Day 1 Session 1 What is social protection and why is it important? Perspective from ILO

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    What is social protection and why is it

    important?

    Capacity Development Workshop on Measuring Social

    Protection

    1416 May 2013

    BPS Statistics Indonesia, Jakarta, Indonesia

    Cline Peyron

    Unemployment protection and social security technical advisor,

    ILO Regional Office for Asia and the Pacific, Bangkok

    Disclaimer: The views expressed in this paper/presentation are the views of the author and

    do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its

    Board of Governors, or the governments they represent. ADB does not guarantee the

    accuracy of the data included in this paper and accepts no responsibility for any consequence

    of their use. Terminology used may not necessarily be consistent with ADB official terms.

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    Structure of the presentation

    1. What is social security/ protection?2. Social protection extension as main ILO

    objective

    More people have access to better-managed

    and more gender-equitable social securitybenefits

    The Social Protection Floor Recommendation

    3. Diagnostic, estimate of costs and policycoordination

    4. Examples of extension from other countries,

    challenges & opportunities

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    1. What is social protection?

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    What is social protection/ security?

    People face contingencies during their lives

    Life cycle

    Old age

    Death of thebreadwinner

    These have financial consequences

    Work injuryaternity Unemployment

    Invalidity

    Sickness / ill health

    Fmie

    ...with children

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    What is social protection?

    To compensate forthe loss of income &

    covers health care

    expenditures

    To facilitate accessto social services

    and fulfill basic

    needs

    FINANCIAL SUPPORT ACCESS TO SERVICES

    The protection provided by society

    SOCIAL TRANSFERS

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    What is social security?

    Social security is a human right The Universal Declaration of Human

    Rights (1948)

    The International Covenant onEconomic, Social and Cultural Rights

    (1966)

    The Declaration of Philadelphia

    (annex to the Constitution of theInternational Labour Organization) (1944)

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    2.Social protection extension as main ILO

    objectiveMore people have access to better-managed and more

    gender-equitable social security benefits

    How to extend social security?

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    Social security extension

    Populat ion

    Level of

    protect ion

    Poor Rest of informal sector Formal sector

    For a long time, SS was contributory andmainly adapted to the formal sector

    This did not happen.

    Assumption that these schemes

    would progressively extend their

    coverage with the shrinking of the

    informal sector

    ???

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    Social security extension

    Populat ion

    Level of

    protect ion

    Poor Rest of informal sector Formal sector

    Discussion on SS in 2001 -> new

    consensus: priority to theextension of coverage, exploring

    several strategies: adapted SI,

    micro-insurance, social

    assistance

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    Social security extension: the Social

    Protection Floor

    Populat ion

    Level of

    protect ion

    Poor Rest of informal sector Formal sector

    All residents should enjoy at

    least a minimum level of

    social security

    Member states of the ILOshould establish social

    protection floors as a

    fundamental element of their

    social security systemsNationally defined social protection floor

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    Social security extension: the Social

    Protection Floor

    Populat ion

    Level of

    protect ion

    Poor Rest of informal sector Formal sector

    Based on this floor, extend

    social security to provide

    progressively higher levels

    of SP benefits to more

    peopleHigher levels

    of social

    security to

    more people

    Nationally defined social protection floor

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    And endorsed by the 185 member states of

    the ILO in June 2012 with the adoption of the

    SPF Recommendation (No 202)

    101st ILC

    14 June 2012

    456 yes votes 1 abstention

    The recommendation 202 is a useful guidance for

    member states who wish to establish/maintain SPFs as

    part of their national social security systemshttp://www.ilo.org/wcmsp5/groups/public/---ed_norm/---

    relconf/documents/meetingdocument/wcms_183326.pdf

    http://www.ilo.org/wcmsp5/groups/public/---ed_norm/---relconf/documents/meetingdocument/wcms_183326.pdfhttp://www.ilo.org/wcmsp5/groups/public/---ed_norm/---relconf/documents/meetingdocument/wcms_183326.pdfhttp://www.ilo.org/wcmsp5/groups/public/---ed_norm/---relconf/documents/meetingdocument/wcms_183326.pdfhttp://www.ilo.org/wcmsp5/groups/public/---ed_norm/---relconf/documents/meetingdocument/wcms_183326.pdfhttp://www.ilo.org/wcmsp5/groups/public/---ed_norm/---relconf/documents/meetingdocument/wcms_183326.pdfhttp://www.ilo.org/wcmsp5/groups/public/---ed_norm/---relconf/documents/meetingdocument/wcms_183326.pdfhttp://www.ilo.org/wcmsp5/groups/public/---ed_norm/---relconf/documents/meetingdocument/wcms_183326.pdf
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    A national social protection floor

    guarantees that:

    All residents have access to essential health careincluding maternity care

    All children enjoy basic income security (providingaccess to nutrition, education and care)

    All persons in active age who are unable to earn

    sufficient income (e.g. in case of sickness, maternity,unemployment, disability) enjoy basic income security

    All older persons enjoy basic income security

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    Nationally defined

    Social Protection Floors

    Not a one size fits all approach : each country defines

    the levels of benefits that it can/is willing to provide

    Each country also decides howto do it through universal

    schemes, targeted social

    assistance, social insurance, a

    combination

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    Give effect to the recommendation

    According to ILOs Constitution ILO member states have to

    submit the Social Protection Floors Recommendation before

    the national authorities to enact legislation or take action to

    give effect to the Recommendation.

    In this context the Assessment Based

    National Dialogue Exercise is a useful

    tool since it proposes or will proposeconcrete routes for the further

    development

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    3.The process to support countries in

    implementing national social protection

    floors and further developing

    comprehensive social protection systems:

    The Assessment Based National Dialogue

    exercise

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    1. Inventory of schemes

    through desk review and

    bilateral consultations

    (June 2011)

    2. Draft assessment matrix

    (July 2011)

    3. Dialogue # 1 to

    validate the Assessment

    Matrix and providepolicy recommendations

    (August 2011)

    4. Translation of policy

    recommendations into

    costable scenarios

    (September 2011 March 2012)

    5. Dialogue # 2 to

    validate the choice of

    scenarios (November

    2011, February 2012)

    6. Data collection for the

    RAP protocol and costing

    of the scenarios

    (November 2011 - March 2012)

    7. Dialogue # 3 to present the

    results of the costing and discuss

    the fiscal space (March 2012);

    Training on costing (May 2012);

    Training course on Socialprotection: Assessment, Costing

    and Beyond (October 2012)

    9. Endorsement by

    UN/RTG joint team and

    presentation to thegovernment (October

    2012 March 2013)

    8. Finalization of the

    costing and

    assessment matrix;

    writing of the ABND

    report (May-August2012) Nationaldialogue

    STEP 1

    Assessment

    matrix

    STEP 2

    Costing using

    the RAP model

    STEP 3 Finalisation

    & endorsement

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    Step 1: Building the assessment matrix:

    diagnostic, gaps, recommendations

    SPF

    objectives

    Existing

    SP

    provisions

    Planned SP

    provisions

    (strategy)

    Policy

    gaps

    Implement-

    ation issues

    Recomm-

    endations

    Health

    Children

    Working

    age

    Elderly

    Four SPF

    guarantees

    Identifying

    existing situation

    in the country

    Identifying policy

    gaps and

    implementation

    issues,

    addressing

    which would

    complete the

    SPF

    Priority

    policy

    options,

    to be

    decided

    through

    national

    dialogue

    The assessment matrix:

    A diagnostic of the social protection situation (Coverage

    gaps= SSI database)

    A set of recommendations

    A baseline for future monitoring (SSI database)

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    Step 2: Costing using the RAP model

    Can be used for

    informed policy

    planning and

    prioritization

    Projections of population,active age group, economic

    indicators and government

    general operations budget

    Costing of some policyoptions

    Fiscal space analysis

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    UN/G Team on social protection

    Government group Ministries of Social Welfare, Labour,

    Public Health, Education, Finance,

    Interior

    Budget Bureau

    NESDB

    National Commission on Social

    Welfare/Social Protection

    Statistics Offices

    Academia, Civil Society,

    Workers and employers representatives

    Step 3: A mechanism for national dialogue

    and policy coordination the UN / G joint team on social protection in the

    framework of the UNPAF/UNDAF on social protection

    UN SPF Team

    UN RC office ILO

    UNICEF

    UNDP

    UNFPA

    WHO

    UN WOMEN UNESCO

    UNHCR

    FAO

    WB, ADB

    IOM

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    Used in many Asian and Pacific countries

    Completed in

    2011-2012

    2013-2014

    2014-2015

    ABND

    Vanuatu

    and

    Solomon

    Islands

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    4.To conclude

    Examples of extension from other

    countries, challenges & opportunities

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    Universal access to

    health care in Thailand

    Level ofprotection

    CSMBS

    6.7%

    pop

    SSF

    sect.33

    and 3915.5% pop

    Universal Coverage Scheme (UCS) 75.1% population

    Quasi 100% Coverage

    Issues/ challenge: large number of undocumented migrant workers are not covered by

    the Compulsory Migrant Health Insurance (CMHI) due to problems of affordability

    CMHI since 2009 (880,000insured- Migrants)

    Poor Rest of informal sectorFormal sector

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    Cash transfers & scholarships

    for poor childrenin Indonesia

    Level ofprotection

    PKH and PKSA -1.5 million very poor

    households in 2012

    BOS program

    Free education

    44.7 million students in 2012 (grade 1 to 9)

    Scholarship for the poor -

    6.3 million students in 2012

    Poor Rest of informal sector Formal sector

    Limitations: The PKH program should be expanded to cover at least all

    poor households (6.5 million instead of 1.5 million); lack of health and

    education supply may curb the impact of the program.

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    Extension of social insurance

    to informal economy workers

    in ThailandLevel of

    protection

    CS

    6.7%

    pop

    SSF

    sect.33

    and 39

    15.5%

    pop

    SSF

    section

    40

    Social security Act, Section 40

    Package 1: 70 baht / 30 baht

    Death, Work injury, Sickness

    Poor Rest of informal sector Formal sector

    Challenges: With the introduction of subsidies, coverage has increased from 68

    thousands persons to 1.3 million in 18 months. However the target population =

    24 million informal economy workers. Also only 50% pay contributions regularly.

    Universal disability allowance of 500 baht/month

    Recommendation from ABND:

    Expand package: maternity benefits

    Enhance employ ability programmes

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    Income security for the

    elderly in Viet Nam

    Todays situation

    Level of

    protection

    Voluntaryinsurance

    under

    government

    regulationProblems with

    the vertical

    dimension: weak

    protection toformal workers

    1,300,000 social assistance +80

    100,000 social assistance 60-80

    1,000,000

    pensioners

    100,000 voluntary

    participants

    Social pension(180,000

    VND/month) for

    those above 80

    years old

    5 millions dont receive any pension

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    Social pension

    Towards an enhanced social

    pension for the elderly in Viet

    NamLevel of

    protection

    Expand the social pension to all elderly above 65 years of age who do not receive

    any pension

    Increase the levels of benefits from 180,000 VND/month to 400,000 VND/month

    in rural areas and 500,000 VND/month in urban areas

    Recommendation from

    the assessment report

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    THANK YOU!

    And more:www.social-protection.org

    http://www.social-protection.org/http://www.social-protection.org/http://www.social-protection.org/http://www.social-protection.org/