Transcript PowerPoint Presentation - Slide 1

Social Protection approaches in
Asia/Pacific
Bangkok, June 2012
Two pronged approach
Context: Social Protection Floor
Focus: Age and security
Two strategies:
•
•
Social pensions
Older People’s Associations
World Bank model
A universal pension: the
foundation to a pensions system
An alternative: a ‘pensions test’
impact on poverty rates of older
people: Brazil rural pension
Reaches 92% of those over-65
Investment in children
• Nutrition:
 Pensions associated with a 5 cm increase in
height among children in South Africa
•
Education:
 South Africa pension led to 8% increase in
enrolment among poorest 20%
 Similar impact in Brazil among girls aged 12-14
•
Health:
 In Lesotho, 8% spent on health of both older
person and family members, especially children
 Better nutrition will lead to better health
Affordability and sustainability
Input
Costing
Affordabili
ty
Sustainabi
lity
Impact
•Data sets
•Statistics
•Census
•
Household
surveys
•Benefit
value
(amount)
•Coverage
• Universal
•Targeted
•Transaction
costs
• Revenue/
expenditur
e budget
•Cost trends
• Poverty
headcount
•Budget
trends
•Poverty
gap
•Household
poverty
• older
people
health
Construct
costing
scenarios
for the base
year
Construct
affordability
scenarios
for the base
year
•GDP
•GDP trends
• Potential
revenue
Construct
sustainabilit
y scenarios
over time
How does impact
relate to the
objectives
Construct
impact
forecasts
Costing universal pensions
• Two Key variables
 Age of eligibility: The age at which people
become entitled to the pension; the higher the
age, the less people are eligible, and the lower
the overall cost of the scheme.
 Size of grant: The cash amount provided to
beneficiaries; the lower the size of the grant,
the lower the overall cost of the scheme.
 Administration of Scheme: For universal around
5% in addition, for means tested ranges
between around 10% for a simple test and 25%
for intensive targeting
Social protection demand side
Thank you