Social Protection and Informal Economy Social dialogues on

Social Protection and Informal Economy: Social dialogues on employment Vathana Sann (Ph. D) Deputy Secretary General Council for Agricultural and Rural Development Tripartite Social Dialogue on Social Protection and Employment Phnom Penh, 28 March, 2012 H. E. Dr. Vathana Sann Nov-2011 1

Historical evidence of social protection floor H. E. Dr. Vathana Sann Nov-2011 2

Historical evidence (food distribution) H. E. Dr. Vathana Sann Nov-2011 3

Historical evidence (Elderly) H. E. Dr. Vathana Sann Nov-2011 4

Historical evidence (Health care) H. E. Dr. Vathana Sann Nov-2011 5

Historical evidence (Child protection) H. E. Dr. Vathana Sann Nov-2011 6

Historical evidence (Employment) H. E. Dr. Vathana Sann Nov-2011 7

Economic inequality as driving force for linking H. E. Dr. Vathana Sann Nov-2011 8

Demographic changes H. E. Dr. Vathana Sann Nov-2011 9

Demographic changes H. E. Dr. Vathana Sann Nov-2011 10

Demographic changes H. E. Dr. Vathana Sann Nov-2011 11

Demographic changes H. E. Dr. Vathana Sann Nov-2011 12

Demographic changes H. E. Dr. Vathana Sann Nov-2011 13

Demographic changes H. E. Dr. Vathana Sann Nov-2011 14

Demographic changes H. E. Dr. Vathana Sann Nov-2011 15

Demographic changes (1990) mnus. Scas; Cra Cn. Bikar ®s. Iþemm: ayedaysars®gÁam mnus. Se. Bjv½y )ak; kmøa. Mgedaysars®gÁam ¬el. Is 40¦ mnus. Se. Bjv½y mank. Me. NIte. Rkays®gÁam ¬ 30 kumarmun nigkñúgv½ysik. Sa -40¦ ¬e. Rkam 30 k. MBugeron¦ H. E. Dr. Vathana Sann Nov-2011 16

Demographic changes (2020) mnus. Scas; Cra Cn. Bikar ®s. Iþemm: ayedaysars®gÁam ¬el. Is. BI 40¦ mnus. Se. Bjv½y mank. Me. NIte. Rkays®gÁam ¬ 20 mnus. Se. Bjv½y -40¦ mank. Me. NItkñúge. BlsniþPa. B ¬ 0 -20¦ bnþkarsik. Sa kumarmun nigkñúgv½ysik. Sa H. E. Dr. Vathana Sann Nov-2011 17

NSPS Development HEF Child Food aid Climate Employment 2009 H. E. Dr. Vathana Sann Nov-2011 18

NSPS Development HEF Child Food aid NSPS Climate Employment 2009 H. E. Dr. Vathana Sann Nov-2011 2015 19

NSPS Development HEF Child Food aid NSPS Climate Employment Backbone strategy 2009 H. E. Dr. Vathana Sann Nov-2011 2015 20

NSPS Development HEF Child Food aid NSPS Guiding principle Delivery Climate Scaling-up Employment Piloting 2009 H. E. Dr. Vathana Sann Nov-2011 Backbone strategy 2015 21

NSPS Development HEF Child Food aid NSPS Guiding principle Delivery Climate Scaling-up Employment Piloting 2009 H. E. Dr. Vathana Sann Nov-2011 Backbone strategy 2015 22

NSPS and inequality NSPS H. E. Dr. Vathana Sann Nov-2011 Economic equality 23

NSPS and inequality NSPS CMDG Education - Health - Income H. E. Dr. Vathana Sann Nov-2011 Economic equality Human capital 24

NSPS and inequality Wealth concentration Racism, gender Wage, salary Economic equality Labour market Technological innovation Personal, culture H. E. Dr. Vathana Sann Nov-2011 25

NSPS and inequality Social protection Wealth concentration Racism, gender Wage, salary Economic equality Labour market Employment Technological innovation Personal, culture H. E. Dr. Vathana Sann Nov-2011 26

NSPS and inequality Social protection Economic equality Employment H. E. Dr. Vathana Sann Nov-2011 27

Inequality as development issue Economic inequality Social protection Economic equality Employment per capita income Kuznet curve: Inequality as results of development stage H. E. Dr. Vathana Sann Nov-2011 28

Inequality as development issue Economic inequality Social protection Agriculture-based Service-based Economic equality Industry-based Employment per capita income Kuznet curve: Inequality as results of development stage H. E. Dr. Vathana Sann Nov-2011 29

Linking SP and employment Social protection Linking social protection to employment generation policy Economic equality Employment H. E. Dr. Vathana Sann Nov-2011 30

Linking SP and employment Social protection Linking social protection to employment generation policy Economic equality Employment Social protection is to contribute to growth. But growth is not the only objective of social protection since it further aims at social cohesion H. E. Dr. Vathana Sann Nov-2011 31

Linking SP and employment Linking social protection to employment generation policy H. E. Dr. Vathana Sann Nov-2011 32

Linking SP and employment Low education resulted in difficulties to get employment opportunity Mismatching between education and demand of labour market Linking social protection to employment generation policy Work productivity Employment Competitiveness Better condition Increased wage H. E. Dr. Vathana Sann Nov-2011 33

Linking SP and employment Labour productivity Formalization of informal sector Human capital development Linking social protection to employment generation policy Work productivity Employment Competitiveness Better condition Increased wage H. E. Dr. Vathana Sann Nov-2011 34

Policy framework in linking SP and employment H. E. Dr. Vathana Sann Nov-2011 35

Policy framework 1. ALMP and employment generation Priority area Objectives of NSPS Demand in emergency and crises The poor and vulnerable receive support to meet their basic needs in times of emergency and crisis. Human capital development Poor and vulnerable children and mothers benefit from social safety nets to reduce poverty and enhance the development of human capital Food security and employment The working-age poor and vulnerable benefit from work opportunities to secure income while contributing to the asset creation Social health protection The poor and vulnerable have effective access to affordable quality health care and financial protection in case of illness. Special vulnerable groups receive income, in-kind and psychosocial support and adequate social care. H. E. Dr. Vathana Sann Nov-2011 36

Policy framework 1. ALMP and employment generation Priority area Public infrastructure restoration, vocational training Demand in emergency and crises Human capital development Food security and employment Social health protection Special vulnerable group H. E. Dr. Vathana Sann Nov-2011 37

Policy framework 1. ALMP and employment generation Priority area Public work programs Demand in emergency and crises Human capital development Food security and employment Social health protection Special vulnerable group H. E. Dr. Vathana Sann Nov-2011 Photo: Ngy Chanphal 38

Policy framework 1. ALMP and employment generation Priority area Public work programs Demand in emergency and crises Human capital development Food security and employment Social health protection Special vulnerable group H. E. Dr. Vathana Sann Nov-2011 Photo: Ngy Chanphal 39

Policy framework 1. ALMP and employment generation v How can social protection assist the workers in formal sector access decent employment? v How can social protection be designed to minimize the negative effects on labor market? v How can social protection, given fiscal constraint, be designed to cover informal economy workers? v How to align social protection for informal workers into existing formal sectors? H. E. Dr. Vathana Sann Nov-2011 40

Policy framework 2. Addressing informal sector Expanded social protection H. E. Dr. Vathana Sann Nov-2011 Basic social protection SP for special vulnerable groups Affordable health care Seasonal unemployment and food insecurity Legal framework Poverty of Children & mothers and human dev. Poverty and vulnerability ·Community-based health insurance NSPS (Non-Contributory) Basic needs in emergency and crisis Existing programs Social Insurance (Contributory) · Pension · Health insurance · NSSF, NSSFC, SHP Civil servants Formal sector workers Near poor Poor SVG 41

Policy framework 2. Addressing informal sector Estimated numbers (not to be cited) 1. Flood affected : 1. 5 M 2. Pregnant women : 0. 1 M Children : 1. 7 M 3. Working age : 2. 0 M 4. Health care : 4. 0 M 5. Special group : Elderly (0. 2 M) Disable (0. 1 M) Ethnic (0. 1 M) H. E. Dr. Vathana Sann Nov-2011 SP for special vulnerable groups Affordable health care Seasonal unemployment and food insecurity Legal framework Poverty of Children & mothers and human dev. Poverty and vulnerability ·Community-based health insurance NSPS (Non-Contributory) Basic needs in emergency and crisis Existing programs Social Insurance (Contributory) · Pension · Health insurance · NSSF, NSSFC, SHP Civil servants Formal sector workers Near poor Poor SVG 42

Policy framework 2. Addressing informal sector Estimated numbers (not to be cited) 1. Flood affected : 1. 5 M 2. Pregnant women : 0. 1 M Children : 1. 7 M 3. Working age : 2. 0 M 4. Health care : 4. 0 M 5. Special group : Elderly (0. 2 M) Disable (0. 1 M) Ethnic (0. 1 M) H. E. Dr. Vathana Sann Nov-2011 SP for special vulnerable groups Affordable health care Seasonal unemployment and food insecurity Legal framework Poverty of Children & mothers and human dev. Poverty and vulnerability ·Community-based health insurance NSPS (Non-Contributory) Basic needs in emergency and crisis Existing programs Social Insurance (Contributory) · Pension · Health insurance · NSSF, NSSFC, SHP Civil servants Formal sector workers Near poor Poor SVG 43

Policy framework 2. Addressing informal sector Social contract v The poor unite (targeted) to acquire social transfer v Intervention begins at early stage (ECD) v SP for human capital development thus productive working age v The move from NSPS to expanded SS Estimated numbers (not to be cited) 2. Pregnant women : 0. 1 M Children : 1. 7 M 3. Working age : 2. 0 M H. E. Dr. Vathana Sann Nov-2011 SP for special vulnerable groups Affordable health care Seasonal unemployment and food insecurity Legal framework Poverty of Children & mothers and human dev. Poverty and vulnerability ·Community-based health insurance NSPS (Non-Contributory) Basic needs in emergency and crisis Existing programs Social Insurance (Contributory) · Pension · Health insurance · NSSF, NSSFC, SHP Civil servants Formal sector workers Near poor Poor SVG 44

Policy framework 3. Increasing competitiveness H. E. Dr. Vathana Sann Nov-2011 45

Policy framework 3. Increasing competitiveness Priority area Objectives of NSPS Demand in emergency and crises The poor and vulnerable receive support to meet their basic needs in times of emergency and crisis. Human capital development Poor and vulnerable children and mothers benefit from social safety nets to reduce poverty and enhance the development of human capital Food security and employment The working-age poor and vulnerable benefit from work opportunities to secure income while contributing to the asset creation Social health protection The poor and vulnerable have effective access to affordable quality health care and financial protection in case of illness. Special vulnerable groups receive income, in-kind and psychosocial support and adequate social care. H. E. Dr. Vathana Sann Nov-2011 46

Policy framework 3. Increasing competitiveness Priority area School feeding program Demand in emergency and crises Human capital development Food security and employment Social health protection Special vulnerable group H. E. Dr. Vathana Sann Nov-2011 Photo: WFP, 2011 47

Policy framework 3. Increasing competitiveness Priority area Cash Scholarship Demand in emergency and crises Human capital development Food security and employment Social health protection Special vulnerable group H. E. Dr. Vathana Sann Nov-2011 Photo: WFP, 2011 48

Policy framework 3. Increasing competitiveness Priority area Food Scholarship Demand in emergency and crises Human capital development Food security and employment Social health protection Special vulnerable group H. E. Dr. Vathana Sann Nov-2011 Photo: WFP, 2011 49

Policy framework 3. Increasing competitiveness ECD - Nutrition - Cognitive stimulation H. E. Dr. Vathana Sann Nov-2011 Cognitive education - Supply side dev. - Learning environ. Building skill - Degree and training - On-job training - Life-long learning Entrepreneur & innovation - Industrial relation - Knowledge support - Information system Job matching & labor mobility - Social insurance - Working condition 50

Conclusion H. E. Dr. Vathana Sann Nov-2011 51

Conclusion Labour productivity Employment Human capital development Human investment Social contract ALMP Work productivity Formalization of informal sector Competitiveness Better condition Increased wage H. E. Dr. Vathana Sann Nov-2011 52

THANK YOU FOR YOUR ATTENTION ! H. E. Dr. Vathana Sann Nov-2011 53