“ Overview of SPF and extension of Social Security in the region” Launching of the Bachelet Report in Indonesia 12 December 2011
Structure of the presentation • Why do we need the SPF? • What is the SPF? • Relevance in Asia • Questions and recommendations when designing and implementing the SPF
Why do we need the SPF? • Persistent poverty, polarization, inequalities have increased in Asia • APRM: towards more inclusive societies • Other reasons: – Financial crisis: stabilizer of individual’s income and aggregate demand – Development of domestic & regional markets – Social cohesion, empowerment of women, disaster management
What is the Social Protection Floor? A mechanism to: • Protect people from poverty through a guarantee of income security • help people meet their basic needs • & develop individual capabilities A mechanism providing protection against the financial consequences of risks (9 contingencies)
The SPF is the first step towards higher levels of social protection Vertical The Social Protection Floor = dimension minimum level of social security that should be guaranteed to all Objective 2 – the population Higher levels of income security : Objective 3- Adapted social - statutory social insurance Beyond the floor insurance -voluntary insurance Etc. Additional contributory benefits Objective 1 - Social Protection Floor Entitlement to at least a minimum level of benefits Poor and near poor & Informal economy Formal sector (80% population) (20% population) Horizontal dimension
Many elements of the SPF are already here in Asia Relevance, South South China: minimum living standard guarantee program; new rural India: RSBY, NREGA corporative medical care (NRCMC); health Cambodia: CARD’s insurance for urban NSPS with clear uninsured residents reference to the SPF (HIUR); rural old-age … including HEFs, pension CBHIs, Food distribution, PWPs, … Lao: extension of SHP for all Thailand: UC scheme, minimum pension Philippines: 4Ps scheme (500 THB) Indonesia: Jamkesmas, Vietnam: 10 years Jampersal, PKH, Rice Social security strategy for the poor, PNPM
However the SPF is not yet a reality in Indonesia where … Level of • 33% has no social protection at all coverage Askes, The poor and near poor are • Taspen (7% covered through scattered population) interventions (PNPM, Raskin, …) Targeting errors under the • Jamsostek (11% Jamkesmas program population) Jamsostek pilot prog. (150,000 p) Jamkesmas for health only (33% population) Nothing for more than half of the population Poor - Informal economy - Form. Sect.
Endorsement of the SPF in Asia UNESCAP 67th session in May 2011, resolution on May’11 “Strengthening social protection systems in Asia and the Pacific” 6th ASEAN GO-NGO Forum for social welfare and development --> Recommendation to prepare a joint declaration to promote at ASEAN level the social Sept’11 protection floor and enhance collaboration between member states APRM in Kyoto Dec’11
The SPF contributes to expanding coverage rapidly • China, Rwanda, Thailand or Viet Nam have achieved large scale and near universal basic coverage in a very short period Thailand
There is no “one size fits all” solution in implementing SPFs • The SPF design and implementation should be country-led and responsive to national needs, priorities and resources • However a list of principles to ensure full potential of SPF interventions Affordability and long term sustainability Progressive implementation Coordination between programs and institutions Legal frame- work to ensure rights and obligations… Pilot testing of the mechanisms to reach efficiency Linkages with macroeconomic, fiscal, employment policies Adequate institutions with trained staff, sufficient budgets…
The SPF is affordable and needs to be considered as an investment not a cost Results of the costing in Indonesia, using ILO costing tool
The potential of the SPF = to request coordination • The SPF tries to address several dimensions of poverty and calls for a combination of interventions – PWP + health care – income security + vocational training – health + education + nutrition • Need for coordination between line ministries, central/sub-national level, UN agencies (SPF Teams & Working groups) • The ABND – first coordination exercise
Enhancing coordination and impact Support to Scholarships, Public M-E creation school feeding, re- Employment CCTs entry programs… Programs TVET Job centers HEFs &CBHI NSSF Social workers & Advisors Case management -Information on programs Channeling social Families -Vulnerability & skills protection & assessment employment services Children, Working age, -Registration under the different Elderly & Disabled programs & facilitating use of the services… - Delivery of membership cards… PEOPLE SERVICE
The SPF contributes to Labour Market participation (for working age) Income security (transfers) Easier to find jobs clothes, transportation Access to health, More employable education, nutrition and productive Public works programs Agriculture productivity creation of roads, irrigation Access to markets Reduced fear Entrepreneurship
Linking SP with Employment will ensure graduation Higher Levels of S Protection WORKERS IN THE Higher levels of income INFORMAL ECONOMY, THE WORKING POOR: Access to Sustainable employment • Progressive inclusion in the labor market (Micro-Enterprise or Formal jobs) • Higher social protection Increase employability : human capital (health, education) + work experience & training Employment Services •Skills assessment & training … • Access to PWPs ; Job placement + • Business Development Services • Access to health, education, food security Basic social protection • Income security
Role for the international community • Join forces to support establishment of SPFs in countries (ex: SPF working groups) • The SPF not only contributes to the achievements of the MDG but can be part of the future commitments of the international community • ILC 2012- New recommendation ; also SPF achievements should be included when reporting under other UN treaties • Cooperation- South-South, etc. • Knowledge sharing, monitoring and evaluation of policies
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