An Overview of Social Protection Needs in Asia and The Pacific

An Overview of Social Protection
Needs in Asia and the Pacific

David E. Bloom
Ajay Mahal
Larry Rosenberg
Jaypee Sevilla
Harvard School of Public Health

April 21, 2010
ADB Regional Conference

“Enhancing Social Protection
Strategy in Asia and the Pacific”
Disclaimer: The views expressed in this paper/presentation are the views of the author and do not necessarily reflect the
views or policies of the Asian Development Bank (ADB), or its Board of Governors, or the governments they represent.
ADB does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any
consequence of their use. Terminology used may not necessarily be consistent with ADB official terms.
An Overview of Social Protection Needs in Asia and the Pacific

Structure of talk
• What is Social Protection?
• Rationale for Social Protection
• Some initial questions
• Instruments for producing Social
Protection
• People and institutions involved
• Social Protection in the DMCs
• Key unanswered questions

Definition of “social protection”
Social protection consists of policies and
programs designed to reduce poverty
and vulnerability by promoting efficient
labor markets, diminishing people's
exposure to risks, and enhancing their
capacity to protect themselves against
hazards and interruption/loss of income.
(www.adb.org/SocialProtection/default.asp)

Five components of
social protection
• Labor markets
• Social insurance
• Social assistance and welfare
• Micro- and area-based programs
• Child protection

Evolving views of social protection
Social protection is . . .
Not just It’s also

• consumption • investment
• “picking up the • integral to inclusive growth
pieces”
• welfare • an activity that can help to
produce both economic
growth and well-being.

Structure of talk
Protection

Why does social protection matter?
• Our ultimate goal: good lives
• Ethical imperative
• Compliance with domestic and international laws
• A boost to economic growth
• Efficient labor markets
• More productive investments
• Reduction of inequality
• Links to financial markets
• Counter-cyclical nature
• Gender equity
• Good politics
• Trickle-down does not work
• An affordable (if partial) solution to a huge set of problems

• Gender equity
• Good politics

• Compliance with domestic and international
laws
• Gender equity
• Good politics
• Gender equity
• Good politics

• Gender equity
• Good politics

• Gender equity
• Good politics

• Gender equity
• Good politics

• Gender equity
• Good politics

• Gender equity
• Good politics

• Gender equity
• Good politics

• Gender equity
• Good politics

• Gender equity
• Good politics

• Gender equity
• Good politics
• An affordable (if partial) solution to a huge
set of problems
Structure of talk
Protection

Some initial questions (1)
• Level of need for social protection?
• Will this grow?
• Level of DMC interest in social protection?
• Coverage compared with the need?

• What are the implications of ADB’s
Strategy 2020 for social protection?
• How can ADB help to promote national
ownership of social protection plans?
• Can national and regional policy dialogue
be significant?

• Links between social protection and other
areas of concern in the DMCs?
• How can financing challenges be
addressed?

Questions about financing
• Which DMCs have the financial ability to expand
social protection programs?
• How does the Asia-Pacific region compare to
other regions?
• How can available funds be used most efficiently
and equitably?
• How can the least financially able countries
implement social protection programs?

Structure of talk
Protection

Instruments for producing
social protection
• Pensions
• Social insurance
• Social assistance
• Child protection
• Labor protection

Pensions
• The increasing need

• An array of options

Social insurance
• What “social insurance” means

• The need
• Many options for implementation

Social assistance
• What this encompasses

• The need for targeting
• The special role of conditional cash
transfers

Structure of talk
Protection

People and institutions involved
• Individuals in need of social protection
• Governments
• The private sector
• Non-government organizations
• International organizations
• ADB

Social Protection Floor Initiative
• Partnership led by ILO and WHO
• Goal: accelerate national commitments to
a minimum level of social protection
• Floor is set according to each country’s
circumstances

ADB: social protection & Strategy 2020
• Social protection is explicitly recognized
in the ADB’s Strategy 2020, particularly
its agenda of inclusive economic growth.
• “The region must promote greater

access to opportunities by expanding
human capacities, especially for the
disadvantaged, through investments in
education, health, and basic social
protections. It must also improve the
poor’s access to markets and basic
productive assets by putting in place
sound policies and institutions. Finally,
social safety nets must be strengthened
to prevent extreme deprivation.” (p. 8)

ADB, Strategy 2020, and
social protection
Social Social
Pensions
insurance assistance
Strategic agendas
Inclusive economic growth X X X
Environmentally sustainable growth X
Regional integration X X X
Drivers of change
Private sector development & operations X X X
Good governance & capacity development X X X
Gender equity X X X
Knowledge solutions X X X
Partnerships X X X
Core operational areas

Infrastructure X
Environment, including climate change X
Regional cooperation & integration X X X
Finance sector development X X X
Education X X

Social protection in the context of
the global economic crisis
“Governments must help prevent millions of
the vulnerable from sliding into poverty.
Attention to social protection and investments to
stimulate internal demand and reduce this
vulnerability is imperative during the economic
slowdown.”
But creating social protection systems takes time,

so proactive action is needed.
Solutions will vary by sub-region and income level.

Structure of talk
Protection

Social protection achievements in the
DMCs
• Government commitments to social
protection
• Low coverage of social insurance
programs
• Universal or means-tested programs for
the indigent.
• Programs to help with natural disasters,
conflict, and economic shocks

Social protection gaps in the DMCs
• Low spending on social assistance
compared with other regions of the
world.
• Health insurance is clearly an area in
which coverage is lacking.
• Pensions are generally lacking
throughout the DMCs.

Programs in operation
Social
insurance and Emergency Child
Social assistance
labor market transfers protection
initiatives
Sickness,
Education-
unemployment, old Poverty- Health-related Employment- Transfers to cope
related
age, health, related: transfers (e.g., related transfers with shocks,
transfers (e.g.,
insurance (e.g., (universal or maternity (e.g., public conflict, and
school meals,
public service, means tested) benefits) works schemes) natural disasters
stipends)
formal sector)
Afghanistan X X X X
Armenia X X X X X
Azerbaijan X X X X
Bangladesh X X X X X X
Cambodia X X X X X
China X X X X X X X
Georgia X X X X
India X X X X X X
Indonesia X X X
Kazakhstan X X X X X
Kyrgyz Rep. X X X X X X X
Lao People's D. R. X X X
Malaysia X X X X X
Mongolia X X X X
Pakistan X X X X X X X
Philippines X X X
Sri Lanka X X X X X X
Tajikistan X X X X
Thailand X X X X X X
Turkmenistan X X X X
Uzbekistan X X X X
Viet Nam X X X X X
Source: ESCAP, ADB, UNDP. Achieving the Millennium Development Goals in an Era of Global Uncertainty: Asia-Pacific Regional Report 2009/10

Structure of talk
Protection

Key unanswered questions
1. Best way for ADB to help countries with social
protection programs?
2. Social protection and ADB’s business model: Is
there a solid investment case for social
protection?
3. Public-private partnerships to strengthen social
protection?
4. Social protection activities and gender equity?
5. Concrete steps ADB can take to promote regional
solutions to address social protection gaps?
6. How to build on accomplishments to date?

Building on accomplishments to date
• ADB: reconceptualization of social protection as
– an activity that promotes inclusive economic growth
– an investment, not simply a hand-out
• DMCs: assessment of social protection needs and

development of a strategy for meeting those
needs

An Overview of Social Protection Needs in Asia and The Pacific

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An Overview of Social Protection

Needs in Asia and the Pacific

Harvard School of Public Health

ADB Regional Conference

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

Not just It’s also

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

• The increasing need

An Overview of Social Protection Needs in Asia and the Pacific

• What “social insurance” means

An Overview of Social Protection Needs in Asia and the Pacific

• What this encompasses

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

• “The region must promote greater

An Overview of Social Protection Needs in Asia and the Pacific

Core operational areas

An Overview of Social Protection Needs in Asia and the Pacific

But creating social protection systems takes time,

Solutions will vary by sub-region and income level.

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

An Overview of Social Protection Needs in Asia and the Pacific

• DMCs: assessment of social protection needs and

An Overview of Social Protection Needs in Asia and the Pacific

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