Download Extending Social security in East and South

Extending Social security in
East and South-East Asia: the
2 dimensions ...
Valerie Schmitt, Jo Hyung Kyu, Celine Felix
14 September 2010
Decent Work for All
ASIAN DECENT WORK DECADE 2006-2015
Structure
• Social security, social protection, social
protection floor
• ILO promotes the right to social security
• The problem: a major coverage gap
• How to extend social security?
• What is the situation and what do we do at
country and regional level?
Social security
Social protection
A series of public measures ;
statutory / compulsory nature
It also includes private measures or non
statutory regimes, provided that the
contributions to these schemes are not
wholly determined by market forces (i.e.,
redistribution) ; voluntary nature
A human right (Universal
Declaration of HR, article 22)
Protection against financial consequences of nine contingencies :
-Sickness, maternity, employment injury, unemployment, invalidity, old age, death of
the breadwinner + Access to health care + Family benefits
NB: « assurance de personnes » ; NOT insurance of goods / means of production …
The ILO does not include Access to Education
Schemes financed through
contributions and taxes:
-Statutory contributory social insurance
-Targeted tax-financed social assistance
-Universal coverage schemes
Schemes financed through
contributions or donations:
-Certain types of private insurance
-Certain types of micro-insurance
-Donor-funded safety nets …
Delivery: State or parastatal institutions;
private entities with public mandate
Delivery: Private sector, churches, NGOs …
Social security
Social protection
Social security Social protection
Civil servants
Armed forces
Private sector
employees
Informal
economy
ILO SECSOC
used to work
here
Compulsory &
contributory social
insurance
Voluntary
private insurance
(ex: pension fund)
Partial contributory
schemes
Voluntary
private insurance
(ex: Micro-Health Ins.
With STEP it extended its work to
strategies for Informal economy and
the linkages between statutory and
non statutory schemes
Poor and
near poor
Social assistance
Universal access to
health care
Assistance from
private donors,
charity …
Types of Social security schemes
Contributory schemes : The contributions made by
beneficiaries (& employer) determine entitlement to benefits
-Statutory social insurance scheme
-National provident funds (lump sum to beneficiaries when particular contingencies
occur, typically old age, invalidity or death)
Partially contributory schemes (subsidized contributions)
Universal schemes for all residents (ex: guarantee access to health
care) or for specific categories of the population (ex: minimum
income to the elderly above a certain age or children below a certain age). Generally
tax-financed, but may require a co-payment (ex: user fees for health care)
Social assistance (means tested) schemes (ex: Conditional cash
transfers provide cash to families subject to the condition that they fulfil specific
“behavioural” requirements; Employment guarantee schemes ensure access to a
certain number of workdays a year to poor households …)
Social protection floor
• A set of basic social rights, services and
facilities that each member of society should enjoy
• A SPF should consist of:
Availability of
essential services:
-Housing, WATSAN,
-Education/skills,
-Health care supply,
-Food/Nutrition,
…
Accessibility of these services through basic
transfers in cash or in kind:
-Subsidized health insurance / health cards,
-Scholarships & school buses,
-Minimum income support to families (family/child
benefits), the working poor (cash transfers and
PWPs) and the elderly (minimum pensions) …
• Notion of availability and accessibility – both
work hand in hand
Social security Social protection
Social protection floor
Social security Social protection
Civil servants
Armed forces
Private sector
employees
Informal
economy
Poor and
near poor
SP Floor
Availability of
essential services:
-Housing, WATSAN,
-Education/skills,
-Health care supply,
-Food/Nutrition, …
Compulsory &
contributory social
insurance
Voluntary
private insurance
(ex: pension fund)
Partial contributory
schemes
Voluntary
private insurance
(ex: Micro-Health Ins.
Basic transfers in cash or in kind:
Social assistance
Universal access to
health care
Assistance from
private donors,
charity …
Structure
• Social security, social protection, social
protection floor
• ILO promotes the right to social security
• The problem: a major coverage gap
• How to extend social security?
• What is the situation and what do we do at
country and regional level?
ILO promotes the right to SS
• Social security is a human right
– Universal Declaration of Human Rights, and the International,
article 22
– Covenant on Economic, Social and Cultural Rights (ICESCR),
article 9
• Achieving the right to social security demands the
establishment of non-contributory (for example, taxfinanced) schemes, or other social assistance measures
to provide support to those individuals and groups
who are unable to make sufficient contributions for
their own protection
• Many other arguments… social and economic stabilizer;
productivity at enterprise level; impact of redistribution on
consumption & domestic markets; etc. … and a basic set
of social protection is affordable!  political decision
2008
2009
2003
2001
Preamble of
ILO
Constitution
1952
1919
1944
ILO promotes the right to SS
C102,
minimum
standards
89th ILC
96th ILC
97th ILC
Social
security, a
new
consensus
ILO
Declaration
on social
Justice for a
fair
globalization
Adoption of the
Global jobs pact,
which includes the
Social protection
floor “countries that
Realization
of the right
to social
security part
of ILO
mandate Declaration of
Philadelphia
Extension of
social
security part
of ILO
mandate
91th ILC
Global
campaign for
the extension
of social
security for all
do not yet have
extensive social
security are requested
to build adequate
social protection for all,
drawing on a basic
social protection floor”
Part of UN
CEB 9 joint
initiatives
ILO promotes the right to SS
• Social security conventions and recommendations are the main
tools through which the ILO promotes right to social security
• « Flagship Convention » Social Security (Minimum Standards)
Convention, 1952 (No. 102)
– Defines nine areas of social security: medical care, sickness,
unemployment, old age, employment injury, maternity, invalidity, survivors,
and benefits for families with children
– Sets minimum standards for each of these branches
• Other up-to-date conventions
–
–
–
–
Employment Injury Benefits Convention, 1964 (No. 121);
Invalidity, Old-Age and Survivors’ Benefits Convention, 1967 (No. 128);
Medical Care and Sickness Benefits Convention, 1969 (No. 130);
Employment Promotion and Protection against Unemployment
Convention,1988 (No. 168);
– and Maternity Protection Convention, 2000 (No. 183).
– In addition, the Equality of Treatment (Social Security) Convention, 1962
(No. 118), makes provision for the equality of treatment between national
and non-national workers with regard to coverage by the branches of social
security
Structure
• Social security, social protection, social
protection floor
• ILO promotes the right to social security
• The problem: a major coverage gap
• How to extend social security?
• What is the situation and what do we do at
country and regional level?
Coverage & resource gap
• Only about 20 per cent of the world’s working-age
population (and their families) have effective access to
comprehensive social protection
• Three dimensions of coverage (& gap)
– Scope. Number and type of social security branches to which the
population of the country has access
– Extent. Percentage of persons covered within the whole population
for each branch
– Level. Adequacy of coverage by a specific branch of social security
– Distinction between legal and effective coverage (often lower :
enforcement issues and resource gap)
• Limited coverage linked with a resource gap: countries
especially in Asia do not invest enough in social security
– However a basic SPF (universal pension, child benefit, basic HC,
employment guarantee scheme) is affordable (in selected Asian
countries: between 4 and 8% of GDP)
SOURCE: (ILO, 2010)World Social Security Report
Providing coverage in the time of crisis and beyond
Preliminary version, 15 March 2010
Coverage & resource gap
Percentage of population legally covered by social health protection
Some exceptions such as UCS in Thailand
Coverage & resource gap
Legal and effective coverage for old age pensions
100
Legal coverage - percentage of the working-age population covered: All old-age programmes
Legal coverage - percentage of the working-age population covered : old-age contributory programmes excluding
voluntary
Legal coverage: old-age voluntary coverage for self-employed
80
Effective coverage
Effective
old-age coverage in percentage of the working-age: contributory programme
58
26
18
22
30
26
28
32
34
34
37
40
38
40
37
40
50
42
50
60
10
14
20
North
America
Western
Europe
2
4
2
0
0
1
2
5
5
10
0
Percentage
64
62
59
65
70
67
65
70
72
75
73
77
90
CIS
Central and
Eastern
Europe
Latin
Middle East North Africa Asia and the
America
Pacific
and the
Caribbean
SubSaharan
Africa
Total
Coverage & resource gap
How much do countries invest in social security? In Asia the benefits of
growth have not been equitably shared
Total public social protection in percentage of GDP - regional estimates
Weighted by population
30
Public social security expenditure (excluding health)
25.1
25
Public health expenditure
Total public social security expenditure
Percentage of GDP
20
18.9
16.0
15
13.6
13.5
5.3% of GDP
10.2
10
9.8
8.4
5.3
5.3
5
0
Western
Europe
Central and
Eastern
Europe
North
America
North Africa
CIS
Latin
Middle East
America and
the
Caribbean
Regions
Asia and the Sub-Saharan
Pacific
Africa
Total
Structure
• Social security, social protection, social
protection floor
• ILO promotes the right to social security
• The problem: a major coverage gap
• How to extend social security?
• What is the situation and what do we do at
country and regional level?
How to extend social security?
The Social Security Staircase
100% full
coverage
Vertical dimension (higher levels
of benefits for those who can
contribute)
Voluntary
private insurance
Intermediate
coverage
Partially contributory
& linked schemes
Statutory
contributory social
insurance
Basic benefits / social protection floor for all.
Basic
Non contributory for the poor; other groups may contribute …
coverage
Poor and
Informal
Private sector
Civil servants
near poor
economy
employees
Armed forces
Horizontal dimension (SPF &
schemes for informal economy)
How to extend social security?
The social protection floor initiative
• SPF-I = one of the 9 UN CEB initiatives (April
2009) to face the crisis and accelerate recovery
– Lead agencies: ILO and WHO
• At global level:
–
–
–
–
–
A SPF Advisory Group headed by Mrs Bachelet
A manual & strategic framework developed jointly
SPF success stories
A flagship Global SPF Report under preparation
Knowledge sharing through the GESS platform
• At country level: establishment of SPF team …
1st lead by the ILO = SPF team in Thailand
– SPF success stories, Development Cooperation
Seminar (DCS) on the SPF in October, SPF
assessment to be conducted jointly
How to extend social security?
The social protection floor in Asia
India: RSBY, NREGA
Cambodia: CARD’s
SP strategy for the
poor and the
vulnerable with clear
reference to the SPF
… including HEFs,
CBHIs, Food
distribution, Cash
transfers, PWPs…
China: minimum living
standard guarantee
program; new rural
corporative medical care
(NRCMC); health
insurance for urban
uninsured residents
(HIUR); rural old-age
pension
Lao: extension of SHP
for all
Thailand: UC scheme,
minimum pension
scheme (500 THB)
Vietnam: 10 years
Social protection
strategy
Structure
• Social security, social protection, social
protection floor
• ILO promotes the right to social security
• The problem: a major coverage gap
• How to extend social security?
• What is the situation and what do we do at
country and regional level?
Situation in Thailand
76% population
* maternity, invalidity,
death, sickness and
old age benefits
Extension of 5
benefits to Informal
Economy* (article 40)
UCS since 2001 (health) and 500 Bath
scheme (pension) since 2009…
Social assistance
Poor and
near poor
Informal
economy
Provident fund
system
-Govt P Fund
-Private school
teachers WF
Workmen’s
Compensation
Fund (WCF)
-Social Security
Fund (SSF)
-Non contr.
pension sch.
-CS Medical
Benefit Sch.
Private sector
employees
Civil servants
Armed forces
• Challenges to extend coverage to IE workers (+/- 60 people joined)
• Fragmentation of social security schemes
• Inequalities have increased over past years … Capitation amount
under UCS = 2,200 THB/capita whereas under CSMBS = 12,100
THB/capita
ILO’s implication in Thailand
Vertical dimension
Advice / extension
of social security
to IE workers?
Technical assistance: (1)
Financial Management of the
Thai Health Care System (EU
project) – finished 2009
(2) Actuarial Valuation of the
Old-Age Pension Branch of
Social Security Scheme
(KIHASA) - ongoing
Facilitation of SPF Team - ongoing
Policy advice on: (1) Pension reform (M. Cichon) – July 2009
(2) 10 years of implementation of UCS – planned in 2011
Horizontal dimension
Situation in Cambodia
80% population
Scattered CBHI
schemes
NSSF
-Only work injury
-Health insurance
under study
Scattered social assistance programs:
Health Equity funds and others
Poor and
near poor
Informal
economy
Private sector
employees
NSSF-C
-Only
pensions
-Health
insurance
under study
Civil servants
Armed forces
• CARD’s National Social Protection Strategy for the Poor and Vulnerable
• CBHI very limited coverage (100,000 people)
• NSSF and NSSF-C provide very limited scope of coverage
ILO’s projects in Cambodia
Vertical dimension
Feasibility studies of Social
health insurance for private
sector and civil servants
through the ILO-EU project
Nothing for IE
workers…
Support to MIS for NSSF
work injury scheme
NSPS: drafting (reference to the social protection floor); documenting the
process (SPF Success story); costing of the strategy (ILO-EU project)
Horizontal dimension
Situation in Viet Nam
Vertical dimension
75% population
Voluntary scheme
for SME and IEco
(35,000 people!)
Voluntary subsidized HI
11 million people covered
Some social assistance
(1.23% population)
Poor and
Informal
near poor
economy
Mandatory Social Insurance
old-age pensions, disability,
health, sickness and
unemployment insurance
9.4 million workers i.e. 18 per
cent of the total workforce
Mandatory Health insurance
30 million people covered
State owned enterprises, public
and private sector
Horizontal dimension
• National Social Protection Strategy for the ten coming years (2011-20) ..
Objectives: Universal health insurance by 2014; increase coverage of
informal economy; social protection floor for all …
ILO’s projects & plans in Viet Nam
Vertical dimension
Role of SPF
Advisory
group??
ILO plan : Piloting
(STEP expertise)
Implementation of
Unemployment Insurance
through 2 projects (800,000
US$, 1 UN fund & ILO-Japan)
ILO plan: Support to the implementation of the national social protection
strategy & the development of a Social protection floor (Resource Gap)
Horizontal dimension
Situation
&
ILO’s
plan
in
Indonesia
83% population
Jamsostek pilot
project (400,000 p.
covered)
Jamsostek
Taspen
Asabri
Jamsostek
Askes
Own
hospitals
Jamkesmas (76.4 million p. covered)
CCTs / UCT; Rice for the poor;
Scholarships; Community Empowt prog.
Poor and
near poor
Informal
economy
Private sector Civil servants
employees
Armed forces
• National social protection strategy for the ten coming years
• Objective of universal HC coverage by 2014 (already 46% in 2009)
• Fragmentation of Social assistance ; challenges for IEconomy
ILO plan: Support to the implementation of the national social protection
strategy & Indonesian Jobs Pact through policy work, piloting, capacity
building and increasing coordination (Resource gap)
Situation & ILO’s project in Lao PDR
88% population
SSO (8 benefits)
Health Equity
Funds
Poor and
near poor
SASS
Scattered CBHI
schemes
Informal
economy
Private sector
employees
Civil servants
Armed forces
• 7th Social Economic Development Plan (NSEDP) includes extension of
social security for all by the year 2020
• Merger of SSO-SASS and CBHI-HEF  merger of the 4 schemes
ILO New project : 1. Support Lao PDR’s efforts towards the extension
of social health protection, even if at a modest basic level, to the
whole population … 2. Pave the way for the future implementation of
more comprehensive social protection benefits for all the population
by supporting the continuous development of social security schemes
(4 MoUS$, 3 years; waiting for Luxembourg’s approval)
Regional Level Activities
• Support / promotion of UI / EI schemes (ILO-Japan
ASEAN project + Feasibility in Malaysia and
Philippines)
• Synergies // SP Floor teams: Thailand, Cambodia,
Viet Nam …Willingness in Lao PDR and Indonesia
• Two regional training on (1) SPF; (2) Quantitative
tools and methods
• Two awareness raising tools (schools, private
enterprises)
• Knowledge sharing: GESS platform; ROAP website
Develop synergies with:
• Active Market Labour Policies & LED
• CSR & French multinationals
• HIV-AIDS
• Green Jobs
 Research, workshops, joint projects?