Human Development Sector




    Country Presentation: Thailand

Mitigating Vulnerabilities & Promoting
           Resilient Growth

Sequencing, 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                         grant

Formal Sector
Agri and Non-agri                                                                                 
private sector
employees
Private school teachers                                                                      
Civil servants                                                                              
State Enterprise                                                                            
Employees
Informal Sector
Informal workers under                                                                         
voluntary SS extensions

Entrepreneurs and         
business owners

Farmers and Agri sector   
workers

Non-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

Thaildn

  • 1.
    Human Development Sector Country Presentation: Thailand Mitigating Vulnerabilities & Promoting Resilient Growth Sequencing, cost-efficiency and fiscal-sustainability social protection– Policy Dialogue Kwanpadh Suddhi-Dhamakit 1 November 2012
  • 2.
    Human Thailand NeedSP? 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
  • 3.
    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
  • 4.
    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
  • 5.
    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 grant Formal Sector Agri and Non-agri         private sector employees Private school teachers        Civil servants         State Enterprise         Employees Informal Sector Informal workers under      voluntary SS extensions Entrepreneurs and  business owners Farmers and Agri sector  workers Non-labour force and  others
  • 6.
    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
  • 7.
    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
  • 8.
    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
  • 9.
    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
  • 10.
    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