ESCAP Survey 2013 presentation: Perspectives for Social Protection Policies


Published on

Launch of the Economic and Social Survey of Asia and the Pacific 2013 presented at the "Seminar Asia and Brazil: Perspectives for Inclusive Growth" held in Brasilia on April 18th and organised by UNDP's International Policy Centre for Inclusive Growth and the Brazilian Institute for Applied Economic Research (Ipea). See more information at:

Published in: Technology, Business
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

ESCAP Survey 2013 presentation: Perspectives for Social Protection Policies

  1. 1. 1Emerging Markets: prospectsfor inclusive growth policiesFabio Veras Soares – IPC (UNDP/SAE/IPEA)Brasilia, 18thApril 2013
  2. 2. ECONOMIC AND SOCIAL SURVEY - ESCAPThe economic and Social Survey of Asia and The Pacific identifies the followingkey areas for public investment to ensure inclusive and sustainabledevelopment: Ensuring productive and decent employment; Providing better access to social services, including health and education; Protection for people with disability and old-age income security Ensuring affordable access to energy;The survey presents two rationales for “investment” in social protection: Rights-based argument Economic and social benefits of ensuring income security and access to basicservices to all – enhancing human capital for productivity increases.2
  3. 3. ECONOMIC AND SOCIAL SURVEY - ESCAPThe survey makes the case for Social Protection Floors (SPFs) asper the 2012 ILO recommendation (#202) in the region.SPFs are defined as “nationally defined sets of of basic socialsecurity guarantees with secure protection aimed at preventingand alleviating poverty, vulnerability and social exclusion.”The idea of plurality of SPFs is welcomed in the survey given thediversity of social protection mechanisms adopted in the regionand largely explained by different human development needs,fiscal space, policy inertia and trade-offs.3
  4. 4. ECONOMIC AND SOCIAL SURVEY - ESCAPSPFs initiative has a normative force for the developing countries inAsia and The Pacific due to the fact that Social Protection is oftenlimited contributory social insurance system. This limitation leads to the exclusion of large numbers of workersin the informal sector, children, older people, and has a particularnegative impact on women.According to ILO’s World Social Security Report Asia-Pacificcountries spend 6.9% of the GDP on social security, which is thesecond lowest figure in terms of world regions.Higher social protection expenditure is associated with lowerpoverty prevalence in the region.4
  5. 5. EMPLOYMENT FOR ALLDespite rapid economic growth, a large number of workers in theAsia-Pacific region work in informal and vulnerable jobs.Moreover in many countries the share of the labour force engagedin the agriculture is larger than the agricultural sector GDP, whichimplies low productivity and wages (e.g. Nepal, India, Viet Nam andPapua New Guinea).Informality ranges from 12% in Russia to 80% in India and Nepal.The challenge of youth unemploymentPolicy recommendations: public works, employment guaranteeschemes and wage subsidies linked to active labour marketprogrammes.5
  6. 6. Employment Guarantee Schemes (EGS)EGSs represent a move from short-term safety nets towards along term approach encompasses large-scale governmentemployment programmes that offer some form of employmentguarantee as well as initiatives that promote the labourintensification of government infrastructure spending.Bangladesh Employment Generation Program for the Poorest(EGPP)Nepal Karnali Employment Programme (KEP)South African experience (EPWP): Incorporation of SocialServices (economy of care) and environmental component.6
  7. 7. Employment Guarantee Schemes (EGS)Some programme examples… NREGA, India (2005)Framework: Right to workObjective: to create durable assets and strengthen the livelihoodresource base of the rural poor.Self targeting: all rural households willing to do unskilled manualwork are entitled up to 100 days of work/year (45 million hhsbenefited 2008-9).60:40 wage and material ratio has to be maintain. No contractorsor use of machinery is allowed.Selection of the project at the local level (participatory)Social audits (transparency).Unemployment insurance (paid by the state) if work is notprovided within 15 days.7
  8. 8. Income security for the elderlyIn a context of greater longevity, the survey recommends theimplementation of social pensions for the elderlyDemographic changes that have eroded informal family-basedsupport systems for old-age income security.In the developing economies of Asia, 80% of workers are notcovered by a pension scheme, those who are covered tend to beformal workers in urban areas.Countries such as Thailand, India, Nepal, Brunei Darussalam, VietNam, Samoa, Kiribati have non-contributory social pensions.8
  9. 9. Old age pension in Asia9
  10. 10. Old age pension in Asia10
  11. 11. Social Pensions in Asia – ADB (2012) Social pensions represent an important policy instrument for addressingold-age poverty and social exclusion in Asia. Evidence indicates that social pensions offer limited income support dueto the low value of benefits and insufficient coverage of poor olderpersons in means-tested schemes. They nevertheless provide an important institutional foundation forsubsequent expansion and strengthening of the existing schemes. Economic growth can allow greater redistribution in the future and makeit possible to extend the coverage, lower the retirement age, and financemore generous benefits. Development of effective pension schemes requires strengthening theadministrative and delivery capacity of national social protectioninstitutions. Eventually, the existing social pension schemes must be integrated withcontributory pensions to form consolidated systems for old-age socialprotection.11
  12. 12. Income Security for People with Disability The formal sector bias of social insurance system of developing countriesin the Asia-Pacific tend to leave persons with disability without socialprotection coverage. Ageing population will certainly contribute for an increase in the numberof people leaving with disability.12
  13. 13. Health for all Public health expenditure averages around 60% of total healthexpenditure, but there is huge regional variation (e.g. Pakistan andMyanmar – 12%, India – 30%). Large inequities in access to health. Only 20% of the regional population has access to health-careassistance and out-of-pocked medical expenses are among the highestin the world. This scenario is even worse in South Asian countries were only 8% of thepopulation is covered by health-care. Policy recommendation: universal health coverage: equity, quality andaffordability.13
  14. 14. Education for all Many countries in the region have already achieved universal primaryeducation and other are on track to do so. South Asian countries are lagging behind as 7% of primary school agechildren are out-of-school and girls are 55% of the total share of out-of-school children. Competitive and globalized labour markets require more than primaryeducation. Quality challenge.14
  15. 15. Energy for all Universal access to energy services is considered essential forincreasing economic activities, which create opportunities foremployment (not only for the poor) Bangladesh, China and India account for more than half of thepopulation who live without clean cooking facilities.15
  16. 16. Recent Innovations in the region… Some recent innovations have been overlooked or not commented in thesurvey… in the next slides we show some of these initiatives. It is worth mentioning the adoption of Conditional Cash TransferSchemes with some adaptations of the Latin American model in countrieslike The Phillippines (4Ps); Indonesia (PKH) and the innovativecommunity-based CCT (Generasi); some state-level schemes in India(e.g. Bihar child support programme) but also unconditional cashtransfers such as Benazir Income Support Programme (BISP) inPakistan and Di Bao in China that work as minimum income guarantee. The issue of targeting and the discussion around phasing-out fuel andfood subsidies which is quite present is many countries (e.g. Indonesiaand India) was also overlooked in this survey Jointly with the targeting discussion there is the issue of registries (andsingle registry of beneficiaries) – Indonesia is doing major progress withBasis Data Terpadu to target Raskin (rice benefit); Jamkesmas (healthinsurance, PKH and BSM (school grants).16
  17. 17. Recent Social Protection Initiatives (De Haan, 2013)17
  18. 18. Recent Social Protection Initiatives (De Haan, 2013)18
  19. 19. Many Thanks19