Overviews of Social Protection: Lesson Learned from Thailand

1. Overviews of Social Protection: Lesson Learned from Thailand By Suwanee Khamman Deputy Secretary – General, NESDB, Thailand Page 1

2. Scope of Presentation 1. Current Economic Crisis 2. Social Impact of The Crisis : Policy Response - 1997 Crisis : Lessoned Learned - 2008 Crisis : Stimulus Packages 1-2 3.Social Protection 4. The Crisis as an Opportunity : Further Priorities for Sustainable Dev.

3. Overview of the impact of the world economic crisis on Thailand Social impact World economic crisis* Economic impact Financial institutions in G7 continue to collapse until Q1/ Lower export Reduced overtime payment/Salary Layoff Stock and bond unresponsive to the Rescues Plan Bill Unemployment among recent graduates Shrinking tourism industry Unemployment Lacking liquidity in the world market Lower consumption Biggest depression in U.S., Japan, E.U. in 70 years Lower price of agricultural product Stable oil and agricultural product price until Q2 of 2009 Lower consumption and employment Return to homeland Social problem

4. 1997 CRISIS : SOCIAL PROTECTION Civil servant pension fund Social security fund (based on Social Security Act 1990) Fund based on Labor Protection Act 199 - Workmen’s Compensation fund - provident fund - Severance Pay - Employee Welfare Fund Social Security/Social Insurance Social Service+Social Assistance Social Safety Nets Compulsory Education Act 1998 NEA 1998 (6 years-12 years) Primary Health Care Health for all 2001 (?) Assistance Provided for specific groups - Women - Children (milk + meals) - elderly (health + cash) - disability - unemployed - HW/AIDS • Unemployment Mitigation Plan • World Bank : SIP • - public work • - social investment fund • ADB • - unemployment + labor • - education • - health • Miyazawa Plan • - employment - Improve QoL/ reduce social impact - support infrastructure for future development Impact of Crisis on Human Dev. Poverty (rural /urban), health, education and HRD, social relation, Women and children etc.

5. First economic stimulus package (13 January 09) 37,464.5 Million baht 56,005.6 Million baht Review the past • Programs for restoring and boosting economic confidence • Subsidy for the cost of living • Prolong the 5-measure 6-month program • 11,409.2.13 million baht • Construction and development of • agricultural reservoir 2,000 million baht • Construction of village road 1,500 million • baht • Tong fah’ commodity fair 1,000 million baht • Promotion of tourism 1,000 million baht • construction of small reservoir 760 million • baht • Food industry and SME 500 million baht • Promotion of country image 25 million baht • Programs for generating income and developing the quality of life and social security • Free education for 15 years 19,001 million • baht • 2. Sufficiency economy for community • 15,200 million baht • Income allowances for the elderly 9,000mb. • Capacity building for the unemployed 6,900 • million baht • 5. Fringe benefits for the village health • volunteers 3,000 million baht • Housing for lower ranking police officers • 1,808.8 million baht • Improving the sanitarium in the rural area • 1,095.8 million baht 116,700 Million baht Shaping the future Increase purchasing power and reduce living expense income and improvement of life quality Objective : Aims

6. Stimulus PackageII Public Infrastructure837,642Mil-Baht Community91,708Mil-Baht Public Health 10,441Mil-Baht Creative Economy17,585Mil-Baht Water System/ Agricultures238,515Mil-Baht Tourism 8,506Mil-Baht Education53,969Mil-Baht Program1.43Tri-Baht Learning Community Building Production and Strengthening Capacity of Medical and Health Care Staff Water Management Development Programs for 5 Provinces in Southern Thailand Sub-Program Transport & Logistics Image Revival Cultural Heritage Conservation and Restoration Quality and Standard Improvement on Education and Learning System Alternative Energy Tourism Marketing Technology& Standard Improvement for Agricultural Sector Investment Programs for Job Creation and Income Generation in Communities Creative Tourism Products Arts and Cultural Town Research and development of medical technology Telecommu-nication Intellectual Infrastructures Improvement plan and Center of Education in sub-region and region Tourism Site Recovery Thai Handcraft Promotion Education Creative Product Promotion Standard Improvement Natural Resources Thai Software Industry Promotion Public Health Quality Improvement on Teachers and Education Reform Social Security Design Industry and R&D Promotion Science & Technology Impact of Crisis on Human Dev. enhance national competitiveness/ generate employment

7. Sufficiency Economy Philosophy Mechanism: public-private-people sector collaborations The 11th National Economic and Social Development Plan Sustainable Dev. : Discussion points Challenges Harmonization of Health insurance scheme Major Concept of Social Protection New Social Architecture The Reform Agenda For The 11th Nesdp(2011-2015) Linkage of cash transfer and Pension System Set up early warning system Affordable and Sustainable Decentralization-Community capacity building Result and Expectation of SP1-2 as foundation for long term Dev. Plan Accessibility of target Population International org. . Central Gov. Provincial Gov.

8. Lead to Philosophy of Sufficiency Economy The Middle Path Moderation Reasonableness Self-immunity Knowledge condition(know, prudence, care) Integrity condition(honesty, diligent, conscious, sharing,perseverance) life / economy / social / environment progress in balance, stable and sustainable way 8

9. Application of Sufficiency Economy at All Levels Self-sufficiencyat National Level Co-operation • Create international networks* Cooperate with Multinational Cooperation*Strengthen the group’scapacity Self-immunity at Community Level * Create local networks * Set up network database * Run business with caution Self-supporting at Individual Level * Increase income* Cut excessive expenditures* Lead a life with morality Self-help 9

10. New Social Architecture สังคมมีคุณภาพ ทุนมนุษย์เข้มแข็ง ภูมิคุ้มกันแข็งแกร่ง สร้างค่านิยมร่วม: หลักปรัชญาของเศรษฐกิจพอเพียง/ความดีงาม/ธรรมาภิบาล คุณภาพทุนมนุษย์ (Human Quality) คุณภาพสังคม (Social Quality) เรียนรู้ศาสตรวิทยการ ตามศักยภาพ/อายุ เน้นคนเป็นศูนย์กลาง โครงสร้างพื้นฐานทางสังคม ความยุติธรรม/ สันติภาพ สื่อทุกรูปแบบ สถาบันศาสนา การเมืองการปกครอง สถาบันครอบครัว ครอบครัว ชุมชนและท้องถิ่นที่เข้มแข็งเป็นฐานรากของสังคมที่มีคุณภาพ • รูปแบบความสัมพันธ์ในชุมชนและการจัดการเชิงพื้นที่และกลุ่มเป้าหมาย • การลงทุนโครงสร้างพื้นฐานทางสังคม (SP2) เป็นคานงัด นำไปสู่การปรับฐานการ • พัฒนาสังคมให้เป็นธรรมยิ่งขึ้นโดยเฉพาะในชุมชนและท้องถิ่น • เน้นการกระจายอำนาจและการบริหารแบบบูรณาการทุกทุน 10 ปรัชญาของเศรษฐกิจพอเพียง

11. Sustainable Development Discussion points sustainable Cost-effective Incentive Compatible Appropriate Dynamic Equitable

12. THANK YOU www.nesdb.go.th

13. Request for Risk Management Strengthen Cooperate Local Authority Office Cooperate International org. . Central Gov. Risk Management Provincial Gov. Set up early warning system -International Crime Community -Illigal Migration -Drugs