Social protection in Asia Valerie Schmitt, Social Security Specialist, ILO DWT Bangkok Skill Training Workshop to diagnostic the extension of Social Protection and Promoting Employment Phnom Penh, 2-4 Nov 2011

What is social security? What is the situation in Asia? How to extend social security? Extension of social security: a priority for many countries and at regional level Agenda

What is social security? People face contingencies during their lives Life cycle Old age Work injuryMaternityUnemployment Death of the breadwinner InvalidityFamilies with children These have financial consequences Sickness / ill health

What is social security? Social security is the protection that society provides against these financial consequences to ensure that people have: –Access to health care –Income security Social security is a human right (Article 22 Universal declaration of human rights) Flagship Convention 102, 1952

What is social security? Justification: Realization of human rights (decent standard of living and access to essential social services) Economic reasons (investment in human capital, better risk management by individuals and families) Social and political stability (by addressing socio- economic inequalities) Response capacity to natural disasters through adaptation strategies (e.g., employment guarantee schemes, contingency funds for disaster relief, weather index insurance) and can facilitate the just transition to environment friendly models of development

What is social security? What is the situation in Asia? How to extend social security? Extension of social security: a priority for many countries and at regional level Agenda

What is the situation in Asia? An analysis on 39 countries shows that only 31% of the elderly receive a pension. This is lower that the world's average (40%). 51.6% of the population is covered by some form of health social protection (statistics on 14 countries including China where coverage is 94.6%) … However without China, the coverage falls to 22.5%

Level of coverage Poor - Informal economy - Form. Sect. Most countries have already relatively comprehensive SS systems for the formal sector Many are developing non contributory (universal, targeted) programs for the non-covered These programs are often scattered, not coordinated, with many targeting problems Difficult extension to the informal economy What is the situation in Asia?

Level of coverage Poor - Informal economy - Form. Sect. What is the situation in Cambodia? NSSF-C – Maternity, Death, Old Age, Survivor, Invalidity, Work Injury (180,000 CS + dependants  total 675,000 persons) NSSF – Work injury (500,000 workers) CBHI (123,000 persons) Health Equity Funds (50% of the poor), PWPs, School Feeding, etc.

Jamkesmas for health only (33% population) Askes, Taspen (7% population) Jamsostek (11% population) Jamsostek pilot prog. (150,000 p) Nothing for more than half of the population Level of coverage What is the situation in Indonesia? Poor - Informal economy - Form. Sect.

CSMBS (7% population) SSS (15% population) SSS for informal economy workers Level of coverage What is the situation in Thailand? UCS & 500 Baht scheme NSF for informal economy workers Poor - Informal economy - Form. Sect.

What is social security? What is the situation in Asia? How to extend social security? Extension of social security: a priority for many countries and at regional level Agenda

Formal sector (20% population) Poor and near poor & Informal economy (80% population) Additional contributory benefits Objective 1 - Social Protection Floor Entitlement to at least a minimum level of benefits Horizontal dimension Adapted social insurance Objective 2 – Higher levels of income security : -statutory social insurance -voluntary insurance Etc. Objective 3- Beyond the floor Vertical dimension How to extend social security? The social security staircase The “social security staircase”: a framework to describe and further develop social security provisions at country level …

Formal sector (20% population) Poor and near poor & Informal economy (80% population) Additional contributory benefits Objective 1 - Social Protection Floor Entitlement to at least a minimum level of benefits Horizontal dimension Adapted social insurance Objective 2 – Higher levels of income security : -statutory social insurance -voluntary insurance Etc. Objective 3- Beyond the floor Vertical dimension How to extend social security? The social security staircase The Social Protection Floor = minimum level of social security that should be guaranteed to all the population

The establishment of the SPF aims at a situation where  All residents have access to essential health care  All children enjoy income security through transfers in cash or kind  access to nutrition, education and care  All those in active age groups who cannot earn sufficient income enjoy a minimum income security (transfer in cash or in kind & employment guarantee schemes)  All residents in old age and with disabilities have income security through pensions or transfers in kind

Examples of benefits (4 guarantees)  Health care  Children  Working age  Elderly & vulnerable (that cannot work) Income security (transfers in cash or in kind) for: Targeted tax-funded schemes in Viet Nam, India, Indonesia; HEFs in Cambodia & Lao PDR; Universal tax-funded schemes in Thailand Scholarships, school meals and take home rations, conditional cash transfers (4Ps Philippines), Survivors benefits Minimum living standard (China), Income guarantee schemes and Public Employment Progr. (India), Vocational Training, Sickness, Employment Injury, Unemployment and Maternity benefits Minimum pensions, food distribution

Cambodia’s NSPS uses the SS Staircase

NSPS 5 priority areas & the SPF 1- Addressing the basic needs of the P&V in situations of emergency and crisis 4- Promoting affordable health care for the poor and vulnerable Guarantee  : Access to essential health care for all 2- Reducing the poverty and vulnerability of children and mothers and enhancing their human development Guarantee  : minimum income security for children 3- Addressing seasonal un- and underemployment and providing livelihood opportunities for the poor and vulnerable Guarantee  : Minimum income security for working age population 5- Improving social protection for special vulnerable groups Guarantee  : Income security for the elderly & people with disabilities Overarching

What is social security? What is the situation in Asia? How to extend social security? Extension of social security: a priority for many countries and at regional level Agenda

India: RSBY, NREGA Thailand: UC scheme, minimum pension scheme (500 THB) Cambodia: CARD’s NSPS with clear reference to the SPF … including HEFs, CBHIs, Food distribution, PWPs,… Lao: extension of SHP for all Vietnam: 10 years Social security strategy Indonesia: Jamkesmas, Jampersal, PKH, Rice for the poor, PNPM China: minimum living standard guarantee program; new rural corporative medical care (NRCMC); health insurance for urban uninsured residents (HIUR); rural old-age pension Philippines: 4Ps Extension of social security: a priority for many countries

Extension of social security: a priority at regional level UNESCAP 67th session in May 2011, resolution on “Strengthening social protection systems in Asia and the Pacific” 6th ASEAN GO-NGO Forum for social welfare and development in Sept > Recommendation to prepare a joint declaration to promote at ASEAN level the social protection floor and enhance collaboration between member states ILO estimates that two thirds of the newly covered people in the coming years live in Asia

Major documents & upcoming regional events UNDG-AP issues brief on social protection UN ESCAP – The promise of protection Bachelet report: “Social protection floor for a fair and inclusive globalization” Background document for G20 discussions, will be launched in Asia in December = Kyoto, Hanoi, Bangkok, Jakarta

… Take away message The extension of social security is a priority and a necessity The extension of social security follows a two-dimensional approach and the social security staircase Cambodia has started extending social security through the establishment of various schemes (NSSF, NSSF-C, HEFs…) and the development of the National Social Protection Strategy