Challenges and Opportunities
Despite high and long-lasting economic growth, inequalities are widening in most countries in the Asian and Pacific region and the livelihood of almost one billion people rest on fragile foundations. At the same time, there is increasing consensus by national governments that in order to reduce these inequalities and build fairer and more inclusive and resilient societies, there is a necessity for scaling up social protection programmes and ultimately moving toward universal coverage.
Besides being recognized as a human right by international instruments and a majority of national governments, it is now widely acknowledged that social protection measures act as essential cushions for individuals and families against economic and natural shocks. Well-designed social protection schemes, moreover, increase human capital, which contributes to greater labour productivity; they also expand human capabilities, which augment the well-being of the population. In addition, by reducing the need for personal savings, social protection increases domestic consumption, and consequently, tends to generate sustainable economic growth in the long-run.
In spite of significant progress in the last years, including through extending provision of basic healthcare access and income support to poor and vulnerable workers and households, many Asia-Pacific countries still exhibit significant shortcomings in their social protection regimes. Public expenditure remains low at less than 2 per cent of GDP in one-half of the countries where data are available. As a result, only 30 per cent of persons above the retirement age in Asia and the Pacific receive an old-age pension, only 10 per cent of the unemployed receive any benefits, and only 30 per cent of all persons with disabilities have enough income for self-support. In addition, the tens of millions employed in the informal sector – as high as 80% of all workers in several South-Asian countries – lack basic social protection; and so too do the large majority of migrants. Furthermore, only 20 per cent of the population has access to health-care assistance. This is especially problematic considering that out-of-pocket medical expenses in the region are among the highest in the world especially.
