1. Social Protection What and Why
Sinta Satriana
Social Protection Officer
ILO Office for Pacific Island Countries

2. Content of Presentation
1. What is Social Protection?
2. How is Social Protection Delivered?
6. Myths and Facts in Social Protection
Content of Presentation
3. Why do we need Social Protection?
5. What is the Social Impact?
4. How much does Cost for the Economy?

3. What is Social Protection?
Universal Declaration
of Human Rights
“Everyone, as a member of society, has the right to social security” (art. 22)
A Fundamental Human Right
Convention
on the Rights of the Child
“State Parties shall recognize for every child the right to benefit from social security” (art. 26)
Economic Investment
Social Investment

4. What is Social Protection?
The protection provided by the society to:
compensate for the loss of income
address poverty and vulnerability
facilitate access to basic services
Social Protection ? ? ? ? ?
Social
Safety net
Terms
Social Security
Provided through:
Social Insurance
Social Assistance (transfer)
Employment legislations

5. Types of Social Protection Schemes
Type of schemes
Social insurance
Social assistance
Labour legislation
Source of Fund
Employer -
employee
contribution
Government budget (tax)
Employers’ liability
Examples
> Contributory pension
> Health insurance
> Work Injury Insurance
> Maternity insurance
> Cash transfer for the poor
> Social pension
> Disability benefit
> Food transfer
> Minimum wage
> Sick leave
> Statutory maternity leave
> Work injury comp.

6. Why Social Protection? contingencies & risks throughout the lifecycle
School Age
Maternity
Old age
Unable to work
Lack medical care
Malnutrition
No access to school
Child labour
Loss of parental care
Unable to work
Lack care from family
Declining health
Life cycle
Death of the breadwinner
Early childhood
Working age
Malnutrition, stunting
No access to immunization
Loss of parental care
Unemployment /underemployment
Work injury
Become disabled
Loss of family income
Loss of parental care for children

7. Life contingencies and changes in wellbeing
Source: Bangladesh

8. Vulnerability to move in and out of poverty
Population
High degree of movement in and out of poverty
 Only16.7% were poor in 2004, but more than 59% had been poor at some time during 2003.
 Over 38% of poor households in 2004 were not poor in the previous year.
Expenditure
Very Poor
Poor
Insecure
Case: Indonesia. Source: World Bank, Indonesia

9. Solomon Islands Income/Expenditure Distribution
Wealthy
Expenditure
Need social assistance
Can afford social insurance
Insecure
Poor
Population Decile

10. Economic Cost? More like Economic Investment
Economic Growth
Obvious impact on poverty and inequality:
Non-contributory pensions reduce the probability of poverty by 18% in Brazil and 12.5% in S. Africa
Cash transfer reduce the poverty gap by 10% in Jamaica, 20% in Mexico and 47% in S. Africa
 Redistribution
Increase demand
market
Welfare
Cash / other transfer
Increase Production
Fiscal space
Business growth
Increase gov’t revenue
Increase Trade & Income
Tax
Multiplier Effect
Global studies suggest that investing $1 in public health or cash transfer programs can yield as much as $3 in economic growth.

11. Impact on future generation
Health
 Access to health care, vaccination etc.
Better Human Resources Better Quality Labour Force
Economic Growth
Nutrition
Food programme, family cash transfer etc.
Education
 Scholarship, School feeding etc.
Multiplier Effect
In Bangladesh, S. Africa and Nicaragua: Cash transfer reduce stunting and malnutrition
 better cognitive development  Higher score in math & reading
Cash transfer in Brazil reduces the probability of dropping out of school by 63%

12. Impact on working age population
17% increase in labour supply
Nearly 50% increase in earning (especially women’s)
Uganda
the availability of cash provide the poor with:
startup capital
collateral for credit
transportation costs to locations of better jobs,
or simply decent clothes to come to job interviews
Obtain better jobs
Recipients of social transfers look for work more intensively and find employment more successfully
(compared to non recipients)
Mexico and South Africa :
improved access to credit (regular cash transfer used as collateral).
Somalia

13. Social Protection for Peace and Social Cohesion
Income security reduces crime and social tension
Redistribution of wealth
 social inclusion and integration
shows greater government accountability
Conflict Prevention, social cohesion and stability

14. Myths and Facts in Social Protection
Handouts make people Lazy and dependent
Not the case in developed countries
The amount is usually insignificant for recipients to give up work
In fact it has increased productivity by providing them the necessary capital, nutrition and health for better work
Benefit money is spent irresponsibly
Evidence allover the developing world shows social assistance is used mainly for food (more than 50%), health, education and other essentials
We have our traditional structure, no need for formal social protection
Existing tradition: Community members help others in need, in return, others will help them when in need (traditional insurance)
National Social Protection system: brings the spirit of helping each other to a higher level, to a bigger pool with more resources

15. Thank you!
Let’s Discuss!