance
“bottom-up”: universalising social assistance to cover all citizens – or even all residents

28. System building strategy
Defining the objectives
Conceptualising the policy model
Design: Laying out eligibilities
Management: coordination; recording participants

29. Philippines: objectives of the conditional cash transfer
Selection Procedures of Target Households
To raise the average consumption rate in food expenditure of poor households
To increase the enrollment in and attendance rate of children in school
To improve preventive health care among pregnant women and young children
To reduce the incidence of child labor
To encourage parents to invest in their children’s (and their own) human capital through investments in their health and nutrition, education, and participation in community activities
Geographical Targeting
Household Assessment (Enumeration)
Source: Solloso, Ernestina Z.. Philippines conditional cash transfer program. Social protection conference: call to action. Myanmar, June 25-26th, 2012.
Selection of Poor Beneficiaries using Proxy Means Test
Eligibility Check

30. System building: design components
Universal for some types of social assistance (pensions, child grants)
Targeted for other types – by income levels, identity groups, disadvantaged regions
Conditional on behaviours
Unconditional

31. Indonesia: national targeting system
The National Targeting System identifies and chooses beneficiaries (households, individuals, etc.) of targeted poverty reduction or social protection programs.
Poor
Not-Poor
Past system: each program has its own list of targeting system
Now gradually moves into unified targeting system
Minimizing inclusion & exclusion errors
Beneficiary
of Programs
Non-beneficiary
of Programs
Source: Nazara, Suahasil. Poverty alleviation in Indonesia: Progress and challenges. Social Protection Conference, Myanmar, June 2012.

32. System building: management
define roles and responsibilities of respective governmental ministries and departments that often each administer separate social assistance schemes
create an overarching coordinative body (Cambodia, Myanmar)
M&E
Claims and grievance mechanisms
Information access

33. System building: administration
citizens´ registries (India; Indonesia)
“single window” access to social assistance (Cambodia)
bank transfer modalities (Pakistan)

34. System building: financing
actuarial calculations of population trends
trends for beneficiary entitlements over time
estimating the required budget, revenue collection
negotiating fiscal space to reliably fund social protection over the long term

35. Fiscal diamond
Rathin Roy, Antoine Heuty , emanuel Letouze,

36. Source: ILO WORLD SOCIAL SECURITY REPORT 2010/11 
PROVIDING COVERAGE IN TIMES OF CRISIS AND BEYOND

37. Annual costs of social protection programmes – middle income countries
Source: DFID, 2011, p. 67

38. Social protection expenditures in % of GDP, 75 low-income countries
Source: ILO WORLD SOCIAL SECURITY REPORT 2010/11 
PROVIDING COVERAGE IN TIMES OF CRISIS AND BEYOND
Figure 7.3 p
For 2008 – data taken from World Bank
The figure measures expenditures as a share of GDP. The
countries run from Bosnia-Herzegowina (7%) to less than 1% in the Maldives.
For Asia, data are included only for
India: 3%
Indonesia: 2%
Sri Lanka: 1%
Vietnam: 1%
Bangladesh, China less than 1%.
Philippines, Tajikistan and Maldives are the thee lowest spenders.

39. Source: HelpAge, 2011a, p. 3
Note: for some countries (especially in Central Asia) this might be an overestimate, as some have already existing pension schemes.

40. Source: HelpAge 2011a, p. 4
27 out of the 50 countries spend more on military expenditures than it would to cost to provide universal pensions to all 60 and older (Help Age 2011a, p4).

41. Thailand: Social floor costing example
1.6% GDP
0.9% GDP
Source: Valerie Schmitt, ILO Bangkok and
ILO Assessment Based National Dialogue on Social protection in Asia and the PacificA Participatory Approach.

42. System building: social protection policy construction
to define the policy – its overarching principles and objectives
to build coalitions or a social compact between tax-paying middle and high income groups and those who stand to gain initially from an enhanced and unified social assistance system
to create and adopt the necessary legislation
to recognise and seize the policy moment

43. Social protection policy construction
“Middle classes”
Elites in legislation or decision making
Grass roots organisations, trade unions and their connections to the “poor”
International pressure or models or fashions
The middle classes typically pay the bulk of taxes, so initially may face additional tax burden. They can be convinced – either of growing inequities create a moral discomfort or actually begin to impact on their political or personal security.

44. Systems approaches Country Name Features & functions
Brazil
Sistema Unico de Assistencia Social (SUAS)
Covers social assistance. Federation of various levels and programmes
Coordination with finance.
Participatory model via periodic conferences and representatives
Cambodia
National Social Protection System
Covers social assistance, health insurance, employment schemes
5 ministries (social affairs, health, education, labour and vocational training, rural development).
•Coordinates policies
•Supervises social protection and pubic employment schemes, as well as health insurance, education grants etc
•Monitors NSPS (based on DB)
China
Complex system
2 minimum living standard guarantee schemes (urban and rural residents below the locally-defined income threshold); 3 health insurance programmes (urban working population; rural; economically inactive populations). New rural pension system.
Indonesia
Complex system, with
Medium Term National Plan ( ) as overarching commitment
PT Jamsostek: employment-related insurance for informal sector workers; Program Nasional Pemberdayaan Masyarakat (PNPM) A community empowerment programme in poor districts and sub-districts; Bantuan Operasional Sekolah (BOS) Programme: block grants to schools
Mexico
Vivir Mejor
Coordinates Oportunidades, conditional cash transfer for poor families; 70 y Más social pension scheme for the elderly; and the Seguro Popular health insurance scheme for previously uninsured families
South Africa
South African Social Security Agency
3-pillar approach to social security: non-contributory (tax-financed), contributory and private voluntary pillars.
1st pillar: Old age grant (to citizens aged 60 and older); Disability grant; Care dependency grant; Child support grant (payable to poor households with children) etc. Free Primary Healthcare to pregnant mothers, people with disabilities, pensioners and the indigent.
2nd pillar includes Unemployment Insurance Fund – protecting retrenched workers, including those in the informal economy.
Vietnam
party resolution on key social policies (mainly social protection, replaces draft National Social Protection Strategy)
labour market policies, social insurance policies, health-care policies, social welfare/assistance, poverty reduction programmes and access to public social services. Universal health-care coverage by 2014; to provide access to basic social services for all such as education, health care, housing, drinking water, electricity, information, sanitation and legal advice; and to provide a minimum income to those in need
Source: Gabriele Köhler, Draft note on social protection in Myanmar – opportunities and challenges. August 2012
To be rewritten with Mark Davies, IDS; as a CSP working paper

45. Pathways to social protection systems
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: NSPS with clear reference to the SPF … including HEFs, CBHIs, Food distribution, PWPs,…
Thailand: UC scheme, minimum pension scheme (500 THB)
Laos: extension of SHP for all
Indo several components – make people more employable
Philippines: universal health reform
Nepal: broad range of transfers
Indonesia: Jamkesmas, Jampersal, PKH, Rice for the poor, PNPM
Vietnam: 10 years Social security strategy

46. THE IDEAL SOCIAL PROTECTION SYSTEM
Rights based - Universal right/universal coverage
Citizenship- or residents-based
Coherence with other policy areas
Accompanied by supply side measures (social services, health and education)
Accompanied by decent work policy & action
Addresses crises, chronic poverty, vulnerabilities, inequalities, social exclusion
Well-targeted and publicised entitlements and special efforts to reach disadvantaged households/communities
Sustainable, predictable, meaningful benefit levels
Affordable and long-term sustainability
Tax financed, linking social protection reform and tax reform
Empowerment: guaranteeing space for civil society and public action
Built on notion of social solidarity
Advanced IT
Monitoring & evaluation systems
Transparency and right to information
Accountability and complaint and appeals mechanisms
Systemic – uniting fragmented programmes systems
Legally binding
Summing up the points made, reflecting current national, regional and international policy views

47. Resources
ASEAN RECOMMENDATIONS. THE SEVENTH ASEAN GO-NGO FORUM FOR SOCIAL WELFARE AND DEVELOPMENT “Promoting Social Services and Social Protection for Vulnerable Groups” . 12 September 2012, Ha Noi, Viet Nam.
Bachelet Michelle Social protection floor for a fair and inclusive globalization. Report of the Advisory Group. ILO ilo/press-­‐and-­‐media-­‐centre/news/WCMS_166292/lang-­‐-­‐en/index.htm
Barrientos, Armando , Miguel Niño-Zarazúand Mathilde Maitrot Brooks Social Assistance in Developing Countries Database. Version 5.0 July World Poverty Institute. The University of Manchester.
Centre for Social Protection Talking Point on Systems of Social Protection, CSP Newsletter 23, February 2013, IDS. By Gabriele Köhler.
ESCAP, The promise of protection. Social Protection and development in Asia and the Pacific. Bangkok
European Commission Social Protection in European Union Development Cooperation . COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Brussels, COM(2012) 446 final
Hickey, Sam Conceptualising the politics of social protection in Africa. In A. Barrientos & D. Hulme (Eds.), Social Protection for the Poor and Poorest: Concepts, Policies and Politics. London: Palgrave. Holmes, R. (2008). Child Poverty: a role for cash transfers?

48. Resources cont´d ILO 2010. Social Security for All. www.ilo.org
ILO Social Security for All.
ILO Extending social security to all. A guide through challenges and options .
ILO Social Protection Floors Recommendation, 2012 (No. 202)
ILO Social protection floors for social justice and a fair globalization. Report IV (1) . Geneva ILC.101/IV/
ILO Regional Office for Asia and the Pacific Single Window Service in Asia and the Pacific. Piloting integrated approaches to implementing Social Protection Floors.
ISSA. International Social Security Association.
UNICEF Myanmar Social protection: A Call to Action. Conference report. Yangon 2012   
World Bank Resilience, Opportunity and Equity. The World Bank’s Social Protection and Labor Strategy 2012–

49. ANNEX
List of costing tools
ILO´s social protection assessment tool

50. Costing tools
Basic social protection tool - Electronic model (ILO & UNICEF)
Simulation and costing tool ADePT (World Bank)
Micro-simulations (ILO)
Actuarial and financial advisory services (ILO FACTS)
Performance Indicators (PIS) of Statutory Social Insurance Schemes (ILO)
Pension costing tool (HelpAge)
Pension reform options simulation toolkit (PROST) (World Bank)
Modeling for health insurance (WHO)
Modeling for agricultural/crop insurance systems (UNCTAD/World Bank)
Rapid Assessment Protocol (RAP) (ILO)
Rapid Assessment Protocol Plus (RAP+) (ILO)
Marginal Budgeting for Bottlenecks (UNICEF/World Bank)

51. Analysing social protection options
Step 1 –Assessment of social protection situation
SPF objectives
Existing SP provision
Planned SP provisions (strategy)
Gaps
Recommendations
Design gaps
Implemen-tation issues
Health
Children
Working age
Elderly
The Social Protection Situation
Design gaps and implementation issues (to complete the SPF)
Social Protection Floor template: guarantees and objectives
Source: Valerie Schmitt, ILO Bangkok and
ILO Assessment Based National Dialogue on Social protection in Asia and the PacificA Participatory Approach.
Priority policy options to be decided through national dialogue

52. Analysing social protection options Step 2 – Costing of “SPF” recommendations
Decide on priorities in social protection
Design appropriate interventions
Estimate the cost of each intervention, with alternative level of coverage and benefits, with a good time line
Various costing tools available from UN agencies
Choose appropriate, affordable, sustainable interventions
Combine with a fiscal budget analysis