Opportunities and challenges in the implementation of SPFs
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1 Opportunities and challenges in the implementation of SPFs Valerie Schmitt, ILO Bangkok UNITAR/ILO Seminar on advancing social protection floors, 13/09/2013
2 Key points The SPF: an amazing opportunity Challenges of implementing the SPF & guiding principles of R202 The guiding principles in practice
3 The SPF: an amazing opportunity Right to social security The major part of the population is left without adequate protection Level of protection Poor Rest of informal sector Formal sector Population
4 The SPF: an amazing opportunity Right to social security All residents should enjoy at least a minimum level of social security Countries should establish SPFs as a fundamental element of their social security systems Level of protection Social Protection Floor Poor Rest of informal sector Formal sector Population
5 The SPF: an amazing opportunity A set of guarantees All residents have access to essential health care All children enjoy income security through transfers in cash or kind access to nutrition, education and care All those in active age groups who cannot earn sufficient income enjoy a basic income security (particularly in case of sickness, unemployment, maternity, disability) All residents in old age have income security through pensions or transfers in kind
6 The SPF: an amazing opportunity A fast track strategy Thailand
7 The SPF: an amazing opportunity Poverty reduction and development Social protection Direct effects Behavioral effects Poverty and inequality 1. Household consumption Education & training Health Child well being 3. Human capital 4. Demand for goods and services Increased Wages, income Livelihoods and productive investments 3. Physical capital 4. Increased financing 5. Labour Economic performance Labour productivity Source: Maastricht School of Governance
8 Challenges in SPF implementation Mandatory social insurance Social security for informal sector (voluntary insurance, social assistance) Legal framework Provisions in 1 or 2 Laws (aligned with labour code) Thailand: SSAct, WCAct Multiple laws & decrees (social welfare, health, employment, social security) Thailand: SSA, Nat Health Sec Fund, Qty of life, National Savings Decentralization Acts Institutions Ministry of Labour Ministry of Health Multiple ministries (health, rural devlt, labour, SW, interior, finance, education, antipoverty programmes ) Thailand: 3 old age pension (MOL, MOF, MOI/MSDHS) Lack of coherence Fragmentation
9 Guiding principles R202 Mandatory social insurance Legal framework Provisions in 1 or 2 Laws (aligned with labour code) Institutions Ministry of Labour Ministry of Health Social security for informal sector (voluntary insurance, social assistance) Multiple laws & decrees (social welfare, health, employment, social security) Multiple ministries (health, rural devlt, labour, SW, interior, finance, education, antipoverty programmes ) Guiding principles R202 Coherence with social, economic and employment policies Coherence across institutions responsible for delivery of social protection
10 Challenges in SPF implementation Mandatory social insurance Social security for informal sector (voluntary insurance, social assistance) Financing & sustainability Bi/Tripartite Actuarial studies Relying mainly on govt budget; no M&E Thailand: no consolidated DB (MSDHS, MOI) Governance & representation Tripartite board Complaint/appeals Persons of concerns not represented No information on entitlements Affordability, Fiscal space, M&E Political risk Social control
11 Guiding principles R202 Mandatory social insurance Social security for informal sector (voluntary insurance, social assistance) Financing & sustainability Bi/Tripartite Actuarial studies Relying mainly on govt budget; no M&E Thailand: no consolidated DB (MSDHS, MOI) Governance & representation Tripartite board Complaint/appeals Persons of concerns not represented No information on entitlements Guiding principles R202 Financial, fiscal and economic sustainability Transparent, accountable, sound financial management Tripartite participation Efficient and accessible complaints & appeal procedures
12 Challenges in SPF implementation Mandatory social insurance Social security for informal sector (voluntary insurance, social assistance) Coverage Mandatory affiliation (enforcement problems) Often ad hoc (no NID, targeting philosophy) No unified identification/ targeting system > confusion No consolidated DB Benefits Related to the contribution rate Minimum in most cases; predictability; quality of services On demand ; quality/availability HC Coverage gaps Limited income security & quality
13 Guiding principles R202 Mandatory social insurance Social security for informal sector (voluntary insurance, social assistance) Guiding principles R202 Coverage Mandatory affiliation (enforcement problems) Often ad hoc (no NID, targeting philosophy) Universality of protection Benefits Related to the contribution rate Minimum in most cases; predictability; quality of services Entitlement to benefits prescribed by Law Adequacy & predictability High quality public services
14 The guiding principles in practice Coherent strategy National consensus building on priorities (ex Assessment Based National Dialogue) Leading to national social protection strategies (Cambodia, Mongolia, Lao PDR, Myanmar)
15 The guiding principles in practice Coherence across institutions Coordinating agencies (ex CARD, NESDB, Vice President) Coordinated delivery (ex Single Window)
16 The guiding principles in practice Coordinated technical assistance Taskforces and teams: IWG in Cambodia, UN/RTG in Thailand, UNPDF in Indonesia in the framework of UNDAFs Support to UNCTs through UNDG AP issues briefs on SP
17 The guiding principles in practice Affordability & fiscal space Cambodia; % GDP by 2020 Indonesia; 0.7 to 2.4% GDP by 2020 Thailand; % GDP by 2020 Viet Nam; 2% to 6% GDP by 2020
18 The guiding principles in practice Monitoring and evaluation Various targeting methods (means tested, area based ) using a mix of scientific and community based mechanisms Need to build information systems to gather and update information (ex: TNP2K Indonesia) Impact evaluation of interventions Role of decentralized entry points (SWS, PEOPLE service) for the updating of data NO LATRINES DRINKING WATER GOOD PRACTICE HIV/AIDS RATIO CHILDREN 3 5 IN PRE SCHOOL CHILDREN 6 14 OUT OF SCHOOL DELIVERY BY MIDWIFE DOMESTIC VIOLENCE RATIO
19 The guiding principles in practice Coverage & benefit package Priority given to the poor by many governments Benefit packages remain low at the beginning but increase gradually (ex: Indonesia VS Thailand) Combined benefit packages & case management No leverage on quality/availability of public services
20 The guiding principles in practice Voice of persons of concern SSDM Cambodia: participation through committees How to involve workers & employers rep.? Ombudsman Information/ awareness raising through decentralized structures
21 The guiding principles in practice Entitlements to benefits Education and awareness raising through PSAs, Education tools, Radio drama, civil society networks, workers organizations PSA Why is social protection important to me? eature=player_embedded&v=zb4 0vKO5xSs Education tool on SPF targeting children years old nal/
22 Final words The SPF concept is an opportunity Implementing national SPFs is challenging R202 provides guiding principles that need to be translated into action Be creative!
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