Transcript Challenges for extending social protection in ASEAN

Challenges in ASEAN: social
protection situation
Valerie Schmitt
Hands-on Training, Oct 2013
Designing and implementing
unemployment benefits
Agenda
• Examples of social protection extension in
Asia
• Challenges in social protection & the guiding
principles of ILO’s SPF recommendation
• The guiding principles in practice
Universal access to
health care in Thailand
Level of
protection
CSMBS
6.7%
pop
Universal Coverage Scheme (UCS) – 75.1% population
CMHI since 2009 (880,000 insured)
Poor
Rest of informal sector
SSF sect.33
and 39
15.5% pop
Formal sector
Quasi 100% Coverage
(issues: large number of undocumented migrant workers are not covered by the
Compulsory Migrant Health Insurance (CMHI) due to problems of affordability)
Cash transfers &
scholarships for poor
children in Indonesia
Level of
protection
PKH and PKSA - 1.5
million very poor
households in 2012
Scholarship for the
poor – 6.3 million
students in 2012
BOS program – Free education – 44.7 million students in 2012 (grade 1 to 9)
Poor
Rest of informal sector
Formal sector
Limitations: The PKH program should be expanded to cover at least all
poor households (instead of only very poor); lack of health and
education supply may curb the impact of the program.
Coverage <
1% of the
working force
122 million with Job Card
(been enrolled at least once)
Yet the majority with no protection –
huge portion of working poor
PEP (100 days/year) = NREGA
Poor
Rest of informal sector
Unemployment insurance
Income security and
public employment programme for the
Level of
protection
working age in India
Formal sector
Extension of social
insurance to informal
economy workers in
Thailand
Social security Act, Section 40
Package 1: 70 baht / 30 baht
Death, Work injury, Sickness
Level of
protection
SSF
section 40
SSF
sect.33
and 39
15.5%
pop
CS
6.7%
pop
Universal disability allowance of 500 baht/month
Poor
Rest of informal sector
Formal sector
With the introduction of subsidies, coverage has increased from 68 persons to
1.3 million in 18 months. However the target population = 24 million informal
economy workers. Also only 50% pay contributions regularly.
Income security for
the elderly (>60 years)
in Thailand
Universal old age allowance
60-69: 600 baht
Poor
Level of
protection
Social security Act, Section 40
Package 2: 100 baht / 50 baht
Death, Work injury, Sickness
& Old age lump sum
SSF
section 40
70-79: 700 baht
80-89: 800 baht
SSF
section
33 & 39
Pension
for
CS
>90: 1000 baht
Rest of informal sector
Formal sector
Income security for the
elderly in Viet Nam
Level of
protection
Voluntary
insurance
under
government
regulation
Social pension
(180,000
VND/month)
5 millions don’t receive any pension
1,300,000 social assistance +80
100,000 social assistance 60-80
Problems with
the vertical
dimension: weak
protection to
formal workers
1,000,000 pensioners
100,000 voluntary
participants
Agenda
• Examples of social protection extension in Asia
• Challenges in social protection & the guiding
principles of ILO’s SPF recommendation
• The guiding principles in practice
Challenges in SPF implementation
Legal framework
Mandatory social
insurance
Institutions
Provisions in 1 or 2
Ministry of Labour
Laws (aligned with labour code) Ministry of Health
Thailand: SSAct, WCAct
Social security
for informal
sector (voluntary
insurance, social
assistance)
Multiple laws &
decrees (social welfare,
health, employment, social
security)
Thailand: SSA, Nat Health Sec
Fund, Qty of life, National
Savings Decentralization Acts
Lack of coherence
Multiple ministries
(health, rural devlt, labour,
SW, interior, finance,
education, antipoverty
programmes…)
Thailand: 3 old age pension
(MOL, MOF, MOI/MSDHS)
Fragmentation
Guiding principles R202
Legal framework
Institutions
Mandatory social
insurance
Provisions in 1 or 2
Ministry of Labour
Laws (aligned with labour code) Ministry of Health
Social security
for informal
sector (voluntary
Multiple laws &
decrees (social welfare,
insurance, social
assistance)
Guiding
principles R202
Multiple ministries
health, employment, social
security)
(health, rural devlt, labour,
SW, interior, finance,
education, antipoverty
programmes…)
Coherence with social,
economic and employment
policies
Coherence across institutions responsible for delivery
of social protection
Challenges in SPF implementation
Financing &
sustainability
Governance &
representation
Mandatory social
insurance
Bi/Tripartite
Actuarial studies
Tripartite board
Complaint/appeals
Social security
for informal
sector (voluntary
Relying mainly on govt
budget; no M&E
Persons of concerns
not represented
No information on
entitlements
insurance, social
assistance)
Thailand: no consolidated DB
(MSDHS, MOI)
Affordability,
Fiscal space, M&E
Political risk
“Social control”
Guiding principles R202
Financing &
sustainability
Governance &
representation
Mandatory social
insurance
Bi/Tripartite
Actuarial studies
Tripartite board
Complaint/appeals
Social security
for informal
sector (voluntary
Relying mainly on govt
budget; no M&E
Persons of concerns
not represented
No information on
entitlements
insurance, social
assistance)
Guiding
principles R202
Thailand: no consolidated DB
(MSDHS, MOI)
Financial, fiscal and economic
sustainability
Regular monitoring and
periodic evaluation
Tripartite participation
Efficient and accessible
complaints & appeal
procedures
Challenges in SPF implementation
Coverage
Benefits
Mandatory social
insurance
Mandatory affiliation
Related to the
contribution rate
Social security
for informal
sector (voluntary
Often ad hoc (no NID,
insurance, social
assistance)
(enforcement problems)
targeting philosophy)
No unified identification/
targeting system -> confusion
No consolidated DB
Coverage gaps
Minimum in most
cases; predictability;
quality of services
“On demand”;
quality/availability HC
Limited income
security & quality
Guiding principles R202
Coverage
Benefits
Mandatory social
insurance
Mandatory affiliation
Related to the
contribution rate
Social security
for informal
sector (voluntary
Often ad hoc (no NID,
(enforcement problems)
targeting philosophy)
Minimum in most
cases; predictability;
quality of services
insurance, social
assistance)
Guiding
principles R202
Universality of protection
Entitlement to benefits
prescribed by Law
Adequacy & predictability
High quality public services
Agenda
• Examples of social protection extension in Asia
• Challenges in social protection & the guiding
principles of ILO’s SPF recommendation
• The guiding principles in practice
The guiding principles in practice
Coherent strategy
• National consensus building on priorities (ex Assessment Based
National Dialogue)
• Leading to national social protection strategies (Cambodia,
Mongolia, Lao PDR, Myanmar)
The guiding principles in practice
Coherence across institutions
• Coordinating agencies (ex CARD, NESDB, Vice President)
• Coordinated delivery (ex Single Window)
The guiding principles in practice
Coordinated technical assistance
• Taskforces and teams: IWG in Cambodia, UN/RTG in Thailand, UNPDF
in Indonesia … in the framework of UNDAFs
• Support to UNCTs through UNDG-AP issues briefs on SP
The guiding principles in practice
Financial, fiscal and economic sustainability
• Baseline surveys of the social protection
situation
• Shared vision (national SPF, recommendations)
based on social dialogue
• Affordable scenarios
The guiding principles in practice
Financial, fiscal and economic sustainability
Cambodia; 0.4 – 2.4% GDP by 2020
Indonesia; 0.7 to 2.4% GDP by 2020
Thailand; 0.5 – 1.2% GDP by 2020
Viet Nam; 2% to 6% GDP by 2020
The guiding principles in practice
Regular monitoring and periodic evaluation
• Various targeting methods (means tested, area based…) using
a mix of scientific and community based mechanisms
• Need to build information systems to gather and update
information (ex: TNP2K Indonesia)
• Impact evaluation of interventions
CHILDREN 3-5 IN
PRE-SCHOOL
• Role of decentralized “entry
points” (SWS, PEOPLE service)
for the updating of data
NO LATRINES
DRINKING
WATER GOOD
PRACTICE
HIV/AIDS RATIO
CHILDREN 6-14
OUT OF SCHOOL
DOMESTIC
VIOLENCE RATIO
DELIVERY BY
MIDWIFE
The guiding principles in practice
Coverage & benefit package
• Priority given to the poor by many governments
• Benefit packages remain low at the beginning but increase
gradually (ex: Indonesia VS Thailand)
• Combined benefit
packages & case
management
• No leverage on
quality/availability
of public services
The guiding principles in practice
Voice of persons of concern
• SSDM Cambodia:
participation
through
committees
• How to involve
workers &
employers rep.?
• Ombudsman
• Information/
awareness raising
through
decentralized
structures
The guiding principles in practice
Entitlements to benefits
• Education and awareness raising through PSAs, Education tools,
Radio drama, civil society networks, workers organizations …
PSA “Why is social protection
important to me?”
http://www.youtube.com/watch?f
eature=player_embedded&v=ZB4
0vKO5xSs
Education tool on SPF targeting
children 10-12 years old
http://earth.thebigdot.com/ILO_fi
nal/
Final words
• Implementing national SPFs is challenging
• R202 provides guiding principles…
… that need to be translated into action
• Be creative!