ONU - ESCAP The Promise of Protection. Social Protection and Development in Asia and the Pacific, May 2011

8/6/2019 ONU - ESCAP The Promise of Protection. Social Protection and Development in Asia and the Pacific, May 2011

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Social Protection and develoPment in aSia and the Pacific

thePromiSe of

Protection


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The concept for the cover design is inspiredby the Ens circle, a sacred symbol in Zenphilosophy representing strength, protectionand enlightenment. In Japanese calligraphy,

the Ens is often painted as a circle with

an opening, signifying that it is part of theinfinite universe. The circle also represents aring a symbol of promise. The cover designis thus symbolic of the aims and underlyingconcepts of universal social protection,and the hope that it offers for a better andmore secure future for the peoples of theAsian and Pacific region.


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the

promise ofprotectionSocial Protection and develoPment in aSia and the Pacific


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Social protection is high on regional andinternational policy agendas. This owesto the convergence o the ood, uel andnancial crises in 2008, which increased the

insecurities o millions o people by heigh

tening economic and social risks, especially

or those living in or close to poverty. Na

tural disasters and extreme weather events

added to the pressures upon these people by

destroying lives, property, community re

sources and local economies. The combinedimpacts o these setbacks prompted a shit in

thinking about social protection. Instead

o approaching it through reactive event

specic interventions, Asia Pacic countries

are now moving towards comprehensive

universal coverage solutions capable o

strengthening coping capacities and resil

ience as crucial underpinnings o their vision

o inclusive development. The resurgence o

the ood and uel crises this year, and the

continuing atershocks o the global nan

cial crisis lend new urgency to their eorts.

iii

foreword

noeleen heyzer


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Asia and the Pacic is home to nearly a billion poor people whose livelihoods rest on a ragile

economic and social oundation. These are people with low and uncertain incomes, ew assets,

limited social networks and no access to political processes. Their lives are onerous even under

normal circumstances, let alone against the kinds o shock and stress visited upon them in

recent years. These people are discriminated against on the basis o caste, ethnicity, gender,

geography, political or religious afliations, and migrant identity. To change their social situa

tion and lie chances, social protection must move rom interventions that address thesymptoms o vulnerability to systemic transormations that remove the underlying causes o

persistent poverty and inequality. This can release them rom structural traps locking them

into inequality and give them the voices and rights to claim their just share o the ruits o

development.

Closing development gaps, increasing income and human security, and reducing poverty and

inequality within and among the countries o Asia and the Pacic are critical to sustain the

economic recovery and dynamism o the region, which currently leads the world on manydevelopment ronts. Member States are now examining ways to integrate social protection into

broader economic and social strategies to guarantee all citizens a minimum level o security. In

turn, this can increase aggregate demand within the region and reduce precautionary savings

that have curtailed productive investments and contributed to global imbalances in the past.

This report is a contribution to the policy debate on the direction o social protection in Asia

and the Pacic. It shows that, while many countries o the region have in place some orm o

social protection, this benets only a raction o those who need it. Nonetheless, as the reportargues, present day programmes can be the building blocks o more integrated protection

systems as a part o the inclusive growth and social equity agenda. The cost o such systems will

vary according to the level o economic development, income distribution and aordability but,

as the report suggests, even at the lower end o the economic spectrum, comprehensive social

protection is within the reach o most countries in the near uture.

noeleen heyzerUnited nationS Under-Secretary-General

and execUtive Secretary, eScaP


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acknowledGementS

The ESCAP secretariat expresses its deep gratitude to those governments that provided

contributions on national experiences and practices on social protection that served as a basis

or the preparation o this report.

Under the leadership o Noeleen Heyzer, the report was prepared by an ESCAP teamcomprising the ollowing members: Nanda Krairiksh (Coordinator), Jorge Carrillo, Donovan

Storey, Donald Clarke, Cai Cai, Anna Coates, Marco Roncarati, Vanessa Steinmayer, Amornsak

Kitthananan, Deuk Yung Ko and Marie Sicat.

The substantive editing o the report was undertaken by Peter Stalker.

The ollowing individuals participated in a messaging workshop with members o the Social

Development Division to dene the scope o the study: Jerrold W. Huguet, Yap Kioe Sheng,Christian Sto and Narumol Nirathron.

The ollowing members o the ESCAP secretariat peer reviewed the report: Tiziana Bonapace,

Alberto Isgut, Nagesh Kumar, Mia Mikic, K.V. Ramani, Ravi Ratnayake, Jenny Yamamoto,

and Zhang Yanhong.

The concept or the graphic design o the publication was developed by Mika Mansukhani.

The cover and layout were created by Daniel Feary.

The editing o the manuscript was undertaken by Orestes Plasencia.

The ESCAP secretariat acknowledges with thanks the contribution o the International

Labour Organization East and South East Asia and the Pacic Ofce, in particular Valrie

Schmitt Diabate and Celine Felix, or their inputs on the Social Protection Floor Initiative.

The ESCAP secretariat also beneted rom the inputs and outcome o the regionalconsultation on Social Protection as Development Policy in Asia: the Long Term

Perspective, 27 29 October 2010, which was organized jointly with Social Protection in Asia

and the United Nations Research Institute or Social Development under the leadership o

Naila Kabeer and Sarah Cook respectively, both o whom also reviewed earlier versions o the

report.

v


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f iiiags vabbs ixiu x

the promise of protection 1

tps s p 5G s p 12t p 15

realizing the dividends of social protection 17

Bug u ps 19og sp p 19rug qu 21ag g 22ag s s ug us 24

contents

chaPter

two

chaPter

one

vi


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Building asiapacific floors and staircases 27

ab ss 29

h ss 30eu ss 32f ss 35

S ss 36ep gus 36S pss 38c s ss 40

a bu ps 43

esug 45eg p 48lsss : g us 54Sg 60

delivering on the promise 63

mg p s 64Ppu bu ppus 66esbsg gs g s 66mbg sus 70a pg s 79

chaPter

three

chaPter

foUr

vii


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appendixd g us u s s p 82

notes 85

BoxesB i-1 S p g 7

B i-2 t Gb i S P f 9

B iii-1 S p, hiv / aidS t 31

B iii-2 cs s us 33

B iii-3 dp s p S l 47

B iii-4 t rs Ss B yj s i 51B iii-5 rpg gu Ps 55

B iii-6 S p P 57

B iv-1 isug gs pss sbs Jp 69

figuresfgu i-1 P p pu s p, b subg 4

fgu i-2 S p: ss 13

fgu iii-1 hus pp v ns s p pgs 46fgu iii-2 t s p ss cb 49

fgu iv-1 S pu 2004/2005, b pg g 71

fgu iv-2 au s bs s p pg s as-P us 73

fgu iv-3 fs sp s pu 77

taBlestb i-1 S p p s Jp 10

tb iii-1 c s s pg is 42tb iii-2 eps s pg p, 2006 44

tb iii-3 Pps bs bu ps p s t 53

tb iv-1 au s bs s p pg p p ppu 74

viii


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aBBreviationS

adB Asian Development Bank

aids acquired immunodeciency syndrome

aud Australian dollar

Brac Building Resources Across Communities*

cct conditional cash transer

cnY Chinese yuan

escap Economic and Social Commission or Asia and the Pacic

gdp gross domestic productgni gross national income

hiv Human Immunodeciency Virus

idr Indonesian rupiah

ilo International Labour Organization

inr Indian rupee

mdg Millennium Development Goals

mfi micronance institution

molisa Ministry o Labour, Invalids and Social Aairsncms New Cooperative Medical System

ngo non governmental organization

npr Nepalese rupee

oaap Old Age Allowance Programme

oecd Organization or Economic Co operation and Development

pKh Program Keluarga Harapan

pKr Pakistani rupee

pnpm generasi Program Nasional Pemberdayaan Masyarakat Generasi$ppp purchasing power parity

rsBY Rashtriya Swasthya Bima Yojana

sgd Singapore dollar

spf Social Protection Floor

spfi Social Protection Floor Initiative

sso Social Security Organization

thB Thai baht

tsa Targeted Social Assistanceuhcs Universal Health Coverage Scheme

usd United States dollar

vss Viet Nam Social Security

who World Health Organization

* Originally known as the Bangladesh Rehabilitation Assistance Committee

ixix


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introduction


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Xi

introduction

introduction


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one billion people still live in poverty in AsiAAnd the pAcific

introduction


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XIII

fIgure tItle

- 1 Countries grouped by level of vulnerability, poverty andinformality Combined, latest year

very low vulnerability (40)

low vulnerability (19)

medium vulnerability (21)

high vulnerability (18)

very high vulnerability (40)

no data (59)

note: numbers In brackets gIve the number of countrIes Included In each group.

sourCe: InternatIonal labour organIzatIon World socIal securIty report 201 0/11: Providing

coverage in times of crisis and beyond(geneva, Ilo 2010).

introduction


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sociAl protection is AffordAble And A cruciAlinvestment in development

introduction


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Xv

1 2 3 4 5 76 8

Aaa

na

baa

taja

caa

la p' da r

s ia

paa n ga

paauza

v na

ia

p

ia

ma

saa

vaata

t-l

fj

s laa

ba

ma

ca

figure title

-2 AnnuAl cost of A bAsic sociAl protection pAckAge,selected AsiA-pAcific countries (As A percentAge of gni)

percentAge of gni

source: escap computations based on data from World bank, World development indicators 2010

(Washington d.c., World bank, 2010). available at http://WWW.data.Worldbank.org/data-catalog/

World-development-indicators/Wdi-2010.

old Age pension / gni child AllowAnce / gni heAlth cAre / gni

introduction


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educAtion, heAlth And employmentAre key priorities in the region


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XVII

95 per cent and over (50)

70 to 95 per cent (14)



less than 10 per cent (21)

no data (87)

fIgure tItle

-3 health protection: proportion of the population coveredby law, latest available year (percentages)

source: NatIoNal legIslatIoN, VarIous dates. see INterNatIoNal labour orgaNIzatIoN, global

eXteNsIoN of socIal securI ty (geNeVa, Ilo, 2009).

note: Numbers IN brackets gIVe the Number of couNtrIes INcluded IN each group.

introduction


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empowering women And girls should beA fundAmentAl goAl for sociAl protection


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XiX

paa

ia

Azaja

ia

taa

t

p

s laa

r ka

maaa

Jaa

n Zaa

sa

Aaa

ra fa

h k, ca

maa, ca

1 0% 20 30 40 50 7060 80

figure title

-4 percentAge of persons in vulnerAble employment, by seX

men women

source: escap, statisticaL yearbooK for asia and th e Pacific, 2009(united nations publication

sAles n. e.10.ii.f.1).

introduction


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Social protection SyStemS muSt meet the needSof Society'S moSt vulnerable groupS


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XXi

figure title

-5 informal workerS aS a proportion of total employment

informal

employment in %

early 90s late 90s 2000s

l a

as

a

50.1

68.5

52.8

52.2

78.3

78.2

60.9

63.6

55.7

0 10 20 30 40 50 60 70 80 90

Source: international labour organization and world trade organization. globalization and informal jobs

in developing countries, (wto secretariat, 2009).

introduction


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sociAlprotectionmust respond

to theemergingchAllengesof rApid

populAtionAgeing in theregion


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XXiii

introduction


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the rights of

persons withdisAbilitiesmust bereAliZed


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XXv

figure title

-6 rAtificAtions/Accessions to the conventionon the rights of persons with disAbilities*

pArticipAnt crpd signAture

crpd Accession A

or rAtificAtion

Aa 30 ma 2007 22 s 2010

Aaa 30 ma 2007 17 J 2008

Azaja 9 Ja 2008 28 Ja 2009

baa 9 ma 2007 30 n 2007

ba 21 s 2010

b daaa 18 d 2007

caa 1 o 2007

ca 30 ma 2007 1 A 2008

fj 2 J 2010

ga 10 J 2009

ia 30 ma 2007 1 o 2007

ia 30 ma 2007

ia (ia r ) 23 o 2009 A

Jaa 28 s 2007kazaa 11 d 2008

la p' da r 15 Ja 2008 25 s 2009

maaa 8 A 2008 19 J 2010

ma 2 o 2007 5 A 2010

ma 13 ma 2009 A

na 3 Ja 2008 7 ma 2010

n Zaa 30 ma 2007 25 s 2008

paa 25 s 2008p 25 s 2007 15 A 2008

r ka 30 ma 2007 11 d 2008

ra fa 24 s 2008

s ia 23 s 2008

s laa 30 ma 2007

taa 30 ma 2007 29 J 2008

ta 15 n 2007

t 30 ma 2007 28 s 2009ta 4 s 2008 A

uza 27 f 2009

vaa 17 ma 2007 23 o 2008

v na 22 o 2007

c ia 8 ma 2009 A

* as of april 2011

source: united nations treaty collection.

introduction


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universAl

sociAlprotectionis everyone'sright


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XXvii

chapter one


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thepromise of

protection

1

1

chapter one the promise of protection


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A hg- pa mg m D Ga, GaA add a d d Kg : d a

m D Ga.1 Wd ad d akg a Ga 2015 g, ag g, g a a d a a a ad a a ad a a. t Aa-pa g a a

a a. sa ga a a a k ga d ag, ag a a gw ad a a-

a. sa a d a a ada awa wad a a ad .

Asia and the Pacic has been the worlds

astest-growing region or some years. The

benets have not always been evenly

distributed however, and in much o the

region income inequality has persisted de-

spite high levels o economic growth. Nev-

ertheless, millions o people have been able

to escape rom poverty : between 1990and 2008, Asia and the Pacic reduced the

number o people living on less than $1.25

a day rom 1.5 billion to 947 million.2 Even

i varied at the country level, the Asia-

Pacic region has made signicant progress

in a number o indicators or the Millen-

nium Development Goals, though much

more needs to be achieved. The regionmust set its sights higher, looking beyond

the MDGs and aiming to shield its people

better rom many o the risks o daily lie

o ill-health and disability, o unemploy-

ment and o alling into poverty in old age

by building comprehensive systems o

social protection. In building such systems,

it is important that they are both universal

and rights-based.

A system o social protection based onrights implies a social contract on what

each citizen is entitled to and how her or

his rights are to be protected and made

viable. All social contracts are the outcome

o bargaining between governments, social

groups and citizens. In order to maintain

positive outcomes, it is important to de-

velop appropriate institutions, standards,programmes and resources. It is equally

important that avenues exist or the

poor and civil society to make claim to

2


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social protection through a rights-based

ramework.

Indeed, the orces uelling migration, inor-

malization o employment, loss o land or

agrarian livelihoods and other insecuritiesgenerally lie ar beyond the boundaries o

local space, specic sectors, or particular

vulnerable groups.3 To be truly eective,

and transormative, social protection needs

to be institutionalized, based on entitle-

ment, and provide universal access to the

services which strengthen peoples capacities

and broaden as well as secure their position

over time. This urther implies the need or

responsive governance and orward-looking

policy rameworks, and a strengthening o

representative voice inclusive o the poor

and civil society which acts to mobilize and

empower communities to make claim on

entitlements and bridge divides in inorma-tion.

A robust system o social protection not

only ulls peoples basic rights, it also es-

tablishes a rm platorm or both social and

economic development and provides an

automatic stabilizer or vulnerable groups

aected by crisis. With a more secure oun-dation, and with greater security against

the risk o ailure, individuals and amilies

can invest in their own utures and have

3



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pa

s Aa

ca Aa

ea Aa (d J d rb K)

ea Aa

figure title

i -1 per cApitA expenDiture on sociAl protection, by subreGion

source: asian Development BanK (2008).

0 100 200 300 400 500 600 700

greater condence to engage in economic

activity beyond ensuring basic economic

survival in order to meet their own basic

needs and the needs o those who are de-

pendent upon them.

In act, there has been steadily more

comprehensive protection across most

countries in Asia and the Pacic. In some

countries, social insurance and social assis-

tance schemes have existed or some time,

borne out o an entitlement-based political

ideology.4 This is particularly the case in

centrally planned countries, such as Chinaand Viet Nam. Indeed, Chinas success with

poverty reduction can largely be seen to be

a result o these oundations.

In other cases, social assistance schemes

have been a response to economic crises.

In particular, the 1997-1998 nancial crisis

was a catalyst or the emergence o a

number o contemporary social protec-

tion programmes. Following the crisis,Indonesia, or example, began to develop

more systematic orms o support. Other

countries have also extended existing

programmes as in India where the

employment guarantee scheme in the

state o Maharashtra is now part o a

country-wide Rural Employment Guaran-

tee Scheme. In other cases, it has resultedrom political circumstances. In Thailand,

or example, the initiative to oer basic,

and now ree, health care or everyone

4


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has shown that such measures have had

considerable electoral appeal.

Whatever the catalyst, there is already

much to build on or social protection

programmes in the region. Moreover, therealization o a social protection oor

based on universal principles and access

should orm the basis o uture policy.

Such interventions are aordable and

represent a signicant opportunity or

governments to invest in both social and

economic development or the benet

o all.

types of social protection

One o the difculties in discussing social

protection is the diverse terminology that is

used. This is partly due to the dierent

ways in which social protection has evolved

around the world. In the developed coun-

tries, the emphasis has been on oering the

5



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population as a whole greater security in the

ace o shocks and lie-cycle events and en-

suring a minimum level o wellbeing, oten

using risk-sharing insurance mechanisms,

and in some instances taxation. Developing

countries, on the other hand, have been orthe most part concerned about deep and

persistent poverty and so, as noted above,

have tended to develop various types o

social assistance or specic vulnerable

groups or in response to particular crises.

Social protection has consequently oten

been dened in terms o a set o measures,such as unemployment or health insur-

ance. Today, social protection can be seen

less in terms o specic methods and more

in terms o overall objectives, such as

reducing vulnerability and strengthening

social and economic inrastructure.

In response to diverse local conditions andaspirations, many countries have thus

employed a variety o denitions, termi-

nologies, and approaches and a number

o these terms (such as social saety nets,

social pensions, social transers) are used

interchangeably and oten overlap. In some

cases this diversity reects the attention

given to the instruments o social protec-tion, rather than its broader objectives.

Similarly, a number o international orga-

nizations, notably ADB, ILO and the World

Bank, have classied social protection

measures in dierent ways some o which

have resulted in social protection rame-

works such as the World Banks Social Risk

Management Framework.5 For an explana-

tion o common social protection terms,and the ways in which they are used in this

report, see Box I-1.

Overall, however, there are two broad

dening eatures o social protection meas-

ures:

universAl or tArGeteD

Universal measures could encompass ree

primary education or health care. Targeted

might include conditional cash transers

based on means-testing, or targetting

based on category (e.g. older persons).

contributory or non-contributoryContributory benets can include pen-

sions to which workers or employers

and also the government contribute.

Oten, the government will delegate the

administration o contributory schemes

to quasi-governmental entities that are

either publicly or privately managed. Non-

contributory schemes involve paying ben-

ets, such as disability allowances, out o

general taxation.

6


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Box title

i-1 sociAl protection terminoloGy

sociAl protection: a b w d db w dd. i ,

d dd d , b d . t,

dd , d , w

d d . t d

, , d b k .

sociAl insurAnce: t d b, . t

dd b b : dd, d . t d

d k w . c

, k, b . t b d

b d w db: w b

wk , , .

sociAl AssistAnce: t dd

d b ngo d d. B d d d d

b w d . idd, b w d

. t wd d, , d bd d d db. i

b d d ,

b d d d.

sociAl services: t d b d dd b b k. t bdd d d

w, w d b d .

sociAl pensions: t -b b, d , w

db, d .

sociAl sAfety nets: t d d

d k b d. t d , d .

sociAl security: t d d w. s ,

d . t d , b

.

7



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The components o social protection will

inevitably vary rom country to country and

will reect levels o development, resources

and needs. For the sake o consistency this

report largely ollows the terminology o

the International Labour Organization,which considers social protection in the

broadest sense to be a set o public policies

and programmes that seek to assure people

o a minimum level o security and support

in meeting their needs.

Social protection can be built incremen-

tally once universal principles have beenestablished. This means rst ensuring that

everyone starts rom those universal, non-

contributory measures that might orm the

basis o a social protection oor (SPF)

(see Box I-2). This should oer a minimum

level o access to essential services and in-

come security or all but then be capable

o extension, according to national aspira-

tions and circumstances, in the orm o a

social protection staircase. This staircase

acts as a oundation in support o a rame-

work or social protection based upon uni-

versal access and rights.

The principle o the Social Protection Floor

was adopted in April 2009 by the United

Nations System Chie Executives Board

or Coordination.6 Subsequently, it was

endorsed by the Economic and Social

Council7 as well as by many international

organizations and by the G20 Labour and

Employment Ministers.

The SPF8 has two components:

AvAilAbility of services: Ensuring the availa-

bility and aordability o access to essential

services, namely as water and sanitation,

ood and adequate nutrition, health care,

education, housing and other social services.

Accessibility throuGh trAnsfers : Realizing

access to services and providing minimumincome and livelihood security through

essential social transers in cash and

in kind.

The SPF is based on solidarity on the

principle that society as a whole accepts

the responsibility to provide basic levels o

benets and services to those in greatest

need. It emphasizes the importance o

guaranteeing services and transers across

the lie cycle, rom childhood to old age,

paying particular attention to vulnerable

groups based on key characteristics such

as socio-economic status, gender, mater-

nity, ethnicity, disability and living with

HIV / AIDS. Other beneciaries include

migrants, or people exposed to natural

hazards and disasters.

8


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spf-i

leD By international laBour organization / WorlD health organization

hiGh-level committee on proGrAmmesJoint crisis initiatives

sociAl protection floor ADvisory Group

GlobAl technicAl cooperAtion netWorK

coalition of agencies focal points

+ Donors + maJor ngo

nAtionAl tAsK forces

ministries, social partners, csos,

uniteD nations agencies, etc.

Box title

i-2 the GlobAl initiAtive for A sociAl protection floor

t gb i u s p f (spf-i) w dd b ud n s c

e Bd a 2009 b d .

ld b i lb o d Wd h o b , s

p f i d ud n d

. c ud n d B Wd d d

b gb t c nwk d spf

ad g.

t ad g d bk spf k , d b d ,

d, w d , d

, d , d d- d ,

d s-s d -w , d.

9



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taBle title

i -1 sociAl protection in A DevelopeD economy the cAse of JApAn

risKs covereD implementation By government

totalcost

Billions

totalcost usD

millions

od a B n p s,

e p i

n pb s p m ad,

l- c i s

44661 527005

D B n p s,

e p i

n pb s p m ad

6447 76075

Db B n p p, e p p

p p g o ,

aw Db, s s

2561 30220

Wk ij id ad c i 982 11588

sk n h i, h i,

v p, pb h s

27469 324137

m d f cd aw, cd r aw,

cd c s

3070 36226

u e i s 1239 14620

s a pb h s, pb a s 2675 31565

source: government of Japan

10


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The SPF does not, however, simply repre-

sent handouts. It promotes individual re-

sponsibility and opportunity with social

protection programmes oering a stair-case or the most vulnerable to graduate

out o poverty and exclusion or example,

recipients should be able to take advantage

o active labour market policies that help

inormal economy workers, oten women,

to gain access to more productive and

secure employment, as illustrated in later

chapters.

Although the SPF concept is intended to be

applied universally, it is also exible and

adaptable. Governments can design their

oors according to national economic

constraints, political dynamics and social

aspirations. Rather than being based on aspecied list o benets, it thus ocuses on

outcomes in terms o standards set in in-

ternationally agreed human rights conven-

tions, including the Universal Declaration

o Human Rights,9 the ILO Conventions

on Social Security, the Convention on the

Rights o the Child10 and the Convention

on the Elimination o All Forms o

Discrimination against Women.11 Each

country can design and implement its stra-

tegy to move progressively towards a

system that ulls these rights.

As well as consolidating existing schemes,

governments aiming to strengthen the

SPF will want to extend them. This can

happen along two dimensions horizon-

tal and vertical. Along the horizontal

dimension across the SPF, this will involve

increasing the number o persons covered

by existing schemes, while also developing

new schemes or those currently missingout, many o whom do not engage in

paid work or who work in the inormal

economy.

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For the vertical extension, this will involve

moving up rom the oor, climbing the

social protection staircase, either by in-

creasing the levels o benets in existing

schemes or by designing new schemes,

though trade-os will inevitably occur(Figure I-1). Social protection, in such

a ramework, can be seen as being at the

core o integrated and holistic develop-

ment policy, rather than solely a response

to crisis. Poverty and vulnerability, in turn,

are addressed not as isolated and static

issues but as multidimensional and inter-

dependent experiences.

genDer anD social protection

Social protection policies or both the oor

and staircase need to take into account the

unique circumstances and realities aced

by women. Crucial to ensuring the eec-tiveness o social protection measures is

the consideration o the circumstances and

realities aced by women. The ormulation

and provision o social protection can thus

provide essential links to the aims o

gender equality and the empowerment o

women.

In the Asia-Pacic region, womens activi-

ties related to their household manage-

ment and caring responsibilities, assigned

on the basis o traditional gender roles, act

as signicant deault contributions to

social protection when ormal systems are

inadequate. During recent periods o eco-

nomic crises in particular, the burden oamily survival has oten allen largely

upon women, who have had to increase

their unremunerated (or poorly remuner-

ated within the inormal sector) amily car-

ing and domestic activities to compensate

or loss o income and managing nancial

pressures. These caring and household

activities, thereore, should be recognized

in terms o the role they currently play in

promoting social and economic develop-

ment. However, social protection systems

need to be developed in such a way that

they are not at the expense o womens

own opportunities or development. Limit-

ing women to traditional roles is a hin-drance to a countrys economic develop-

ment, which should be able to rely upon

the ull capacity and productivity o all its

citizens.

Social protection measures in the region

also need to take into account the realities

o those women who participate in

employment outside the home. Rapid

economic growth has been underpinned

12


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sociAl protection floore b

ADApteDsociAl insurAnce

hiGher levelsof income securitys ,

, .

ADDitionAl

contributory benefits

horizontal Dimension

verticalDimension

poor, neAr poor & informAl sector

80%

formAl sector

20% a

figure title

i-2 sociAl protection: the floor AnD the stAircAse

13

the promise of protectionchapter one


44/128

by the considerable shit o women into

the paid workorce in large parts o Asia

and the Pacic. However, women are more

likely to enter ragile and insecure orms o

employment in the ormal sector, to be

overrepresented within inormal sectoremployment, and liable to lose their jobs

during periods o economic hardship.

More than 8 out o 10 working women,

compared with more than 7 out o 10

working men, are considered to be in

vulnerable orms o employment in the

Asia-Pacic region.12

The overrepresentation o women in acti-

vities outside o the ormal economy means

that, under contributory systems, women

can be unprotected or poorly protected as

secondary beneciaries. This reinorces

their dependence upon primary male bene-

ciaries, which in turn plays a key role in

limiting their ull participation in societyand the economy. Social protection sys-

tems can better promote and support

womens rights, as well as the value o

womens non-remunerated social repro-

duction activities to economic and social

development, by ensuring that women are

adequately covered by social protection

even when not engaged in economic activi-ties outside the home. An example o this

would be the establishment o non-

contributory universal pension schemes,

which can provide greater access or

women to savings schemes.

On the other hand, social protection

schemes which relieve the burden o theexisting caregiving responsibilities o

women (or example, by providing State-

supported child and elderly care) play an

essential role in promoting their ull eco-

nomic and societal participation. Most o

the countries or territories in the region

with a large population o older persons

(where at least 15 per cent o the population

is over 60 years o age) have instituted social

protection schemes, with the promise o

reducing the burden on womens elderly

care.13 However, these countries are pri-

marily higher-income economies. In less

developed countries where such social pro-

tection schemes do not currently exist, theburden o care or the growing population

o older persons alls primarily on women,

particularly poor women. Such schemes,

thereore, allow society and the economy

to ully tap the talents o all the popula-

tion, enabling women to have the option o

undertaking activities outside the house-

hold by allowing them more reedom andchoice to participate in society and the

economy.

14


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In order or social protection programmes

to meet their explicit objectives efciently

as well as contribute to the empowerment

o women, it is helpul to consider and

evaluate their gender implications.

For example, conditional cash transerschemes aimed at poverty reduction have

congured women as beneciaries be-

cause o their increased propensity, based

upon their traditional gender roles related

to caring, to use the monies received or

amily wellbeing rather than or personal

expenditure. As identied beneciaries,

women are also thereore those responsibleor ullling the conditions o the pro-

grammes hence placing them in a gender

dierentiated position in relation to the

rights and responsibilities attached to

social protection. In Cambodia, or in-

stance, conditional cash transer pro-

grammes include conditions or pregnant

women and / or lactating women, while inthe Philippines, beneciaries o similar

schemes have to comply with three condi-

tions: pregnant women must receive pre-

natal care, child birth must be attended by

a skilled or trained person, and mothers

must receive post-natal care; children 0-5

years must receive regular health check-

ups and vaccinations; children 6-14 must

attend school at least 85 per cent o

the time.

The consideration o these aspects can

help ensure that social protection in the re-

gion is gender-sensitive as well as make apositive contribution to gender equality.

However, it is important to note that, while

integrating gender concerns into social

protection measures is essential, this inte-

gration in itsel does not serve as a substi-

tute or addressing structural inequalities

in the economy and society at the macro

and micro levels which place women in aposition o disadvantage.

time to protect

Extending social protection towards the

provision o basic universal coverage or allwould enable Governments across the re-

gion to ull the rights and entitlements o

all their populations. Governments should

not only be able to aord this, they also

have increasingly strong incentives or

acting now. The next chapter presents the

case, both political and economic, or

extending social protection.

15

chapter tWo


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47/128

17

reAlizinGthe DiviDenDs

of sociAlprotection

2

chapter tWo realizing the DiviDenDs of social protection


48/128

i a, G a dd a a a a qg ga a a . m , w,G a g a adg a g- , g d a a ad a a ad w d a g ddd: a, ad a.

Robust systems o social protection have

multiple benets. They can help reduce po-

verty and ensure healthy, capable and

engaged citizens who can act to deepen and

accelerate economic growth and oppor-

tunity. They can also build more stable socie-

ties and oster trust between government and

their citizens. Seen in this way, social protec-

tion becomes a core component o national

development policy and governance.

18


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19

BuilDing human capacities

One o the most valuable unctions o

social protection is to build human capa-

city. While it might be thought that incomesecurity, or example, would merely help

deend standards o health and education

at times o stress, in practice it also tends

to raise such standards. Experiences in

South Arica14 and Latin America15 demon-

strate that conditional and unconditional

cash transer programmes bring signicant

improvements in health and education and provide particular benets or women

and girls. These include:

nutrition: Providing cash transers directly

to mothers and grandmothers improves

child nutrition. South Aricas old age pen-

sion has had particularly positive eects on

girls nutritional status: those in recipient

households have been on average 3-4 cen-

timetres taller than their counterparts in

non-recipient households.16 Similarly, the

Child Support Grant has promoted liveli-

hoods, improved nutrition and acilitated

access to education.17 Nevertheless, there

are also concerns about reinorcing wom-ens sole responsibility or amily welare;

heAlth: In Bangladesh, cash transers have

interacted with direct health interventions

to bring a number o benets extending

immunization, increasing consumption o

micronutrients and boosting attendance

or ante- and post-natal care.

18

In Cambo-dia, cash transers have also shown promise

in helping mothers and children aected

by HIV and AIDS;19

eDucAtion : Child benets and school assis-

tance packages improve school attendance.

Family allowances, social pensions and

other cash transers not only improveschool attendance and reduce child labour,

they also have positive gender eects.20 The

school stipend programme in Bangladesh,

or example, has helped achieve gender

parity in primary education. In rural Brazil,

old-age pensions paid to grandmothers

have helped increased girls school atten-

dance.21

offering an escape from poverty

Social protection can be an investment

which helps people escape rom poverty.

Poverty is closely related to vulnerability.

On the one hand, the most vulnerableare typically those living in conditions o

19



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poverty, who have little to all back

on when disaster strikes. On the other

hand, the reason that many people stay

poor is that they constantly eel exposed:

working hard just to survive, they have lit-

tle time or opportunity to make the smallinvestments or take the risks that might

improve their lives.

Under stress, some poor households adopt

strategies which reduce opportunities in the

long run decreasing the number or quality

o meals, withdrawing children and espe-

cially girls rom school, having children en-gage in child labour, and generally carrying

out activities that are less productive but

appear to be saer. For the poorest, even a

small risk will make them vulnerable. While

richer households can ace substantial risks

without signicant vulnerability, poorer

households can be highly exposed to even

moderate risks and shocks.

I instead the poor can rely on a basic SPF

that provides some stability, their situation

and behaviour change. I they do not need

the ragile insurance provided by child

labour, they are more likely to ensure that

their children, regardless o sex, attend

school regularly. I they have ready access

to ree or inexpensive medical care, they

can take better care o amily health. Social

protection transers in this context have

also served as direct or indirect wage subsi-

dies thus reducing the spectre o the work-

ing poor. They have also had other impor-

tant benets. Grants or child support, or

example, have discouraged child labour,and grants or older persons have enabled

them to stay at home to look ater children,

enabling mothers to go out to work.22

Similarly, armers are less likely to sell the

livestock on which their uture prosperity

depends i adequate cash transers protect

their immediate subsistence. It was ound,or example, in Maharashtra, India, that

armers protected by the original employ-

ment guarantee scheme invested in higher-

yielding varieties o crops than armers in

neighbouring states. A SPF thus serves as a

rm platorm rom which people can

advance and develop their assets.23

To date, many countries have relied or

poverty reduction primarily on the trickle-

down eects o economic growth. How-

ever, i they introduced more comprehen-

sive social protection with appropriate

supporting policies, they would reduce

poverty much aster.24 Thus, rather than

seeing social protection as costly measures,

Governments should see eective social

protection now as an investment that will

20


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increase productivity and security and

reduce the need or uture spending.

Social protection can achieve this by im-

proving health outcomes, increasing school

attendance, promoting equality betweenmen and women, reducing hunger, im-

proving dietary diversity and promoting

livelihoods and asset accumulation. Indeed

in many developing countries social pro-

tection has become a primary sometimes

the only instrument or addressing

poverty, vulnerability and inequality eec-

tively.25

reDucing income inequality

While reducing poverty, stronger systems

o social protection will also tend to reduce

overall inequality and thus increase eco-

nomic efciency. In recent years, economicgrowth in Asia and the Pacic has been

accompanied by a rise in income inequality

and hence has not translated into com-

mensurate gains in human development.

Well-designed social protection schemes,

on the other hand, can help redistribute

income vertically, towards low-income

groups, and horizontally, or groups with

specic risks and vulnerabilities, such as

persons with disabilities, those suering

21



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rom poor health, and those with obstacles

to paid labour market participation. There

are also particular benets or women

who oten have multiple care responsibili-

ties.26

It is important to see social protection

programmes as being part o an overall

strategy o reducing inequality, particularly

addressing the exclusion o the most vul-

nerable groups, and oering a path out o

poverty and dependence. Social protection

can be an eective tool or inclusion only i

those most marginalized by current deve-lopment patterns, by virtue o their pov-

erty, or due to structural demographic or

identity-based orms o exclusion or dis-

crimination,27 are included as actors in

decision-making on the basis o entitle-

ment.

The value o social protection or reducingincome inequality has been demonstrated

in a number o OECD countries. Countries

with universal social protection schemes

based on progressive taxation oten appear

to have a more equal income distribution

compared to countries with targeted or

means-tested social protection schemes,

such as Australia, New Zealand, the United

Kingdom o Great Britain and Northern

Ireland and the United States o America.

This eect is even greater in the social

democratic welare States, such as Den-

mark, Finland, Norway and Sweden, where

a wide range o health, educational and

care services, as well as generous social

protection benets and transers, are pro-

vided universally as an important redistri-

bution unction.28

aDvancing economic groWth

While reducing poverty and inequality,

stronger social protection also broadensopportunities and deepens the quality o

economic growth. The most immediate

stimulus is likely to be rom income trans-

ers to poor households which can have a

higher propensity to consume than richer

ones. Transerring resources to the poor

will stimulate particular demand or local

goods and services. This is evident rom anumber o studies in Arica. In Zambia,

or example, 80 per cent o social transers

have been spent on locally purchased

goods. Similarly, in South Arica, greater

consumption by lower-income groups

shited expenditure rom imports to local

goods and by shiting the trade balance

also increased savings.29 In Namibia,

the dependable spending power created

by social pensions stimulated local mar-

22


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kets and revitalized local economic acti-

vity.30

Social protection allows people to better

manage risk. While giving them the neces-

sary condence to take measures that ena-

ble them to escape rom poverty, social

protection also takes better advantage o

their skills and potential encouraging

them to participate more ully in national

economic growth.31

There are also economic benets rom im-

proved health standards. This is not only

because healthier workers are more pro-

ductive, but also because they live longer.

It has been estimated, or example, that a

10 per cent increase in lie expectancy

adds 0.3 - 0.4 percentage points to annual

growth in per capita incomes. A typical

high-income country with an average lie

expectancy o 77 years has a 1.6 per cent

higher annual growth rate than a typical

23

realizing the DiviDenDs of social protectionchapter tWo


54/128

low-income country with an average lie

expectancy o 48 years. These human capi-

tal outcomes provide the basis or long-

term, healthy and pro-poor growth.32

achieving social cohesionthrough inclusion

In addition, social protection has many

political dividends. It can, or example,

result in support o those groups who might

otherwise be disadvantaged by essential

economic reorms. In Mauritius, or in-stance, a social pension contributed to the

social cohesion necessary to support the

transition rom a vulnerable mono-crop

economy with high poverty rates into a

high-growth country which now has the

lowest poverty rates in Arica.33

Similarly, labour unions in Nepal asked ormore eective social protection to secure

their support or labour market reorms

that would enhance both equity and

growth. And in Indonesia cash transers

have contributed to economic reorm,

compensating the poor or price rises ater

the reduction o uel subsidies.34 Well-

designed schemes that are accepted by so-

ciety as a whole build social cohesion and

a sense o citizenship, as well as reduce

conict, and thereore contribute to an e-

ective and secure State.35

I systems are universal and rights-based

they can oster solidarity and help build

coalitions among classes and groups and

across generations. Universal social protec-

tion thus promotes social citizenship,

emphasizing collective responsibility or in-

dividual well-being and strengthening the

contract between citizens and the State.

This is especially benecial in ragile States

and those recovering rom conict.36 In

Aghanistan, the National Solidarity Pro-

gramme, which provides block grants to

community development councils or

social and productive inrastructure and

services, aims to strengthen community-

level governance and repair some o the

damage rom three decades o conict

rebuilding trust between the central

Government and its citizens.37 The Solo-

mon Islands Rapid Employment Project

(REP) also seeks to provide targeted, though

temporary, employment or unemployed

youth who in the past have played a

signicant role in civil conict and violence.

At present, ew countries in the region

have developed such implied contracts.

Many do have policies and laws guarantee-

ing basic social protection, but these are

24


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not ormal entitlements that citizens can

use in order to claim support. Indeed citi-

zens may have little eective political voice.

The implied Government promise in many

countries in Asia and the Pacic is more

limited that the Government will try to

guarantee economic growth whose bene-

ts will be broadly shared through wide-

spread employment opportunities and

wage gains.

Governments across the region have the

opportunity to develop more substantial

social contracts by addressing inequality

and exclusion through inclusive and rights-

based instruments o social protection. A

social contract that acknowledges links be-

tween institutions and poverty reduction,

and places social protection within the

process o redistribution will underpin a

sustained challenge to chronic poverty and

exclusion. The harmonization o social

protection with employment, economic

and social policy, or example, also oers

potential or greater impact. This has

already been demonstrated in a number o

countries, as explored in the ollowing

chapter.

25

chapter three


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27

builDinGAsiA-pAcific

floors AnDstAircAses

3

27

chapter three BuilDing asia-pacific floors anD staircases


58/128

Dg a Aa-pa g aad a a - da a a a, aa dada-agd ad agad g, a d ad w da. sa d d a a a . b a aw ag ad a agd, ad a a d -

a aa ad ad d. y, a d a a ad .

Even i they have not used the term, many

countries in the region have long experi-

ence in social protection. Sri Lanka, or

example, was one o the earliest to develop

a airly comprehensive system includingincome transers.

In the atermath o the Asian nancial cri-

sis in the late 1990s, as well as in response

to a number o natural disasters, several

countries became concerned about the e-

ects o multiple shocks on the poorest and

attempted to oset the impact throughvarious systems o social transer. More re-

cently, countries have also been looking

beyond these responses and planning ele-

ments o the social protection staircase by

considering contributory pensions or un-

employment benets towards a orm o an

SPF.

Given the diversity o conditions across a

wide region, approaches vary greatly in

terms o coverage, periodicity, ocus and

unding. This chapter will not attempt to

review all the regions social protection

programmes but highlight some important

achievements and good practices, as well assome limitations. This will ocus primarily

on the potential or protection through

government programmes, though in many

parts o the region, notably the Pacic, the

most eective protection has historically

come rom amilies and communities,

while in others civil society has played a

key role.

Although the majority o social protection

programmes are not universal, they do

contain elements, or building blocks, that

could orm a oundation o a potentially

more comprehensive system. In act, most

Governments tend to have a mixture o

both universal and targeted social policies.

However, in the more successul examples,

overall social policy itsel has been univer-

28


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salistic, and targeting has been used assimply one instrument or making univer-

salism eective with benefts directed to

low-income, disadvantaged or excluded

groups within the context o a universal

policy design.38

It is important that lessons are learned

rom existing successul schemes. For

social protection policies, choices between

universal and targeted schemes need to be

context specifc, and depend on a range o

political, fscal and administrative consid-

erations and constraints. The fnal aim,

however, should be access to provisions

and security or the entire population as

a matter o right. This chapter examinesthe range o social protection systems and

programmes in place across the region. In

so doing, it points to the need or gradua-tion towards a universal and rights-based

ramework or social protection.

AvAilAbility of services

The SPF has two main components: avail-

ability o services and social transers. Although many Governments in the

Asia-Pacifc region have been improving

health and education in terms o GDP

spending, this is still lower than the global

average.39 The experience in extending

social protection is documented below and

encompasses both a description o key

examples as well as an evaluation o theirimpact. The overall lesson is that while the

region has much to draw upon, there

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remain a number o challenges in extend-

ing and deepening access to social protec-

tion programmes. This is especially the

case or the regions poorest and most

excluded groups.

health servicesFor most households the service with the

greatest nancial implications relates to

health. Health expenditure can quickly push

many amilies into poverty. Most people

should have access to primary health-care

services through a network o government

clinics. However, or curative care they needaccess to doctors and hospitals, which, pub-

lic or private, generally charge ees. Workers

and their amilies in the ormal sector may

be able to claim health insurance, but or

those in the inormal sector, the outlook

can be bleak. A basic SPF should thereore

oer guarantees o treatment ree at the

point o use.

inDiA

By international standards, public health

expenditure has in the past been relatively

low with about 80 per cent o health

expenditure coming rom out-o-pocket

sources.40 To address this problem and ex-

tend protection to the unorganized sector,which represent 93 per cent o the total

workorce, the Government in 2007

launched the Rashtriya Swasthya Bima

Yojana (RSBY) scheme, targeting amilies

living below the poverty line. The total sum

assured is INR 30,000 per amily per

annum. O the estimated premium per

amily o INR 750, the central Government

contributes 75 per cent and the remaining

25 per cent comes rom the state govern-

ments. Beneciaries need to pay only INR

30 as a registration ee. In the year 2008-

09, the central Government outlay or the

RSBY was INR 2 billion, and by May 2010 it

covered 26 states, with enrolment reaching

about 56 million beneciaries.41 The RSBY

is operated through private insurance com-

panies, selected state by state, through a

competitive bidding process. The scheme

has a number o unique eatures. House-

holds are, or example, empowered to

choose between private and government

hospitals or treatment; moreover, the

scheme is entirely electronic, based onsmartcards (Box III-5). The scheme has

been judged highly eective and could be

extended to other classes o beneciaries,

and the same networks could be used to

deliver other social security benets.

irAn (islAmic republic of)

The Social Security Organization (SSO),the agency administering the unds related

to social protection, also runs a compre-

30


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Box title

i ii -1 sociAl protection, heAlth AnD hiv / AiDs in thAilAnD

a u h c s (uhcs) td

hiv , , d , d d

d w hiv.43 a 2009, uhcs dd 75.8%

( 200,000 ) d b w hiv. a b d aiDs

b d.

a , uhcs d hiv d w ,

--d , d d

td d d . a b b

bw B aiDs, D D c d n h s o. s

w dd 2009 hiv d ,

d-d d , b d dk b

d hiv d k k hiv . nb, uhcs - , w 80 90% bd hiv

d b dd d .

hensive health-care network, and has ser-

vice contracts with private medical institu-

tions. Services provided by the SSO

network are ree o charge, while the health

insurance covers 90 per cent o expenses

or in-patient services and 70 per cent o

expenses or out-patient services provided

by private medical institutions. As o 2005,

43 per cent o the entire population and 62

per cent o the urban population had

access to these services. Inormal sector

workers can have access through voluntary

contributions. The main challenge at

present, in addition to the need to increase

coverage, is the rapid increase in health-

care costs and the pressures to reduce

the contributions to the health-care

und.42

31



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monGoliA

A major concern ollowing Mongolias

transition process ater 1990 was deterio-

rating health services, with especially

serious consequences or women. Under

the universal medical scheme, care orpregnancy, childbirth and post-natal care

are provided ree o charge by the State

budget without any conditionality or

requiring any contribution to the Health

Insurance Fund. From the th month o

pregnancy, or one year women receive

a cash allowance unded by the State

budget.

thAilAnD

A good recent example o a comprehensive

approach to health provision is Thailands

Universal Health Coverage Scheme

(UHCS). Prior to the scheme, people who

were not government ofcials or private

ormal-sector employees had to rely on the

Medical Welare Scheme or indigent peo-

ple or the government-subsidized Health

Card Scheme, which provided voluntary

health insurance or the sel-employed.

Both schemes required some contributions,

were targeted, and had limited coverage. In2002, however, the Government passed the

National Health Security Act B.E. 2545,

which stipulated that every Thai citizen

should have comprehensive medical care.

To achieve this, it replaced both schemes

with the new UHCS. Everyone is now

entitled to ree in-patient and out-patient

treatment, maternity care, dental care

and emergency care. By 2009, about 48

million people, or about 76 per cent o the

population, were registered. In principle,

everyone can use the scheme, but in prac-

tice civil servants and ormal sector workers

have continued to use their existing

schemes, which they eel oer them a

better service. The scheme is ully nanced

by the Government, with a total budget

in 2011 o THB 122 billion (USD 34

million)44 THB 2,546 (USD 70) per person

or 48 million insured persons which

accounts or 5.9 per cent o the national

budget45 (see also Box III-1);

eDucational servicesOne o the most important measures or

liting people out o poverty and reducing

vulnerability is to improve standards o

education so as to open up opportunities

to enhance capabilities. This has been

especially important or girls, with signi-

cant benets both or womens empower-ment and or child health. Too oten,

however, the poorest children have either

32


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Box title

i ii -2 chinAs mArch toWArDs universAl heAlth cAre

s 1980, c d d d d k d .

B 1990, w, j d b d, d d w d

b .46 r --k d d d d d

w .

a dw w , d w d c d.

i 2003, c d nw c md s (ncms), d

, j d b g, d . 47 a 2008, w 90 c, 800 , d jd ncms. t d

b , ub rd B md i w d 2007,

b d w .48 i w d b 79 d

d b 2010.

i J 2009, s c d d usD 120 b

- b d d , b

d d . i w d d 90 c b 2011 d k b - b c 1.3

b .

33



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not enrolled in school or tended to drop

out early. So although many countries in

the region have successully raised enrol-

ment ratios, they have not necessarily been

able to keep children in school.

inDiA

In 2001 the Government launched the

Sarva Shiksha Abhiyan programme aimed

at universal elementary education or chil-

dren aged 6-14 years by 2010. This aimed

to ensure that children and parents ound

the schooling system useul and absorbing,

according to their natural and social envi-ronments. The scheme involved building

more schools and improving many others,

providing almost all rural inhabitants with

elementary schools within three kilome-

tres.49 Children were also oered incen-

tives such as ree books, uniorms, and

mid-day meals. This is also part o the

Cooked Mid-day Meal scheme, launched in2002, which itsel has been ound to boost

school attendance. A sample survey o

schools ound an improvement in enrol-

ment ratios between 2001 and 2007 rom

89 to 93 per cent, along with a notable

increase in access or children with disabil-

ities. Children were also more likely to

stay in school about two thirds o chil-dren reported attendance o more than

75 per cent.50

the philippines

The 4 Ps programme (Pantawid Pamil-

yang Pilipino Programme) is a poverty

reduction and social development strategy

o the national Government o Philippines

aimed at reducing poverty. It provides con-ditional cash grants to extremely poor

households to improve their health, nutri-

tion and education, particularly o children

aged 0-14. Only amilies that keep their

children in school and ensure that children

and pregnant women receive regular

health checkups can obtain the cash grants,

which oset the costs o both health care

and education. To qualiy or cash grants

beneciaries need to comply with the

ollowing conditions:

Pregnant women must utilize both pre-

and post-natal care and be attended to

during childbirth by a trained healthproessional;

Parents must attend amily develop-

ment sessions;

Children under 5 must receive regular

preventive health check-ups and vac-

cines;

Children aged 3-5 must attend day careor pre-school classes at least 85 per cent

o the time.

34


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Children aged 6-14 must enrol in

elementary or high school and must

attend at least 85 per cent o the time.

Children aged 6-14 must receive de-

worming pills twice a year.

The poorest households in municipalities

are selected through the National House-

hold Targeting System or Poverty Reduc-

tion, through the Proxy Means Test. This

test determines the socio-economic

category o the amilies by looking at

certain proxy variables, such as ownership

o assets, type o housing, education othe household head, livelihood o the

amily and access to water and sanitation

acilities.

Pantawid Pamilyang has dual objectives:

social assistance by providing cash assis-

tance to the poor to alleviate their immedi-

ate need (short-term poverty alleviation);and social development by breaking the

intergenerational poverty cycle through

investment in human capital. The pro-

gramme is administered by the Department

o Social Welare and Development. Cur-

rently, Pantawid Pamilyang operates in 80

provinces covering 734 municipalities and

62 key cities. Pantawid Pamilyang targetedan estimated one million households by

the end o 2010.51

russiAn feDerAtion

In many regions o the Russian Federation,

senior citizen universities are very popular

among older persons. Oering courses in

such areas as health, law and gardening,

creative workshops in theatre, applied artand other activities, and chess and book

clubs, they are ounded as social services

centres to acilitate socialization and to

assist older persons in acquiring new

knowledge and leading active lives.

financial servicesSocial protection has now also become

identied with poverty reduction, so any

SPF needs to encompass services, including

nancial ones, that help people work their

way out o poverty by oering credit, and

particularly microcredit initially through

NGOs, but now increasingly through com-

mercial banks.52

The great strength o dedicated micro-

nance institutions is their capacity in prin-

ciple to reach the poor, not just with unds,

but with a range o support services such

as health advice, training and extension

services either on their own or throughpartnerships with other governmental or

non-government organizations. Neverthe-

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less, there has been some concern that,

while micronance schemes have oered

some protection, they have not necessarily

helped the very poorest people the ultra-

poor escape rom poverty or achieved

some o the gender equality results that

might be expected rom directing schemes

to women.

bAnGlADesh

To address the aorementioned issues,

one o the micronance pioneers, the

Building Resources Across Communities*

(BRAC) has developed a graduation pro-

gramme that includes investments in train-

ing, nancial services, and business deve-

lopment so that within two years the

ultra-poor might themselves graduate

out o extreme poverty. The BRAC pro-

gramme Challenging the Frontiers o

Poverty Reduction: Targeting Ultra Poorwas launched in 2002. For this, they selec-

ted households, oten emale-headed, o

which 85 per cent earned less than the

PPP-adjusted extreme poverty line o

50 cents a day. By 2008, 92 per cent had

graduated. With the support o the Ford

Foundation, this programme has now been

piloted in a number o other Asian coun-tries (Box III-4). It remains to be seen

whether the graduation model has a long-

term eect or i participants all back

without ongoing support.

social transfers

Some o the most difcult programmes to

implement have been those that transer

cash, ood or other resources. The main

concern has been targeting ensuring that

the benets only reach the most in need.

Typically in such programmes, however, a

high proportion o resources have also

leaked to the non-poor, either because o

corruption or because the system was ine-

cient or depended on the discretion o

local ofcials who may have had their own

priorities. Some o the more developed

economies in the region have developed

sophisticated and well targeted systems.

employment guaranteesOne way to sidestep targeting problems is

through public works programmes.

This involves sel-targeting, in that

the benets are set at a airly low level so

that the beneciaries enrol when in need,

but then drop out when better opportuni-

ties arise elsewhere. Generally, such

schemes have been airly limited eitherin terms o reach or commitment over

time.

* Originally known as the Bangladesh Rehabi-litation Assistance Committee

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bAnGlADesh

Bangladesh also provides a similar pro-

gramme o employment generation or the

rural poor under the Employment Genera-

tion Programme. The Programme, which

provides 100 days o employment or therural poor, aims to alleviate seasonal hard-

core poverty and oset increasing ood

and other costs through non-productive

agricultural periods.

inDiAOne o the most impressive large-scale pro-

grammes is Indias National Rural Employ-ment Guarantee Scheme, which oers 100

days o work per amily in rural areas at the

minimum wage or agriculture. In 2007-

2008, the scheme provided jobs or almost

34 million households at a cost o only 0.3

per cent o GDP. One evaluation o the

scheme, in 20 districts, ound that most

households were issued with job cardswithin a couple o days o registration

though oten had to wait longer than the

stipulated 15-day period to obtain work.

More than hal o the beneciaries were

agricultural and unskilled workers, with the

proportion o emale-headed households

ranging rom 12 to 52 per cent depending

on the district. More than hal o bene-ciary households purchased livestock, such

as sheep or goats during the year as a result

o the employment they were oered.

Families also spent more on ood and non-

ood items.53

solomon islAnDsIn response to a request rom the Govern-

ment o the Solomon Islands in 2008, an

employment project targeting the urban

poor in the capital, Honiara, was launched

in 2010. Led by the World Bank, the

Rapid Employment Project seeks to pro-

vide employment or Honiaras urban poor

(especially youth) as the basis or broader

engagement between the Honiara City

Council and its rapidly growing, and large-ly poor, population. The project aims to

provide short term employment especially

to youth and women as a means to

generate income or the poor, but also as

the basis or lie-skill development training

and longer term employment prospects.

A secondary benet would be through

enhanced inrastructure and services,especially those which benet the citys

burgeoning inormal settlements. An esti-

mated 500,000 labour days o work over

the ve years o the project would ocus on

labour-based public works, such as road

repair, maintenance, construction and

garbage collection. The project would be

enhanced through lie skills workshopsdealing with domestic violence, money

management and health awareness.54

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viet nAm

One o the pillars o Viet Nams social pro-

tection scheme is active labour market

policies. These provide a minimum income

guarantee to the unemployed and under-

employed as well as improving the employ-ability o workers through training and job

placement, and the creation o micro-

enterprises.

social pensionsWhile the more substantial old-age or dis-

ability pension schemes generally rely oncontributions through a working lie, in

the poorest countries it is also important

to oer a basic low-level pension to all

nanced by general taxation. This has

advantages or women, in particular those

who oten have not engaged in paid eco-

nomic activity.

nepAl

Nepal is an example o a lower-income

country with both high rates o poverty

and a rapidly ageing population. Nearly

one in three people live below the national

poverty line, while the proportion o the

population aged over 60 will double to 12per cent over the next 30 years. Yet, while

Nepal has limited scal capacity, it is the

only South Asian country with a universal

at pension scheme.55 The Government

has managed to provide this universal

non-contributory pension (the Old Age

Allowance Programme, or OAAP) since

1995. In 1996, two additional social

security programmes, namely the Helpless

Widows Allowance or widows above 60

years o age and the disability pension,

each paying NPR 100 per month, were

implemented. During the International

Year o Older Persons in 1999, the Govern-

ment raised the OAAP rom NPR 100 to

150. In 2008, the age o eligibility or the

pension was lowered to 70 and the

benet rate was increased to NPR 500

(USD 7).56

At a current cost o 0.23 per cent o GDP,

the scheme is now entering its sixteenth

year, indicating the sustainability o thistype o cash transer even or a lower-

income country. A recent survey indicated

that the OAAP has supported older persons

and their amilies to improve ood security,

access health-care services and invest

in their livelihoods. For many older women,

particularly widows who live alone and have

no children, the pension oten providesthem with their only source o income.

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sAmoA

Samoa pays a universal pension equivalent

to USD 40 a month to residents over the

age o 65 around 5 per cent o the popula-

tion. This is less than their average mon-

thly costs, but older persons in Samoa holdan honoured place in their extended ami-

lies and are traditionally supported by

them. The benet thus provides some

additional cash income. The total cost is 1.5

per cent o GDP and comes rom general

taxation. Because o the relatively undeve-

loped banking system, this pension is dis-

tributed monthly in cash.57

conDitional cash transfersFollowing a number o success stories rom

Latin America, conditional cash transer

(CCT) programmes have become increas-

ingly popular in Asia and the Pacic. Not

only are these transers targeted (means-

tested) at poor households they alsorequire the beneciaries to ull certain

conditions, such as sending their children

to school, joining nutrition programmes

or making use o health services. This is

particularly the case or girls.

inDonesiA A recent example is Indonesias Program

Keluarga Harapan (PKH) or amily hope

programme. This is aimed at poor house-

holds with children aged up to 15 years,

children under 18 years who have not com-

pleted primary school, or pregnant or lac-

tating mothers. To qualiy or unds, preg-

nant women must have our prenatal visits,

take iron tablets and have their deliveriesassisted by trained health proessionals,

and they should make two post-natal care

visits. For children, the health conditions

are that their growth should be monitored

monthly or those under 1 and quarterly

or those aged 1-6. Children under 5 must

receive vitamin A doses twice a year and

those younger than 6 must be ully immu-

nized. For education, all children aged 6-12

are to be enrolled in primary school and

those aged 13-15 in secondary school and

must attend classes on at least 85 per cent

o school days. Following a pilot period, the

programme has been continually expanded

to cover more households, with benets

ranging between IDR 600,000 (USD 60)

and IDR 2.2 million (USD 220) per year,

depending on household characteristics,

such as the age o children and amily size

(Table III-1). A emale head o household

receives the benet on a quarterly basis

through the post ofce or six years.

In addition to the PKH, Indonesia has

a programme which permits transers to

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ONU - ESCAP The Promise of Protection. Social Protection and Development in Asia and the Pacific, May 2011