EXPANSION OF SOCIAL PROTECTION IN THAILAND WITHIN SPF FRAMEWORK Celine Felix ILO Social Protection Consultant, Bangkok Using the Social Protection Floor Concept to step forward Experts Meeting on social security and Social Protection Floor, 13 December 2011, Jakarta

Agenda 1. Where does Thailand stand? 2. Added value of the SPF framework and the Assessment National Dialogue 3. Windows of opportunity for Indonesia (and other countries) 4. Take away message

3 Thailand does not start from scratch… Free education until 15, Universal Healthcare System (UCS), 500 Baths scheme, Contributory schemes managed by Social Security Office, attempts to cover the informal economy … But Thai citizens and Thai residents still do not benefit from adequate social protection coverage 11 th National Economic and Social Development Plan ( ) with objective to expand social protection to bring more justice in society Thailand’s strategy to establish a Welfare society by 2017, MSDHS to lead implementation … on hold 1. Where does Thailand stand?

Coordinate fragmented schemes and actors involved Implement the Strategy: Prioritize among policy options; Reach out to all, avoiding double coverage; Design benefits that Thai citizens want and which are sufficient for managing a decent life,  Trigger a participatory approach with all in-line ministries, CSOs and academia  Bring more coherence at policy level and Develop a consistent national social protection strategy going beyond what is already in place  SPF is useful in:  Operationalize the concept of “Welfare Society” by increasing coordination between all actors involved in the SP landscape (supply/demand)  Make sure that the right to social protection is effective by systematically identifying and addressing delivery issues  SPF is useful in:  Channelling Technical Support Outstanding challenges

2. Added value of the SPF Concept In Brief: SPF work in Thailand 1st introduction of the Social Protection Floor in end of 2009 Creation of a UN SPF Team – Objective: promote and contribute to a holistic and coherent vision of Social Protection Writing of two SPF success stories on the UCS and 500 Bahts Scheme (by Dr Thaworn Sakunphanit and Dr Worawet Suwanrada) National Dialogue around the SPF concept in November 2010  framework considered relevant to direct the extension of social protection and bring adequate coordinated technical support in response to the needs of the Government Social Protection identified as a priority area of partnership between the RTG and the UN Country Team Assessment –Based National Dialogue Exercise

6 Civil servants Armed forces Private sector employees Informal economy Poor and near poor UCS since 2001 (health) and 500 Bath scheme (pension) since 2009… Social assistance Extension of 5 benefits to Informal Economy* (article 40) * maternity, invalidity, death, sickness and old age benefits Workmen’s Compensation Fund (WCF) -Social Security Fund (SSF) Provident fund system -Govt P Fund -Private school teachers WF -Non contr. pension sch. -CS Medical Benefit Sch. 76% population Nationalization of the concept

Assessment-Based National Dialogue (ABND) Process : Three key questions Question 2: What are the existing social protection provisions in Thailand (SPF level or higher) and what are related gaps? Question 3: How much would it cost to close these gaps? Question 1: How do we define our Thai floor? “ While adopted as a global concept, each country should decide to design and implement shaped within a framework of national specific institutional structures, economic structures, political dynamics and social aspirations” Bachelet Report

Assessment-Based National Dialogue Process 1. ASSESSMENT MATRIX (INVENTORY OF SCHEMES, GAPS AND IMPLEMENTATION ISSUES, RECOMMENDATIONS) 2. RAP PROTOCOL: DATA COLLECTION FOR THE COSTING, TRANSLATION OF THE RECOMMENDATIONS INTO SCENARIOS, COSTING SOME OF THE RECOMMENDATIONS  3. FINALIZATION OF THE ASSESSMENT -   NATIONAL DIALOGUE # 1  NATIONAL DIALOGUE # 2

Formal sector (24% population)Poor and near poor & Informal economy (76% population) Additional contributory benefits Outcome 2 - The RTG progressively provides more adequate universal basic social protection measures, which maintains people above the nationally defined poverty line level throughout the life cycle Adapted social insurance Outcome 3 – Workers of the formal sector and the informal economy and their families enjoy higher levels of benefits through contributory or partly- subsidized schemes.. Outcome 3- Beyond the floor National Goal by 2017: Welfare society = Establish an integrated social protection system which provides protection to all throughout the course of life Pillar 1: Social assistance Pillar 2: Social insurance Pillar 3: Social services Pillar 4: Social promotion Natl Strategy RTG/UN partnership Outcome 1- People are aware and exercise their welfare rights under the Welfare Society Strategy Outcome 4 - Framework and budget support to ensure the financial and institutional sustainability of the social welfare system is developed and implemented

10 2.So…. We see from the Thai experience that there is an Added Value of SPF to: Develop a consistent national social protection strategy Analyze existing schemes and extension as one system Prioritize among policy options Bring more coherence at policy level Coordinate actors involved: Nationals… and Internationals Enhance coordination at implementation level Ensure a more efficient delivery Develop an M&E system Channel support Include social protection into national processes

3. Window of opportunity (1/3) UNPDF Indonesia : – National Priority 4: Reducing Poverty : This priority aims at reducing absolute poverty from 14.1% in 2009 to 8-10% in 2014 and improving income distribution through social protection that is based on the family, community empowerment and expansion of economic opportunities of the low income population. – UN support to national priority Outcome 1: Social Services - Poor and most vulnerable people are better able to access quality social services and protection as per the millennium declaration sub-outcome 7 « Improved quality and increased range of accessible social protection, justice and welfare services. Action Plans reviewed every year!!

3.Window of opportunity (2/3) Indonesian Jobs Pact : tripartite Action Plan – One recommended action plan on social protection with implementation the Law 40 and work on ILO Convention 102 and recommendation 202  Opportunity for tripartite dialogue

3.Window of opportunity (3/3) Every crisis is an OPPORTUNITY Source: www2.ipsr.mahidol.ac.th Informal transfer sytem was not enough Source: Dr Thaworn

A useful tool (given strong and continued political will) to develop and operationalize the SP Framework in Indonesia (and other countries) BUT NEED TO WORK AT POLITICAL LEVEL, NOT ONLY TECHNICAL 4. Which message to take away for the construction of the SP framework in Indonesia (and other countries)?

15 More information on the SPF in Thailand 1