1. Linking social protection and employment
Vathana Sann (PhD)
Deputy Secretary General
Council for Agricultural and Rural Development
Training workshop on social protection and employment
02-04 Nov., 2011
Phnom Penh Hotel

2. Review on labour market

3. Labour force

4. Labour force By 2010, population > 15 year-old were 61.8%
Job absorption rate (44% in 2008) dropped to 26% in 2009
Employed population was 6.8 million (3.7 % increased annually)
Low unemployment rate reflect the low-income, fast-growing status
the need to remain employed (even in poor jobs)
the lack of effective safety nets that allows people to earn some living in the informal sector

5. Labour force 2010, population > 15 year-old were 61.8%
Job absorption rate (44% in 2008) dropped to 26% in 2009
2008, Employed population was 6.8 M (3.7% increased annually)
82.5% were under vulnerable employment
58.8% were illiterate and below primary education (71.6%, 1998)
Out-of-school children in 2010 was 15%, dropped from 18.7% in 2005

6. Labour force (as addressed in NSPS)
Low education resulted in difficulties to get employment opportunity
Mismatching between education and demand of labour market
82.5% were under vulnerable employment
58.8% were illiterate and below primary education (71.6%, 1998)
Out-of-school children in 2010 was 15%, dropped from 18.7% in 2005

7. Labour force (as addressed in NSPS)
Low education resulted in difficulties to get employment opportunity
Mismatching between education and demand of labour market
Work productivity
Employment
Competitiveness
Better condition
Increased wage

8. Labour force (as addressed in NSPS)
Low education resulted in difficulties to get employment opportunity
Mismatching between education and demand of labour market
Linking social protection
to employment generation policy
Work productivity
Employment
Competitiveness
Better condition
Increased wage

9. Labour force (as addressed in NSPS)
Low education resulted in difficulties to get employment opportunity
Mismatching between education and demand of labour market
How?
Work productivity
Employment
Competitiveness
Better condition
Increased wage

10. National Social Protection Strategy

11. Social protection social protection is not just
A major lesson from the recent economic crisis was the need to secure resilience against exogenous shocks.
It also means access to merit goods, and the need to secure livelihoods against unpredictable shocks.
social protection is not just
about social safety nets, compensating the losers from jobless, exclusive growth processes.
an intermediate step in a journey towards a welfare State (< 1% of GDP)

12. GnþraKmn_karKaMBarsgÁm
NSPS (Objectives)
vis½yGaTiPaB
GnþraKmn_karKaMBarsgÁm
tRmUvkarkñúg eRKaHGasnñ
karEckes,ógeBlmanmhnþrayFmµCati karEckTunnigsmÖar³ksikmµ
karGPivDÆn_ mnusS
kar]btßmÖsac;R)ak; karpþl;GaharenAsalaeron rbbes,ógykmkpÞH kmµviFIGaharUbkrN_
sniþsuxes,óg nignikmµPaB
kmµviFIsMNg;saFarN³ ¬es,ógnigR)ak;Blkmµ¦ kardaMéRB kmµviFIksirukçkmµ karbNþúHbNþalviC¢aCIv³
karKaMBar suxPaB
mUlniFismFm’ nigkarFanar:ab;rgsuxPaBenAshKmn_
Cngayrg eRKaHBiess
esvakmµsuxmalPaBsgÁm karEfTaMCncas;Cra

13. Integrated approach (Guiding principles)
HEF
NSPS
Child
Delivery
Scaling-up
Piloting
Food aid
Climate
Employment
Backbone strategy
2009
2011
2015

14. Conclusion: Social Contract

15. NSPS (Gradual process)
Expanded social protection
Civil servants
Formal sector workers
Near poor
Poor
SVG
Social Insurance (Contributory)
Pension
Health insurance
NSSF, NSSFC, SHP
Community-based health insurance
Existing programs
NSPS (Non-Contributory)
Basic needs in emergency and crisis
Poverty of Children & mothers and human dev.
Seasonal unemployment and food insecurity
Affordable health care
SP for special vulnerable groups
Poverty and vulnerability
Legal framework
Basic
social protection

16. NSPS (Gradual process)
Estimated numbers (not to be cited) 1. Flood affected : 1.5 M 2. Pregnant women : 0.1 M Children : 1.7 M 3. Working age : 2.0 M 4. Health care : 4.0 M 5. Special group : Elderly (0.2 M) Disable (0.1 M) Ethnic (0.1 M)
Civil servants
Formal sector workers
Near poor
Poor
SVG
Social Insurance (Contributory)
Pension
Health insurance
NSSF, NSSFC, SHP
Community-based health insurance
Existing programs
NSPS (Non-Contributory)
Basic needs in emergency and crisis
Poverty of Children & mothers and human dev.
Seasonal unemployment and food insecurity
Affordable health care
SP for special vulnerable groups
Poverty and vulnerability
Legal framework

17. NSPS (Gradual process)
Estimated numbers (not to be cited) 1. Flood affected : 1.5 M 2. Pregnant women : 0.1 M Children : 1.7 M 3. Working age : 2.0 M 4. Health care : 4.0 M 5. Special group : Elderly (0.2 M) Disable (0.1 M) Ethnic (0.1 M)
Civil servants
Formal sector workers
Near poor
Poor
SVG
Social Insurance (Contributory)
Pension
Health insurance
NSSF, NSSFC, SHP
Community-based health insurance
Existing programs
NSPS (Non-Contributory)
Basic needs in emergency and crisis
Poverty of Children & mothers and human dev.
Seasonal unemployment and food insecurity
Affordable health care
SP for special vulnerable groups
Poverty and vulnerability
Legal framework

18. NSPS (Gradual process)
Social contract
The poor unite (targeted) to acquire social transfer
Intervention begins at early stage (ECD)
SP for human capital development thus productive working age
The move from NSPS to expanded SS
Civil servants
Formal sector workers
Near poor
Poor
SVG
Social Insurance (Contributory)
Pension
Health insurance
NSSF, NSSFC, SHP
Community-based health insurance
Estimated numbers (not to be cited) 2. Pregnant women : 0.1 M Children : 1.7 M 3. Working age : 2.0 M
Existing programs
NSPS (Non-Contributory)
Basic needs in emergency and crisis
Poverty of Children & mothers and human dev.
Seasonal unemployment and food insecurity
Affordable health care
SP for special vulnerable groups
Poverty and vulnerability
Legal framework

19. THANK YOU FOR YOUR ATTENTION !

20. LOOKING EAST…AND SOUTH
Emerging Asian economies (China and India), offer attractive markets and sources of technology and expertise
Thus far, the regional dynamic has not succeeded in providing any significant growth impetus to Cambodia.
international production networks based on the twin processes of fragmentation and agglomeration have taken roots across a diverse range of goods extending from cars to footwear, particularly in Asia.
Cambodia’s participation in regional supply chains would, require a range of business facilitation services, logistic services and access to modern information technologies.

21. LOOKING EAST…AND SOUTH
The first decade of the twenty first century has been marked by a widening of the scope for South South Co-operation and Policy Dialogue.
The actual possibilities for breaking the shackles of donor-receiver dependency are today much broader than in the recent past.
Fast developers in contemporary times are not those that followed the so called “Washington Consensus” but those that were able to take ownership of their development challenges and find solutions.

22. LOOKING EAST…AND SOUTH
Cambodia can forge new partnerships to build its resilience.
The success, including in Cambodia, of the India Brazil South Africa fundis a signal to development partners that co-operation is as much about innovative ideas as about “”money changing hands””.
Cambodian partnerships with a range of emerging economies will reduced dependence on one size fits all conditionalities and an obsession with the annual measurement of results by non resident experts.

23. LOOKING EAST…AND SOUTH
Solutions to today’s development challenges are more likely to be found among those that have developed recently than those that went through their development phase over a century ago.
Many new technologies have also emerged that allow today’s developing countries to leapfrog from the 19th to the 21st century, instead of being forced to use hand me down notions of “”best practice. ””
There are immense possibilities for Cambodia to take advantage of these opportunities in areas like transport infrastructure, electricity generation and distribution, social policy, and participatory rural development
This is also not a one way transfer. There is a lot that Cambodia has to offer in its development experience that would be welcomed by other economies in the South,

24. Private Sector, Contractors Vocational Training Centre
Integrated approach
Commune council
Updating ID-Poor, targeted group
Informing available service
District council
Sending the application
Advising the appropriate skill
Private Sector, Contractors
Vocational Training Centre
Vocational training centre
Training provision
Skill on infrastructure development
Contractor
PWP implementation
Labour-intensive programme
District council
Commune council

25. Integrated approach
Provide a coherent framework for the implementation of the NSPS (towards integration of scattered interventions)
Develop synergies between the components of the NSPS, reduce costs (share administrative tasks: registration, vulnerability assessment, skills assessment, M&E …)
Facilitate establishment of a M&E system (registration –> monitoring of memberships, utilization rates, payments, implementation of each program –> evaluation of the programs’ impact)
Increase access to information for beneficiaries and facilitate administrative procedures for them

26. Integrated approach

27. Integrated approach
Most sectors have been quite dynamic at creating jobs, except for agriculture, where the number of jobs has slightly decreased
This pattern stems from a structural change in Cambodia’s growth paradigm and is likely to persist in the near to medium term

28. Diversification
The structural challenge for Cambodia is to reduce its dependence on a few high performing sectors.
Garments (70% of total exports and 80% of manufactured exports) is one of the slowest growing sectors globally
Cambodia is potentially competitive in several other areas (footwear, agro processing, and light engineering..) 
Successful diversification will require investments in Human capital and in infrastructure.
Attention is needed on strengthening regulatory frameworks and improving institutional arrangements

29. Domestic market
General view: Cambodia’s domestic market is too small to act as an engine of growth.
But SMEs form the core of Cambodia’s economy (scale and capacity to address local demand)
It provides an incremental source of growth and a further cushion against open economy vulnerability.
Labor intensive
Easy to set up and expand.
Able to focus on smaller markets
Lower start -up costs.