Challenges in ASEAN social protection situation Valerie Schmitt

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Challenges in ASEAN: social protection situation Valerie Schmitt Hands-on Training, Oct 2013 Designing and

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

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 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

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

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

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 Universal disability allowance of 500 baht/month Poor Rest of informal sector SSF sect. 33 and 39 15. 5% pop CS 6. 7% pop 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

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 >90: 1000 baht Rest of informal sector SSF section 33 & 39 Pension for CS Formal sector

Income security for the elderly in Viet Nam Level of protection Voluntary insurance under

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 pensioners 100, 000 voluntary participants

Agenda • Examples of social protection extension in Asia • Challenges in social protection

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 Ministry of Labour Provisions

Challenges in SPF implementation Legal framework Mandatory social insurance Institutions Ministry of Labour Provisions in 1 or 2 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 R 202 Legal framework Institutions Mandatory social insurance Ministry of Labour Provisions

Guiding principles R 202 Legal framework Institutions Mandatory social insurance Ministry of Labour Provisions in 1 or 2 Laws (aligned with labour code) Ministry of Health Social security for informal sector (voluntary Multiple laws & decrees (social welfare, Multiple ministries health, employment, social security) (health, rural devlt, labour, SW, interior, finance, education, antipoverty programmes…) Guiding principles R 202 Coherence with social, economic and employment policies Coherence across institutions responsible for delivery of social protection insurance, social assistance)

Challenges in SPF implementation Financing & sustainability Governance & representation Mandatory social insurance Bi/Tripartite

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 R 202 Financing & sustainability Governance & representation Mandatory social insurance Bi/Tripartite

Guiding principles R 202 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 R 202 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

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, Minimum in most cases; predictability; quality of services insurance, social assistance) (enforcement problems) targeting philosophy) No unified identification/ targeting system -> confusion No consolidated DB Coverage gaps “On demand”; quality/availability HC Limited income security & quality

Guiding principles R 202 Coverage Benefits Mandatory social insurance Mandatory affiliation Related to the

Guiding principles R 202 Coverage Benefits Mandatory social insurance Mandatory affiliation Related to the contribution rate Social security for informal sector (voluntary Often ad hoc (no NID, Minimum in most cases; predictability; quality of services Universality of protection Entitlement to benefits prescribed by Law Adequacy & predictability High quality public services (enforcement problems) targeting philosophy) insurance, social assistance) Guiding principles R 202

Agenda • Examples of social protection extension in Asia • Challenges in social protection

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

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,

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

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 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 –

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

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: TNP 2 K 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

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

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

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? feature=player_embedded&v=ZB 4 0 v. KO 5 x. Ss Education tool on SPF targeting children 10 -12 years old http: //earth. thebigdot. com/ILO_fi nal/

Final words • Implementing national SPFs is challenging • R 202 provides guiding principles…

Final words • Implementing national SPFs is challenging • R 202 provides guiding principles… … that need to be translated into action • Be creative!