Transcript PowerPoint Presentation - Slide 1 - International Council on Social

Social Cash Transfer as a Tool for
Social Protection
Eduardo Klien
HelpAge International
Social Protection Floor Initiative
Hong Kong, June 2010
Outline
• Why are Social Cash Transfers (SCT) important?
• Indications of impact
• What triggers decision-makers in adapting SCT?
Why are they important in
the scope of the SPF-I?
• Social fairness
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Inequalities create instability
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China’s commitment to social harmony implies redistribution of wealth. SCT is a way
Economic reasoning
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Direct contribution to growth and development of local markets
•
Healthier and more educated workforce
• Political common-sense
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Design of schemes needs to consider political support
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Universal approaches gain more support and are less vulnerable to corruption
Evidence of measurable
improvement
• Education
- Enrolment & attendance duration in Mexico, Brazil,
Nicaragua, Zambia, Bangladesh
• Health & Nutrition
- Increase in height, weight and improvement in
nutrition in Colombia, Chile, Malawi, South Africa
Evidence in poverty reduction
South Africa Social Transfers
Source: UNDESA, 2009
One type of SCT: Social Pensions
• The challenge of ageing
• 350 million older people lack income security
• In Asia only 1 out of 5 reach old age with
some formal pension
Trends in Ageing
Dynamic pyramids, change every 5 years
Japan
Bangladesh
South Africa
Ageing
• 700 billion by 2050 in Asia (50% of total)
• Growth of older old
- 1 out of 2 Japanese born today will live up to 100 years
• Feminisation of old age
- 67 men for every 100 women in developing countries
• Poverty in old age
- Generally larger proportion than non-olds. More vulnerable
How are Social Pensions distributed?
Brazil
Food
Health
Utilities & Fuel
Other household
Gifts & savings
Transport
Source: UNDESA, 2009
How are Social Pensions distributed?
Zambia
Food
Animals
Source: UNDESA, 2009
Clothes
Agriculture
School
Other
Are Social Pensions affordable?
• Nepal – less than 1% of GDP
• Vietnam – 0.12% of GDP
• Thailand – 0.5% of GDP
• Zambia – Pilot in Kolomo – if expanded it
would cost 0.5% GNI
Key determinant
Political will
Political will
Political will
Political will
Social Pensions in the last 3 years
(In Asia)
• Philippines – Approval of a means-tested
pension scheme for 1.7 million
• Vietnam – Reduction of age of entry to
80 years and increase in the amount (200%) –
Decree 67
• Nepal – Reduction of age of entry from 75 to
70 years and increase in amount
• Thailand – Increase in coverage from 1.8 to
5.4 million older people
What triggers decision-makers?
Governments are the decision-makers
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Motivations vary:
• Understanding of social pensions as a tool for development
• Political pressure depending on contexts
• political opportunity
• Commitment to fairness
It helps:
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Research on specific contexts
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Building capacities
• Targeted processes, mainly at government levels
• Necessary involvement of Ministries of Finance, Planning and Social welfare.
• Not prescriptive training but building and understanding of options mechanisms
Involving civil society
• As a force to support and influence
• Cannot work isolated from governments
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Evidence of positive impact helps decision making
Building scenarios of affordability through microsimulation can dissipate fears of insolvency
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Voice of rights, depending on contexts
Use of the media
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To expand social acceptance and social pressure
To share experiences form elsewhere
To provide a voice form the demand side
Building Alliances
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Networks, academics, sectors within government, political parties
Thank You