Policy tools of social protection:
How policy can be
conceptualised and designed
Social protection training
Asia Development Institute (ADI)
Graduate School
of Public Administration
Seoul National University
Seoul, 25 February 2013
Gabriele Köhler, development economist
1
Narrative
Part I: Introduction
1. Definitions: social protection- social security – social
assistance
2. The case for social protection
3. Trends globally and regionally
4. Principles, universal and regional
Part II: Challenge: to build a system
1. Policies and strategies, design, management, administration
2. Financing and costing
3. “Policy construction”
4. Social protection systems: a selective overview
5. The ideal system
2
Part I: Introduction
3
Social security versus social assistance
• Most countries of the world have social
insurance schemes
• BUT, in most low-income countries, only a
small fraction of the population is covered
by social insurance.
4
Social Protection
Social Insurance
Social Assistance
Social Security Scheme
Support in form of transfers
(Non-Contributory
Schemes/Programmes)
(Contributory Schemes)
5
Social
Protection
Social Insurance
Social Assistance
Social Security Scheme
Support in form of
transfers
(Contributory Schemes)
Old age, sickness and
accident, unemployment,
maternity, invalidity, old age
(Non-Contributory
Schemes/Programme
s)
(ILO Convention 102)
6
The case for social assistance
• majority of the world’s population: livelihoods
from agriculture or fisheries, the informal
economy, home-based work, (invisible)
services
• Enormous economic and social insecurities:
vulnerability and risk, food insecurity, chronic
and acute income poverty, systematic social
exclusion
• Very low social protection coverage rates
7
Low coverage rates:
Old age pension coverage
8
Low coverage rates:
unemployment protection
Old age pension coverage
9
Social
Protection
Social Insurance
Social Assistance
Social Security Scheme
Support in form of transfers
(Non-Contributory
Schemes/Programmes)
(Contributory Schemes)
Support against poverty; food
subsidies; social pensions;
education grants, child grants;
public works programmes, etc
(ILO Recommendation 202) 10
Social assistance trends
• roughly 50 countries today provide some form
of non-contributory social assistance
• covering an estimated 10% of the world
population
11
Conditional Cash Transfers in Latin America
Argentina
Programa Familias
Bolivia
Beca Futuro
Brazil
Bolsa Familia, Bolsa Escola
Chile
Chile Solidario
Colombia
Familias en Accion Program
Costa Rica
Programa Superemonos
Ecuador
Bono de Desarrollo Humano
El Salvador
Red Solidaria
Honduras
Programa de Asignacion Familiar
Mexico
Oportunidades
Nicaragua
Red de Proteccion Social
12
Unconditional Cash Transfers in Sub-Saharan Africa
13
Variety of Cash Transfers in Asia and the Pacific
Bangladesh
Employment scheme
Cambodia
National Social Protection Strategy
China
Dibao (minimum income)
India
NREGA; social pensions
Indonesia
Jamkesmas, Jampersal, PKH, Rice for the
poor, PNPM
Korea (Republic of)
Targeted social protection transfers for
vulnerable people
Lao PDR
…
Mongolia
Universal child benefit
14
Variety of Cash Transfers in Asia and the Pacific
Myanmar
Currently being developed
Nepal
Education grants; employment scheme;
social pension
Pakistan
Benazir Income Support Programme
Sri Lanka
Samurdhi programme
Thailand
Universal health coverage scheme,
minimum pension scheme
Vietnam
Social assistance to poor households
and poor children: Conditional cash
transfer focusing on disadvantaged
communities (under consideration)
15
Right to Social Protection
Universal Declaration of Human Rights (1948):
Article 22:
• Everyone, as a member of society, has the right to social
security.
International Covenant on Economic, Social and Cultural Rights
(1966)•
: Article 9:
• The States Parties to the present Covenant recognize the
right of everyone to social security, including social
insurance.
16
Right to Social Protection
Convention on the Eradication of All Forms of Discrimination against Women
(CEDAW) (1979): Articles 11(e), 13(a), 14(c)
• The right to social security, particularly in cases of retirement,
unemployment, sickness, invalidity and old age and other incapacity to work,
as well as the right to paid leave;
• The right to family benefits;
• Taking into account the particular problems faced by rural women and the
significant roles which rural women play in the economic survival of their
families … (c) To benefit directly from social security programmes.
The Convention on the Rights of the Child (CRC) (1989): Article 26:
• For every child the right to benefit from social security, including social
insurance, and necessary measures to achieve the full realization of this right
in accordance with national law.
Convention on the Rights of Persons with Disabilities (CRPD) (2006) Article 28(b)
• To ensure access by persons with disabilities, in particular women and girls
with disabilities and older persons with disabilities, to social protection
programmes and poverty reduction programmes.
17
Right to Social Protection
ILO Convention C102: Social Security (Minimum
Standards) Convention, 1952
• Outlines rights to benefits for residents of a
country: accident, illness, unemployment,
maternity, old age
ILO Recommendation R202: Social Protection Floor
2012
• Four income “guarantees”: children, poor,
elderly, health
18
ILO’s two-dimensional strategy
for the extension of social security:
Building comprehensive social security systems
high
Vertical dimension:
progressively ensuring
higher levels of
protection, guided by
Convention No.102
and more advanced
standards
extension
strategy
level of
protection
Voluntary insurance
under government
regulation
Social security benefits
of guaranteed levels
floor level
Social Protection Floor:
Access to essential health care
and basic income security for all
low
low
individual/household income
high
Outcomes can be
Social
Protection
Floor
guaranteed
through
Recommendation,
different means –adopted at ILC
there is
2012
no one-size-fits-all
Horizontal dimension:
Guaranteeing access to essential health care
and minimum income security for all,
guided by Recommendation No. 202
19
Vietnam example: developing a social protection floor
ASEAN 2009
Socio-cultural community blueprint
•
•
•
•
•
•
Human development
Social welfare and protection
Social justice and rights
Environmental sustainability
An ASEAN identity
Narrowing the development gap
21
Principles
7th ASEAN GO-NGO FORUM FOR SOCIAL WELFARE AND DEVELOPMENT
• Everyone, especially those who are vulnerable, entitled to have
equal access to social protection covering essential services;
• Access to social protection – a human right that should be
promoted, protected and fulfilled;
• Universality of protection based on social solidarity, nondiscrimination, accessibility, gender equality, social inclusiveness,
coherence, accountability, collective financing and risk pooling;
• Implementation of SPF is part of national strategies for the
progressive extension of social security towards higher level of
protection;
• Investment in people to empower them to meet their basic needs
and adjust to changes in the economy and labour markets;
• Cross-cutting issue, hence requires coordinated and holistic
approaches;
• Family unit is an important element in providing support to the
vulnerable people and should be strengthened and preserved;
• Governments, communities, civil society, private sector and social
partners are key stakeholders;
• Inclusive, participatory and rights-based approach in planning,22
programming and budgeting, implementation, M&E.
BRICS and the „export“ of social protection
Source: http://www.google.com/imgres?q=
BRICS+map&hl=en&client=safari&sa=X&rls=en&biw=1280&bih=611&tbm=isch&prmd=imvns&tbnid=RqNceHxgRU8i9M:&imgrefurl=
23
ESCAP and social protection
24
Part II: Challenges
• Sometimes large, but generally
fragmented social assistance
programmes, separated from social
insurance
Need to build a system of social
protection
25
Indonesia: family-based social assistance programmes
BLT
Raskin
Jamkesmas
BSM
PKH
Program Unconditional
Conditional
Rice for the
Health
Scholarship
Cash Transfer
Cash
Name
Poor
Protection for the Poor
(2008-09)
Transfer
Type
Cash
Transfer
Health
Subsidized
service fees
Rice
waived
Target
Poor & near Poor & near Poor & near
group
poor HHs
poor HHs
poor HHs
(HHs)
Number of
17.5 Mn
18.2 Mn HHs
beneficiari 18.7 Mn HHs
HHs
es
Benefit
level
IDR 100,000 15 kg rice
per month
per month
Key
Ministry of
executing Social Affairs
(MoSA)
agency
Unlimited
Bureau of
Ministry of
Logistics
Health (MoH)
(BULOG)
Cash
Cash &
Conditions
Students
from poor
HHs
Very poor
HHs
8 Mn
Students
1.5 Mn HHs
IDR
IDR 480,000
1,287,000
per year
per year
MoNE &
MoRA
MoSA
26
System building strategies
•“top-down”: fostering processes of
formalising the economy, so that all citizens
move from the informal to the formal
economy and become eligible for social
insurance
•“bottom-up”: universalising social
assistance to cover all citizens – or even all
residents
27
System building strategy
o Defining the objectives
o Conceptualising the policy model
o Design: Laying out eligibilities
o Management: coordination; recording
participants
28
Philippines: objectives of the conditional cash transfer
o To raise the average
o
o
o
o
consumption rate in food
expenditure of poor
households
To increase the enrollment in
and attendance rate of children
in school
To improve preventive health
care among pregnant women
and young children
To reduce the incidence of child
labor
To encourage parents to invest
in their children’s (and their
own) human capital through
investments in their health and
nutrition, education, and
participation in community
activities
Selection Procedures of
Target Households
Geographical Targeting
Household Assessment
(Enumeration)
Selection of Poor Beneficiaries
using Proxy Means Test
Eligibility Check
29
System building: design components
• Universal for some types of social assistance
(pensions, child grants)
• Targeted for other types – by income levels,
identity groups, disadvantaged regions
• Conditional on behaviours
• Unconditional
30
Indonesia: national targeting system
The National Targeting System identifies and chooses
beneficiaries (households, individuals, etc.) of targeted poverty
reduction or social protection programs.
Poor



Past system: each program
has its own list of targeting
system
Now gradually moves into
unified targeting system
Minimizing inclusion &
exclusion errors
Not-Poor
Beneficiary
of Programs
Non-beneficiary
of Programs
31
System building: management
• define roles and responsibilities of respective
governmental ministries and departments
that often each administer separate social
assistance schemes
• create an overarching coordinative body
(Cambodia, Myanmar)
• M&E
• Claims and grievance mechanisms
• Information access
32
System building: administration
• citizens´ registries (India; Indonesia)
• “single window” access to social
assistance (Cambodia)
• bank transfer modalities (Pakistan)
33
System building: financing
• actuarial calculations of population trends
• trends for beneficiary entitlements over time
estimating the required budget, revenue
collection
negotiating fiscal space to reliably fund social
protection over the long term
34
Fiscal diamond
35
36
Annual costs
of social protection programmes
– middle income countries
37
Social protection expenditures
in % of GDP, 75 low-income countries
38
39
40
Thailand: Social floor costing example
400,000
1.6% GDP
350,000
300,000
0.9% GDP
Pension
250,000
Disability allowance
200,000
Training skill
150,000
Sickness benefit
100,000
Maternity allowance
50,000
0
2012
2013
2014
2015
2016
2017
2018
2019
2020
Universal Child
allowance
41
System building:
social protection policy construction
• to define the policy – its overarching principles
and objectives
• to build coalitions or a social compact
between tax-paying middle and high income
groups and those who stand to gain initially
from an enhanced and unified social
assistance system
• to create and adopt the necessary legislation
• to recognise and seize the policy moment
42
Social protection policy construction
“Middle classes”
Elites in legislation or decision
making
Grass roots organisations, trade unions
and their connections to the “poor”
International pressure or
models or fashions
43
Systems approaches
Country Name
Brazil
Cambodia
China
Indonesia
Mexico
South Africa
Vietnam
Sistema Unico de
Assistencia Social (SUAS)
Features & functions
Covers social assistance. Federation of various levels and programmes
Coordination with finance.
Participatory model via periodic conferences and representatives
National Social Protection
Covers social assistance, health insurance, employment schemes
System
5 ministries (social affairs, health, education, labour and vocational training, rural
development).
•Coordinates policies
•Supervises social protection and pubic employment schemes, as well as health
insurance, education grants etc
•Monitors NSPS (based on DB)
Complex system
2 minimum living standard guarantee schemes (urban and rural residents below
the locally-defined income threshold); 3 health insurance programmes (urban
working population; rural; economically inactive populations). New rural pension
system.
Complex system, with
PT Jamsostek: employment-related insurance for informal sector workers;
Medium Term National Plan
Program Nasional Pemberdayaan Masyarakat (PNPM) A community empowerment
(2010-2014) as overarching
programme in poor districts and sub-districts; Bantuan Operasional Sekolah
commitment
(BOS) Programme: block grants to schools
Vivir Mejor
Coordinates Oportunidades, conditional cash transfer for poor families; 70 y Más
social pension scheme for the elderly; and the Seguro Popular health insurance
scheme for previously uninsured families
South African Social Security 3-pillar approach to social security: non-contributory (tax-financed), contributory
Agency
and private voluntary pillars.
1st pillar: Old age grant (to citizens aged 60 and older); Disability grant;
Care dependency grant; Child support grant (payable to poor households with
children) etc. Free Primary Healthcare to pregnant mothers, people with
disabilities, pensioners and the indigent.
2nd pillar includes Unemployment Insurance Fund – protecting retrenched
workers, including those in the informal economy.
party resolution on key
labour market policies, social insurance policies, health-care policies, social
social policies 2012-2020.
welfare/assistance, poverty reduction programmes and access to public social
(mainly social protection,
services. Universal health-care coverage by 2014; to provide access to basic
replaces draft National Social social services for all such as education, health care, housing, drinking water,
44
Protection Strategy)
electricity, information, sanitation and legal advice; and to provide a minimum
income to those in need
Pathways to social protection systems
India: RSBY, NREGA
Cambodia: NSPS with
clear reference to the SPF
… including HEFs, CBHIs,
Food distribution, PWPs,…
Thailand: UC scheme,
minimum pension scheme
(500 THB)
Indonesia: Jamkesmas,
Jampersal, PKH, Rice for
the poor, PNPM
China: minimum living
standard guarantee
program; new rural
corporative medical care
(NRCMC); health
insurance for urban
uninsured residents
(HIUR); rural old-age
pension
Laos: extension of SHP for
all
Philippines: universal health
reform
Nepal: broad range of
transfers
Vietnam: 10 years Social
security strategy
45
THE IDEAL SOCIAL PROTECTION SYSTEM
 Rights based - Universal right/universal coverage
 Citizenship- or residents-based
 Coherence with other policy areas
 Accompanied by supply side measures (social services, health and education)
 Accompanied by decent work policy & action
 Addresses crises, chronic poverty, vulnerabilities, inequalities, social exclusion
 Well-targeted and publicised entitlements and special efforts to reach disadvantaged
households/communities
 Sustainable, predictable, meaningful benefit levels
 Affordable and long-term sustainability
 Tax financed, linking social protection reform and tax reform
 Empowerment: guaranteeing space for civil society and public action
 Built on notion of social solidarity
 Advanced IT
 Monitoring & evaluation systems
 Transparency and right to information
 Accountability and complaint and appeals mechanisms
 Systemic – uniting fragmented programmes systems
 Legally binding
46
Resources
ASEAN 2012. RECOMMENDATIONS. THE SEVENTH ASEAN GO-NGO FORUM FOR SOCIAL WELFARE AND DEVELOPMENT
“Promoting Social Services and Social Protection for Vulnerable Groups” . 12 September 2012, Ha Noi, Viet Nam.
www.socialsecurityextension.org/gimi/gess/RessFileDownload.do
Bachelet Michelle 2011. Social protection floor for a fair and inclusive globalization. Report of the Advisory Group.
ILO 2011. http://www.ilo.org/global/about-‐the-‐ ilo/press-‐and-‐media-‐centre/news/WCMS_166292/lang-‐‐en/index.htm
Barrientos, Armando , Miguel Niño-Zarazúand Mathilde Maitrot Brooks 2010. Social Assistance in Developing
Countries Database. Version 5.0 July 2010. World Poverty Institute. The University of Manchester.
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1672090
Centre for Social Protection 2013. Talking Point on Systems of Social Protection, CSP Newsletter 23, February 2013, IDS. By
Gabriele Köhler. http://www.ids.ac.uk/files/dmfile/CSPNewsletter23formattedFinal2.pdf.
ESCAP, 2011. The promise of protection. Social Protection and development in Asia and the Pacific. Bangkok
European Commission 2012. Social Protection in European Union Development Cooperation . COMMUNICATION
FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND
SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Brussels, 20.8.2012 COM(2012) 446 final
http://ec.europa.eu/europeaid/what/social-protection/documents/com_2012_446_en.pdf
Hickey, Sam 2008. Conceptualising the politics of social protection in Africa. In A. Barrientos & D. Hulme (Eds.),
Social Protection for the Poor and Poorest: Concepts, Policies and Politics. London: Palgrave. Holmes, R. (2008).
Child Poverty: a role for cash transfers?
47
Resources cont´d
ILO 2010. Social Security for All. www.ilo.org
ILO 2010. Extending social security to all. A guide through challenges and options .
http://www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/--publ/documents/publication/wcms_146616.pdf
ILO 2012. Social Protection Floors Recommendation, 2012 (No. 202) http://www.socialprotection.org/gimi/gess/RessShowRessource.do?ressourceId=31088
ILO 2012. Social protection floors for social justice and a fair globalization. Report IV (1) . Geneva
ILC.101/IV/http://www.ilo.org/public/english/protection/secsoc/downloads/policy/rapiven.pdf
ILO Regional Office for Asia and the Pacific. 2012. Single Window Service in Asia and the Pacific. Piloting
integrated approaches to implementing Social Protection Floors. http://www.socialprotection.org/gimi/gess/RessShowRessource.do?ressourceId=30172
ISSA. International Social Security Association. http://www.issa.int/Observatory/Country-Profiles
UNICEF Myanmar 2012. Social protection: A Call to Action. Conference report. Yangon 2012
World Bank 2012. Resilience, Opportunity and Equity. The World Bank’s Social Protection and Labor
Strategy 2012–2022. www.worldbank.org
48
ANNEX
• List of costing tools
• ILO´s social protection assessment tool
49
Costing tools
• Basic social protection tool - Electronic model (ILO & UNICEF)
• Simulation and costing tool ADePT (World Bank)
• Micro-simulations (ILO)
• Actuarial and financial advisory services (ILO FACTS)
• Performance Indicators (PIS) of Statutory Social Insurance Schemes (ILO)
• Pension costing tool (HelpAge)
• Pension reform options simulation toolkit (PROST) (World Bank)
• Modeling for health insurance (WHO)
• Modeling for agricultural/crop insurance systems (UNCTAD/World
Bank)
• Rapid Assessment Protocol (RAP) (ILO)
• Rapid Assessment Protocol Plus (RAP+) (ILO)
• Marginal Budgeting for Bottlenecks (UNICEF/World Bank)
50
Analysing social protection options
Step 1 –Assessment of social protection situation
SPF
objectives
Existing SP Planned SP
provision provisions
(strategy)
Gaps
Design
gaps
Implementation issues
Recommen
dations
Health
Children
Working
age
Elderly
The Social Protection
Situation
Social Protection Floor
template: guarantees and
objectives
Design gaps and
implementation
issues (to
complete the SPF)
Priority policy
options to be
decided through
national dialogue
51
Analysing social protection
options
Step 2 – Costing of “SPF” recommendations
•Decide on priorities in social protection
•Design appropriate interventions
•Estimate the cost of each intervention, with
alternative level of coverage and benefits, with a
good time line
•Various costing tools available from UN agencies
•Choose appropriate, affordable, sustainable
interventions
•Combine with a fiscal budget analysis
52