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Policy tools of social protection: How policy can be

conceptualised and designed Social protection training

Asia Development Institute (ADI)Graduate School

of Public Administration Seoul National University

Seoul, 25 February 2013

Gabriele Köhler, development economist

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NarrativePart I: Introduction1. Definitions: social protection- social security – social

assistance2. The case for social protection3. Trends globally and regionally4. Principles, universal and regional

Part II: Challenge: to build a system5. Policies and strategies, design, management, administration6. Financing and costing7. “Policy construction” 8. Social protection systems: a selective overview9. The ideal system

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Part I: Introduction

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Social security versus social assistance

• Most countries of the world have social insurance schemes

• BUT, in most low-income countries, only a small fraction of the population is covered by social insurance.

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The case for social assistance

• majority of the world’s population: livelihoods from agriculture or fisheries, the informal economy, home-based work, (invisible) services

• Enormous economic and social insecurities: vulnerability and risk, food insecurity, chronic and acute income poverty, systematic social exclusion

• Very low social protection coverage rates

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Low coverage rates: Old age pension coverage

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Low coverage rates: unemployment protection

Old age pension coverage

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Social assistance trends

• roughly 50 countries today provide some form of non-contributory social assistance

• covering an estimated 10% of the world population

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Conditional Cash Transfers in Latin AmericaArgentina Programa Familias

Bolivia Beca Futuro

Brazil Bolsa Familia, Bolsa Escola

Chile Chile Solidario

Colombia Familias en Accion Program

Costa Rica Programa Superemonos

Ecuador Bono de Desarrollo Humano

El Salvador Red Solidaria

Honduras Programa de Asignacion Familiar

Mexico Oportunidades

Nicaragua Red de Proteccion Social

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Unconditional Cash Transfers in Sub-Saharan Africa

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Variety of Cash Transfers in Asia and the PacificBangladesh Employment scheme

Cambodia National Social Protection Strategy

China Dibao (minimum income)

India NREGA; social pensions

Indonesia Jamkesmas, Jampersal, PKH, Rice for the poor, PNPM

Korea (Republic of) Targeted social protection transfers for vulnerable people

Lao PDR …

Mongolia Universal child benefit

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Variety of Cash Transfers in Asia and the PacificMyanmar Currently being developed

Nepal Education grants; employment scheme; social pension

Pakistan Benazir Income Support Programme

Sri Lanka Samurdhi programme

Thailand Universal health coverage scheme, minimum pension scheme

Vietnam Social assistance to poor households and poor children: Conditional cash transfer focusing on disadvantaged communities (under consideration)

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Right to Social ProtectionUniversal 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.

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Right to Social ProtectionConvention 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.

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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

ILO’s two-dimensional strategy for the extension of social security:

Building comprehensive social security systems

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individual/household income

Social Protection Floor:Access to essential health care and basic income security for all

Social security benefitsof guaranteed levels

Voluntary insuranceunder government

regulation

level of protection

high

highlow

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

Vietnam example: developing a social protection floor

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ASEAN 2009Socio-cultural community blueprint

• Human development• Social welfare and protection• Social justice and rights• Environmental sustainability• An ASEAN identity• Narrowing the development gap

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Principles7th ASEAN GO-NGO FORUM FOR SOCIAL WELFARE AND DEVELOPMENT

• Everyone, especially those who are vulnerable, entitled to have equal access to social protection covering essential services;

• Access to social protection – a human right that should 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 for the progressive extension of social security towards higher level of protection;

• Investment in people to empower them to meet their basic needs and adjust to changes in the economy and labour markets;

• Cross-cutting issue, hence requires coordinated and holistic approaches; • Family unit is an important element in providing support to the

vulnerable people and should be strengthened and preserved; • Governments, communities, civil society, private sector and social

partners are key stakeholders; • Inclusive, participatory and rights-based approach in planning,

programming and budgeting, implementation, M&E.

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BRICS and the „export“ of social protection

Source: http://www.google.com/imgres?q=BRICS+map&hl=en&client=safari&sa=X&rls=en&biw=1280&bih=611&tbm=isch&prmd=imvns&tbnid=RqNceHxgRU8i9M:&imgrefurl=

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ESCAP and social protection

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Part II: Challenges

• Sometimes large, but generally fragmented social assistance programmes, separated from social insurance

Need to build a system of social protection

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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

TransferType Cash Subsidized

Rice Health

service fees waived

Cash Cash & Conditions

Targetgroup (HHs)

Poor & near poor HHs

Poor & near poor HHs

Poor & near poor HHs

Students from poor

HHsVery 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

Benefitlevel

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

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System building strategies•“top-down”: fostering processes of formalising the economy, so that all citizens move from the informal to the formal economy and become eligible for social insurance•“bottom-up”: universalising social assistance to cover all citizens – or even all residents

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System building strategy

o Defining the objectiveso Conceptualising the policy modelo Design: Laying out eligibilitieso Management: coordination; recording participants

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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 children’s (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

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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

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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

Poor Not-Poor

Beneficiary of Programs

Non-beneficiary of Programs

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System building: management

• define roles and responsibilities of respective governmental ministries and departments that often each administer separate social assistance schemes

• create an overarching coordinative body (Cambodia, Myanmar)

• M&E• Claims and grievance mechanisms• Information access

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System building: administration

• citizens´ registries (India; Indonesia) • “single window” access to social

assistance (Cambodia) • bank transfer modalities (Pakistan)

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System building: 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

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Fiscal diamond

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Annual costs of social protection programmes

– middle income countries

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Social protection expendituresin % of GDP, 75 low-income countries

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2012 2013 2014 2015 2016 2017 2018 2019 20200

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Pension

Disability allowance

Training skill

Sickness benefit

Maternity allowance

Universal Child al-lowance

0.9% GDP

1.6% GDP

Thailand: Social floor costing example

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System building: social protection policy construction

• to define the policy – its overarching principles and objectives

• to build coalitions or a social compact between tax-paying middle and high income groups and those who stand to gain initially from an enhanced and unified social assistance system

• to create and adopt the necessary legislation• to recognise and seize the policy moment

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Social protection policy construction

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Systems approachesCountry Name Features & functions

Brazil Sistema 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 schemes5 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)

China Complex system 2 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.

Indonesia Complex system, withMedium 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

Mexico Vivir Mejor Coordinates 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 Africa South 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.2nd pillar includes Unemployment Insurance Fund – protecting retrenched workers, including those in the informal economy.

Vietnam party 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

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India: RSBY, NREGA

Thailand: UC scheme, minimum pension scheme (500 THB)

Cambodia: NSPS with clear reference to the SPF … including HEFs, CBHIs, Food distribution, PWPs,…

Laos: extension of SHP for all

Vietnam: 10 years Social security strategy

Indonesia: Jamkesmas, Jampersal, PKH, Rice for the poor, PNPM

China: minimum living standard guarantee program; new rural corporative medical care (NRCMC); health insurance for urban uninsured residents (HIUR); rural old-age pension

Philippines: universal health reform

Pathways to social protection systems

Nepal: broad range of transfers

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THE IDEAL SOCIAL PROTECTION SYSTEM 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

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Resources 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-Zarazuand 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

Centre for Social Protection 2013. Talking Point on Systems of Social Protection, CSP Newsletter 23, February 2013, IDS. By Gabriele

Köhler. 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 European Commission 2012. Social Protection in European Union Development Cooperation . COMMUNICATION FROM THE

COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Brussels, 20.8.2012 COM(2012) 446 final

http://ec.europa.eu/europeaid/what/social-protection/documents/com_2012_446_en.pdf 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?

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Resources cont´d ILO 2010. Social Security for All. www.ilo.org

ILO 2010. Extending social security to all. A guide through challenges and options . http://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/---publ/documents/publication/wcms_146616.pdf

ILO 2012. Social Protection Floors Recommendation, 2012 (No. 202) http://www.social-protection.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 Regional Office for Asia and the Pacific. 2012. Single Window Service in Asia and the Pacific. Piloting integrated approaches to implementing Social Protection Floors. http://www.social-protection.org/gimi/gess/RessShowRessource.do?ressourceId=30172

ISSA. International Social Security Association. http://www.issa.int/Observatory/Country-Profiles

UNICEF Myanmar 2012. Social protection: A Call to Action. Conference report. Yangon 2012 World Bank 2012. Resilience, Opportunity and Equity. The World Bank’s Social Protection and Labor Strategy

2012–2022. www.worldbank.org

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ANNEX

• List of costing tools• ILO´s social protection assessment tool

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Costing tools • Basic social protection tool - Electronic model (ILO & UNICEF)• Simulation and costing tool ADePT (World Bank)• Micro-simulations (ILO)

• Actuarial and financial advisory services (ILO FACTS)• Performance Indicators (PIS) of Statutory Social Insurance Schemes (ILO)

• Pension costing tool (HelpAge)• Pension reform options simulation toolkit (PROST) (World Bank)

• Modeling for health insurance (WHO)

• Modeling for agricultural/crop insurance systems (UNCTAD/World Bank) • Rapid Assessment Protocol (RAP) (ILO)• Rapid Assessment Protocol Plus (RAP+) (ILO)• Marginal Budgeting for Bottlenecks (UNICEF/World Bank)

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SPF objectives

Existing SP provision

Planned SP provisions (strategy)

Gaps RecommendationsDesign

gapsImplemen-

tation issues

Health

Children

Working age

Elderly

Social Protection Floor template: guarantees and objectives

The Social Protection Situation

Design gaps and implementation

issues (to complete the SPF)

Priority policy options to be

decided through national dialogue

Analysing social protection optionsStep 1 –Assessment of social protection situation

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Analysing social protection optionsStep 2 – Costing of “SPF” recommendations

•Decide on priorities in social protection•Design appropriate interventions •Estimate the cost of each intervention, with alternative level of coverage and benefits, with a good time line•Various costing tools available from UN agencies•Choose appropriate, affordable, sustainable interventions•Combine with a fiscal budget analysis