What, why, for whom, how? Social protection objectives and policy design ‘Social Protection Framework for GMS Cooperation’ – ADB GMS PPP LEARNING PROGRAM

What, why, for whom, how? Social protection objectives and policy design Social Protection Framework for GMS Cooperation ADB GMS PPP LEARNING PROGRAM 2013 Asia Development Institute (ADI) Graduate School of Public Administration, Seoul National University Seoul, 7-12 July 2013 Gabriele Khler, development economist, Munich 8 July 2013 1

Narrative I) Some definitions 1.The interest in social protection 2.Types of social protection: social security, social assistance, active labour market policies, micro-based credit programmes, child protection II) Reasons for social protection 1.Social protection as a right 2.Social protection to address hunger, poverty, exclusion and vulnerabilities III) Designs of social protection 1.Social protection systems 2.Financing 3.Policy construction IV) Outlook: Ideal social protection 2

Guiding Questions 1)Please enumerate (in bullet points) the national development strategies and policies for social protection of your country (both current and future). 2)What are the issues and constraints related to the effective functioning of the social protection system? 3)What are the strengths and weaknesses of the current social protection system related to institutional arrangements, financing, coverage, and the instruments and approaches used? 4)Are there plans for reforms or expansions of the current social protection system? 5)Would your country social protection system include protection of migrant workers? 3

I. Some definitions 4

Social protection classification Social security Social assistanceParticular situations Social security proper Poverty allevia- tion Access to health services Access to education Access to decent work Creation of assets Political conflict Natural disaster Social exclusion 10

Social protection classification Social security Social assistanceParticular situations Social security proper Poverty allevia- tion Access to health services Access to education Access to decent work Creation of assets Political conflict Natural disaster Social exclusion Capacity building Human development empowerment 11

Conditional Cash Transfers in Latin America ArgentinaPrograma Familias BoliviaBeca Futuro BrazilBolsa Familia, Bolsa Escola ChileChile Solidario ColombiaFamilias en Accion Program Costa RicaPrograma Superemonos EcuadorBono de Desarrollo Humano El SalvadorRed Solidaria HondurasPrograma de Asignacion Familiar MexicoOportunidades NicaraguaRed de Proteccion Social 12

Unconditional Cash Transfers in Sub-Saharan Africa 13

Variety of Cash Transfers in Asia and the Pacific BangladeshEmployment scheme CambodiaNational Social Protection Strategy ChinaDibao (minimum income guarantee) IndiaNREGA; social pensions IndonesiaJamkesmas, Jampersal, PKH, Rice for the poor, PNPM Korea (Republic of)Targeted social protection transfers for vulnerable people Lao PDRCurrently being developed MongoliaUniversal child benefit 14

Variety of Cash Transfers in Asia and the Pacific MyanmarNational strategy currently being developed NepalEducation grants; employment scheme; social pension PakistanBenazir Income Support Programme Sri LankaSamurdhi programme ThailandUniversal health coverage scheme, minimum pension scheme VietnamSocial assistance to poor households and poor children: Conditional cash transfer focusing on disadvantaged communities (under consideration) 15

Keys examples in Asia and Pacific Employment-based targeted schemes: India, Bangladesh, Pakistan, Solomon Islands Conditional Cash Transfers: Philippines, Indonesia Universal health systems: Thailand, China, Philippines Universal pension schemes: Nepal Child benefit targeted: India, Nepal

Food-related measures Social Assistance Public works Affirmative action Human rights Cooked school meals (IND) Subsidized PDS (IND, NPL, BGD) Subsidized grain prices Universal old age pension (NPL) Benazir Income Support Program (PAK) Child benefit (NPL) Unorganized sector health insurance (IND) National Rural Employment Guarantee (IND) Employment Generation Programme for the Poorest (BGD) Karnali Programme; Employment Guarantee Act (NPL) Employment generation for rural unskilled workers (PAK) Secondary school stipend for girls (BGD) Education for all (NPL) Child grants for girls (IND) Rural development and community based interventions (IND) Right to food/National Food Security Act (IND) Mid-day meal (IND) Right to education (all) Right to health services (all) Right to work (IND) Right to information (IND, BGD, NPL) Social protection example South Asia Social protection example South Asia

II) Reasons for social protection

Right to Social Protection Universal Declaration of Human Rights (1948): Article 22: Everyone, as a member of society, has the right to social security. International Covenant on Economic, Social and Cultural Rights (1966): Article 9: The States Parties to the present Covenant recognize the right of everyone to social security, including social insurance. 19

Right to Social Protection Convention on the Eradication of All Forms of Discrimination against Women (CEDAW) (1979): Articles 11(e), 13(a), 14(c) The right to social security, particularly in cases of retirement, unemployment, sickness, invalidity and old age and other incapacity to work, as well as the right to paid leave; The right to family benefits; Taking into account the particular problems faced by rural women and the significant roles which rural women play in the economic survival of their families (c) To benefit directly from social security programmes. The Convention on the Rights of the Child (CRC) (1989): Article 26: For every child the right to benefit from social security, including social insurance, and necessary measures to achieve the full realization of this right in accordance with national law. Convention on the Rights of Persons with Disabilities (CRPD) (2006): Article 28(b) To ensure access by persons with disabilities, in particular women and girls with disabilities and older persons with disabilities, to social protection programmes and poverty reduction programmes. 20

Right to Social Protection ILO Convention C102: Social Security (Minimum Standards) Convention, 1952 Outlines rights to benefits for residents of a country: accident, illness, unemployment, maternity, old age ILO Recommendation R202: Social Protection Floor 2012 Four income guarantees: children, poor, elderly, health 21

ILOs two-dimensional strategy for the extension of social security: Building comprehensive social security systems 22 individual/household income Social Protection Floor: Access to essential health care and basic income security for all Social security benefits of guaranteed levels Voluntary insurance under government regulation level of protection high low Horizontal dimension: Guaranteeing access to essential health care and minimum income security for all, guided by Recommendation No. 202 Vertical dimension: progressively ensuring higher levels of protection, guided by Convention No.102 and more advanced standards floor level Outcomes can be guaranteed through different means there is no one-size-fits-all extension strategy Social Protection Floor Recommendation, adopted at ILC 2012

Asia-Pacific: people deprived Source: Asia-Pacific Regional MDG report 2011/12 (ESCAP/ADB/UNDP)

Unequal progress in Asia-Pacific Source: Asia-Pacific Regional MDG report 2011/12 (ESCAP/ADB/UNDP)

Food inequalities

Causes of under-five deaths in 2008

Income poverty Absolute number and share of extremely poor people has declined since 1990 globally But: number of extremely poor increased in Africa and South Asia $1.25 per personday income poverty measure Number of poor and vulnerable people under $1.25: 1.2 billion persons globally Under $2: 2.5 billion persons globally

The Great Recession 29

Working Children Ages 5-11 & 5-14 in percent of age cohort

Working poverty

Disasters and conflict

Income/economic class Ethnicity Religion Language Caste/clan Age Widowhood, orphan-hood Geographic location/urban versus rural Citizenship and migration status Health condition/communicable/visible diseases Ability/disability Menstruation Sexual orientation Recurrent emergency situations Conflict situation Looks Social exclusions manifest in every society GENDER

III. Systems Most countries have social assistance programmes Some are large Most are fragmented Most are separated from social insurance Need to build a system of social protection 35

Low coverage rates: Old age pension coverage 36

Low coverage rates: unemployment protection Old age pension coverage 37

Systems approaches CountryNameFeatures & functions BrazilSistema Unico de Assistencia Social (SUAS) Covers social assistance. Federation of various levels and programmes Coordination with finance. Participatory model via periodic conferences and representatives Cambodia National Social Protection System Covers social assistance, health insurance, employment schemes 5 ministries (social affairs, health, education, labour and vocational training, rural development). Coordinates policies Supervises social protection and pubic employment schemes, as well as health insurance, education grants etc Monitors NSPS (based on DB) ChinaComplex system2 minimum living standard guarantee schemes (urban and rural residents below the locally-defined income threshold); 3 health insurance programmes (urban working population; rural; economically inactive populations). New rural pension system. IndonesiaComplex system, with Medium Term National Plan (2010-2014) as overarching commitment PT Jamsostek: employment-related insurance for informal sector workers; Program Nasional Pemberdayaan Masyarakat (PNPM) A community empowerment programme in poor districts and sub-districts; Bantuan Operasional Sekolah (BOS) Programme: block grants to schools MexicoVivir MejorCoordinates Oportunidades, conditional cash transfer for poor families; 70 y Mas social pension scheme for the elderly; and the Seguro Popular health insurance scheme for previously uninsured families South AfricaSouth African Social Security Agency 3-pillar approach to social security: non-contributory (tax-financed), contributory and private voluntary pillars. 1st pillar: Old age grant (to citizens aged 60 and older); Disability grant; Care dependency grant; Child support grant (payable to poor households with children) etc. Free Primary Healthcare to pregnant mothers, people with disabilities, pensioners and the indigent. 2 nd pillar includes Unemployment Insurance Fund protecting retrenched workers, including those in the informal economy. Vietnamparty resolution on key social policies 2012-2020. (mainly social protection, replaces draft National Social Protection Strategy) labour market policies, social insurance policies, health-care policies, social welfare/assistance, poverty reduction programmes and access to public social services. Universal health-care coverage by 2014; to provide access to basic social services for all such as education, health care, housing, drinking water, electricity, information, sanitation and legal advice; and to provide a minimum income to those in need 38

39 Program Name BLT Unconditional Cash Transfer (2008-09) Raskin Rice for the Poor Jamkesmas Health Protection BSM Scholarship for the Poor PKH Conditional Cash Transfer Transfer Type Cash Subsidized Rice Health service fees waived Cash Cash & Conditions Target group (HHs) Poor & near poor HHs Students from poor HHs Very poor HHs Number of beneficiari es 18.7 Mn HHs 17.5 Mn HHs 18.2 Mn HHs 8 Mn Students 1.5 Mn HHs Benefit level IDR 100,000 per month 15 kg rice per month Unlimited IDR 480,000 per year IDR 1,287,000 per year Key executing agency Ministry of Social Affairs (MoSA) Bureau of Logistics (BULOG) Ministry of Health (MoH) MoNE & MoRA MoSA Indonesia: family-based social assistance programmes

o To raise the average consumption rate in food expenditure of poor households o To increase the enrollment in and attendance rate of children in school o To improve preventive health care among pregnant women and young children o To reduce the incidence of child labor o To encourage parents to invest in their childrens (and their own) human capital through investments in their health and nutrition, education, and participation in community activities Philippines: objectives of the conditional cash transfer Geographical Targeting Household Assessment (Enumeration) Selection of Poor Beneficiaries using Proxy Means Test Eligibility Check Selection Procedures of Target Households 40

System building: design components Universal for some types of social assistance (pensions, child grants) Targeted for other types by income levels, identity groups, disadvantaged regions Conditional on behaviours Unconditional 41

42 The National Targeting System identifies and chooses beneficiaries (households, individuals, etc.) of targeted poverty reduction or social protection programs. Indonesia: national targeting system Past system: each program has its own list of targeting system Now gradually moves into unified targeting system Minimizing inclusion & exclusion errors PoorNot-Poor Beneficiary of Programs Non-beneficiary of Programs

Financing actuarial calculations of population trends trends for beneficiary entitlements over time estimating the required budget, revenue collection negotiating fiscal space to reliably fund social protection over the long term 43

Financing 44

Annual costs of social protection programmes middle income countries 46

Social protection expenditures in % of GDP, 75 low-income countries 47

Vietnam example: developing a social protection floor

System building: social protection policy construction Define policy principles and objectives build coalitions or a social compact agree on bottom-up or top-down approach create and adopt the necessary legislation recognise and seize policy moments 49

Social protection policy construction 50

IV. Outlook IDEAL SOCIAL PROTECTION 51

Rights 7 th ASEAN GO-NGO FORUM FOR SOCIAL WELFARE AND DEVELOPMENT Everyone, especially vulnerable, entitled to equal access to social protection covering essential services; Access to social protection a human right to be promoted, protected and fulfilled; Universality of protection based on social solidarity, non- discrimination, accessibility, gender equality, social inclusiveness, coherence, accountability, collective financing and risk pooling; Implementation of SPF is part of national strategies towards higher level of protection; Investment in people to empower them and adjust to changes in the economy and labour markets; Cross-cutting issue, needs coordinated and holistic approaches; Family unit is an important element in support to the vulnerable; Governments, communities, civil society, private sector and social partners - key stakeholders; Inclusive, participatory and rights-based approach in planning, programming and budgeting, implementation, M&E. 52

MDGs 2002-2015

SDGs/MDGs beyond 2015: five transformative shifts 1. Leave no one behind. 2. Put sustainable development at the core. 3. Transform economies for jobs and inclusive growth. 4. Build peace and effective, open and accountable institutions for all. 5. From vision to action. 55

IDEAL SOCIAL PROTECTION Rights based - Universal right/universal coverage Citizenship- or residents-based Coherence with other policy areas Accompanied by supply side measures (social services, health and education) Accompanied by decent work policy & action Addresses crises, chronic poverty, vulnerabilities, inequalities, social exclusion Well-targeted and publicised entitlements and special efforts to reach disadvantaged households/communities Sustainable, predictable, meaningful benefit levels Affordable and long-term sustainability Tax financed, linking social protection reform and tax reform Empowerment: guaranteeing space for civil society and public action Built on notion of social solidarity Advanced IT Monitoring & evaluation systems Transparency and right to information Accountability and complaint and appeals mechanisms Systemic uniting fragmented programmes systems Legally binding 56

Resources ADB Blog on social protection. http://blogs.adb.org/author/social-protection-team ADB 2001. Social protection in Asia and the Pacific. Isabel Ortiz, editor. Manila ADB 2008. Social protection index for committed poverty reduction. Manila. ASEAN 2012. RECOMMENDATIONS. THE SEVENTH ASEAN GO-NGO FORUM FOR SOCIAL WELFARE AND DEVELOPMENT Promoting Social Services and Social Protection for Vulnerable Groups. 12 September 2012, Ha Noi, Viet Nam. www.socialsecurityextension.org/gimi/gess/RessFileDownload.do Bachelet Michelle 2011. Social protection floor for a fair and inclusive globalization. Report of the Advisory Group. ILO 2011. http://www.ilo.org/global/about-the- ilo/press-and-media-centre/news/WCMS_166292/lang--en/index.htm Barrientos, Armando, Miguel Nino-Zarazu and Mathilde Maitrot Brooks 2010. Social Assistance in Developing Countries Database. Version 5.0 July 2010. World Poverty Institute. The University of Manchester. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1672090 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1672090 Centre for Social Protection 2013. Talking Point on Systems of Social Protection, CSP Newsletter 23, February 2013, IDS. By Gabriele Khler. http://www.ids.ac.uk/files/dmfile/CSPNewsletter23formattedFinal2.pdf.http://www.ids.ac.uk/files/dmfile/CSPNewsletter23formattedFinal2.pdf ESCAP, 2011. The promise of protection. Social Protection and development in Asia and the Pacific. Bangkok Sri Wening Handayan 2010. ENHANCING SOCIAL PROTECTION IN ASIA AND THE PACIFIC. THE PROCEEDINGS OF THE REGIONAL WORKSHOP. Asian Development Bank: Manila Hickey, Sam 2008. Conceptualising the politics of social protection in Africa. In A. Barrientos & D. Hulme (Eds.), Social Protection for the Poor and Poorest: Concepts, Policies and Politics. London: Palgrave. Holmes, R. (2008). Child Poverty: a role for cash transfers? 57

Resources contd ILO 2012. Social Protection Floors Recommendation, 2012 (No. 202) http://www.socialprotection.org/gimi/gess/RessShowRessource.do?ressourceId=31088http://www.socialprotection.org/gimi/gess/RessShowRessource.do?ressourceId=31088 ILO 2012. Social protection floors for social justice and a fair globalization. Report IV (1). Geneva ILC.101/IV/http://www.ilo.org/public/english/protection/secsoc/downloads/policy/rapiven.pdf ILO GESS website http://www.social-protection.org/gimi/gess ISSA. International Social Security Association. http://www.issa.int/Observatory/Country-Profileshttp://www.issa.int/Observatory/Country-Profiles Khler, G. Cali M., Stirbu M., Social Protection in South Asia. A Review. UNICEF Regional Office for South Asia. http://www.unicef.org/socialpolicy/files/social_protection_in_south_asia_-_a_review_-_unicef_rosa_2009.pdf Koehler, G. (2013) Social protection: Political reform and policy innovations in South Asia, in K. Bender, M. Kaltenborn and C. Pfleiderer (eds) Social Protection in Developing Countries. Reforming Systems, Abingdon: Routledge, pp. 185-94.K. BenderM. KaltenbornC. Pfleiderer UNICEF, 2012. Integrated Social Protection Systems: Enhancing Equity for Children. UNICEF Social Protection Strategic Framework. http://www.unicef.org/socialprotection/framework/files/Consultation_Report_THEMATIC- External_Consultation_(PHASE_2)-MARCH2012.pdf http://www.unicef.org/socialprotection/framework/files/Consultation_Report_THEMATIC- External_Consultation_(PHASE_2)-MARCH2012.pdf World Bank 2012. Resilience, Opportunity and Equity. The World Banks Social Protection and Labor Strategy 2012 2022. www.worldbank.orgwww.worldbank.org 58

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What, why, for whom, how? Social protection objectives and policy design ‘Social Protection Framework for GMS Cooperation’ – ADB GMS PPP LEARNING PROGRAM