Social Protection Floor and ABND exercise Loveleen De
Social Protection Floor and ABND exercise Loveleen De, ILO Consultation in Iloilo city 18 March 2015
Agenda Social Protection Floor (SPF) • What is social protection? • Extension of social protection • SPF ABND • Objectives • Steps • Result • ABND in ASEAN • Strengths and limitations
What is social protection? To cover against the financial consequences of: Maternity Sickness Families with children Unemployment Invalidity Work injury Death of the breadwinner Old age Medical care Lifecycle
What is social protection? Protection provided by society To compensate for the loss of income and cover health care expenditures To facilitate access to social services and fulfill basic needs Financial support Access to services Social transfers
Extension of social protection …can be seen through a two-dimensional graph Poor Rest of informal sector Population Formal sector Level of protection
Extension of social protection • In countries of Asia, including Philippines, formal sector workers usually have access to social protection • Some schemes target the poorest, leaving the rest of the informal sector uncovered • Only some universal schemes exist (e. g. Phil. Health) Level of protection ? ? Poor Rest of informal sector Population Formal sector
Social protection floor • All residents should enjoy at least a minimum level of social protection • Member states of the ILO should establish SPFs as a fundamental element of their national social protection systems Level of protection Nationally defined SPF Poor Rest of informal sector Population Formal sector
Social protection floor • Based on the SPF, extend social protection to provide progressively higher levels of benefits to more people Level of protection Higher levels of social security to more people Nationally defined SPF Poor Rest of informal sector Population Formal sector
Social protection floor At least 4 basic guarantees: All residents have access to essential health care All children enjoy access to nutrition, education, care All working age people enjoy basic income security, particularly in sickness, unemployment, maternity, disability All older persons have basic income security
Social protection floors • SPFs are defined nationally • No ‘one size fits all’ approach in designing and implementing SPFs • Each country decides on the type, extent and scope of schemes, such as targeted or universal, contributory or noncontributory
SPF adopted • International Labour Conference 2012 (Recommendation No. 202) • 15 th Asia Pacific Regional Meeting, Dec 2011, prioritizes “reducing poverty and wide inequalities in income and wealth” and “building effective SPFs in line with national circumstances” • ASEAN Declaration on Strengthening Social Protection, Sep 2013
Objectives of ABND It answers one question: How do we make the SPF a reality for the entire population of a country? It answers the question by: • Identifying the existing situation and gaps in the social protection system • Developing recommendations for achieving the SPF • Taking steps on the recommendations
Steps of ABND Step 1 – Assessment matrix Step 2 – Cost estimation Step 3 – Launch of the SPF
Steps of ABND 1. What is the existing situation? 2. What are the policy and implementation level gaps? 4. How much will it cost to implement until 2020? 6. Finalizing the ABND report 3. Recommendations to close the gaps 5. Is it affordable? 7. Launch of the SPF
Steps of ABND 1. What is the existing situation? 2. What are the policy and implementation level gaps? 4. How much will it cost to implement until 2020? 6. Finalizing the ABND report 3. Recommendations to close the gaps 5. Is it affordable? We are here 7. Launch of the national SPF
Result of ABND SPF guarantees SPF-1 Health SPOFS provisions Social insurance Social welfare Safety nets LMIs SPF-2 Children Social insurance Social welfare Safety nets LMIs SPF-3 Working age Social insurance SPF-4 Elderly Social insurance Social welfare Safety nets LMIs Existing schemes Policy gaps Recos Imp issues Recos
Result of ABND • National SPF is defined Ø Priority recommendations Ø Cost of the recommendations Ø Can be included in national plans and implementation strategies
Result of ABND Example - SPF benefits as % of GDP in Thailand 1. 2% 0. 5%
ABND in ASEAN countries Completed Ongoing Planned
Strengths and limitations Strengths • Coordinated approach to develop an SPF in a country • Initiates national dialogue on SPF, existing problems and priority recommendations • Provides evidence on the affordability of recommendations Limitations • Analysis conducted under Step 1 and costing under Step 2 are meant to provide an overview and therefore, are simplistic • Additional actuarial studies are needed to design new proposed schemes
Thank you
- Slides: 21