1. Overview of ILO tools and methods
Celine Felix, Jo Hyung Kyu
ILO Decent Work Team, Bangkok
SPF rapid assessment, costing and design: from tools and methodology to practical implementation
Bangkok, 14 November 2010
Decent Work for All ASIAN DECENT WORK DECADE

2. Table of contents
What do countries need to design and implement their social protection strategies?
Reliable social security data
Introducing coherence in a process in which diversity governs
A prioritizing and inclusive policy
Existing ILO instruments for policy analysis, formulation, planning and implementation
The Social Security Inquiry
Legislative tools
The Social Protection Floor and the staircase
The Rapid assessment and costing tools
The Social Protection Expenditure Review and Social Budget
GESS, The webplatform on the extension

3. What do countries need to design and implement their social protection strategies?
Reliable social security data
It is a prerequisite: social protection data give a picture of existing schemes, their financing and the ‘tax windows’ which could be open + necessary elements for good governance and policy making – M&E
Consistent information and statistics are needed about
Macroeconomic picture of existing social security schemes, the sources of financing
Vulnerable groups, the contributory capacity of these groups
Legislation passed to define the existing legal framework
Actors involved in the design as well as the implementation processes
Design of actual schemes: actual level, scope and extent of coverage, level of benefits, mechanisms used.

4. What do countries need to design and implement their social protection strategies?
Reliable social security data (foll.)
The status of social protection databases in our countries?
Incomplete quantitative knowledge-base on social in many countries;
It does not follow international statistical standards
> lack of means and expertise + reluctance of some key actors, at the national or/and the scheme level in making the procedures and practices transparent.
To mitigate the lack of consistent : The Social Security Inquiry, Social Security Worldwide (SSW) – ISSA, Global Socio-Economic Security database, European System of integrated Social Protection Statistics (ESSPRO), Social Security Programs Throughout the World (U.S. Social Security Administration).

5. What do countries need to design and implement their social protection strategies?
B. Introducing coherence in a process in which diversity governs
Diversity of actors involved: in the design and implementation of SP strategy, in the administration, financial management, etc. at all levels
 Need for a clear legal definition of the roles of the different actors in the provision of social security. These roles should be complementary while achieving the highest possible level of protection and coverage.
Plurality of mechanisms: Contributory and non contributory, statutory programs, community-based schemes, etc.
 Linkages can be established between these different mechanisms, mainly statutory and non-statutory schemes to create possible economies of scale, extend coverage to vulnerable population unreached by statutory schemes, and enhance the administration of community-based schemes

6. What do countries need to design and implement their social protection strategies?
B. Introducing coherence in a process in which diversity governs (foll.)
Variety of resources:
To assist in this process: Social Protection Strategies and action plans, SPF and staircase, SPER and Social Budget, fiscal space analysis (ILO/IMF) etc.

7. What do countries need to design and implement their social protection strategies?
A prioritizing and inclusive policy
Given financial restraints, need to develop several policy options and prioritize: Which vulnerable group to start with? What package to choose?
A technical enlightenment of political decisions: Decisions based on a rational choice and a political decision. For pop. acceptance, the decision process needs to be transparent and should include all stakeholders
Technical
Political
Social protection = vision of society which embraces solidarity

8. What do countries need to design and implement their social protection strategies?
A prioritizing and inclusive policy (foll.)
The social security strategy is its inclusion in a larger policy program
To assist in this process: Rapid assessment or Assessment, GESS platform, Social Budget, C102 etc.

9. Table of contents
What do countries need to design and implement their social protection strategies?
Reliable social security data
Introducing coherence in a process in which diversity governs
A prioritizing and inclusive policy
Existing ILO instruments for policy analysis, formulation, planning and implementation
The Social Security Inquiry
Legislative tools
The Social Protection Floor and the staircase
The Rapid assessment and costing tools
The Social Protection Expenditure Review and Social Budget
GESS, The webplatform on the extension

10. Existing ILO instruments: The Social Security Inquiry Main objective
Building a knowledge base at the global level
Objective: Collect, store and disseminate, on a regular and sustainable basis, comparable statistics on the financing, expenditure, benefit levels & coverage of social security systems/programmes.
Rationale: Address the lack of (comparable) social security statistics outside the OECD world
Collected information should
Allow calculation of indicators for specific social security schemes & selected aggregate indicators at national level for as many countries as possible (including decent work indicators with respect to its social security dimension);
Constitute a basis for analysis within the framework of studies and research work; (e.g. the World Social Security Report)
Possibly contribute to practical tools such as the SPF rapid assessment (overview of SP activities at the national level)
Be accessible to internal and external users (but regulated) 10 10

11. Existing ILO instruments: The Social Security Inquiry (foll.)
Covers both statutory schemes and some non-statutory schemes
Covers both private and public schemes
Type of data | Mainly administrative from social security institutions which administer the scheme: administrative. Household survey data for a few (too few) countries
Functions covered
Old age; disability; survivors; sickness and health; unemployment; employment injury & occupational disease; family/children, and maternity (C102).
Supplemented by housing; other income support and assistance (n.e.c.) /social exclusion
Compatibility | Systematic approach compatible with existing statistical frameworks used in the EU (ESSPROS) and the OECD
Focus on developing countries (EU and OECD countries being covered by existing databases — expenditure data at least) 11 11

12. Existing ILO instruments: Social Security Inquiry (foll
Existing ILO instruments: Social Security Inquiry (foll.) - Channels for data collection
 Channel 1 | Data collection at the country level
Ideally: direct entry online by social security institutions
Reality: A national coordinator and hard work of identifying schemes and looking for information or including data available in annual or statistical reports of national social security institutions
 Channel 2 | Including data from available international sources and promoting the use of the social security inquiry methodology and tool by other organisations (ISSA, ADB, others)
Data from the ISSA statistical database on social security in developing countries included in SSI
ADB Social Protection Index data [Expenditure & beneficiaries]
OECD SOCX Social expenditure database: “Automatized” import into the social security inquiry (under development for ESPROSS)

13. Existing ILO instruments: Social Security Inquiry
What?
Economic & financial information
Population & Employment Used as denominator for indicators
Social security expenditure & revenue (IMF, ESSPROS)
Sources
International data sources (automatic insertion)
National sources
National level
1. Generic text… to be customised
SSI Core data
Social security institutions | individual scheme data
Data entry online possible
Scheme level
Automatic calculation of national aggegate indicators
2. Data availability in SSI Thailand & main limitations
3. Main social security institutions websites, statistical office, Gess country profile if any, etc. 13 13

14. Existing ILO instruments: Legal instruments
Convention 102 (1952) -flagship of the 8 up-to-date social security Conventions, sets a framework of common important basic social security principles on which any social security system should be based to encourage the widest development of social security schemes;
Defines the 9 classical branches of social security and sets minimum standards for each with regard to
a minimum level of benefits to be paid in case of occurrence of one of the contingencies
the percentage of the population to be at least protected in case of occurrence of one of the contingencies
the conditions for and periods of entitlement to the prescribed benefits
Includes several flexibility clauses, allowing ratifying member States to gradually attain universal coverage
Only one ratification in the region…
The ILO is the only international organization whichischargedby its constituentswiththe settingof international labourstandards International labourstandardstakethe formof eitherConventionsor Recommendations Conventions andRecommendationsare adoptedby the International Labour Conferenceof the ILO by 2/3 majorityof ILO constituents

15. Existing ILO instruments: Legal instruments (foll.)
The ratification process is an opportunity to verify if the national legislation complies with these minimum requirements
If it does not the ILO supports the review of the legislation and modification of practice so that they progressively comply with the minimum requirements; therefore the social security situation of the country is enhanced
Ratification guarantees also the sustainability of the SS system
It enhances the confidence of insured persons in the scheme and in the national Social Security administration in general
It prevents countries from slipping back and it has a great impact on the SS coverage and the reduction of poverty
States that ratify will benefit on a priority basis from ILO experience in the field of Social protection and from technical assistance, including policy advice and actuarial studies, collection of data, drafting of legislation, etc.

16. Existing ILO instruments: The Social Protection Floor and the Staircase
A UN development framework
A set of basic social rights, services and facilities that each member of society should enjoy. Notion of availability and accessibility
The SPF is a set of guarantees
Allows flexibility as to the delivery mode and combinations of different systems (universal, targeted, social insurance etc. ) to be shaped within a framework of nationally specific institutional structures, economic constraints, political dynamics and social inspirations
It Provides an outcome focus
A federative concept
It is not codified in any ILO social security Convention

17. Existing ILO instruments: The Social Protection Floor and the Staircase (foll.)
Vertical dimension (higher levels of benefits for those who can contribute)
Voluntary private insurance
100% full coverage
Statutory contributory social insurance
Intermediate coverage
Partially contributory & linked schemes
Basic benefits / social protection floor for all. Non contributory for the poor; other groups may contribute …
Basic coverage
Civil servants
Armed forces
Private sector employees
Informal economy
Poor and near poor
Horizontal dimension (SPF & schemes for informal economy)

18. Existing ILO instruments: the rapid assessment
INVENTORY & DESCRIPTION OF SPF components already in place
ANALYSIS OF THE SPF
Identify coverage gaps & other issues:
1) Level/gaps of population coverage
2) Adequacy of the benefit to ensure effective access
3) Level and quality of services available
4) Management & Delivery issues, coordination, M&E
SP STOCKTACKING & MAPPING
PRELIMINARY ANALYSIS
PRIORITY AREAS FOR INTERVENTION
PRIORITIES SETTING
How to further build a SPF tailored to the needs
and capacities of the country?
-Implement new SPF components?
Scale up SPF schemes?
Improve delivery of existing SPF components?

19. Existing ILO instruments: ILO-UNICEF costing tool
Objective: help SP national policy practitioners and experts to examine the affordability/sustainability of increasing the scope and extend of SP coverage by providing concrete quantitative figures over 20 years
Contributes to provide answers when
Introducing a new benefit (benefit amount, coverage)
Costing existing benefit over time (when status quo or increase)
Assess the impact on poverty (estimate of poverty gap reduction)
Situation analysis (ageing pop., dicriminatory labor markets, etc.)
It is a first step in the analysis of fiscal space

20. Existing ILO instruments: The SPER…

21. Existing ILO instruments: … and the Social Budget
Actuarial Valuation of a SP reform: It answers one of the 2 questions:
How much SP can be provided with a given level of financial resources?
How much financial resources are necessary to provide a given level of protection?
The Social budget allows to monitor past, current and future SP finances: where money goes and where do resources come from?
It is a methodologically consistent compilation of the revenues and expenditures of a country’s SP system forecast of income and expenditure (budget projection) for normally a medium-term period and/or simulations of social expenditure and revenues under alternative economic, demographic and/or legislative assumptions

22. Existing ILO instruments: … and the Social Budget (foll.)
One of the most powerful tools for the quantitative management of national social protection systems
It is composed of:
Demographic model: population projections
Labour supply model: projections of the supply of labour
Economic model: projecting GDP, prices, wages, labour productivity, labour demand (equals actual employment) and unemployment Government budget model, which describes revenues and expenditure of the different administrative levels of government
Social protection model: health, pension and other submodels

24. Concluding remarks…
The rapid assessment is a starting point – crucial to allow Assessment Based National Dialogue
Estimates and assumptions are inevitable
Good way to flag gaps – including data
Can contribute to identify where the UN CEB Coalition could provide support

25. Assess the present situation
Gaps; performance of current schemes
Prioritize; reach a national consensus… design and implement, to garantee sustainability
Peer learning