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What, why, for whom, how? Social protection objectives and policy design . ‘Social Protection Framework for GMS Cooperation’ – ADB GMS PPP Learning Program 2013 Asia Development Institute (ADI) Graduate School of Public Administration, Seoul National University Seoul, 7-12 July 2013

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What, why, for whom, how? Social protection objectives and policy design

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    1. What, why, for whom, how?Social protection objectives and policy design ‘Social Protection Framework for GMS Cooperation’ – ADB GMS PPP Learning Program 2013 Asia Development Institute (ADI) Graduate School of Public Administration, Seoul National University Seoul, 7-12 July 2013 Gabriele Köhler, development economist, Munich 8 July 2013

    2. Narrative I) Some definitions • The interest in social protection • Types of social protection: social security, social assistance, active labour market policies, micro-based credit programmes, child protection II) Reasons for social protection • Social protection as a right • Social protection to address hunger, poverty, exclusion and vulnerabilities III) Designs of social protection • Social protection systems • Financing • “Policy construction” IV) Outlook: Ideal social protection

    3. Guiding Questions • 1)Please enumerate (in bullet points) the national development strategies and policies for social protection of your country (both current and future). • 2)What are the issues and constraints related to the effective functioning of the social protection system? • 3)What are the strengths and weaknesses of the current social protection system related to institutional arrangements, financing, coverage, and the instruments and approaches used? • 4)Are there plans for reforms or expansions of the current social protection system? • 5)Would your country social protection system include protection of migrant workers?

    4. I. Some definitions

    5. Social protection classification

    6. Social protection classification

    7. Unconditional Cash Transfers in Sub-Saharan Africa

    8. Keys examples in Asia and Pacific • Employment-based targeted schemes: India, Bangladesh, Pakistan, Solomon Islands • Conditional Cash Transfers: Philippines, Indonesia • ‘Universal’ health systems: Thailand, China, Philippines • Universal pension schemes: Nepal • Child benefit – targeted: India, Nepal

    9. Social protection example South Asia Food-related measures Social Assistance Public works Affirmative action Human rights • National Rural Employment Guarantee (IND) • Employment Generation Programme for the Poorest (BGD) • Karnali Programme; Employment Guarantee Act (NPL) • Employment generation for rural unskilled workers (PAK) • Right to food/National Food Security Act (IND) • Mid-day meal (IND) • Right to education (all) • Right to health services (all) • Right to work (IND) • Right to information (IND, BGD, NPL) • Cooked school meals (IND) • Subsidized PDS (IND, NPL, BGD) • Subsidized grain prices • Universal old age pension (NPL) • Benazir Income Support Program (PAK) • Child benefit (NPL) • Unorganized sector health insurance (IND) • Secondary school stipend for girls (BGD) • Education for all (NPL) • Child grants for girls (IND) • Rural development and community based interventions (IND)

    10. II) Reasons for social protection

    11. 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.

    12. 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.

    13. 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

    14. 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

    15. Asia-Pacific: people deprived Source: Asia-Pacific Regional MDG report 2011/12 (ESCAP/ADB/UNDP)

    16. Unequal progress in Asia-Pacific Source: Asia-Pacific Regional MDG report 2011/12 (ESCAP/ADB/UNDP)

    17. Food inequalities

    18. Causes of under-five deaths in 2008

    19. Income poverty • Absolute number and share of extremely poor people has declined since 1990 globally • But: number of extremely poor increased in Africa and South Asia • $1.25 per personday income poverty measure • Number of poor and vulnerable people • under $1.25: 1.2 billion persons globally • Under $2: 2.5 billion persons globally

    20. The Great Recession

    21. WorkingChildren Ages 5-11 & 5-14 in percent of age cohort

    22. Working poverty

    23. Disasters and conflict

    24. GENDER Social exclusions – manifest in every society • Income/economic class • Ethnicity • Religion • Language • Caste/clan • Age • Widowhood, orphan-hood • Geographic location/urban versus rural • Citizenship and migration status • Health condition/communicable/visible diseases • Ability/disability • Menstruation • Sexual orientation • Recurrent emergency situations • Conflict situation • Looks

    25. III. Systems • Most countries have social assistance programmes • Some are large • Most are fragmented • Most are separated from social insurance • Need to build a system of social protection

    26. Low coverage rates: Old age pension coverage

    27. Low coverage rates: unemployment protectionOld age pension coverage

    28. Systems approaches

    29. Indonesia: family-based social assistance programmes

    30. 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

    31. 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

    32. 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

    33. 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

    34. Financing

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

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

    37. Vietnam example: developing a social protection floor

    38. System building: social protection policy construction • Define policy principles and objectives • build coalitions or a social compact • agree on “bottom-up” or “top-down” approach • create and adopt the necessary legislation • recognise and seize policy moments

    39. Social protection policy construction