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Social Protection
Social Protection
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.
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.
Our Response
At the 67th Commission session in May 2011, members and associate members of ESCAP underscored the urgency of moving toward universal coverage by adopting Resolution 67/8 on “Strengthening social protection systems in Asia and the Pacific.” This Resolution calls upon member States to “invest in building social protection systems that might form the basis of a ‘social protection floor’, which would offer a minimum level of access to essential services and income security for all, and subsequently enhancing the capacity for extension, according to national aspirations and circumstances.”
The Social Protection Floor (SPF) represents a move from a fragmented approach towards an integrated system of social protection. The SPF framework facilitates the implementation of a guaranteed basic social protection package for all and should be prioritized over an ad hoc addition of new programmes for different conditions and population groups. While not all countries will be able to immediately put in place all components for the whole population, the SPF provides a framework to plan progressive implementation of a social protection system.
The SPF provides the guiding framework for ESCAP’s work in the area of social protection.
The Social Protection Floor (SPF) represents a move from a fragmented approach towards an integrated system of social protection. The SPF framework facilitates the implementation of a guaranteed basic social protection package for all and should be prioritized over an ad hoc addition of new programmes for different conditions and population groups. While not all countries will be able to immediately put in place all components for the whole population, the SPF provides a framework to plan progressive implementation of a social protection system.
The SPF provides the guiding framework for ESCAP’s work in the area of social protection.
Our Work
ESCAP supports national and regional effort to broaden social protection programs by promulgating mandates and resolutions that establish universal coverage as the norm; functioning as a research platform and a hub for networks of policymakers and practitioners; and enhancing the capacity of member States to strengthen relevant policies and programs. ESCAP is currently conducting two projects that draw on its norm-setting, analytical and capacity-building functions.
Development Account project on “Strengthening social protection”
The main objective of this interregional project is to enhance the capacity for developing effective social protection policies and programmes. Through national studies and consultations, this project will promote the exchange of experiences, formulate capacity-building activities and document innovative schemes from these member States. The research results will be integrated into an on-line toolbox which will provide support to national level initiatives of member States in the region.
Analyzing social protection policies: a focus on income support schemes
The main objective of this project is to compile and analyze current practices and experiences of selected countries in the region in developing and implementing income support schemes. The research findings will be disseminated to key stakeholders as best practices in enhancing income support.