The importance of Costing Valerie Schmitt ILO DWT

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The importance of Costing Valerie Schmitt ILO DWT Bangkok, 15 May 2012

The importance of Costing Valerie Schmitt ILO DWT Bangkok, 15 May 2012

Process 1 Diagnostic 2 Strategy 3 Policy options 5 Costing 6 Fiscal space •

Process 1 Diagnostic 2 Strategy 3 Policy options 5 Costing 6 Fiscal space • How to fill the gaps? • What are the objectives? • Which policies could be implemented to achieve these objectives? • How to translate these policies into concrete recommendations? • How much will these scenarios cost? • How are we going to finance the proposed policies? IT IS NOT LINEAR 4 Scenarios • What are the needs? • What is existing?

What is costing? • Estimate the cost of different scenarios today and in the

What is costing? • Estimate the cost of different scenarios today and in the future (PWPs, HEFs, cash transfers for children, maternity benefits, vocational training, old age pension, …) • Estimate the total cost of combined benefit packages • Compare the cost to social budget and GDP

What is costing? • Provides an indication on the scope of resources required for

What is costing? • Provides an indication on the scope of resources required for the implementation of specific programmes over time. • The costing exercise is a lively tool… you start doing a first costing, you discuss with policy makers, you adjust the parameters, … until you come up with a scheme which is agreeable to all

Why is costing important? Policy design Advocacy Baseline data The costing requires the choice

Why is costing important? Policy design Advocacy Baseline data The costing requires the choice of parameters of the social protection programs… The costing helps finetuning the design of policies (Who is covered? What are the benefits? Will the scheme be universal or targeted? )

Why is costing important? Policy design Advocacy Baseline data Policy makers from MSDHS, Mo.

Why is costing important? Policy design Advocacy Baseline data Policy makers from MSDHS, Mo. L, Mo. H etc. can advocate for the proposed policy and negotiate budget allocations with Government

Why is costing important? Policy design Advocacy Baseline data Information collected during the costing

Why is costing important? Policy design Advocacy Baseline data Information collected during the costing can serve as a baseline for future monitoring of the extension of social protection coverage Information collected can also be useful for the design and costing of other policies

The costing is not enough • Needs to be completed by a fiscal space

The costing is not enough • Needs to be completed by a fiscal space analysis • The assessment of the impact of the proposed policies on poverty, employment generation, the reduction of vulnerabilities, inequalities, and so on is also useful when we need to convince the government

ILO Convention 102 on Social security Valerie SchmittILO Convention 102 on Social security Valerie Schmitt
Extending social protection an ILO Perspective Valerie SchmittExtending social protection an ILO Perspective Valerie Schmitt
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