Day 1_Session 2_Mapping Social Protection Systems

7/30/2019 Day 1_Session 2_Mapping Social Protection Systems

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Mapping Existing Social Protection Systemand Estimating Coverage Gaps

Capacity Development Workshop on Measuring Social

Protection

1416 May 2013

BPS Statistics Indonesia, Jakarta, Indonesia

Cline Peyron Bista et Florence Bonnet

Social Protection Department,

International Labour Office, Geneva

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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Outline of the presentation

1. Mapping national social protection system &

identify coverage gaps 1.1. Main questions to be answered

1.2. How to? Main steps and data requirements

1.3 A tool: the ILO social security inquiry

2. Some results & a key issue 2.1. Example of categorization tree of schemes and benefits

allowing the construction of meaningful data and indicators

2.2 From the categorization to examples of specific indicators

3. Concluding remarks: international initiative for the harmonization (& standardization)

of social protection data


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1. Mapping national social

protection system and identify gapsof coverage

1.1 Main questions to be answered


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Mapping | Questions to ask about the overall

social protection system

Mapping national social protection

system | Main questions

Mapping national social protection

system | Source and tool

Coverage

Who is covered: How many (poor-

non poor, workers in formal/

informal employment and other

vulnerable groups)?

What are the benefits provided

(risks covered) and what is the

amount?

What are the (potential/actual)

impacts of these benefits?

Spending and financing

Who is paying (financing sources);

How much (how much for the

benefits, how much for the

administration)?

Inventory of existing social

protection schemes and

programmes in the country

Collect information on deliveredbenefits, coverage, spending

and financing

Sources: administrative data

from social security schemes asprimary source (coverage,

impacts)

Tool: ILO social security inquiry


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Mapping | Questions to ask about the overall

social protection coverage

Estimate coverage gaps and identify

coverage needs | Main questions

Estimate coverage gaps &

identify coverage needs

Since the identification of gaps in coverage,

together with the reasons for their existence

and ways of filling them, are the main

objectives, the following questions need to

be answered:

Who are those not currently covered but

in need of coverage?

What are their needs?

What are the risks they are exposed to?

What are the options for the coverageextension?

What are their employment situation?

In what measure can they contribute?

What is the potential cost of the

coverage extension?

Mainly household surveys(household income & expenditure surveys,

Labour force surveys)

Considering those who are not

covered: identification of

different groups and coverage

needs in order to provide useful

info for adequate options for

social security extension

Key factors regarding social

security extension Labour market structure

Ability to work and Status in

employment

Capacity to contribute;

Poverty status; etc


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protection system

1.2. Main steps |Inventory of schemesand data required


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Diagnostic (1)| Classical data gathering method required on

social protection (1)

Step 1| List of existing national social protection schemes and

characteristics of each of them Contributory, non contributory or universal

Public versus private schemes,

Statutory scheme or not

Compulsory or voluntary

Step 2 |For each scheme, identify and define benefits provided Covered risk or function (health, old age, disability, survivor,

work injury, unemployment, family/children, maternity,

poverty and social exclusion) => link with floor guarantees

Benefits in cash or in kind Periodicity: periodic benefits versus lump sum benefits

Means-tested or non means-tested social benefits

Complementary or non complementary benefits


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Diagnostic (1)| Classical data gathering method required on

social protection (2)

Steps 3 & 4 |Data collection at scheme and benefit levels Financial data: scheme spending and revenue

Expenditure at a scheme level

Benefits (in cash or in kind), Administrative costs, Transferto other schemes, Other spending

Revenue at a scheme level Social contributions (employers, employees/protected

persons); Contributions from the government; Transfersfrom other schemes; Transfers from the rest of the world;Other receipts

Financial (expenditure) data at the benefit level Benefit expenditure

Minimum benefit if exists

Average benefit


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Diagnostic (1)| Classical data gathering method required

on social protection (2)

Steps 3 & 4 (contd.) |Data collection at scheme and benefit levels

Data on coverage

Information on the beneficiary level

Target groups of the scheme

Statutory coverage (Qualitative & Quantitative)Protected persons (scheme level)

Number of persons affiliated by

age groups and sex

Number of active contributors by

age groups and sex

Information on benefit level

Actual beneficiaries of the benefit (by sex & age)

Benefit amount (by sex & age)

Scope of

coverage and

Extent of

statutory coverage

Effective coverage

Extent of

effective

coverage (1)Effective coverage

Extent of

effective

coverage (2) Level of

coverage


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protection system

1.3 A tool: the ILO social security inquiry

(2-3 slides)


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Screen shots| A guided tour in the inquiry

Levels of information & sources

Inventory of schemes & benefits:

qualitatiive mapping of social

protection provision Data collected at the scheme and

benefit levels on:

Expenditure and financing

Coverage (protected persons &

beneficiaries) and level ofbenefit

Schemelevel

National aggregate indicators


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Step 1 | List of existing national

social protection schemes and

characteristics of each of them

Contributory, not contributoryor universal

Public versus private

schemes,

Statutory scheme or not

Compulsory or voluntary

Screen shots |A guided tour in the inquiry

Armenia - An tentative Inventory of schemes

Step 1|

Inventory of social security schemes&definition of each scheme


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Screen shots |A guided tour in the inquiry

Armenia - An tentative Inventory of schemes

For each indentified schemeFirst pat|Textual information & direct links

Description of the scheme incl. information from

SSPTWStep 2Data collection ofcoverage data

and

Financial data at the scheme

level

Step 3 | Identify and define

benefits provided Covered risk or function

(health, old age, disability,

survivor, work injury,

unemployment, family/children,

maternity, poverty and socialexclusion) => can be linked

with the SPF guarantees

And collect for each of them

data on

Expenditure by benefit

Beneficiaries

Level of benefits


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Benefit level| Armenia Old age pension

data collected

1. |Definition of benefit: function, periodicity, cash or in-kind, means tested of notA benefit is defined by:

The function covered: old age,

survivors, maternity, etc.

Basic or supplementary benefit

The periodicity: (periodic or not)

The type: cash or in kind

Beneficiaries: individuals or

households

Means-tested or not

2. |Expenditure at the benefit level

Social protection

expenditure by function, as apercentage of

Total social protection

expenditure

GDP

3. | Beneficiaries, if possible by sex &

age group

Effective coverage

Extent of effective

coverage [2]

Actual beneficiaries

4. | Benefit level, if possible by sex &age group

Effective level of

coverage: average level

of benefit related to

average wage, minimumwage, poverty line


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Results| Aggregate indicators online

Indicators can be consulted

from

1. the indicators section (mainlytables)

Consultation of all indicators for agiven country

Depending on availability, data

available from 2000 to 2012 for

expenditure and coverage

related indicators

Consultation of All countries for a

given indicator

2. From the from page: maps for aselected number of indicators

Old age pension beneficiaries as a proportion of

persons above retirement ageUnemployed receiving unemployment benefits

(periodic cash benefits)


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2. Some results & a key issue:

example ofcategorization of schemes andbenefits allowing the construction of

meaningful data and indicators


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How to categorize and qualify schemes

and benefits

Objectives To structure data collection and allows the calculation of sound

and meaningful indicators

To enhance compatibility and comparability of data among

countries and among international organizations

To allow switching between the different classifications

used by various countries or organizations by creatingbridges between these different classifications.

To allow each of organizations to calculate its respective

indicators according to its mandates and needs.

Which criteria? What categories? Some established methods (Eurostat, OECD, ILO, ..) propose

some classifications with bridges from one to the other

The ILO social protection data are structured as follows


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Categorisation of schemes & benefits

Benefits featuresSchemes/ programmes

definition

SP

system

Older persons Old age

Survivors*

Family / childbenefit

Active age Sickness

Disability/ Invalidity

Unemployment

Employment injury

Maternity

Survivors*

ALMP

Housing *

Other social assistance*

Health care benefit

Function

Cash

In-

kind

Type ofbenefit

periodic

Lump-sum/

ad hoc

periodic

Lump-sum/

ad hoc

Periodicity

Statutory

Non

statutory

Contributory

Non

contributory

Contributory

Non

contributory

Contributory

Non

contributory

Contributory

Noncontributory

Public

Private

Public

Private

Means-tested

Not means

tested

Means-tested

Not means

tested

Means-tested

Not means

tested

Means-tested or not

Other criteria

Mandatory /voluntary benefit

Complementary /

main benefit

Any other?

Means-tested

Not means

tested

d d | bl l


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From data to indicators | Public social protection

expenditure on benefits for older persons


definition

SP

system


Survivors*


Active age Sickness


Unemployment

Employment injury

Maternity

Survivors*

ALMP

Housing *


Health care benefit

Function

Cash

In-

kind

Type ofbenefit

periodic

Lump-sum/

ad hoc

periodic

Lump-sum/

ad hoc

Periodicity

Means-tested

Not means

tested

Means-tested

Not means

tested

Means-tested

Not means

tested

Means-tested or not

Other criteria


Complementary /

main benefit

Any other?

Statutory

Non

statutory

Contributory

Non

contributory

Contributory

Non

contributory

Contributory

Non

contributory

Contributory

Noncontributory

Public

Private

Public

Private

Means-tested

Not means

tested

i ib i f bli i l i di


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Distribution of public social protection expenditure

Expenditure for older persons are the highest

Health and elderly (pensions

in particular) represent thebiggest proportions in total

public social protection

expenditure.

Health 2.9%

Older persons 3.4%

Active age 2.3%

Active age includes social

security expenditure in case ofsickness, disability, employment

injury, maternity, unemployment

(1.6%) as well as general social

assistance (0.7%)

Public social security expenditureon Unemployment represents

0.5% of GDP worldwide (1.1% in

high income countries; 0.2% in

middle income countries and

0.02% in low income group)

Child benefits (either in kind or

in cash represents less than0.5% of GDP

1.4% of GDP in high income

countries and 0.1% in low

income group of countries

Children 0.5%

1.4%

0.3%

0.1%

Eld l | Di t ib ti f th l ti d 65 d


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Elderly| Distribution of the population aged 65 and over

and distribution of public SP expenditure for

elderly

In Asia

52% of the world population

aged 65 and over&

23 % of the world publicsocial protection expenditure

for elderly (in 2010)

In Western Europe

14% of the world population

aged 65 and over&

35 % of the world publicsocial protection expenditure

for elderly (in 2010)

In North America, less than

9 % and close to 24%

respectively.

F d t t i di t | Old * i i ld


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From data to indicators | Older persons* receiving an old age

pension above statutory pensionable age


definition

SP

system


Survivors*


Active age Sickness


Unemployment

Employment injury

Maternity

Survivors*

ALMP

Housing *


Health care benefit

Function

Cash

In-

kind

Type ofbenefit

periodic

Lump-sum/

ad hoc

periodic

Lump-sum/

ad hoc

Periodicity

Means-tested

Not means

tested

Means-tested

Not means

tested

Means-tested

Not means

tested

Means-tested or not

Other criteria


Complementary /

main benefit

Any other?

Statutory

Non

statutory

Contributory

Non

contributory

Contributory

Non

contributory

Contributory

Non

contributory

Contributory

Noncontributory

Public

Private

Public

Private

Means-tested

Not means

tested


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Worldwide 29.9% of the working age,

contribute to an old age pension

scheme (entitled to pension cash

benefits one reaching pensionable

age)

54.6% of the elderly above retirement

age receive an old age pension

(45.1% without China)

Extent of statutory coverage| Old age pensions |

Extent of effective coverage

Two dimensions of

coverage:Persons protected

(future beneficiaries of an

old age pension) and the

actual beneficiaries


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Extent of effective coverage | Old age

Asia | Active contributors to an old age pension scheme

as a proportion of the working age population


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Extent of effective coverage | Old age

Asia | Old-age pensioners as a proportion of

populationabove retirement age (%)

0,91,02,33,23,53,75,05,67,98,08,18,510,6

10,7

13,116,7

17,119,5

19,823,1

24,1

24,726,4

27,3

28,531,734,5 40,142,2 47,4

48,0

56,0

56,

5 62,564,2

72,9

73,677,680,0

80,2

80,383,0

83,387,089,2

89,891,495,2

95,998,1

100,0

100,0

100,0

0

10

20

30

40

50

60

70

80

90

100

0

10

20

30

40

50

60

70

80

90

100

PapuaNewGuinea

onga

Pakistan

Bhutan

Vanuatu

Samoa

ambodia

LaoPeople'sDem.

Qatar

WestBankandGa

za

Indonesia

Yemen

FijiAfghanistan

SolomonIslands

SyrianArabRepub

lic

SriLanka

Tuvalu

Malaysia

Lebanon

Indiaman

Iran,IslamicRep.of

uwait

Philippines

Bangladesh

VietNam

ahrain

Jordan

Thailand

Palau

IraqNauru

Nepal

MarshallIslands

HongKong,China

srael

Korea,Republicof

rmenia

Tajikistan

Japan

Australia

Azerbaijan

BruneiDarussalam

Maldives

Georgia

China

NewZealand

Kazakhstan

Uzbekistan

Kyrgyzstan

Mongolia

Timor-Leste

Old-agepensionersasaproportionof

populationabove

retirementage(%)

Total

Female


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Concluding remarks (1)

Significant growth in the provision of social protection benefits over recent

decades in many countries

The recent adoption of the ILO SPFs Recommendation will contribute to this

process of extension & calls explicitly for the monitoring of social protection

systems both at national and international levels.

Even though national dissemination of social protection data have already

improved in recent years, as of today there no consistent and systematic methods regarding the

gathering of data and information on provision, coverage, cost or impact

at national level, many countries face real difficulties in assessing current

social protection provision gaps and needs

at the global level, there is a lack of consistent and readily comparableanalysis of provision across countries.

In 2011, the G20 called for greater coordination between agencies on social

protection SPIAC-B was subsequently created and agreed to put some

cooperation efforts towards social protection data and statistics

Recent initiative for the harmonization of international social protection data


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Concluding remarks (2)

Harmonization process should aim at

an agreement on core standards in defining social protection

programs

a set of individual data to be collected at the agreed statistical unit

levels and on their "definition" or "qualification".

ensuring comparability and allow switching between the different

classifications used by various organizations and creating bridgesbetween these different classifications

allows each of organizations to calculate its respective indicators

according to its mandates & needs.

facilitate inter-organisations/ agencies closer collaboration at the

country level with the focus on their areas of strength. Result in key principles and guidelines regarding social

security/protection statistics and indicators which should be taken into

account not just by international organizations but also by provide

clear guidelines to countries.

In a way formalising and progressively improve what ADB, OECD

and ILO started to do on the SPI project

Documents

Day 1_Session 2_Mapping Social Protection Systems