Human Development Sector Country Presentation: ThailandMitigating Vulnerabilities & Promoting Resilient GrowthSequencing, cost-efficiency and fiscal-sustainability social protection– Policy Dialogue Kwanpadh Suddhi-Dhamakit 1 November 2012
Human Thailand Need SP? Does Development Sector• Poverty has declined but vulnerability to poverty is high:• Ex-post coping strategies of vulnerable households: – increasing working hours, borrowing money outside HH, and drawing down savings by selling assets• Asset decapitalization to cope with a shock can create irreversibilities on education, health and nutrition spending among vulnerable HHs
Thailand’s Context Population ~ 66 m Human Development Sector Population aged 15 and above ~ 52m Labor Force ~ 38-39 m Non-Labor Force Popn aged 15 and above = 52 m ~ 14 m Informal ~ 24m Formal ~ 14m– Children and Youth – Agriculture & Fishery: 14.5m – Government– Elderly and Old-aged (60%) Employees:1.26m (9%)– People with Disabilities – Manufacturing: 1.3m (5%) – State Enterprise – Construction & Utility: 1m (4%) Employees: 0.2m (1%)– Beggars and Destitute – Commerce: 3.9m (16%) – Private Employees and– Other Economically Employers in Non- Inactive Groups – Services: 3.5m (15%) Agriculture Sector: 11.5m – Migrants? (82%) – Agri’ workers in private Sector: 1.2m (8%) Labor Market Mechanisms/Policies Unemployed ~ 0.5m
Human Development Sector SP Schemes/Programmes Labor Force Non-Labor Force Informal Sector Formal Sector• Gov’t Social Assistance • Farm Income • Civil Service Welfare Programs (orphans, children Guarantee/Rice Mortgage Scheme: 1.26m from poor /unsecured Scheme Programme families, disadvantaged o Health: CSMBS&SoE:6m women, elderly, homeless, • Universal Health (including dependants) disables, HIV infected, Coverage: 48m o Old Age: GPF/SOE:1.4m panhandlers) • Voluntary SS Extension • SSS/WCF/PF: 8m• Non-gov’t social assistance • Non-resident health programs benefits • PSTW: 0.2m• 500/600/700 baht pensions • Housing scheme Private insurance: 1.5m• 500 baht disability benefit • Community-Based Community-Based savings• Village Funds, School-meal Savings Programs • National Saving Fund• Informal Mechanisms • Credit cards for specific occupations
Human Development Sector Benefits by Work Status Sickness Invalidity Death/ Survivors Child Maternity Child Ed Old U/E /health Funeral Allowance Childbirth Support age Grant grantFormal SectorAgri and Non-agri private sectoremployeesPrivate school teachers Civil servants State Enterprise EmployeesInformal SectorInformal workers under voluntary SS extensionsEntrepreneurs and business ownersFarmers and Agri sector workersNon-labour force and others
Human Development Sector Life-course Welfare System?Age 0 - 18 Age 18 - 24 Age 24 – 60+ 60+ Education Health Care Housing Employment and Income Recreational Activities Justice and Legal Process Other Social Services
Human Development Sector SP Challenges• Coverage and Targeting: – Informal sector? Agricultural workers? Life-course (birth to death) welfare system?• Design and Budget: – Western style welfare state Vs Community-based welfare? Middle path? Thai context? – Affordability Vs Adequacy? – Short-term needs Vs Long-term plan? Implications of future labour market and technological changes?• Implementation: – National agenda Vs responsibilities of line agencies? Holistic approach Vs Disintegrated proposals? – Equity, Effectiveness, Efficiency, and Capacity ? – Affordability, in context of aging society
TheHuman Development Sector UNPAF (2012-2016) on SP• Social protection was chosen as one of the six key areas of the UNPAF (RTG/UN)• Focus on enhancing Thailand’s capacity to provide universal basic social protection and higher levels of benefits, with the overall objective of ensuring the financial and institutional sustainability of the system
Human Development Sector Social Protection Floor Joint Team in Thailand• Created in March 2010 to support the Royal Thai Government (RTG) in the development of a holistic and coherent social protection system.• The team members• ILO = chair National Line ministries (Labour, Statistics Health, Social Office, Development, Education, academia Finance), NESDB Workers and employers organisations Civil society
Human Development Sector Social Protection Floor Joint Team in Thailand• The UN SPF Team’s brochure: www.social- protection.org/gimi/gess/ShowProjectRessource.do?ress ourceId=30388&pid=1325
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