Policy tools of social protection: How policy can be conceptualised and designed

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

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

3. Part I: Introduction

4. Social security versus social assistance • Most countries of the world have social insurance schemes • BUT, in most low-income countries, only a small fraction of the population is covered by social insurance.

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

8. Low coverage rates: Old age pension coverage

9. Low coverage rates: unemployment protectionOld age pension coverage

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

13. Unconditional Cash Transfers in Sub-Saharan Africa

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

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

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

19. high Voluntary insuranceunder government regulation level of protection Social security benefitsof guaranteed levels Social Protection Floor:Access to essential health care and basic income security for all low low individual/household income high ILO’s two-dimensional strategy for the extension of social security: Building comprehensive social security systems extension strategy • Verticaldimension:progressivelyensuringhigherlevels of protection, guidedby Convention No.102 and moreadvancedstandards floor level Outcomes can be guaranteed through different means – there is no one-size-fits-all Social Protection Floor Recommendation, adopted at ILC 2012 • Horizontal dimension:Guaranteeingaccess to essential healthcareand minimumincomesecurityfor all, guidedbyRecommendation No. 202

20. Vietnam example: developing a social protection floor

21. ASEAN 2009Socio-cultural community blueprint • Human development • Social welfare and protection • Social justice and rights • Environmental sustainability • An ASEAN identity • Narrowing the development gap

22. Principles7th ASEAN GO-NGO FORUM FOR SOCIAL WELFARE AND DEVELOPMENT • Everyone, especially those who are vulnerable, entitled to have equal access to social protection covering essential services; • Access to social protection – a human right that should be promoted, protected and fulfilled; • Universality of protection based on social solidarity, non- discrimination, accessibility, gender equality, social inclusiveness, coherence, accountability, collective financing and risk pooling; • Implementation of SPF is part of national strategies for the progressive extension of social security towards higher level of protection; • Investment in people to empower them to meet their basic needs and adjust to changes in the economy and labour markets; • Cross-cutting issue, hence requires coordinated and holistic approaches; • Family unit is an important element in providing support to the vulnerable people and should be strengthened and preserved; • Governments, communities, civil society, private sector and social partners are key stakeholders; • Inclusive, participatory and rights-based approach in planning, programming and budgeting, implementation, M&E.

23. BRICS andthe „export“ of socialprotection Source: http://www.google.com/imgres?q= BRICS+map&hl=en&client=safari&sa=X&rls=en&biw=1280&bih=611&tbm=isch&prmd=imvns&tbnid=RqNceHxgRU8i9M:&imgrefurl=

24. ESCAP and social protection

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

26. Indonesia: family-based social assistance programmes

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

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

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

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

31. Indonesia: national targeting system • The National Targeting System identifies and chooses beneficiaries (households, individuals, etc.) of targeted poverty reduction or social protection programs. Poor Not-Poor • Past system: each program has its own list of targeting system • Now gradually moves into unified targeting system • Minimizing inclusion & exclusion errors Beneficiary of Programs Non-beneficiary of Programs

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

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

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

35. Fiscal diamond

37. Annual costs of social protection programmes– middle income countries

38. Social protection expendituresin % of GDP, 75 low-income countries

41. Thailand: Social floor costing example 1.6% GDP 0.9% GDP

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

43. Social protection policy construction

44. Systems approaches

45. Pathways to social protection systems China:minimum living standard guarantee program;new rural corporative medical care (NRCMC); health insurance for urban uninsured residents (HIUR); rural old-age pension India:RSBY, NREGA Cambodia: NSPS with clear reference to the SPF … including HEFs, CBHIs, Food distribution, PWPs,… Laos: extension of SHP for all Thailand:UC scheme, minimum pension scheme (500 THB) Philippines: universal health reform Nepal: broad range of transfers Indonesia: Jamkesmas, Jampersal, PKH,Rice for the poor, PNPM Vietnam: 10 years Social security strategy

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

47. Resources ASEAN 2012. RECOMMENDATIONS. THE SEVENTH ASEAN GO-NGO FORUM FOR SOCIAL WELFARE AND DEVELOPMENT “Promoting Social Services and Social Protection for Vulnerable Groups” . 12 September 2012, Ha Noi, Viet Nam. www.socialsecurityextension.org/gimi/gess/RessFileDownload.do Bachelet Michelle 2011. Social protection floor for a fair and inclusive globalization. Report of the Advisory Group. ILO 2011. http://www.ilo.org/global/about-­‐the-­‐ ilo/press-­‐and-­‐media-­‐centre/news/WCMS_166292/lang-­‐-­‐en/index.htm Barrientos, Armando , Miguel Niño-ZarazúandMathildeMaitrot Brooks 2010. Social Assistance in Developing Countries Database. Version 5.0 July 2010. World Poverty Institute. The University of Manchester. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1672090 Centre for Social Protection 2013. Talking Point on Systems of Social Protection, CSP Newsletter 23, February 2013, IDS. By Gabriele Köhler. http://www.ids.ac.uk/files/dmfile/CSPNewsletter23formattedFinal2.pdf. ESCAP, 2011. The promise of protection. Social Protection and development in Asia and the Pacific. Bangkok European Commission 2012. Social Protection in European Union Development Cooperation . COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Brussels, 20.8.2012 COM(2012) 446 final http://ec.europa.eu/europeaid/what/social-protection/documents/com_2012_446_en.pdf Hickey, Sam 2008. Conceptualising the politics of social protection in Africa. In A. Barrientos & D. Hulme (Eds.), Social Protection for the Poor and Poorest: Concepts, Policies and Politics. London: Palgrave. Holmes, R. (2008). Child Poverty: a role for cash transfers?

48. Resources cont´d ILO 2010. Social Security for All. www.ilo.org ILO 2010. Extending social security to all. A guide through challenges and options . http://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/---publ/documents/publication/wcms_146616.pdf ILO 2012. Social Protection Floors Recommendation, 2012 (No. 202)http://www.social-protection.org/gimi/gess/RessShowRessource.do?ressourceId=31088 ILO 2012. Social protection floors for social justice and a fair globalization. Report IV (1) . Geneva ILC.101/IV/http://www.ilo.org/public/english/protection/secsoc/downloads/policy/rapiven.pdf ILO Regional Office for Asia and the Pacific. 2012. Single Window Service in Asia and the Pacific. Piloting integrated approaches to implementing Social Protection Floors. http://www.social-protection.org/gimi/gess/RessShowRessource.do?ressourceId=30172 ISSA. International Social Security Association. http://www.issa.int/Observatory/Country-Profiles UNICEF Myanmar 2012. Social protection: A Call to Action. Conference report. Yangon 2012 World Bank 2012. Resilience, Opportunity and Equity. The World Bank’s Social Protection and Labor Strategy 2012–2022. www.worldbank.org

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

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