Eduardo Klien
HelpAge International
Social Protection Floor Initiative
Hong Kong, June 2010

• Why are Social Cash Transfers (SCT) important?
• Indications of impact
• What triggers decision-makers in adapting SCT?

• Social fairness
• Inequalities create instability
• China’s commitment to social harmony implies redistribution of wealth. SCT is a way
•
Economic reasoning
• Direct contribution to growth and development of local markets
• Healthier and more educated workforce
• Political common-sense
• Design of schemes needs to consider political support
• Universal approaches gain more support and are less vulnerable to corruption

• Education
- Enrolment & attendance duration in Mexico, Brazil,
Nicaragua, Zambia, Bangladesh
• Health & Nutrition
- Increase in height, weight and improvement in nutrition in Colombia, Chile, Malawi, South Africa

South Africa Social Transfers
Source: UNDESA, 2009

• The challenge of ageing
• 350 million older people lack income security
• In Asia only 1 out of 5 reach old age with some formal pension

Trends in Ageing
Dynamic pyramids, change every 5 years
Japan Bangladesh South Africa

• 700 billion by 2050 in Asia (50% of total)
• Growth of older old
- 1 out of 2 Japanese born today will live up to 100 years
• Feminisation of old age
- 67 men for every 100 women in developing countries
• Poverty in old age
- Generally larger proportion than non-olds. More vulnerable

How are Social Pensions distributed?
Brazil
Food
Other household
Source: UNDESA, 2009
Health
Gifts & savings
Utilities & Fuel
Transport

How are Social Pensions distributed?
Zambia
Food Animals Clothes Agriculture School Other
Source: UNDESA, 2009

• Nepal – less than 1% of GDP
• Vietnam – 0.12% of GDP
• Thailand – 0.5% of GDP
• Zambia – Pilot in Kolomo – if expanded it would cost 0.5% GNI

Political will
Political will

• Philippines – Approval of a means-tested pension scheme for 1.7 million
• Vietnam – Reduction of age of entry to
80 years and increase in the amount (200%) –
Decree 67
• Nepal – Reduction of age of entry from 75 to
70 years and increase in amount
• Thailand – Increase in coverage from 1.8 to
5.4 million older people

What triggers decision-makers?
Governments are the decision-makers
• Motivations vary:
• Understanding of social pensions as a tool for development
• Political pressure depending on contexts
• political opportunity
• Commitment to fairness
It helps:
• Research on specific contexts
• Evidence of positive impact helps decision making
• Building scenarios of affordability through microsimulation can dissipate fears of insolvency
• Building capacities
• Targeted processes, mainly at government levels
• Necessary involvement of Ministries of Finance, Planning and Social welfare.
• Not prescriptive training but building and understanding of options mechanisms
• Involving civil society
• As a force to support and influence
• Cannot work isolated from governments
• Voice of rights, depending on contexts
• Use of the media
• To expand social acceptance and social pressure
• To share experiences form elsewhere
• To provide a voice form the demand side
• Building Alliances
• Networks, academics, sectors within government, political parties