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Module 10: Converting recommendations into policy options

Module 10: Converting recommendations into policy options. ILO, 2013. Key questions. How do we select recommendations that can be translated into scenarios? How do we design scenarios? What are low and high scenarios? What assumptions can be made and when do we need to make them?.

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Module 10: Converting recommendations into policy options

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  1. Module 10: Converting recommendations into policy options ILO, 2013

  2. Key questions • How do we select recommendations that can be translated into scenarios? • How do we design scenarios? • What are low and high scenarios? • What assumptions can be made and when do we need to make them?

  3. Steps of ABND • Step 1 – Building the assessment matrix including the identification of priority recommendations ABND FACTSHEET • Step 2 – Rapid Assessment Protocol to estimate the cost of implementing the social protection provisions • Step 3 – Finalisation of the assessment report for endorsement and further action by the higher levels of government

  4. Starting the second step of ABND • Step 1 – Building the assessment matrix including the identification of priority recommendations ABND FACTSHEET • Step 2 – Rapid Assessment Protocol to estimate the cost of implementing the social protection provisions • Step 3 – Finalisation of the assessment report for endorsement and further action by the higher levels of government

  5. We can use the RAP Protocol There are 2 types of recommendations From Step 1to Step 2 Recommendations to introduce non-contributory benefits, increase non-contributory benefit amounts, extend coverage • Recommendations to introduce social insurance, work on coordination between schemes and operations, qualitative recommendations to improve quality of services We need to conduct further studies

  6. From recommendations to scenarios • Recommendations may be selected for converting into scenarios based on several conditions: • in line with the government’s priority • strongly advocated by representatives of the persons concerned • data is available for the RAP exercise • assumptions can be made where data is not available

  7. Which recommendations to select? Recommendations for “health” in Indonesia: • Develop a specific and clear benefit package for the new national health insurance programme • Extend non-contributory health insurance (currently for the poor) to the entire informal economy • Provide a treatment and prevention package for mother-to-child transmission of HIV and syphilis • Improve the database and the targeting method of the health insurance programme for the poor √ √

  8. Which recommendations to select? Recommendations for “children” in Indonesia: • Expand the CCT programme to more areas and more households • Explore merging the CCT and scholarship programmes • Explore and calculate the cost of a universal child allowance programme • Improve management and efficiency of the Raskin Food Programme √ √

  9. Which recommendations to select? Recommendations for “working age” in Indonesia: • Conduct a feasibility study for an unemployment insurance scheme and explore linkages with employment services • Develop a Public Employment Programme linked with skills development for workers in the informal economy √

  10. Which recommendations to select? Recommendations for “elderly and disabled” in Indonesia: • Extend a non-contributory minimum pension to the elderly and people with severe disabilities • Conduct a feasibility study to introduce a contributory pension scheme for formal sector workers • Create a sound database of disabled people to facilitate targeting √

  11. Designing scenarios Scenarios for “children”:

  12. Designing scenarios Scenarios for “working age”:

  13. Designing scenarios Scenarios for “elderly and disabled”:

  14. Low and high scenarios • Low scenario: combination of scenarios to provide minimum benefits • Low = 1 + 2 • High scenario: combination of scenarios to provide maximum benefits • High = 1 + 3

  15. Making assumptions • Scenario 1 for “elderly and disabled” in Indonesia: Extend a non-contributory pension for all people with severe disabilities • Benefits: IDR 300,000 per month (current JSPACA benefit level, slightly above average poverty line), indexed on inflation • Estimated beneficiaries: based on MoSAdata, increasing at the same rate as general population growth • Take-up rate: progressively grow from 11.8% (present coverage) to 100% in 2020 • Administrative costs: 15% (similar to targeted schemes)

  16. Making assumptions • Scenario 4 for “elderly and disabled” in Indonesia:Establish a non-contributory universal pension for 65+ age group • Benefits: IDR 226,335 per month (average poverty line in 2011), indexed on inflation • Estimated beneficiaries: based on population projections • Take-up rate: 10% per year • Administrative costs: 5% (similar to non-targeted schemes)

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